Chesnara (CSN) AI Stock Analysis

• Market Cap: £640.35M
• Dividend Yield: 8.43%
• Average Volume (3M): 513.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -48.03%
• EPS Growth: -289.17%
• Country: UK
• Employees: 386
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): -0.07
• Shares Outstanding: 230,758,220
• 10 Day Avg. Volume: 619,890
• 30 Day Avg. Volume: 513,471
• PEG Ratio: -1.13
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 9.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £310.00
• Price Target Upside: 9.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: 315.00p ▲(11.70% Upside)

Chesnara's overall stock score is driven by strong technical indicators and positive corporate events, reflecting confidence in the company's strategy. Financial performance shows improvement, though challenges in profitability and equity management persist. The high dividend yield provides valuation support despite a negative P/E ratio.

Positive Factors

Revenue Recovery

The significant recovery in revenue indicates successful business operations and potential for sustained growth, enhancing long-term financial stability.

Cash Flow Improvement

Improved cash generation capabilities enhance Chesnara's financial flexibility, allowing for better investment opportunities and debt management.

Gross Profit Margins

Sustained high gross profit margins reflect strong operational efficiency and the ability to maintain cost control, supporting long-term profitability.

Negative Factors

Equity Strain

Decreasing equity indicates challenges in maintaining financial health, potentially affecting the company's ability to raise capital and invest in growth.

Profitability Challenges

Low net profit margins highlight ongoing profitability challenges, which could impact long-term earnings potential and shareholder returns.

Cash Flow Volatility

Volatile cash flows can complicate financial planning and investment strategies, potentially affecting the company's ability to sustain operations during downturns.

Chesnara Business Overview & Revenue Model

Company Description

Chesnara plc, together with its subsidiaries, engages in the life assurance and pension businesses primarily in the United Kingdom, the Netherlands, and Sweden. It operates through CA, Movestic, Waard Group, and Scildon segments. The company underwrites life risks, such as death, disability, health, and accident; and provides a portfolio of investment contracts for the savings and retirement needs of customers through asset management, as well as general insurance products. It distributes its products principally through independent financial advisers. Chesnara plc was incorporated in 2003 and is headquartered in Preston, the United Kingdom.

How the Company Makes Money

Chesnara generates revenue primarily through the management of its insurance and pension portfolios. The key revenue streams include premium income from new life insurance policies, investment income from assets held within its portfolios, and fee income from the management of pension schemes. Additionally, Chesnara benefits from the acquisition of closed book life and pension businesses, allowing it to consolidate operations and reduce costs. Strategic partnerships with financial advisors and service providers also contribute to its revenue, enhancing distribution capabilities and customer reach.

Chesnara Financial Statement Overview

Summary

Chesnara demonstrates a solid recovery in revenue and cash flow, indicating improving business operations. While profitability and equity management present challenges, the company shows resilience in managing cash flows and leverage effectively, reflecting a positive trajectory overall.

Income Statement

Chesnara shows a strong recovery in total revenue, growing from a negative revenue of -£1,074 million in 2022 to £1,667 million in 2024, indicating significant improvement. Gross profit margins have remained robust at 100% due to total revenue equaling gross profit. The net profit margin has been low, with a notable dip in 2023 but recovering slightly in 2024. EBIT and EBITDA margins reflect an improving trend, especially a substantial rise in EBIT margin in 2024, indicating improving core operations.

Balance Sheet

The debt-to-equity ratio has remained relatively stable, suggesting consistent leverage management. However, a decrease in stockholders' equity from 2023 to 2024 suggests potential strain on equity. The return on equity (ROE) has been low, reflecting challenges in generating profits relative to equity. Despite these challenges, the equity ratio indicates a moderate level of assets financed by equity, showing fair asset stability.

Cash Flow

Chesnara exhibits a positive turnaround in free cash flow from negative figures in previous years to a positive £37.8 million in 2024, reflecting improved cash generation capabilities. The operating cash flow to net income ratio indicates strong cash flow coverage over net income, enhancing financial flexibility. However, fluctuations in cash flows over the years indicate potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	858.10M	1.67B	1.03B	-720.40M	1.50B	634.43M
Gross Profit	353.00M	1.67B	1.03B	-1.29B	1.49B	634.43M
EBITDA	13.80M	49.70M	31.40M	-48.40M	42.19M	52.04M
Net Income	-7.90M	3.90M	18.70M	-33.70M	27.29M	21.19M
Balance Sheet
Total Assets	13.51B	12.76B	12.13B	11.14B	9.42B	8.86B
Cash, Cash Equivalents and Short-Term Investments	0.00	138.00M	146.00M	204.60M	70.09M	105.35M
Total Debt	203.80M	206.20M	209.30M	213.23M	49.46M	71.44M
Total Liabilities	13.22B	12.44B	11.77B	10.81B	8.96B	8.37B
Stockholders Equity	293.30M	314.40M	359.90M	333.12M	458.17M	487.07M
Cash Flow
Free Cash Flow	44.70M	37.80M	-35.70M	-80.43M	20.69M	49.34M
Operating Cash Flow	45.90M	38.60M	-34.90M	-76.92M	24.32M	50.20M
Investing Cash Flow	4.60M	5.00M	29.50M	52.05M	-3.64M	1.88M
Financing Cash Flow	-33.90M	-49.70M	-49.80M	121.30M	-52.25M	-61.34M

Chesnara Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 282.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CSN, the sentiment is Positive. The current price of 282 is above the 20-day moving average (MA) of 278.55, above the 50-day MA of 276.50, and above the 200-day MA of 253.24, indicating a bullish trend. The MACD of 1.75 indicates Positive momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 31.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CSN.

Chesnara Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSN	72 Outperform	£640.35M	-61.12	-2.53%	8.43%	-48.03%	-289.17%
PRU	71 Outperform	£27.21B	10.72	20.51%	1.68%	37.94%	291.37%
CBG	68 Neutral	$668.23M	-6.71	-9.28%	―	-15.79%	-211.91%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PHNX	67 Neutral	£6.73B	-10.62	-49.24%	8.09%	-34.62%	-19.20%
SAGA	65 Neutral	£378.95M	-9.95	-76.14%	―	-35.05%	74.73%
HSD	58 Neutral	£62.61M	34.70	9.65%	9.25%	-52.34%	-65.35%

Chesnara Corporate Events

Chesnara PLC Announces Total Voting Rights Update

Chesnara PLC has announced its total voting rights, with its issued share capital comprising 230,803,427 ordinary shares, each carrying one voting right. This announcement is in line with the company’s compliance with the FCA’s Disclosure Guidance and Transparency Rules, providing shareholders the necessary information to assess their interests in the company.

Chesnara Executives Increase Shareholdings Through Dividend Reinvestment

Chesnara plc has announced that its Group CEO, Steve Murray, and Group CFO, Tom Howard, have acquired additional ordinary shares in the company through a dividend reinvestment plan. This acquisition reflects confidence in the company’s ongoing strategy and financial health, as Chesnara continues to focus on efficient policy management and expansion through new business and acquisitions.

Chesnara PLC Announces Total Voting Rights Update

Chesnara PLC announced that its issued share capital consists of 230,758,230 ordinary shares, each carrying one voting right, which shareholders can use to determine their interest in the company. This announcement aligns with Chesnara’s commitment to transparency and may impact stakeholders by clarifying their voting rights and interests in the company.