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Chesnara PLC (GB:CSN)
LSE:CSN

Chesnara (CSN) AI Stock Analysis

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GB

Chesnara

(LSE:CSN)

Rating:67Neutral
Price Target:
297.00p
▲( 5.13% Upside)
Chesnara's overall stock score reflects a robust recovery in financial performance, especially in revenue and cash flow, despite challenges in profitability. Technical analysis shows a strong upward trend, although caution is advised due to overbought indicators. The stock appears overvalued based on its P/E ratio, but the high dividend yield remains attractive. Positive corporate events enhance the company's strategic outlook and stakeholder confidence.

Chesnara (CSN) vs. iShares MSCI United Kingdom ETF (EWC)

Chesnara Business Overview & Revenue Model

Company DescriptionChesnara (CSN) is a UK-based holding company engaged in the management of life insurance and pension portfolios. The company operates in the financial services sector, primarily focusing on life assurance, pension products, and related financial services. Through its subsidiaries, Chesnara provides a range of insurance-based financial solutions across the UK, Sweden, and the Netherlands, leveraging its expertise in managing closed life insurance books and acquiring additional closed books to expand its portfolio.
How the Company Makes MoneyChesnara makes money primarily through the management and acquisition of closed life insurance and pension books. The company generates revenue from the premiums paid by policyholders, investment returns on its portfolio, and fees from managing insurance policies. Chesnara's business model focuses on acquiring closed books of business, which are existing policies that are no longer open to new customers, to optimize operational efficiencies and enhance returns. Additionally, Chesnara benefits from cost synergies and economies of scale by integrating these acquired portfolios. The company's earnings are also influenced by factors such as investment performance, changes in interest rates, and regulatory developments in the insurance sector. Strategic partnerships and collaborations play a significant role in Chesnara's operations, enabling them to enhance their service offerings and expand their market presence.

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
75
Positive
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
65
Positive
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
70
Positive
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.67B1.03B-1.07B1.50B634.43M
Gross Profit
1.67B1.03B-1.07B1.50B634.43M
EBIT
380.80M1.70M-142.57M31.16M55.09M
EBITDA
49.70M16.40M-48.40M42.19M52.04M
Net Income Common Stockholders
3.90M18.70M-98.33M27.29M21.19M
Balance SheetCash, Cash Equivalents and Short-Term Investments
138.00M146.00M175.29M70.09M105.35M
Total Assets
12.76B12.13B11.14B9.42B8.86B
Total Debt
206.20M209.30M213.23M49.46M71.44M
Net Debt
68.20M63.30M37.93M-20.63M-33.62M
Total Liabilities
12.44B11.77B10.81B8.96B8.37B
Stockholders Equity
314.40M359.90M333.12M458.17M487.07M
Cash FlowFree Cash Flow
37.80M-35.70M-80.43M20.69M49.34M
Operating Cash Flow
38.60M-34.90M-76.92M24.32M50.20M
Investing Cash Flow
5.00M29.50M52.05M-3.64M1.88M
Financing Cash Flow
-49.70M-49.80M127.03M-49.98M-59.05M

Chesnara Technical Analysis

Technical Analysis Sentiment
Positive
Last Price282.50
Price Trends
50DMA
260.21
Positive
100DMA
253.85
Positive
200DMA
246.63
Positive
Market Momentum
MACD
7.29
Negative
RSI
72.51
Negative
STOCH
86.94
Negative
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 282.5 is above the 20-day moving average (MA) of 268.37, above the 50-day MA of 260.21, and above the 200-day MA of 246.63, indicating a bullish trend. The MACD of 7.29 indicates Negative momentum. The RSI at 72.51 is Negative, neither overbought nor oversold. The STOCH value of 86.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CSN.

Chesnara Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBPRU
70
Outperform
£22.43B13.1612.68%2.02%-17.12%30.62%
GBCSN
67
Neutral
£431.26M110.661.16%8.65%22.19%-79.23%
65
Neutral
£6.20B-60.34%8.69%-6.33%
64
Neutral
$12.78B9.877.67%17015.06%12.34%-5.99%
GBCBG
60
Neutral
$550.81M4.53-6.71%3.73%-172.06%
57
Neutral
£203.27M-127.10%-20.62%-44.64%
GBHSD
56
Neutral
£64.11M40.098.08%9.47%35.39%-76.12%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CSN
Chesnara
282.50
57.72
25.68%
GB:CBG
Close Brothers Group
357.20
-99.80
-21.84%
GB:SAGA
Saga plc
142.40
16.40
13.02%
GB:HSD
Hansard Global
47.00
1.09
2.37%
GB:PHNX
Phoenix Group Holdings
638.50
188.82
41.99%
GB:PRU
Prudential
854.80
103.76
13.82%

Chesnara Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Chesnara Appoints New Senior Independent Director
Positive
May 13, 2025

Chesnara PLC announced the appointment of Carol Hagh as the new Senior Independent Director, succeeding Jane Dale who retired after a nine-year tenure. This leadership change is expected to leverage Carol’s experience to continue enhancing the company’s governance and strategic direction, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (GB:CSN) stock is a Buy with a £320.00 price target. To see the full list of analyst forecasts on Chesnara stock, see the GB:CSN Stock Forecast page.

Shareholder MeetingsDividendsBusiness Operations and Strategy
Chesnara PLC Successfully Passes All Resolutions at 2025 AGM
Positive
May 13, 2025

Chesnara PLC announced that all resolutions proposed at its 2025 Annual General Meeting were passed with a significant majority. This includes the adoption of audited accounts, approval of the Directors’ Remuneration Report, declaration of a final dividend, and the re-appointment of several directors and auditors. The successful passing of these resolutions reflects strong shareholder support and positions Chesnara to continue its strategic initiatives and maintain its market position.

