CNA Financial (CNA) AI Stock Analysis

• Market Cap: $12.75B
• Dividend Yield: 8.03%
• Average Volume (3M): 454.35K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.31
• Revenue Growth: 5.41%
• EPS Growth: -23.52%
• Country: US
• Employees: 6,500
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.16
• Shares Outstanding: 270,673,370
• 10 Day Avg. Volume: 357,049
• 30 Day Avg. Volume: 454,350
• PEG Ratio: 0.30
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 5.38
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: 8.44
• 1Y Price Target: $44.00
• Price Target Upside: -7.43% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 5.02
• Revenue Forecast (FY): $11.97B

• Rating: 71 Outperform
• Price Target: $54.00 ▲(13.61% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven by strong earnings-call execution and solid underlying financial resilience (conservative leverage and durable cash generation). Technicals are supportive with the stock trading above key moving averages. The biggest offset is reduced visibility from the anomalous 2025 revenue/margin dislocation, while valuation is helped by a reasonable P/E and very high dividend yield.

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

Balance sheet strength is a clear positive (conservative, stable leverage and improving ROE), and operating/free cash flow has been consistently strong. The main drag is the sharp 2025 revenue collapse paired with outsized margins, which reduces earnings-quality confidence and near-term comparability.

Income Statement

From 2020–2024, revenue grew steadily and profitability was generally solid for a P&C insurer, with net margins improving from ~6% (2020) to ~7% (2024) and a strong year in 2023 (~9%). However, 2025 shows an extreme revenue drop (down ~89%) alongside an unusually high net margin (~102%) and very high operating margin, which suggests a major mix/one-time effect and makes recent earnings quality and trend visibility weaker. Overall: good multi-year profitability, but 2025 volatility and reported revenue dislocation meaningfully reduce confidence.

Balance Sheet

Leverage looks conservative and stable: debt-to-equity stayed roughly in the 0.22–0.32 range across 2020–2025, supporting balance-sheet resilience. Equity also rose from 2022 to 2025, and returns on equity improved, reaching ~14% in 2025 versus ~9% in 2024. The main watch-out is that returns can swing with underwriting/investment cycles, but overall the capital structure appears sound for the industry.

Cash Flow

Cash generation is consistently strong: operating cash flow has been positive every year (roughly $1.8B–$2.6B), and free cash flow closely tracks earnings with free cash flow running at ~96–99% of net income (2020–2025). Free cash flow growth is uneven (down in 2023 and 2025), and the provided operating cash flow coverage values are inconsistent/near-zero in several years, but the underlying operating and free cash flow levels remain healthy.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.71B	14.00B	13.13B	11.89B	11.55B
Gross Profit	4.52B	4.46B	4.41B	3.75B	3.73B
EBITDA	1.82B	1.41B	1.72B	977.00M	1.63B
Net Income	1.28B	959.00M	1.21B	682.00M	1.18B
Balance Sheet
Total Assets	69.44B	66.49B	64.71B	60.93B	48.55B
Cash, Cash Equivalents and Short-Term Investments	2.75B	4.31B	2.51B	39.93B	2.31B
Total Debt	2.97B	2.97B	3.03B	2.78B	2.78B
Total Liabilities	57.82B	55.98B	54.82B	52.45B	52.10B
Stockholders Equity	11.62B	10.51B	9.89B	8.82B	12.81B
Cash Flow
Free Cash Flow	2.40B	2.48B	2.19B	2.45B	1.97B
Operating Cash Flow	2.49B	2.57B	2.29B	2.50B	2.00B
Investing Cash Flow	-1.45B	-1.32B	-1.84B	-1.51B	-1.23B
Financing Cash Flow	-1.10B	-1.12B	-577.00M	-1.03B	-648.00M

CNA Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 47.53 is above the 20-day moving average (MA) of 46.59, above the 50-day MA of 45.43, and above the 200-day MA of 43.91, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 62.30 is Neutral, neither overbought nor oversold. The STOCH value of 18.22 is Positive, 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
SIGI	77 Outperform	$4.96B	11.03	13.86%	1.85%	10.98%	74.87%
THG	77 Outperform	$6.10B	9.56	20.60%	1.97%	5.26%	72.46%
RLI	75 Outperform	$5.62B	14.00	24.44%	4.05%	3.72%	-16.23%
AFG	74 Outperform	$10.91B	12.98	18.13%	6.71%	―	-10.75%
AXS	72 Outperform	$7.96B	8.26	16.21%	1.80%	6.37%	68.32%
CNA	71 Outperform	$12.75B	10.04	9.03%	8.03%	5.41%	-23.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%