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

Unattractive dividend payer and overvalued.


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


Market Performance


7 Day Return

1.5%

CNO

-0.03%

US Insurance

1.0%

US Market


1 Year Return

-23.6%

CNO

15.1%

US Insurance

6.7%

US Market

Return vs Industry: CNO underperformed the US Insurance industry which returned 15.1% over the past year.

Return vs Market: CNO underperformed the US Market which returned 6.7% over the past year.


Share holder returns

CNOIndustryMarket
7 Day1.5%-0.03%1.0%
30 Day-7.7%-1.6%-1.8%
90 Day-8.1%-3.5%-1.8%
1 Year-21.5%-23.6%17.9%15.1%9.1%6.7%
3 Year3.3%-2.8%42.0%31.1%46.0%36.6%
5 Year-1.1%-9.7%74.5%53.7%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

0.56x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: CNO ($15.19) is trading above our estimate of fair value ($7.59)

Significantly Undervalued: CNO is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: CNO is unprofitable, so we can't compare its PE Ratio to the Insurance industry average.

PE vs Market: CNO is unprofitable, so we can't compare its PE Ratio to the US market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate CNO's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

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 expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

65.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CNO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CNO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CNO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CNO's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: CNO's revenue is forecast to decline over the next 3 years (-0.3%).


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

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

-33.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CNO is unprofitable, and losses have increased over the past 5 years at a rate of -33.6% per year.

Accelerating Growth: Unable to compare CNO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CNO is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (3.1%).


Return on Equity

High ROE: CNO has a negative Return on Equity (-9.69%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CNO is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CNO is currently unprofitable, so its Return on Capital Employed is negative.


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 1.592000x 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?

3.19%

Expected Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years3.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CNO's dividend (2.9%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: CNO's dividend (2.9%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 7 years.


Current Payout to Shareholders

Dividend Coverage: CNO is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CNO's dividends in 3 years are forecast to be well covered by earnings (23.4% 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?

3.0yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Gary's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.0yrs

Average Tenure

54yo

Average Age

Experienced Management: CNO's management team is considered experienced (3 years average tenure).


Board Age and Tenure

7.2yrs

Average Tenure

69yo

Average Age

Experienced Board: CNO's board of directors are considered experienced (7.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$150,07518 Sep 19
Frederick Sievert
EntityIndividual
Role
Member of the Board of Directors
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
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
Director
Shares3,000
Max PriceUS$13.85
SellUS$321,51807 Nov 18
Matthew Zimpfer
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares17,417
Max PriceUS$18.46
BuyUS$36,99007 Nov 18
Stephen David
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$18.50

Ownership Breakdown


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: 16.1yrs
    • Compensation: US$1.87m
  • Gary Bhojwani (51yo)

    CEO & Director

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

    Chief Financial Officer

    • Tenure: 0.6yrs
  • Matt Zimpfer (52yo)

    Executive VP & General Counsel

    • Tenure: 11.3yrs
    • 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: 0.9yrs
  • Pat Casey

    VP & Chief Technology Officer

    • Tenure: 0.08yrs

Board Members

  • Steve David (70yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$253.65k
  • Nina Henderson (69yo)

    Director

    • Tenure: 7.2yrs
    • Compensation: US$258.65k
  • Fred Sievert (71yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: US$283.65k
  • Bob Greving (68yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: US$288.65k
  • Dan Maurer (62yo)

    Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: US$393.82k
  • Neal Schneider (75yo)

    Director

    • Tenure: 16.1yrs
    • Compensation: US$268.05k
  • Charlie Jacklin (64yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$274.17k
  • Gary Bhojwani (51yo)

    CEO & Director

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

    Director

    • Tenure: 7.4yrs
    • Compensation: US$274.17k

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$2.370b
  • Shares outstanding: 155.99m
  • 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 Analysis2019/10/14 01:44
End of Day Share Price2019/10/11 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.

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