NYSE:CNO

Stock Analysis Report

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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. More Details


Snowflake Analysis

Fair value second-rate dividend payer.


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

3.5%

CNO

0.4%

US Insurance

-1.1%

US Market


1 Year Return

16.3%

CNO

-11.9%

US Insurance

15.6%

US Market

Return vs Industry: CNO exceeded the US Insurance industry which returned -9.5% over the past year.

Return vs Market: CNO underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

CNOIndustryMarket
7 Day3.5%0.4%-1.1%
30 Day18.6%5.6%4.2%
90 Day20.6%0.3%6.3%
1 Year19.6%16.3%-9.5%-11.9%18.2%15.6%
3 Year-17.6%-23.2%0.6%-6.7%39.6%30.4%
5 Year4.7%-5.6%36.2%19.0%79.5%59.2%

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?

7.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CNO ($18.58) is trading above our estimate of fair value ($10.38)

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


Price To Earnings Ratio

PE vs Industry: CNO is good value based on its PE Ratio (7.2x) compared to the US Insurance industry average (14.3x).

PE vs Market: CNO is good value based on its PE Ratio (7.2x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: CNO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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 (0.9x).


Next Steps

Future Growth

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

-12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNO's earnings are forecast to decline over the next 3 years (-12.5% per year).

Earnings vs Market: CNO's earnings are forecast to decline over the next 3 years (-12.5% per year).

High Growth Earnings: CNO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CNO's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: CNO's revenue is forecast to decline over the next 3 years (-1% 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 (7.5%).


Next Steps

Past Performance

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

-17.6%

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 17.6% 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 (-3.2%).


Return on Equity

High ROE: CNO's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is CNO Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: CNO's short term assets ($5.9B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: CNO's short term assets ($5.9B) do not cover its long term liabilities ($27.0B).


Debt to Equity History and Analysis

Debt Level: CNO's debt to equity ratio (78.5%) is considered high.

Reducing Debt: CNO's debt to equity ratio has reduced from 89.6% to 78.5% over the past 5 years.

Debt Coverage: CNO's debt is not well covered by operating cash flow (19%).

Interest Coverage: CNO's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CNO's dividend (2.58%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: CNO's dividend (2.58%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 low payout ratio (17.5%), 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 (24.8% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Gary Bhojwani (52 yo)

2.75yrs

Tenure

US$6,792,823

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 ($USD6.79M) is about average for companies of similar size in the US market ($USD5.60M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Bhojwani
CEO & Director2.75yrsUS$6.79m0.19%
$ 5.0m
Paul McDonough
CFO & Executive VP1.58yrsUS$2.12m0.032%
$ 840.0k
Bruce Baude
Executive VP and Chief Operations & Technology Officer8.25yrsUS$2.07m0.063%
$ 1.7m
Eric Johnson
Chief Investment Officer17.08yrsUS$1.99m0.32%
$ 8.3m
Matthew Zimpfer
Executive VP & General Counsel12.33yrsUS$2.05m0.080%
$ 2.1m
John Kline
Senior VP & Chief Accounting Officer18.25yrsUS$575.89k0.054%
$ 1.4m
Jeffrey Kircher
VP of Corporate Finance & Treasurer4.25yrsno datano data
Mike Mead
Senior VP & Chief Information Officer1.92yrsno datano data
Doug Williams
Vice President of Finance & Administration3.75yrsno datano data
Jennifer Childe
Vice President of Investor Relations2.17yrsno datano data
Nancy Sweet
Chief Compliance Officer and Vice President6.42yrsno datano data
Carrie Jost
Vice President of Communications2.67yrsno datano data

4.0yrs

Average Tenure

55yo

Average Age

Experienced Management: CNO's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Bhojwani
CEO & Director2.75yrsUS$6.79m0.19%
$ 5.0m
Stephen David
Independent Director3.42yrsUS$259.47k0.0092%
$ 241.5k
Mary Henderson
Independent Director8.17yrsUS$282.32k0.017%
$ 445.3k
Frederick Sievert
Independent Director9.42yrsUS$258.30k0.030%
$ 800.5k
Robert Greving
Independent Director9.42yrsUS$290.00k0.053%
$ 1.4m
Daniel Maurer
Independent Chairman of the Board2.42yrsUS$400.00k0.017%
$ 457.6k
Charles Jacklin
Independent Director5.42yrsUS$275.00k0.031%
$ 819.4k
Ellyn Brown
Independent Director8.42yrsUS$270.00k0.049%
$ 1.3m
David Foss
Independent Director0.92yrUS$111.47k0.0042%
$ 110.6k

5.4yrs

Average Tenure

69yo

Average Age

Experienced Board: CNO's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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.


Top Shareholders

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$2.633b
  • Shares outstanding: 141.72m
  • 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 Analysis2020/10/26 23:32
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.