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Fundamental analysis: CNA Financial Corporation (CNA)

Awarener score: 8.3

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Superb), the business stability (Superb) and growth (Lacking), and the company's inclination to return cash to the stockholders (Excellent).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.0

  • Business has been slightly shrinking. It's been below average when measured against peer companies.
  • CNA Financial Corporation business trend is extremely stable, which is best. It looks top-notch against rivals.

Margins score: 5.7

  • CNA profit margins -on goods and services sold- are usually extremely poor. They stand slightly better than rival companies.
  • Business profit on sales tends to be hardly sufficient. It's weak when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain rather normal in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still somewhat better than similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain encouraging in relation to rivals.
  • Total net profit tends to be good when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 3.8

  • CNA Financial Corporation has an unknown gross margin growth, as there is not enough data to analyze. It's been impossible to compare to competitors.
  • There is not sufficient data to estimate the operating income margin trend, which has been therefore unknown against comparable firms.
  • Profits growth -available to repay debt and purchase properties- have been almost stagnant, which compares weak when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very low tempo. It turns to be lacking compared to similar stocks.
  • In past years, profits -before income taxes- grew at a very low speed. It was somewhat worse than rivals.
  • In the previous years, growth on total net profit has been very low, and below average when measured against peer companies.
  • Earnings per share have grown at a very low rhythm in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 6.0

  • CNA had to pay sparse income taxes in relation to profits made in the past years. It's been slightly better than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.5

  • CNA Financial Corporation usually gets sufficient returns on the resources it controls. It proves almost average when measured against peer firms.
  • The company normally gets good proceeds -on the resources directly invested in the business-. They remain rather normal in relation to similar companies.
  • Profitability -in relation to owned resources- is usually quite good. It ranks encouraging in relation to competitors.
  • In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's almost average when measured against comparable enterprises.

Usage of Funds score: 6.9

  • CNA usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands almost average when measured against rival firms.
  • The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is below average when measured against industry peers.
  • In the past twelve months it paid outstanding dividends, considering the current stock price. It came better than most competitors.
  • In recent years, has slightly cut back dividend payments. The company has behaved lacking compared to similar firms.
  • Dividend payments usually represent a minor portion of genuine funds generation and are most likely safe. Sustainability looks somewhat worse than comparable companies.
  • The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains close to average when compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • The company uses a slight portion of genuine fund generation to reward investors. The company is usually improving its financial position, and could most likely increase stockholder rewards if it wished to do so. It still looks similar to competitors.

Balance Sheet score: 5.8

  • CNA Financial Corporation intangible assets (like brands and goodwill) represent a non-significant portion of resources controlled, according to accounting books, which is safer. It happens to be similar to peer companies.
  • The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be a disappointment compared to similar firms.
  • Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly worse than rival firms.
  • Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks last-in-rank when measured against rivals.
  • For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's a disappointment compared to peer firms.
  • For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is worse than most similar enterprises.
  • Usually, sales are on cash. It still ranks great when measured against peers.
  • Days of inventory outstanding are not known. It comes up as a big question mark against competitors.
  • We could not gauge the normal operating cycle of the company. It happens to be a mystery against peers.
  • Unfortunately, we had not enough data to estimate the days of payables outstanding. It ranks unknown against industry peers.
  • Cash conversion cycle remains unknown, due to not having enough inputs. It's incomparable against similar companies.
  • Net interest expenses consume a slight portion of usual business earnings, and are very easily bearable. It stands somewhat better than rival firms.
  • Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
  • Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks excellent in relation to similar firms.
  • Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 7.3

  • CNA Financial Corporation looks cheap in relation to profits and financial position. It happens to be encouraging in relation to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains rather normal in relation to peers.
  • In the past twelve months, the company consumed lots of funds. Either it reinvested heavily in the business or genuine fund generation might be struggling, which stands bottom tier against similar companies.
  • The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still encouraging in relation to industry firms.
  • In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
  • The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks worse than most similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks great when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
  • The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly worse than peer firms.
  • In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still in good shape compared to peer companies.

Total score: 6.1


CNA logos

Company at a glance: CNA Financial Corporation (CNA)

Sector, industry: Financial Services, Insurance—Property & Casualty

Market Cap: 11.56 billions

Revenues TTM: 11.80 billions

CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated standard property and casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. It also provides property insurance products, such as property, marine, boiler, and machinery coverages; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, and umbrella coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term care policies. In addition, the company offers long-tail exposures comprising commercial automobile liability, workers' compensation, general and medical professional liability, other professional and management liability, and assumed reinsurance run-off and products liability; and short-tail exposures, such as property, commercial automobile physical damage, marine, and surety. It markets its products through independent agents, brokers, and general underwriters to small, medium, and large businesses; insurance companies; associations; professionals; and other groups in the marine, oil and gas, construction, manufacturing, life science, property, financial services, healthcare, and technology industries. The company was founded in 1853 and is headquartered in Chicago, Illinois. CNA Financial Corporation operates as a subsidiary of Loews Corporation.

Awarener score: 8.3

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Superb), the business stability (Superb) and growth (Lacking), and the company's inclination to return cash to the stockholders (Excellent).