Home Sectors Financial Services Stock Analysis: CNO Financial Group (NYSE: CNO)

Stock Analysis: CNO Financial Group (NYSE: CNO)


CNO Financial Group is part of the life insurance industry and financial services sector. The company CEO is Gary C. Bhojwani. CNO Financial Group Inc is a holding company for a group of insurance companies. It develops, markets and administers health insurance, annuity, individual life insurance and other insurance products.

Previous Intraday Trading Performance:

The CNO stock showed a previous change of 2.61% with an open at 17.03 and a close of 17.31. It reached an intraday high of 17.37 and a low of 16.95.

SeekingAlpha:  CNO Financial Group, Inc. (CNO) CEO Gary Bhojwani on Q4 2018 Results – Earnings Call Transcript


The stock has a market cap of $2.9b with 164.6m shares outstanding, of which the float is 158.6m shares. Trading volume reached 1,143,507 shares compared to its average volume of 1,145,523 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, CNO Financial Group shares returned -4.47% and in the past 30 trading days it returned 11.18%. Over three months, it changed -5.42%. In one year it has changed -30.61% and within that year its 52-week high was 23.84 and its 52-week low was 13.64. CNO stock is 26.91% above its 52 Week Low.

Our calculations show a 200 day moving average of 19.21 and a 50 day moving average of 16.65. Currently CNO stock is trading -9.87% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  CNO Financial Group, Inc. 2018 Q4 – Results – Earnings Call Slides


The last annual fiscal EPS for the company was reported at 1.02 that ended on 31st of December 2017, which according to the previous close, that is a PE of 16.97. Based on 3 analyst estimates, the consensus EPS for the next quarter is 0.53. The TTM EPS is 1.82, which comes to a TTM PE of 9.51. Historically, the PE high was 83.50 and the PE low was 7.40. If the stock reached its PE low, that would represent a price of 13.47, which is a decrease of -22.19%.

The following are the last four quarter reported earnings per share:
12-31-2018:  0.36
09-30-2018:  0.53
06-30-2018:  0.49
03-31-2018:  0.44

The dividend per share is currently 0.40, which is a dividend yield of 2.31%. Also, the payout ratio is 21.98%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 17.09, which means it may be overvalued by -1.30%

Indicators to Watch:

Based on the latest filings, there is 138.10% of institutional ownership. Short-interest is 2,681,462, which is 1.63% of shares outstanding. The short-interest ratio or days-to-cover ratio is 2.25. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.32

SeekingAlpha:  CNO Financial Group, Inc. 2018 Q4 – Results – Earnings Call Slides

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is -9.80%, return on assets is -1.29%, profit margin is -9.71%, price-to-sales is 0.79 and price-to-book is 0.84.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 0  :Past Performance Score
 1  :Financial Strength Score
 3  :Future Growth Score
 2  :Dividend Score
 1  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.