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CNO Financial (CNO)
NYSE:CNO
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CNO Financial
(NYSE:CNO)
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Rating:72Outperform
Price Target:
$49.00
▲(11.59% Upside)
CNO Financial's overall score reflects strong earnings growth and strategic initiatives, particularly in the Consumer and Worksite divisions. While financial performance shows resilience, challenges in profit margins and cash flow management are noted. The technical outlook is neutral, and valuation metrics suggest a fair market price.
Positive Factors
Revenue Growth
Strong revenue growth from new premiums indicates robust demand for CNO's products, supporting long-term financial health and market expansion.
Strategic Initiatives
The Bermuda treaty enhances capital efficiency and improves return on equity, strengthening CNO's competitive position and profitability.
Market Position
CNO's strategic focus on middle-income households and diverse distribution channels ensures a strong market position and sustained growth.
Negative Factors
Profit Margin Decline
Declining profit margins suggest rising costs or pricing pressures, which could impact long-term profitability if not addressed.
Impairment Charges
Significant impairment charges reflect challenges in asset valuation, potentially affecting future earnings and financial stability.
Exit from Worksite Fee Services
Exiting an underperforming business segment may limit diversification and revenue streams, impacting long-term growth potential.
CNO Financial (CNO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.14B
Dividend Yield1.54%
Average Volume (3M)722.76K
Price to Earnings (P/E)15.2
Beta (1Y)0.69
Revenue Growth-1.61%
EPS Growth15.79%
CountryUS
Employees3,400
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)1.29
Shares Outstanding95,353,516
10 Day Avg. Volume1,051,627
30 Day Avg. Volume722,759
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)1.58
Price to Sales (P/S)0.89
P/FCF Ratio6.29
Enterprise Value/Market Cap1.92
Enterprise Value/Revenue1.79
Enterprise Value/Gross Profit4.44
Enterprise Value/Ebitda8.50
Forecast
1Y Price Target
$48.00Price Target Upside9.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
CNO Financial Business Overview & Revenue Model
Company DescriptionCNO Financial Group, Inc., through its subsidiaries, develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. It offers Medicare supplement, supplemental health, and long-term care insurance policies; life insurance; and annuities, as well as Medicare advantage plans to individuals through phone, online, mail, and face-to-face. The company also focuses on worksite and group sales for businesses, associations, and other membership groups by interacting with customers at their place of employment. In addition, it provides fixed index annuities; fixed interest annuities, including fixed rate single and flexible premium deferred annuities; single premium immediate annuities; supplemental health products, such as specified disease, accident, and hospital indemnity products; and long-term care plans primarily to retirees and older self-employed individuals in the middle-income market. Further, the company offers universal life and other interest-sensitive life products; and traditional life policies that include whole life, graded benefit life, term life, and single premium whole life products, as well as graded benefit life insurance products. CNO Financial Group, Inc. markets its products under the Bankers Life, Washington National, and Colonial Penn brand names. The company sells its products through agents, independent producers, and direct marketing. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.
How the Company Makes MoneyCNO Financial generates revenue through multiple streams, primarily through the sale of insurance products and services. The company's key revenue sources include premiums collected from life and health insurance policies, which provide a steady income stream. Additionally, CNO earns revenue from investment income generated by managing the premiums it receives before claims are paid out. Annuity sales also contribute to its revenue, as the company offers various annuity products that yield returns over time. Partnerships with agents and brokers enhance distribution, enabling CNO to reach a broader market and increase sales. Furthermore, CNO's focus on middle-income Americans positions it uniquely in a niche market, allowing for sustained growth and profitability.
CNO Financial Key Performance Indicators (KPIs)
CNO Financial Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Positive
CNO Financial Group delivered a strong quarter with significant growth in new annualized premiums and operating earnings per share. The Consumer and Worksite divisions achieved record sales growth. However, challenges included the exit from the Worksite fee services business with associated impairment charges and a decline in Medicare Advantage sales.Q3-2025 Updates
Positive Updates
Strong Quarterly Performance
CNO Financial Group delivered a strong quarter with record total new annualized premiums of $125 million, up 26%. Operating earnings per diluted share were $1.29, up 16%.
Record Sales Growth in Consumer Division
The Consumer Division delivered its 12th consecutive quarter of sustained growth. Total Life insurance sales were up 33%, and record direct-to-consumer life insurance sales increased by 56%.
Worksite Division Insurance Sales
Worksite Life and Health NAP was up 20%, marking the seventh consecutive quarter of record NAP growth. Strategic growth initiatives contributed significantly, with a 42% increase in NAP growth.
Continued Growth in Annuities and Advisory
Annuity collected premiums were up 2%, marking the ninth consecutive quarter of growth. Client assets in brokerage and advisory were up 28%, surpassing $5 billion.
New Bermuda Treaty
CNO Financial executed a second Bermuda treaty, ceding approximately $1.8 billion of Supplemental Health U.S. statutory reserves, contributing to an expected 50 basis point improvement in operating ROE through 2027.
Negative Updates
Exit from Worksite Fee Services Business
CNO decided to exit the Worksite fee services business, which contributed a pretax annual loss of approximately $20 million. This decision followed years of underperformance and increased competition.
Impairment Charges
CNO recorded a $96.7 million impairment in non-operating income on the goodwill and intangibles associated with the acquisitions of Web Benefit Design and DirectPath.
Challenges in Medicare Advantage Sales
Medicare Advantage policies sold were down 24%, reflecting a shift in consumer preferences from Medicare Advantage to Medicare Supplement plans.
