CNA Financial Stock Buy Hold or Sell Recommendation

CNA
 Stock
  

USD 41.65  0.16  0.39%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding CNA Financial is 'Buy'. Macroaxis provides CNA Financial buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CNA positions. The advice algorithm takes into account all of CNA Financial's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from CNA Financial's buy-and-hold perspective. Continue to CNA Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as CNA Financial and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards CNA Financial.

Execute CNA Financial Buy or Sell Advice

The CNA Financial recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on CNA Financial. Macroaxis does not own or have any residual interests in CNA Financial or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute CNA Financial's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell CNA FinancialBuy CNA Financial
Buy

Volatility

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Hype Condition

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Current Valuation

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Odds of Distress

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Economic Sensitivity

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Analyst Consensus

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Financial Strenth (F Score)

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Financial Leverage

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Reporting Quality (M-Score)

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For the selected time horizon CNA Financial has a Risk Adjusted Performance of 0.1251, Jensen Alpha of 0.0692, Total Risk Alpha of 0.0512, Sortino Ratio of 0.0407 and Treynor Ratio of 0.1567
CNA Financial trade advice module can be used to check and cross-verify current advice provided by analysts analyzing the company's potential to grow using all of fundamental, technical, data market data available right now. To make sure CNA Financial is not overpriced, please confirm all CNA Financial fundamentals, including its shares owned by insiders, price to book, and the relationship between the current valuation and number of shares shorted . Given that CNA Financial has a price to earning of 12.67 X, we suggest you to validate CNA Financial market performance and probability of bankruptcy to ensure the company can sustain itself in the future given your latest risk tolerance and investing horizon.

CNA Financial Trading Alerts and Improvement Suggestions

The company has 2.78 B in debt with debt to equity (D/E) ratio of 0.34, which is OK given its current industry classification. CNA Financial has a current ratio of 0.34, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist CNA Financial until it has trouble settling it off, either with new capital or with free cash flow. So, CNA Financial's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like CNA Financial sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for CNA Financial to invest in growth at high rates of return. When we think about CNA Financial's use of debt, we should always consider it together with cash and equity.
CNA Financial has a frail financial position based on the latest SEC disclosures
Over 99.0% of CNA Financial shares are held by institutions such as insurance companies
On 1st of December 2022 CNA Financial paid $ 0.4 per share dividend to its current shareholders

CNA Financial Returns Distribution Density

The distribution of CNA Financial's historical returns is an attempt to chart the uncertainty of CNA Financial's future price movements. The chart of the probability distribution of CNA Financial stock daily returns describes the distribution of returns around its average expected value. We use CNA Financial price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of CNA Financial returns is essential to provide solid investment advice for CNA Financial.
Mean Return0.13Value At Risk-2.04
Potential Upside2.82Standard Deviation1.55
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of CNA Financial historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

CNA Financial Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(39 M)(102 M)(99 M)(26 M)(23 M)(28.05 M)
Net Cash Flow or Change in Cash and Cash Equivalents84 M(45 M)(68 M)177 M117 M126.24 M
Issuance Repayment of Debt Securities105 M(180 M)(24 M)76 M87.4 M94.3 M
Payment of Dividends and Other Cash Distributions(842 M)(896 M)(929 M)(950 M)(621 M)(670.03 M)
Net Cash Flow from Financing(755 M)(1.08 B)(988 M)(902 M)(648 M)(699.16 M)
Net Cash Flow from Investing(424 M)(177 M)(225 M)(705 M)(1.23 B)(1.32 B)
Net Cash Flow Investment Acquisitions and Disposals(342 M)(96 M)(214 M)(698 M)(1.2 B)(1.3 B)
Net Cash Flow from Operations1.25 B1.23 B1.14 B1.77 B2 B1.6 B
Effect of Exchange Rate Changes on Cash(13 M)9 M(10 M)5 M(4 M)(4.32 M)

CNA Financial Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to CNA Financial or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that CNA Financial's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a CNA Financial stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.07
β
Beta against NYSE Composite0.76
σ
Overall volatility
1.57
Ir
Information ratio 0.0345

CNA Financial Volatility Alert

CNA Financial has relatively low volatility with skewness of 0.57 and kurtosis of -0.13. However, we advise all investors to independently investigate CNA Financial to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CNA Financial's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact CNA Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

CNA Financial Fundamentals Vs Peers

Comparing CNA Financial's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze CNA Financial's direct or indirect competition across all of the common fundamentals between CNA Financial and the related equities. This way, we can detect undervalued stocks with similar characteristics as CNA Financial or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of CNA Financial's fundamental indicators could also be used in its relative valuation, which is a method of valuing CNA Financial by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare CNA Financial to competition
FundamentalsCNA FinancialPeer Average
Return On Equity0.09 %(0.31) %
Return On Asset0.0121 %(0.14) %
Profit Margin0.08 %(1.27) %
Operating Margin0.10 %(5.51) %
Current Valuation13.64 B16.62 B
Shares Outstanding270.89 M571.82 M
Shares Owned by Insiders0.30 %10.09 %
Shares Owned by Institutions99.02 %39.21 %
Number of Shares Shorted480.24 K4.71 M
Price to Earning12.67 X28.72 X
Price to Book1.40 X9.51 X
Price to Sales0.95 X11.42 X
Revenue11.91 B9.43 B
Gross Profit4.12 B27.38 B
EBITDA1.6 B3.9 B
Net Income1.2 B570.98 M
Cash and Equivalents1.59 B2.7 B
Cash per Share5.87 X5.01 X
Total Debt2.78 B5.32 B
Debt to Equity0.34 %48.70 %
Current Ratio0.35 X2.16 X
Book Value Per Share29.88 X1.93 K
Cash Flow from Operations2 B971.22 M
Short Ratio2.32 X4.00 X
Earnings Per Share3.35 X3.12 X
Price to Earnings To Growth4.21 X4.89 X
Target Price48.0
Number of Employees5.6 K18.84 K
Beta0.72-0.15
Market Capitalization11.28 B19.03 B
Total Asset66.64 B29.47 B
Retained Earnings10.08 B9.33 B
Z Score2.48.72
   Cna Financial exotic insider transaction detected [view details]

About CNA Financial Buy or Sell Advice

When is the right time to buy or sell CNA Financial? Buying financial instruments such as CNA Financial Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Cash and Equivalents242 M419 M536 M578.32 M
Total Assets60.61 B64.03 B66.64 B59.53 B

Use Investing Ideas to Build Portfolios

In addition to having CNA Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Money Funds
Money Funds Theme
Funds or Etfs that invest most if their asset in companies from financial sector such as commercial banks, insurance companies, investment funds, and real estate. The Money Funds theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Money Funds Theme or any other thematic opportunities.
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Continue to CNA Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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Is CNA Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CNA Financial. If investors know CNA Financial will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CNA Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.50) 
Market Capitalization
11.3 B
Quarterly Revenue Growth YOY
(0.001) 
Return On Assets
0.0121
Return On Equity
0.0879
The market value of CNA Financial is measured differently than its book value, which is the value of CNA Financial that is recorded on the company's balance sheet. Investors also form their own opinion of CNA Financial's value that differs from its market value or its book value, called intrinsic value, which is CNA Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CNA Financial's market value can be influenced by many factors that don't directly affect CNA Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CNA Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine CNA Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CNA Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.