Cno Financial Intrinsic Stock Value – CNO Financial Reports Unfavorable Earnings Despite Revenue Beat

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Revenue was reported at $1B, which exceeded expectations by $74M. CNO ($NYSE:CNO) Financial is a holding company that focuses on creating insurance and retirement solutions. The company’s purpose is to help protect American families by providing them with health and supplemental insurance benefits, while also helping them secure their financial futures with its retirement products. CNO Financial operates through several subsidiaries, including Bankers Life, Washington National, Colonial Penn, and Conseco Insurance Group.

Share Price

On Monday, CNO FINANCIAL reported their quarterly earnings which were worse than expected, despite beating their revenue expectations. The share price opened at $22.3 and closed at $22.8, up by 1.4% from the prior closing price of $22.4. Despite surpassing their revenue goals, the company was unable to meet their earnings expectations, causing their stock to take a slight dip on the market.

CNO FINANCIAL attributed the lower than expected earnings to higher expenses related to the company’s investments for the future. The company also reported that their insurance operations experienced a slower than expected growth rate in the current quarter. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Cno Financial. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Cno Financial. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Cno Financial. More…

Key Ratios Snapshot

Some of the financial key ratios for Cno Financial are shown below. More…

Analysis – Cno Financial Intrinsic Stock Value

At GoodWhale, we have analyzed CNO FINANCIAL‘s financials and come to the conclusion that its fair value is around $23.5, as calculated by our proprietary Valuation Line. Currently, CNO FINANCIAL stock is trading at $22.8, which is a fair price but undervalued by 2.8%. We believe that this presents a good opportunity for investors to purchase the stock at a discount to its fair value. More…

Peers

Its competitors are National Western Life Group Inc, Wustenrot & Wurttembergische AG, and iA Financial Corp Inc.

– National Western Life Group Inc ($NASDAQ:NWLI)

National Western Life Group Inc is a holding company that operates through its subsidiaries engaged in the life insurance business. Its products include whole life, term life, universal life, and annuities. The company was founded in 1906 and is headquartered in Austin, Texas.

– Wustenrot & Wurttembergische AG ($LTS:0GJN)

Wustenrot & Wurttembergische AG is a German mutual insurance company headquartered in Stuttgart. As of 2022, it had a market capitalization of €1.44 billion and a return on equity of 14.21%. The company provides a range of insurance products, including life, health, property and casualty, and pension products, as well as banking and investment products.

– iA Financial Corp Inc ($TSX:IAG)

AmeriA Financial Corp Inc has a market cap of 7.68B as of 2022. The company has a Return on Equity of 9.41%. AmeriA Financial Corp Inc is a provider of insurance and financial services. The company offers a range of products and services, including life insurance, annuities, and investments.

Summary

Investment analysts have cautioned investors against investing in this stock due to the negative EPS figure and significant market volatility. CNO Financial has been underperforming its peers in the insurance industry, however its strong revenue growth might suggest future profit potential. It remains to be seen if the company can capitalize on this potential in the coming quarters.