Bedrijfsoverzicht
CNO Financial Group, Inc. is a financial services entity focused on developing, marketing, and administering health insurance, annuities, individual life insurance, and other related products specifically for middle-income pre-retiree and retired Americans within the United States. The company operates within the broader financial services sector and functions specifically within the insurance-life industry, which involves managing long-term liabilities and providing capital protection for policyholders. Its current scale is defined by a market capitalization of $3.98 billion, an annual revenue of $4.49 billion, and a workforce consisting of 3,300 employees. These valuation and revenue figures indicate that the company holds a significant position within the specialized insurance sub-sector, possessing substantial assets to underwrite its specific demographic focus while maintaining a mid-sized footprint relative to the largest national carriers.
Financiële gezondheid
The company reported a revenue of $4.49 billion over the trailing twelve months, generating a net income of $229.30 million and an EBITDA of $943.20 million. The substantial gap between the $4.49 billion in revenue and the $229.30 million in net income reveals a cost structure characterized by significant operating expenses, which is typical for the insurance industry but highlights the importance of scale in maintaining profitability. Free cash flow stands at $1.20 billion, a figure that indicates strong financial flexibility allowing the company to meet obligations and potentially fund internal operations without relying heavily on external financing. The gross margin is 38.9%, the operating margin is 14.9%, and the profit margin is 5.1%; these levels indicate that while the cost of goods sold is managed, operational efficiencies are critical, as the final profit margin is compressed after all expenses including interest and taxes are deducted. Total cash holdings of $1.25 billion are contrasted against total debt of $4.14 billion, resulting in a debt-to-equity ratio of 157.09%, which suggests a leveraged balance sheet where liabilities exceed equity, a common structure for insurers relying on premium reserves. Despite the leverage, the current ratio of 2.45 indicates robust short-term liquidity, demonstrating that the company holds more than double its current liabilities in current assets to cover immediate obligations. Return on Equity is 8.9% while Return on Assets is 1.0%; these return metrics reveal that management effectiveness is measured against a high equity base, yet the low return on assets reflects the asset-heavy nature of the insurance business where capital is tied up in long-term reserves rather than generating high immediate yields.
Waarderingsbeoordeling
The trailing twelve-month P/E ratio is 18.37, whereas the forward P/E ratio is significantly lower at 8.64, implying that the market expects earnings to increase substantially in the future to justify the current multiple, or alternatively, that current earnings are temporarily suppressed. The price-to-book ratio stands at 1.51, indicating that the stock trades at a premium of 51% over its net asset value, which suggests investors value the brand and intangible assets of the insurer beyond the book value of its policies. Alternative valuation metrics such as a price-to-sales ratio of 0.89 and an EV/EBITDA of 7.29 suggest the stock is priced attractively relative to its sales volume and earnings before interest, taxes, depreciation, and amortization, providing a different perspective than earnings multiples alone. The 52-week high is $44.86 and the 52-week low is $35.24; without a specific current price to calculate the exact percentage, the trading range establishes the volatility band within which the stock has moved over the last year, with the forward P/E suggesting potential for re-rating if earnings growth materializes. The beta value is 0.84, which means the stock's price volatility is lower than the broader market, indicating it may act as a defensive holding that moves less sharply than the overall equity market during periods of fluctuation.
Growth & Income
Revenue growth year-over-year is 4.2%, while earnings growth year-over-year is -45.2%, indicating that earnings are currently growing significantly slower than revenue, which implies a period of earnings compression likely driven by one-time costs, changes in expense ratios, or adjustments in investment income. For dividend payers, the company offers a dividend yield of 1.6% with a payout ratio of 29.1%, suggesting that the dividend is highly sustainable given that only a small fraction of earnings is distributed, leaving ample room to cover the current drop in net income. Since the payout ratio is low, the company retains the majority of its earnings to reinvest into growth initiatives or strengthen the balance sheet rather than paying out large dividends to shareholders. The overall growth and income profile presents a scenario of moderate revenue expansion coupled with a sharp decline in profitability, supported by a sustainable but modest dividend yield that prioritizes capital retention over income distribution.