CNA Financial is FAIRLY VALUED at 32.96 per share with modest projections ahead. We consider CNA Financial very steady.
CNA Financial retains Efficiency (Sharpe Ratio) of 0.0628, which signifies that the company had 0.0628% of return per unit of risk over the last month. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for CNA Financial, which you can use to evaluate future volatility of the firm. Please confirm CNA Financial
coefficient of variation of 4297.77, and Market Risk Adjusted Performance of 0.0536 to double-check if the risk estimate we provide is consistent with the expected return of 0.17%.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include CNA Financial income statement, its balance sheet, and the statement of cash flows. Potential CNA Financial investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although CNA Financial investors may use each financial statement separately, they are all related. The changes in CNA Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CNA Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of CNA Financial
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of CNA Financial performance into the future periods or doing a reasonable stock valuation. The intrinsic value of CNA Financial shares is the value that is considered the true value of the share. If
the intrinsic value of CNA is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares CNA Financial. Please read more on our
fundamental analysis page.
How effective is CNA Financial in utilizing its assets?
CNA Financial reports assets on its Balance Sheet. It represents the amount of CNA resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, CNA Financial aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Property & Casualty Insurance space. To get a better handle on how balance sheet or income statements item affect CNA volatility, please check the breakdown of all its
fundamentals.
Are CNA Financial Earnings Expected to grow?
The
future earnings power of CNA Financial involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of CNA Financial factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. CNA Financial
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of CNA
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of CNA Financial earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. CNA Financial dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. CNA one year expected dividend income is about USD1.77 per share.
At present, CNA Financial's
Dividend Yield is projected to increase slightly based on the last few years of reporting. The current year's
Dividend Payout Ratio is expected to grow to 0.69, whereas
Dividends Paid is projected to grow to (747.6
M).
Investing in dividend-paying stocks, such as CNA Financial is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in CNA Financial must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for CNA Financial. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
CNA Financial Gross Profit
CNA Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing CNA Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show CNA Financial Gross Profit growth over the last 10 years. Please check CNA Financial's
gross profit and other
fundamental indicators for more details.
Breaking it down a bit more
Institutional investor usually refers to an organization that invests money in CNA Financial on behalf of clients or other money managers. Buying and selling of large positions of CNA Financial stock by institutional investors can create supply and demand imbalances that result in sudden price moves of CNA Financial stock. Let's take a look at how the ownership of CNA Financial is distributed among investors.
Ownership Allocation
CNA Financial secures a total of two hundred seventy-one million three hundred eighty thousand
outstanding shares. The majority of CNA Financial
outstanding shares are owned by
institutions. These other corporate entities are usually referred to as non-private investors looking to acquire positions in CNA Financial to benefit from reduced commissions. Thereupon, outside corporations are subject to a different set of regulations than regular investors in CNA Financial. Please pay attention to any change in the institutional holdings of CNA Financial as this could imply that something significant has changed or about to change at the company. Also note that almost two million seven hundred thirteen thousand eight hundred invesors are currently shorting CNA Financial expressing very little confidence in its
future performance.
| Retail Investors | -1.46 |
| Insiders | 0.21 |
| Institutions | 101.25 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. CNA Financial has an asset utilization ratio of 18.82 percent. This suggests that the company is making $0.19 for each dollar of assets. An increasing asset utilization means that CNA Financial is more efficient with each dollar of assets it utilizes for everyday operations.
| Goodwill161.7 M | Tax Assets283.3 M |
| Goodwill | 161.68 Million | 36.34 |
| Tax Assets | 283.26 Million | 63.66 |
Analysis of CNA Financial
Current Information Ratio is up to -0.02. Price may slip again. As of the 2nd of August, CNA Financial owns the
coefficient of variation of 4297.77, and Market Risk Adjusted Performance of 0.0536. CNA Financial
technical analysis gives you the methodology to make use of past data patterns to determine a pattern that approximates the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume patterns, or the prices will eventually revert. We were able to analyze and collect data for nineteen
technical drivers for CNA Financial, which can be compared to its peers in the sector. Please confirm
CNA Financial mean deviation,
standard deviation,
treynor ratio, as well as the
relationship between the
downside deviation and
information ratio to decide if CNA Financial is priced correctly, providing market reflects its prevailing price of 33.3 per share. Given that CNA Financial has
jensen alpha of
(0.09), we suggest you to validate CNA Financial's latest market performance to make sure the company can sustain itself in the future.
The Bottom Line
Whereas some firms in the insurance—property & casualty industry are either recovering or due for a correction, CNA Financial may not be as strong as the others in terms of longer-term growth potentials. Taking everything into account, as of the 2nd of August 2020, our up-to-date 30 days buy-or-sell advice on the company is
Hold. We believe CNA Financial is currently
fairly valued with
below average odds of financial turmoil for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of CNA Financial. Please refer to our
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