CNO Financial (CNO)
NYSE:CNO
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CNO Financial
(NYSE:CNO)
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Rating:62Neutral
Price Target:
$44.00
▲(4.14% Upside)
Action:DowngradedDate:02/25/26
The score is driven primarily by adequate-but-not-high-quality fundamentals (margin/ROE compression and elevated leverage offset by strong cash generation) and a neutral-to-soft technical picture. These are partially improved by a constructive earnings-call setup with higher 2026 EPS guidance and disciplined capital targets, while valuation is only moderately supportive.
Positive Factors
Strong cash generation
Consistent and rising operating cash flow and positive free cash flow provide durable internal funding for share repurchases, dividends, tech modernization and reinsurance funding. That cash buffer improves resilience to underwriting cycles and gives management flexibility to execute multi-year plans.
Negative Factors
Elevated leverage
A materially higher debt load than historical norms increases sensitivity to rates and market volatility and constrains strategic flexibility. Elevated leverage can amplify underwriting or investment shocks, raise funding costs, and limit optionality for capital returns or opportunistic investments over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent and rising operating cash flow and positive free cash flow provide durable internal funding for share repurchases, dividends, tech modernization and reinsurance funding. That cash buffer improves resilience to underwriting cycles and gives management flexibility to execute multi-year plans.
Read all positive factors
CNO Financial (CNO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.98B
Dividend Yield1.54%
Average Volume (3M)722.76K
Price to Earnings (P/E)11.1
Beta (1Y)0.74
Revenue Growth-1.61%
EPS Growth15.79%
CountryUS
Employees3,400
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)1.47
Shares Outstanding94,277,710
10 Day Avg. Volume1,051,627
30 Day Avg. Volume722,759
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)1.57
Price to Sales (P/S)0.93
P/FCF Ratio6.14
Enterprise Value/Market Cap1.78
Enterprise Value/Revenue1.58
Enterprise Value/Gross Profit3.93
Enterprise Value/Ebitda9.43
Forecast
1Y Price Target
$46.33Price Target Upside9.66% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)4.39
Revenue Forecast (FY)$4.05B
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 Medicar...
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 i...
CNO Financial Key Performance Indicators (KPIs)
CNO Financial Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based growth across production, product margins and investment yield, with record sales and improving operating profitability and capital metrics. Management acknowledged macroeconomic uncertainty and specific headwinds (notably Medicare Advantage pressure and potential softness in discretionary products), along with some non-repeatable items in investment income. On balance the positive operational and financial momentum, capital returns, and disciplined investment and capital plans substantially outweigh the noted risks.Positive Updates
Record Production and Sales Growth
Total new annualized premium (NAP) was a record and up 15% for the full year; company reported its 14th consecutive quarter of sales growth and multiple division- and product-level production records.
Negative Updates
Medicare Advantage Weakness and Market Pressure
Medicare Advantage policies sold were down 3% for the year; management highlighted MA carriers paring back plans/benefits which creates headwinds and potential pressure on distribution fees and churn.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Production and Sales Growth
Total new annualized premium (NAP) was a record and up 15% for the full year; company reported its 14th consecutive quarter of sales growth and multiple division- and product-level production records.
Read all positive updates
Company Guidance
The company’s initial 2026 guidance targets continued profitability and capital discipline: operating earnings per share of $4.25–$4.45 (about an 8% increase at the midpoint versus 2025), an expense ratio of 18.8%–19.2% (seasonally higher in Q1), fee income of roughly $30 million (≈1/3 in Q1, minimal in Q2–Q3, remainder in Q4), an effective tax rate of ~22.5%, and free cash flow of $200–$250 million (guidance is net of the tech modernization spend). Management reiterated a multi-year objective to improve run‑rate operating ROE by 200 basis points through 2027 (from a ~10% 2024 run‑rate toward a ~12% 2027 target), noted 2025 operating ROE ex-significant items was 11.4%, and set capital/liquidity targets of a consolidated RBC range of 360%–390% (midpoint ≈375%), minimum holding‑company liquidity of $150 million, and a debt‑to‑total‑capital ratio of 25%–28%; they also confirmed the $170 million three‑year tech program ($20 million spent in 2025, ~$75 million expected in 2026).CNO Financial Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
52
Neutral
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.49B | 4.45B | 4.15B | 3.58B | 4.12B |
| Gross Profit | 2.01B | 1.70B | 1.53B | 1.79B | 1.70B |
| EBITDA | 524.30M | 1.07B | 862.80M | 1.20B | 1.07B |
| Net Income | 229.30M | 404.00M | 276.50M | 630.60M | 570.30M |
Balance Sheet | |||||
| Total Assets | 38.97B | 37.85B | 35.03B | 33.13B | 36.20B |
| Cash, Cash Equivalents and Short-Term Investments | 8.87B | 9.45B | 22.28B | 20.42B | 24.91B |
| Total Debt | 4.05B | 4.52B | 4.15B | 3.88B | 4.00B |
| Total Liabilities | 36.33B | 35.35B | 32.81B | 31.36B | 30.94B |
| Stockholders Equity | 2.64B | 2.50B | 2.22B | 1.77B | 5.26B |
Cash Flow | |||||
| Free Cash Flow | 675.70M | 627.70M | 582.90M | 495.40M | 598.30M |
| Operating Cash Flow | 675.70M | 627.70M | 582.90M | 495.40M | 598.30M |
| Investing Cash Flow | -1.67B | -1.49B | -872.30M | -1.78B | -1.53B |
| Financing Cash Flow | -22.60M | 1.97B | 533.50M | 1.20B | 667.60M |
CNO Financial Technical Analysis
Positive
42.25
Price Trends
41.61
Positive
41.54
Positive
39.95
Positive
Market Momentum
0.22
Negative
57.85
Neutral
80.61
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 42.25 is above the 20-day moving average (MA) of 40.86, above the 50-day MA of 41.61, and above the 200-day MA of 39.95, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 80.61 is Negative, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $3.26B | 15.25 | 5.75% | 2.91% | -4.58% | ― | |
62 Neutral | $3.98B | 11.12 | 8.60% | 1.54% | -1.61% | 15.79% | |
61 Neutral | $6.50B | 6.91 | 12.03% | 3.93% | 35.76% | 636.97% | |
58 Neutral | $3.39B | 447.44 | 2.54% | ― | 1.41% | 150.35% | |
58 Neutral | $7.15B | 276.83 | 0.26% | 2.98% | 24.94% | ― | |
54 Neutral | $3.47B | 8.55 | 7.20% | ― | 27.71% | ― |
* Financial Sector Average
CNO
CNO Financial
42.25
5.05
13.56%
GNW
Genworth Financial
8.75
2.07
30.99%
LNC
Lincoln National
34.20
5.62
19.66%
BHF
Brighthouse Financial
60.73
10.23
20.26%
JXN
Jackson Financial Incorporation
101.62
31.22
44.35%
FG
F&G Annuities & Life Inc
24.03
-9.06
-27.38%
CNO Financial Corporate Events
Executive/Board ChangesDividendsShareholder Meetings
CNO Financial Announces Dividend and Board Leadership Change
Positive
Feb 11, 2026
CNO Financial Group, Inc., which targets middle-income consumers with life and health insurance, annuities and financial services through brands such as Bankers Life and Colonial Penn, plans to hold its 2026 annual shareholder meeting virtually on...
Business Operations and StrategyExecutive/Board Changes
CNO Financial Appoints Linda Gibson to Board of Directors
Positive
Jan 15, 2026
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 ...
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.