Company Guidance
During the CNO Financial Group's Third Quarter 2025 Earnings Call, several key metrics and strategic moves were highlighted. The company reported record total new annualized premiums of $125 million, marking a 26% increase and sustaining double-digit insurance sales growth across both divisions. Operating earnings per diluted share rose by 16% to $1.29. CNO also returned $76 million to shareholders in the quarter and $310 million year-to-date, while the book value per diluted share, excluding AOCI, was $38.10, up 6%. The company announced a second Bermuda treaty and changes to its Worksite Division's fee services business, aiming for a 50 basis point improvement in operating ROE through 2027. The growth scorecard metrics were predominantly positive, with particular strength in the Consumer Division, which saw Life and Health New Annualized Premiums (NAP) rise by 27% and direct-to-consumer life insurance sales increase by 56%. Meanwhile, the Worksite Division delivered a seventh consecutive quarter of record NAP growth at 20%, with highlights including significant growth in life, hospital indemnity, critical illness, and accident insurance. Additionally, CNO's annuity collected premiums grew 2%, maintaining a nine-quarter growth streak, with client assets in brokerage and advisory soaring 28%, surpassing $5 billion.CNO Financial Financial Statement Overview
Summary
CNO Financial demonstrates moderate financial health with stable revenue growth and cash flow generation. However, profitability margins have declined, and high leverage poses potential risks. The company should focus on improving operational efficiency and managing debt levels to enhance financial stability and shareholder value.Income Statement
CNO Financial shows moderate revenue growth with a TTM growth rate of 1.98%. The gross profit margin is stable at 38.31% in TTM, but has decreased from previous years. Net profit margin is relatively low at 6.41% in TTM, indicating room for improvement in profitability. EBIT and EBITDA margins have also declined, suggesting potential challenges in operational efficiency.Balance Sheet
The debt-to-equity ratio is high at 1.64 in TTM, indicating significant leverage which could pose risks if not managed carefully. Return on equity has decreased to 10.97% in TTM, reflecting reduced profitability for shareholders. The equity ratio is not provided, but the high leverage suggests a need for cautious financial management.Cash Flow
CNO Financial's free cash flow growth is positive at 5.17% in TTM, showing improvement in cash generation. The operating cash flow to net income ratio is strong at 45.45, indicating good cash conversion. The free cash flow to net income ratio remains stable at 1.0, suggesting consistent cash flow relative to earnings.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.44B | 4.45B | 4.15B | 3.58B | 4.12B | 3.82B |
| Gross Profit | 1.79B | 1.70B | 1.53B | 1.79B | 1.70B | 1.28B |
| EBITDA | 934.90M | 1.07B | 862.80M | 1.20B | 1.07B | 757.00M |
| Net Income | 294.70M | 404.00M | 276.50M | 630.60M | 570.30M | 301.80M |
Balance Sheet | ||||||
| Total Assets | 38.30B | 37.85B | 35.03B | 33.13B | 36.20B | 35.34B |
| Cash, Cash Equivalents and Short-Term Investments | 8.60B | 9.45B | 22.28B | 20.42B | 24.91B | 23.44B |
| Total Debt | 4.05B | 4.52B | 4.15B | 3.88B | 4.00B | 3.93B |
| Total Liabilities | 35.69B | 35.35B | 32.81B | 31.36B | 30.94B | 29.86B |
| Stockholders Equity | 2.61B | 2.50B | 2.22B | 1.77B | 5.26B | 5.48B |
Cash Flow | ||||||
| Free Cash Flow | 671.00M | 627.70M | 582.90M | 495.40M | 598.30M | 735.50M |
| Operating Cash Flow | 671.00M | 627.70M | 582.90M | 495.40M | 598.30M | 735.50M |
| Investing Cash Flow | -917.70M | -1.49B | -872.30M | -1.78B | -1.53B | -608.40M |
| Financing Cash Flow | 243.00M | 1.97B | 533.50M | 1.20B | 667.60M | 210.10M |
CNO Financial Technical Analysis
Positive
43.91
Price Trends
41.46
Positive
40.37
Positive
38.93
Positive
Market Momentum
0.56
Positive
55.07
Neutral
69.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNO, the sentiment is Positive. The current price of 43.91 is above the 20-day moving average (MA) of 43.05, above the 50-day MA of 41.46, and above the 200-day MA of 38.93, indicating a neutral trend. The MACD of 0.56 indicates Positive momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 69.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNO.
CNO Financial Risk Analysis
CNO Financial disclosed 33 risk factors in its most recent earnings report. CNO Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CNO Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.87B | 8.59 | 10.12% | 2.91% | -4.58% | ― | |
74 Outperform | $3.70B | 4.39 | 16.27% | ― | 27.71% | ― | |
72 Outperform | $4.14B | 15.17 | 11.12% | 1.54% | -1.61% | 15.79% | |
72 Outperform | $7.98B | 16.23 | 5.50% | 2.98% | 24.94% | ― | |
71 Outperform | $8.32B | 3.93 | 21.66% | 3.93% | 35.76% | 636.97% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $3.59B | 16.66 | 2.86% | ― | 1.41% | 150.35% |
* Financial Sector Average
CNO
CNO Financial
42.94
5.97
16.15%
GNW
Genworth Financial
8.80
2.06
30.56%
LNC
Lincoln National
41.88
11.88
39.61%
BHF
Brighthouse Financial
64.37
16.59
34.72%
JXN
Jackson Financial Incorporation
115.33
29.70
34.68%
FG
F&G Annuities & Life Inc
28.51
-11.50
-28.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.