NYSE:CNO

Stock Analysis Report

Executive Summary

CNO Financial Group, Inc., through its subsidiaries, develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CNO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

CNO

-0.09%

US Insurance

0.9%

US Market


1 Year Return

1.6%

CNO

16.3%

US Insurance

16.8%

US Market

Return vs Industry: CNO underperformed the US Insurance industry which returned 16.3% over the past year.

Return vs Market: CNO underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

CNOIndustryMarket
7 Day2.2%-0.09%0.9%
30 Day15.6%1.5%4.5%
90 Day21.7%2.5%6.2%
1 Year4.3%1.6%19.1%16.3%19.4%16.8%
3 Year6.7%0.4%36.7%26.2%47.5%38.0%
5 Year11.3%1.6%64.4%44.7%62.0%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CNO ($18.06) is trading above our estimate of fair value ($6.13)

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


Price To Earnings Ratio

PE vs Industry: CNO is poor value based on its PE Ratio (18x) compared to the Insurance industry average (16.8x).

PE vs Market: CNO is good value based on its PE Ratio (18x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CNO is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: CNO is good value based on its PB Ratio (0.6x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is CNO Financial Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNO's forecast earnings growth (22.6% per year) is above the savings rate (2.7%).

Earnings vs Market: CNO's earnings (22.6% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CNO's revenue (2.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CNO's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CNO's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has CNO Financial Group performed over the past 5 years?

-31.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNO has high quality earnings.

Growing Profit Margin: CNO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CNO's earnings have declined by -31.8% per year over the past 5 years.

Accelerating Growth: CNO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CNO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (-9.1%).


Return on Equity

High ROE: CNO's Return on Equity (3.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CNO Financial Group'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: CNO has a low level of unsold assets or inventory.

Debt Coverage by Assets: CNO's debt is covered by short term assets (assets are 1.6x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.44%

Current Dividend Yield


Upcoming Dividend Payment

Purchase CNO Financial Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: CNO's dividend (2.44%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: CNO's dividend (2.44%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

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

Growing Dividend: CNO's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42%), CNO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CNO's dividends in 3 years are forecast to be well covered by earnings (24% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Gary Bhojwani (51yo)

1.8yrs

Tenure

US$7,701,334

Compensation

Mr. Gary Chandru Bhojwani has been Chief Executive officer at CNO Financial Group since January 1, 2018. He was the President of CNO Financial Group, Inc. from April 18, 2016 to December 2017. Mr. Bhojwani ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD7.70M) is above average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

3.1yrs

Average Tenure

54yo

Average Age

Experienced Management: CNO's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

68.5yo

Average Age

Experienced Board: CNO's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: CNO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$31,26719 Nov 19
Joel Schwartz
EntityIndividual
Shares1,717
Max PriceUS$18.21
SellUS$150,07518 Sep 19
Frederick Sievert
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,415
Max PriceUS$15.94
SellUS$249,49915 May 19
Matthew Zimpfer
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares15,112
Max PriceUS$16.51
BuyUS$115,30006 May 19
Charles Jacklin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceUS$16.67
SellUS$260,89402 Apr 19
Gerardo Monroy
EntityIndividual
Shares16,055
Max PriceUS$16.25
BuyUS$41,54527 Dec 18
Stephen David
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$13.85

Ownership Breakdown

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


Management Team

  • Bruce Baude (54yo)

    Executive VP and Chief Operations & Technology Officer

    • Tenure: 7.3yrs
    • Compensation: US$1.90m
  • John Kline (62yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 17.3yrs
    • Compensation: US$575.89k
  • Eric Johnson (59yo)

    Chief Investment Officer

    • Tenure: 16.2yrs
    • Compensation: US$1.87m
  • Gary Bhojwani (51yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: US$7.70m
  • Paul McDonough (54yo)

    Chief Financial Officer

    • Tenure: 0.7yrs
  • Matt Zimpfer (52yo)

    Executive VP & General Counsel

    • Tenure: 11.4yrs
    • Compensation: US$2.40m
  • Jeff Kircher

    VP of Corporate Finance & Treasurer

    • Tenure: 3.3yrs
  • Doug Williams

    Vice President of Finance & Administration

    • Tenure: 2.8yrs
  • Mike Mead

    Senior VP & Chief Information Officer

    • Tenure: 1yrs
  • Pat Casey

    VP & Chief Technology Officer

    • Tenure: 0.2yrs

Board Members

  • Steve David (70yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$253.65k
  • Nina Henderson (69yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$258.65k
  • Fred Sievert (71yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$283.65k
  • Bob Greving (68yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$288.65k
  • Dan Maurer (62yo)

    Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: US$393.82k
  • Neal Schneider (75yo)

    Independent Director

    • Tenure: 16.2yrs
    • Compensation: US$268.05k
  • Charlie Jacklin (64yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$274.17k
  • Gary Bhojwani (51yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: US$7.70m
  • Ellyn Brown (69yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$274.17k
  • Dave Foss (57yo)

    Director

    • Tenure: 0yrs

Company Information

CNO Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CNO Financial Group, Inc.
  • Ticker: CNO
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$2.730b
  • Shares outstanding: 151.14m
  • Website: https://www.cnoinc.com

Number of Employees


Location

  • CNO Financial Group, Inc.
  • 11825 North Pennsylvania Street
  • Carmel
  • Indiana
  • 46032
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNONYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2003
COSDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2003

Biography

CNO Financial Group, Inc., through its subsidiaries, develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income marke ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 23:53
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
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.