CNO Financial (CNO) AI Stock Analysis

• Market Cap: $4.01B
• Dividend Yield: 1.54%
• Average Volume (3M): 722.76K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.70
• Revenue Growth: -1.61%
• EPS Growth: 15.79%
• Country: US
• Employees: 3,400
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 1.29
• Shares Outstanding: 95,353,516
• 10 Day Avg. Volume: 1,051,627
• 30 Day Avg. Volume: 722,759
• PEG Ratio: 0.17
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 6.29
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 3.82
• Enterprise Value/Ebitda: 7.32
• 1Y Price Target: $48.00
• Price Target Upside: 12.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $47.00 ▲(9.81% Upside)

The score is driven primarily by solid financial performance with improving leverage but pressured margins and lower ROE, plus a strong earnings call highlighting accelerating sales and operating EPS growth despite impairment and business-exit headwinds. Valuation is reasonable (P/E 14.83, 1.58% yield), while technical indicators are mixed with near-term consolidation within a broader uptrend.

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 Business Overview & Revenue Model

Company Description

CNO 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 Money

CNO 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 Financial Statement Overview

Summary

Stable revenue growth and solid operating efficiency (TTM EBIT margin 14.01%, EBITDA margin 17.47%) support the score, but profitability is weakening (gross margin down to 29.96% from 41.03% in 2024; net margin down to 6.64% from 9.09%). Leverage improved (debt-to-equity 1.60 vs. 1.81), while shareholder returns softened (ROE 11.51% vs. 16.17%). Cash conversion looks strong, but free cash flow growth is negative (-4.74%).

Income Statement

CNO Financial shows a stable revenue growth with a TTM increase of 1.35%. However, the gross profit margin has decreased from 41.03% in 2024 to 29.96% in TTM, indicating increased costs or pricing pressures. The net profit margin also declined from 9.09% to 6.64% in TTM, reflecting reduced profitability. Despite these challenges, the company maintains a reasonable EBIT margin of 14.01% and EBITDA margin of 17.47% in TTM, suggesting operational efficiency.

Balance Sheet

The debt-to-equity ratio improved from 1.81 in 2024 to 1.60 in TTM, showing better leverage management. However, the return on equity decreased from 16.17% to 11.51% in TTM, indicating reduced profitability for shareholders. The equity ratio remains stable, reflecting a balanced asset structure. Overall, the balance sheet shows moderate financial stability with some room for improvement in profitability.

Cash Flow

Operating cash flow increased slightly in TTM, but free cash flow growth was negative at -4.74%, indicating potential cash management issues. The operating cash flow to net income ratio is strong at 19.46, and the free cash flow to net income ratio remains at 1.0, suggesting efficient cash conversion. Despite the decline in free cash flow growth, cash flow metrics indicate solid cash generation capabilities.

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

• Technical Analysis Sentiment: Positive
• Last Price: 42.80
• 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 CNO, the sentiment is Positive. The current price of 42.8 is above the 20-day moving average (MA) of 42.10, above the 50-day MA of 41.77, and above the 200-day MA of 39.14, indicating a bullish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 92.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNO.

CNO Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FG	77 Outperform	$3.97B	8.81	10.12%	2.91%	-4.58%	―
BHF	74 Outperform	$3.66B	4.37	16.27%	―	27.71%	―
JXN	72 Outperform	$8.08B	16.45	5.50%	2.98%	24.94%	―
CNO	71 Outperform	$4.01B	14.70	11.12%	1.54%	-1.61%	15.79%
LNC	71 Outperform	$7.90B	3.74	21.66%	3.93%	35.76%	636.97%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GNW	63 Neutral	$3.33B	16.04	2.86%	―	1.41%	150.35%

CNO Financial Corporate Events

CNO Financial Appoints Linda Gibson to Board of Directors

On January 15, 2026, CNO Financial Group appointed Linda T. Gibson, former chairperson and CEO of PGIM Quantitative Solutions, to its board of directors as an independent director, expanding the board to ten members and assigning her to the Audit and Enterprise Risk Committee and the Investment Committee. The move brings more than three decades of global investment management and asset allocation expertise to CNO’s board, reinforcing the insurer’s strategic emphasis on investment strategy, technology-enabled solutions and long-term shareholder returns, while maintaining standard, customary compensation and governance arrangements with no related-party transactions disclosed.

The most recent analyst rating on (CNO) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on CNO Financial stock, see the CNO Stock Forecast page.