CNA Financial (NYSE:CNA) - Share price, News & Analysis

CNA fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	5/6
Financial Health	3/6
Dividends	5/6

CNA Stock Overview

CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States.

Rewards

Trading at 21.9% below our estimate of its fair value

Earnings are forecast to grow 4.8% per year

Earnings grew by 13.2% over the past year

Risk Analysis

Unstable dividend track record

CNA Financial Competitors

Cincinnati Financial

NasdaqGS:CINF

US$19.6b

Markel

NYSE:MKL

US$18.1b

W. R. Berkley

NYSE:WRB

US$17.6b

Arch Capital Group

NasdaqGS:ACGL

US$17.0b

Price History & Performance

Summary of all time highs, changes and price drops for CNA Financial
Historical stock prices
Current Share Price	US$43.99
52 Week High	US$50.33
52 Week Low	US$41.44
Beta	0.80
1 Month Change	-11.44%
3 Month Change	-4.66%
1 Year Change	-7.25%
3 Year Change	-3.83%
5 Year Change	-4.31%
Change since IPO	31.97%

Recent News & Updates

May 05

CNA Financial (NYSE:CNA) Is Increasing Its Dividend To US$0.40

CNA Financial Corporation's ( NYSE:CNA ) dividend will be increasing to US$0.40 on 2nd of June. This will take the...

Shareholder Returns

	CNA	US Insurance	US Market
7D	-0.3%	-2.3%	-2.7%
1Y	-7.3%	-0.9%	-12.9%

Return vs Industry: CNA underperformed the US Insurance industry which returned -0.1% over the past year.

Return vs Market: CNA exceeded the US Market which returned -12.7% over the past year.

Price Volatility

Is CNA's price volatile compared to industry and market?
CNA volatility
CNA Average Weekly Movement	4.0%
Insurance Industry Average Movement	5.2%
Market Average Movement	7.9%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.0%

Stable Share Price: CNA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CNA's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1853	5,600	Dino Robusto	https://www.cna.com

CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated standard property and casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products.

CNA Financial Fundamentals Summary

How do CNA Financial's earnings and revenue compare to its market cap?
CNA fundamental statistics
Market Cap	US$11.93b
Earnings (TTM)	US$1.20b
Revenue (TTM)	US$11.93b

9.9x

P/E Ratio

1.0x

P/S Ratio

Is CNA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNA income statement (TTM)
Revenue	US$11.93b
Cost of Revenue	US$7.73b
Gross Profit	US$4.20b
Other Expenses	US$3.00b
Earnings	US$1.20b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.43
Gross Margin	35.22%
Net Profit Margin	10.09%
Debt/Equity Ratio	25.7%

How did CNA perform over the long term?

See historical performance and comparison

Dividends

8.2%

Current Dividend Yield

35%

Payout Ratio

Valuation

Is CNA Financial undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

21.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CNA ($43.99) is trading below our estimate of fair value ($56.35)

Significantly Below Fair Value: CNA is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: CNA is good value based on its PE Ratio (9.9x) compared to the US Insurance industry average (10.9x).

PE vs Market: CNA is good value based on its PE Ratio (9.9x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: CNA is poor value based on its PEG Ratio (2.1x)

Price to Book Ratio

PB vs Industry: CNA's PB Ratio (1.1x) is in line with the US Insurance industry average.

Future Growth

How is CNA Financial forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

4.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNA's forecast earnings growth (4.8% per year) is above the savings rate (1.9%).

Earnings vs Market: CNA's earnings (4.8% per year) are forecast to grow slower than the US market (12.5% per year).

High Growth Earnings: CNA's earnings are forecast to grow, but not significantly.

Revenue vs Market: CNA's revenue is expected to decline over the next 3 years (-15.3% per year).

High Growth Revenue: CNA's revenue is forecast to decline over the next 3 years (-15.3% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if CNA's Return on Equity is forecast to be high in 3 years time

Past Performance

How has CNA Financial performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

2.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CNA has high quality earnings.

Growing Profit Margin: CNA's current net profit margins (10.1%) are higher than last year (9.3%).

Past Earnings Growth Analysis

Earnings Trend: CNA's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: CNA's earnings growth over the past year (13.2%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: CNA earnings growth over the past year (13.2%) exceeded the Insurance industry -2.6%.

Return on Equity

High ROE: CNA's Return on Equity (11.1%) is considered low.

Financial Health

How is CNA Financial's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CNA's short term assets ($10.5B) do not cover its short term liabilities ($31.3B).

Long Term Liabilities: CNA's short term assets ($10.5B) do not cover its long term liabilities ($21.7B).

Debt to Equity History and Analysis

Debt Level: CNA's net debt to equity ratio (10.3%) is considered satisfactory.

Reducing Debt: CNA's debt to equity ratio has increased from 23.2% to 25.7% over the past 5 years.

Debt Coverage: CNA's debt is well covered by operating cash flow (92.1%).

Interest Coverage: CNA's interest payments on its debt are well covered by EBIT (14.1x coverage).

Balance Sheet

Dividend

What is CNA Financial current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

8.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CNA's dividend (8.18%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: CNA's dividend (8.18%) is in the top 25% of dividend payers in the US market (4.09%)

Stability and Growth of Payments

Stable Dividend: CNA's dividend payments have been volatile in the past 10 years.

Growing Dividend: CNA's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.8%), CNA's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (38.7%), CNA's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure

CEO

Dino Robusto (63 yo)

5.5yrs

Tenure

US$14,246,207

Compensation

Mr. Dino Ennio Robusto is Chairman and Chief Executive Officer of CNA Financial Corporation (CNA) since November 2016. Since joining CNA Financial Corporation in November 2016, he has re-energized the busi...

CEO Compensation Analysis

Compensation vs Market: Dino's total compensation ($USD14.25M) is about average for companies of similar size in the US market ($USD13.27M).

Compensation vs Earnings: Dino's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: CNA's management team is considered experienced (3.9 years average tenure).

Board Members

Experienced Board: CNA's board of directors are considered experienced (5.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: CNA insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31