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

Moderate growth potential unattractive dividend payer.

Risks

  • CNO Financial Group is covered by less than 3 analysts.

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

-4.3%

NYSE:CNO

-1.5%

US Insurance

-1.0%

US Market


1 Year Return

-31.3%

NYSE:CNO

8.4%

US Insurance

-0.4%

US Market

CNO underperformed the Insurance industry which returned 7.2% over the past year.

CNO underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

CNOIndustryMarket
7 Day-4.3%-1.5%-1.0%
30 Day-7.9%-2.9%-3.3%
90 Day-9.6%2.4%0.4%
1 Year-29.6%-31.3%11.0%8.4%1.8%-0.4%
3 Year1.6%-4.1%44.7%33.8%39.4%30.4%
5 Year-7.3%-15.1%66.5%46.8%54.2%37.1%

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

0.55x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

CNO Financial Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

CNO Financial Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

CNO Financial Group is loss making, we can't compare its value to the US Insurance industry average.

CNO Financial Group is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for CNO Financial Group, we can't assess if its growth is good value.


Price Based on Value of Assets

CNO Financial Group is good value based on assets compared to the US Insurance industry average.


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

CNO Financial Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

CNO Financial Group's earnings are expected to grow significantly at over 20% yearly.

CNO Financial Group's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

CNO Financial Group's earnings growth is expected to exceed the United States of America market average.

CNO Financial Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

CNO Financial Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

CNO Financial Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare CNO Financial Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare CNO Financial Group's 1-year growth to the US Insurance industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if CNO Financial Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if CNO Financial Group has efficiently used its assets last year compared to the US Insurance industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if CNO Financial Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is CNO Financial Group's financial position?


Financial Position Analysis

CNO Financial Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CNO Financial Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

CNO Financial Group's level of debt (89.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (71.2% vs 89.1% today).

Debt is not well covered by operating cash flow (10.3%, less than 20% of total debt).

Unable to confirm if the interest payments on CNO Financial Group's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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

3.24%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

CNO Financial Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).

CNO Financial Group's dividend is below the markets top 25% of dividend payers in United States of America (3.9%).

Whilst dividend payments have been stable, CNO Financial Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but CNO Financial Group only paid a dividend in the past 7 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.4x coverage).


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?

2.8yrs

Average management tenure


CEO

Gary Bhojwani (51yo)

1.6yrs

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

Gary's remuneration is higher than average for companies of similar size in United States of America.

Gary's compensation has increased whilst company is loss making.


Management Age and Tenure

2.8yrs

Average Tenure

54yo

Average Age

The tenure for the CNO Financial Group management team is about average.


Board Age and Tenure

7.0yrs

Average Tenure

69yo

Average Age

The tenure for the CNO Financial Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$249,49915 May 19
Matthew Zimpfer
EntityIndividual
Role
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
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
Shares3,000
Max PriceUS$13.85
SellUS$321,51807 Nov 18
Matthew Zimpfer
EntityIndividual
Role
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
Shares2,000
Max PriceUS$18.50

Ownership Breakdown


Management Team

  • Mike Mead

    Senior VP & Chief Information Officer

    • Tenure: 0.8yrs
  • Bruce Baude (54yo)

    Executive VP and Chief Operations & Technology Officer

    • Tenure: 7.1yrs
    • Compensation: $1.90m
  • Paul McDonough (54yo)

    Chief Financial Officer

    • Tenure: 0.4yrs
  • Jeff Kircher

    VP of Corporate Finance & Treasurer

    • Tenure: 3.1yrs
  • Jennifer Childe

    Vice President of Investor Relations

    • Tenure: 1.0yrs
  • Gary Bhojwani (51yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: $7.70m
  • Doug Williams

    Vice President of Finance & Administration

    • Tenure: 2.6yrs
  • Matt Zimpfer (52yo)

    Executive VP & General Counsel

    • Tenure: 11.2yrs
    • Compensation: $2.40m
  • John Kline (62yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 17.1yrs
    • Compensation: $575.89k
  • Eric Johnson (59yo)

    Chief Investment Officer

    • Tenure: 15.9yrs
    • Compensation: $1.87m

Board Members

  • Ellyn Brown (69yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: $274.17k
  • Nina Henderson (69yo)

    Director

    • Tenure: 7.0yrs
    • Compensation: $258.65k
  • Fred Sievert (71yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: $283.65k
  • Dan Maurer (62yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: $393.82k
  • Charlie Jacklin (64yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: $274.17k
  • Gary Bhojwani (51yo)

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: $7.70m
  • Bob Greving (68yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: $288.65k
  • Steve David (70yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: $253.65k
  • Neal Schneider (75yo)

    Director

    • Tenure: 15.9yrs
    • Compensation: $268.05k

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$2.335b
  • Shares outstanding: 155.99m
  • Website: Click here

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 Analysis2019/08/16 23:55
End of Day Share Price2019/08/16 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.