NYSE:CNA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has CNA Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.9%

CNA

0.1%

US Insurance

0.4%

US Market


1 Year Return

6.4%

CNA

13.6%

US Insurance

6.9%

US Market

Return vs Industry: CNA underperformed the US Insurance industry which returned 13.6% over the past year.

Return vs Market: CNA matched the US Market which returned 6.9% over the past year.


Shareholder returns

CNAIndustryMarket
7 Day-0.9%0.1%0.4%
30 Day-4.5%-2.2%-1.1%
90 Day-1.4%-1.8%-0.5%
1 Year14.7%6.4%16.4%13.6%9.3%6.9%
3 Year63.8%32.8%44.8%33.6%45.8%36.4%
5 Year78.4%22.2%69.9%49.7%62.9%45.1%

Price Volatility Vs. Market

How volatile is CNA Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

14.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CNA ($46.96) is trading above our estimate of fair value ($45.98)

Significantly Below Fair Value: CNA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CNA is good value based on its PE Ratio (14.6x) compared to the Insurance industry average (15.6x).

PE vs Market: CNA is good value based on its PE Ratio (14.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: CNA is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: CNA is good value based on its PB Ratio (1.1x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

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

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNA's forecast earnings growth (8% per year) is above the savings rate (2.7%).

Earnings vs Market: CNA's earnings (8% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: Insufficient data to determine if CNA's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if CNA's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CNA's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has CNA Financial performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CNA's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: CNA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CNA had negative earnings growth (-6%) over the past year, making it difficult to compare to the Insurance industry average (1.4%).


Return on Equity

High ROE: CNA's Return on Equity (7.2%) is considered low.


Return on Assets

ROA vs Industry: CNA's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: CNA has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CNA Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CNA has a low level of unsold assets or inventory.

Debt Coverage by Assets: CNA's debt is covered by short term assets (assets are 3.387970x debt).


Financial Institutions Analysis

Asset Level: CNA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CNA has a sufficient allowance for bad loans.

Low Risk Liabilities: CNA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CNA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CNA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CNA has an appropriate level of bad loans.


Next Steps

Dividend

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

7.24%

Current Dividend Yield


Dividend Yield vs Market

company7.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years7.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CNA's dividend (7.24%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CNA's dividend (7.24%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: Whilst dividend payments have been stable, CNA has been paying a dividend for less than 10 years.

Growing Dividend: CNA's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.6%), CNA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CNA's dividends in 3 years are forecast to be covered by earnings (85.8% payout ratio).


Next Steps

Management

What is the CEO of CNA Financial's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Dino Robusto (61yo)

2.9yrs

Tenure

US$10,109,176

Compensation

Mr. Dino Ennio Robusto has been the Chairman of the Board and Chief Executive Officer at CNA Financial Corporation since November 21, 2016. He serves as Chairman, President and Chief Executive Officer at T ...


CEO Compensation Analysis

Compensation vs. Market: Dino's total compensation ($USD10.11M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Dino's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.4yrs

Average Tenure

52.5yo

Average Age

Experienced Management: CNA's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

64yo

Average Age

Experienced Board: CNA's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$49,94113 May 19
Dino Robusto
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & CEO
Shares1,094
Max PriceUS$45.65
SellUS$326,57401 May 19
Andrew Pinkes
EntityIndividual
Shares7,132
Max PriceUS$45.79

Ownership Breakdown


Management Team

  • Dino Robusto (61yo)

    Chairman of the Board & CEO

    • Tenure: 2.9yrs
    • Compensation: US$10.11m
  • James Anderson (46yo)

    Executive VP & CFO

    • Tenure: 1.2yrs
    • Compensation: US$1.81m
  • Doug Worman (51yo)

    Executive VP & Chief Underwriting Officer for CNA Insurance

    • Tenure: 2.6yrs
    • Compensation: US$3.39m
  • Kevin Smith (54yo)

    President & COO of Specialty for CNA Insurance

    • Tenure: 2.4yrs
    • Compensation: US$2.96m
  • Ray Oral

    Chief Information Officer

    • Tenure: 10.1yrs
  • Amy Adams

    Senior Vice President of Investments & Treasury

    • Tenure: 4.9yrs
  • Kevin Leidwinger (55yo)

    President & COO of Commercial for CNA Insurance Lines

    • Tenure: 0yrs
    • Compensation: US$3.01m
  • Garrett Williams

    Senior VP & Chief Compliance Officer

    • Tenure: 1.3yrs
  • Michael Costonis (48yo)

    Executive VP & COO

    • Tenure: 1.1yrs
  • Jane Possell

    Chief Information Officer

    • Tenure: 0.08yrs

Board Members

  • Andrew Tisch (70yo)

    Director

    • Tenure: 13.7yrs
    • Compensation: US$9.67k
  • James Tisch (66yo)

    Director

    • Tenure: 34.4yrs
    • Compensation: US$9.67k
  • André Rice (59yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: US$150.00k
  • Marvin Zonis (82yo)

    Independent Director

    • Tenure: 26.4yrs
    • Compensation: US$155.00k
  • Don Randel (78yo)

    Independent Director

    • Tenure: 17.4yrs
    • Compensation: US$150.00k
  • Mike Bless (54yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$150.00k
  • Dino Robusto (61yo)

    Chairman of the Board & CEO

    • Tenure: 2.9yrs
    • Compensation: US$10.11m
  • Jose Montemayor (68yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$170.00k
  • Kenneth Siegel (62yo)

    Senior VP & Director

    • Tenure: 0.5yrs
  • Ben Tisch (36yo)

    VP & Director

    • Tenure: 1.5yrs

Company Information

CNA Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CNA Financial Corporation
  • Ticker: CNA
  • Exchange: NYSE
  • Founded: 1853
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$12.750b
  • Shares outstanding: 271.51m
  • Website: https://www.cna.com

Number of Employees


Location

  • CNA Financial Corporation
  • 151 North Franklin Street
  • Chicago
  • Illinois
  • 60606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNANYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
CNHDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

Biography

CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It offers professional liability coverages and risk management services to various pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.