CNA Financial (CNA) AI Stock Analysis

• Market Cap: $12.95B
• Dividend Yield: 8.03%
• Average Volume (3M): 454.35K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.30
• Revenue Growth: 5.41%
• EPS Growth: -23.52%
• Country: US
• Employees: 6,500
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.50
• Shares Outstanding: 270,666,600
• 10 Day Avg. Volume: 357,049
• 30 Day Avg. Volume: 454,350
• PEG Ratio: -0.67
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 5.30
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 3.47
• Enterprise Value/Ebitda: 10.69
• 1Y Price Target: $45.00
• Price Target Upside: -5.96% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $53.00 ▲(10.76% Upside)

CNA Financial's strong earnings call performance and attractive valuation are the most significant factors driving the score. The company's solid financial health and positive technical indicators further support the stock's outlook. However, attention to cash flow stability and segment-specific challenges is necessary to sustain long-term growth.

Positive Factors

Strong Underwriting Performance

CNA's robust underwriting performance, with significant gains and reduced catastrophe losses, indicates effective risk management and operational efficiency, supporting long-term profitability.

Improved Combined Ratios

Improved combined ratios reflect CNA's ability to manage claims and expenses effectively, enhancing its competitive position and financial stability in the insurance market.

Growth in International Segment

The significant growth in the International segment showcases CNA's successful expansion strategy and ability to capture new market opportunities, contributing to sustained revenue growth.

Negative Factors

Challenges in Commercial Auto Portfolio

Challenges in the commercial auto portfolio due to inadequate terms and conditions could limit growth and profitability in this segment, requiring strategic adjustments.

Rate Declines in International

Declining rates in the International segment, driven by competitive pressures, may impact profitability, necessitating strategic pricing and risk management adjustments.

Life & Group Segment Losses

Continued losses in the Life & Group segment, influenced by lower investment income and reserve updates, highlight ongoing challenges that could affect overall financial performance.

CNA Financial Business Overview & Revenue Model

Company Description

CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated standard property and casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. It also provides property insurance products, such as property, marine, boiler, and machinery coverages; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, and umbrella coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term care policies. In addition, the company offers long-tail exposures comprising commercial automobile liability, workers' compensation, general and medical professional liability, other professional and management liability, and assumed reinsurance run-off and products liability; and short-tail exposures, such as property, commercial automobile physical damage, marine, and surety. It markets its products through independent agents, brokers, and general underwriters to small, medium, and large businesses; insurance companies; associations; professionals; and other groups in the marine, oil and gas, construction, manufacturing, life science, property, financial services, healthcare, and technology industries. The company was founded in 1853 and is headquartered in Chicago, Illinois. CNA Financial Corporation operates as a subsidiary of Loews Corporation.

How the Company Makes Money

CNA Financial generates revenue primarily through the underwriting of insurance premiums. The company collects premiums from policyholders in exchange for providing insurance coverage, which constitutes its main revenue stream. Additionally, CNA invests the collected premiums into various financial instruments, generating investment income. The company also earns fees from its risk control services and solutions. Its partnerships with brokers and agents facilitate the distribution of its insurance products, further enhancing its market reach. Factors such as underwriting discipline, risk management capabilities, and investment performance play crucial roles in its overall profitability.

CNA Financial Financial Statement Overview

Summary

CNA Financial demonstrates solid financial health with consistent revenue growth and efficient cost management. The balance sheet is strong with manageable leverage and good return on equity. Cash flow generation is adequate, though recent declines in free cash flow growth warrant attention. Overall, the company is well-positioned but should focus on enhancing profitability and cash flow stability.

Income Statement

CNA Financial shows a stable revenue growth with a TTM increase of 1.37%. The gross profit margin is strong at 65.30% for TTM, indicating efficient cost management. However, the net profit margin remains modest at 6.75%, suggesting room for improvement in profitability. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.31, indicating prudent financial leverage. Return on equity is solid at 9.32%, showcasing effective use of shareholder funds. The equity ratio stands at 16.23%, suggesting a balanced capital structure, although there is potential to strengthen equity further.

Cash Flow

Operating cash flow is robust, but the free cash flow growth rate has declined by 1.02% TTM, indicating potential cash flow challenges. The operating cash flow to net income ratio of 0.55 suggests adequate cash generation relative to net income. Free cash flow to net income ratio is high at 0.96, reflecting strong cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	14.57B	14.00B	13.13B	13.13B	13.13B	13.13B
Gross Profit	4.51B	4.46B	4.41B	4.41B	4.41B	4.41B
EBITDA	1.46B	1.41B	1.72B	1.72B	1.72B	1.72B
Net Income	997.00M	959.00M	1.21B	1.21B	1.21B	1.21B
Balance Sheet
Total Assets	69.76B	66.49B	64.71B	64.71B	64.71B	64.71B
Cash, Cash Equivalents and Short-Term Investments	3.99B	4.31B	2.51B	2.51B	2.51B	2.51B
Total Debt	3.47B	2.97B	3.03B	3.03B	3.03B	3.03B
Total Liabilities	58.43B	55.98B	54.82B	54.82B	54.82B	54.82B
Stockholders Equity	11.32B	10.51B	9.89B	9.89B	9.89B	9.89B
Cash Flow
Free Cash Flow	2.53B	2.48B	2.19B	2.19B	2.19B	2.19B
Operating Cash Flow	2.62B	2.57B	2.29B	2.29B	2.29B	2.29B
Investing Cash Flow	-2.00B	-1.32B	-1.84B	-1.84B	-1.84B	-1.84B
Financing Cash Flow	-597.00M	-1.12B	-577.00M	-577.00M	-577.00M	-577.00M

CNA Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNA, the sentiment is Positive. The current price of 47.85 is above the 20-day moving average (MA) of 46.33, above the 50-day MA of 45.81, and above the 200-day MA of 46.44, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 63.86 is Neutral, neither overbought nor oversold. The STOCH value of 92.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNA.

CNA Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLI	83 Outperform	$6.10B	17.01	19.49%	3.96%	3.72%	-16.23%
CNA	79 Outperform	$12.95B	13.07	9.03%	8.03%	5.41%	-23.52%
THG	77 Outperform	$6.61B	10.72	20.02%	1.96%	5.26%	72.46%
SIGI	77 Outperform	$5.17B	13.10	12.22%	1.83%	10.98%	74.87%
AXS	70 Neutral	$8.39B	8.90	16.27%	1.80%	6.37%	68.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AFG	67 Neutral	$11.51B	14.50	16.91%	6.73%	―	-10.75%

CNA Financial Corporate Events

CNA Financial Announces Leadership Transition Plans

On November 3, 2025, CNA Financial announced that Dino E. Robusto will conclude his role as Executive Chairman of the Board and director on December 31, 2025, as per his Employment Agreement. Douglas M. Worman, currently President and CEO, will assume the role of Chairman of the Board starting January 1, 2026. Additionally, the Board of Directors has decided to reduce its size to ten members, effective the same date.