CNA Financial Corporation
CNA Financial Corporation Fundamental Analysis
CNA Financial Corporation (CNA) shows moderate financial fundamentals with a PE ratio of 10.02, profit margin of 8.64%, and ROE of 11.65%. The company generates $14.8B in annual revenue with moderate year-over-year growth of 5.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CNA's fundamental strength across five key dimensions:
Efficiency Score
WeakCNA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCNA trades at attractive valuation levels.
Growth Score
ModerateCNA shows steady but slowing expansion.
Financial Health Score
ModerateCNA shows balanced financial health with some risks.
Profitability Score
WeakCNA struggles to sustain strong margins.
Key Financial Metrics
Is CNA Expensive or Cheap?
P/E Ratio
CNA trades at 10.02 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CNA's PEG of 0.36 indicates potential undervaluation.
Price to Book
The market values CNA Financial Corporation at 1.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.61 times EBITDA. This is generally considered low.
How Well Does CNA Make Money?
Net Profit Margin
For every $100 in sales, CNA Financial Corporation keeps $8.64 as profit after all expenses.
Operating Margin
Core operations generate 10.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.65 in profit for every $100 of shareholder equity.
ROA
CNA Financial Corporation generates $1.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CNA Financial Corporation produces operating cash flow of $2.49B, showing steady but balanced cash generation.
Free Cash Flow
CNA Financial Corporation generates strong free cash flow of $2.40B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.87 in free cash annually.
FCF Yield
CNA converts 18.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How CNA Stacks Against Its Sector Peers
| Metric | CNA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.02 | 18.73 | Better (Cheaper) |
| ROE | 11.65% | 847.00% | Weak |
| Net Margin | 8.64% | 2562.00% | Weak |
| Debt/Equity | 0.26 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 1.84% | -21692.00% (disorted) | Weak |
CNA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CNA Financial Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.67%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
39.14%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
45.01%
Industry Style: Value, Dividend, Cyclical
High Growth