The most recent analyst rating on (GB:CSN) stock is a Buy with a £320.00 price target. To see the full list of analyst forecasts on Chesnara stock, see the GB:CSN Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Chesnara Appoints New General Counsel and Grants Share Award
Positive
Apr 24, 2025

Chesnara plc announced that Emma Dawe, the newly appointed Group General Counsel, has been granted an award over the company’s ordinary shares under the 2023 Long Term Incentive Plan. This move aligns with the Directors’ Remuneration Policy approved by shareholders and reflects Chesnara’s commitment to strategic leadership. The award, subject to performance targets over three years, underscores the company’s focus on long-term growth and stability, potentially impacting its market positioning positively.

Shareholder MeetingsDividendsFinancial Disclosures
Chesnara PLC Announces 2025 AGM and Dividend Proposal
Positive
Apr 10, 2025

Chesnara PLC has announced its 2025 Annual General Meeting, scheduled for May 13, 2025, at Panmure Liberum’s offices in London. The company encourages electronic voting and pre-submission of questions by shareholders. The preliminary results for 2024 were released on March 27, 2025, proposing a final dividend of 16.08 pence per share. This announcement underscores Chesnara’s commitment to transparency and shareholder engagement, reflecting its ongoing strategic focus on delivering value and maintaining strong financial performance.

Delistings and Listing ChangesBusiness Operations and Strategy
Chesnara Seeks Block Listing for Incentive Scheme Shares
Neutral
Apr 7, 2025

Chesnara has applied for a Block Listing of 1.5 million ordinary shares on the London Stock Exchange, with the shares to be issued under staff incentive schemes. This move is expected to meet the company’s requirements for the next two years and reflects its ongoing commitment to incentivizing staff while maintaining shareholder value.

Other
Chesnara PLC Announces Internal Share Transfer by Key Executive
Neutral
Apr 7, 2025

Chesnara PLC announced a share transaction involving its Group Chief Risk Officer and Chief Actuary, Gavin Hughes, who transferred 3,275 ordinary shares to his wife, Emma Hughes. This transaction, conducted off-market, is aligned with regulatory requirements and reflects internal shareholding adjustments within the company.

Delistings and Listing ChangesBusiness Operations and Strategy
Chesnara Seeks Block Listing to Support Incentive Schemes
Positive
Apr 4, 2025

Chesnara has applied for a block listing of 1.5 million ordinary shares on the London Stock Exchange to support its staff incentive schemes over the next two years. This move aligns with its strategic focus on efficient policy administration and value addition through new business and acquisitions, reinforcing its market position and commitment to stakeholders.

Regulatory Filings and Compliance
Chesnara PLC Announces Total Voting Rights
Neutral
Apr 1, 2025

Chesnara PLC announced its total voting rights, with an issued share capital of 150,997,019 ordinary shares, each carrying one voting right. This information is crucial for shareholders to determine their interest in the company under the FCA’s rules, reflecting Chesnara’s commitment to transparency and regulatory compliance.

Executive/Board ChangesBusiness Operations and Strategy
Chesnara Grants Executive Share Awards Under 2023 Incentive Plans
Neutral
Mar 31, 2025

Chesnara plc has announced the granting of awards to its key executives under the 2023 Short Term Incentive Scheme and the Long Term Incentive Plan. These awards, which involve ordinary shares of the company, are part of the Directors’ Remuneration Policy approved by shareholders. The grants are designed to align the interests of the executives with those of the shareholders, potentially impacting the company’s operational focus and stakeholder value.

Business Operations and Strategy
Chesnara Executives Increase Shareholdings, Signaling Confidence
Positive
Mar 28, 2025

Chesnara plc announced that its Executive Directors, Steven Murray and Thomas Howard, have purchased ordinary shares in the company, with transactions conducted on the London Stock Exchange. This move is part of the company’s ongoing efforts to align management interests with those of shareholders, potentially signaling confidence in Chesnara’s strategic direction and financial health.

M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Chesnara Reports Strong 2024 Financial Results and Dividend Growth
Positive
Mar 27, 2025

Chesnara plc reported strong financial results for 2024, with a 14% increase in cash generation to £60m and a robust solvency coverage ratio of 203%. The company continues its 20-year streak of dividend growth, proposing a 3% increase in the final dividend. The acquisition of a Canada Life portfolio contributed to a £69m growth in Economic Value earnings, enhancing Chesnara’s strategic position and providing flexibility for future M&A activities.

Financial Disclosures
Chesnara PLC to Announce 2024 Financial Results
Neutral
Mar 10, 2025

Chesnara PLC announced it will report its financial results for the year ended December 31, 2024, on March 27, 2025. A presentation for analysts and investors will be held in London and available online. This announcement reflects Chesnara’s ongoing commitment to transparency and stakeholder engagement, potentially impacting investor confidence and market positioning.

Financial Disclosures
Chesnara PLC to Announce 2024 Financial Results
Neutral
Mar 10, 2025

Chesnara PLC announced it will report its financial results for the year ended December 31, 2024, on March 27, 2025. The company will host a presentation for analysts and investors, which will be available online and posted on its corporate website. This announcement reflects Chesnara’s ongoing commitment to transparency and stakeholder engagement, potentially impacting its market positioning and investor relations.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.