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CNO Financial
(NYSE:CNO)
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Rating:67Neutral
Price Target:
$57.00
▲(30.64% Upside)
Action:Reiterated
Date:05/14/26
CNO scores as moderately attractive: strong cash flow and a constructive earnings-call backdrop (solid EPS growth, affirmed guidance, and meaningful buybacks with capital within targets) support the rating. This is tempered by weaker current profitability/ROE and meaningful leverage, plus a less compelling valuation (P/E ~25.6, ~1.47% yield) and slightly overbought technicals.
Positive Factors
Strong cash generation and FCF growth
Sustained operating and free cash flow strength gives CNO durable internal funding for capex, technology, and buybacks while supporting debt service and dividends. High FCF growth also signals earnings quality and provides flexibility to absorb underwriting volatility or invest in distribution over the next 2–6 months.
Negative Factors
Profitability compression and margin volatility
Sharply lower margins versus recent years indicate weakened underwriting profitability and/or higher benefit costs. Persistent margin compression reduces free room for reinvestment and shareholder returns, and implies that even with revenue growth, earnings power and long-term ROE recovery may take multiple quarters and sustained expense or pricing actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF growth
Sustained operating and free cash flow strength gives CNO durable internal funding for capex, technology, and buybacks while supporting debt service and dividends. High FCF growth also signals earnings quality and provides flexibility to absorb underwriting volatility or invest in distribution over the next 2–6 months.
Read all positive factors
CNO Financial Key Performance Indicators (KPIs)
Any
Revenue by Type
Separates total revenue into insurance premiums, investment income, fees, and realized gains, revealing how much earnings rely on underwriting versus market returns and the company’s sensitivity to interest-rate and market movements.
Separates total revenue into insurance premiums, investment income, fees, and realized gains, revealing how much earnings rely on underwriting versus market returns and the company’s sensitivity to interest-rate and market movements.
Data provided by:
The Fly
The FlyCNO Financial (CNO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.89B
Dividend Yield1.54%
Average Volume (3M)722.76K
Price to Earnings (P/E)20.7
Beta (1Y)0.71
Revenue Growth5.03%
EPS Growth-12.76%
CountryUS
Employees3,400
SectorGeneral
Sector StrengthN/A
IndustryInsurance - Life
Share Statistics
EPS (TTM)2.53
Shares Outstanding93,348,500
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 Cap1.63
Enterprise Value/Revenue1.76
Enterprise Value/Gross Profit4.17
Enterprise Value/Ebitda9.27
Forecast
1Y Price Target
$49.00Price Target Upside12.31% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)4.44
Revenue Forecast (FY)$4.05B
CNO Financial Business Overview & Revenue Model
Company Description
Headquartered in Carmel, Indiana, and established in 1979, CNO Financial Group, Inc. operates across the United States, developing, marketing, and administering a broad spectrum of insurance and annuity products primarily for middle-income and sen...
How the Company Makes Money
CNO primarily makes money by underwriting and servicing insurance and annuity products and by investing the premiums it collects. Key revenue and earnings drivers include: (1) Premium and policy charges: For life and health insurance products, the...
CNO Financial Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call presented a broad set of positive operating and financial results: strong earnings growth (operating EPS +33%), sustained multi-quarter sales and agent growth, solid investment income momentum, record brokerage asset growth, and robust capital returns while maintaining capital targets. Notable challenges were highlighted but appear manageable: modest adverse Medicare supplement claims that are being addressed via rate filings, slight annuity sales decline on tough comps, minor shortfall in alternative investment income, and temporary capital metric noise from equity market moves and FABN spread dynamics. Management affirmed 2026 guidance given macro uncertainty but signaled continued confidence in improving ROE and disciplined capital deployment. Overall, the positive operational momentum and capital strength outweigh the manageable headwinds.Positive Updates
Operating Earnings Growth
Operating earnings per diluted share were $1.05 for Q1 2026, up 33% year-over-year and up 42% excluding significant items.
Negative Updates
Medicare Supplement Claims Pressure
Medicare supplement experienced modestly adverse claims experience in the quarter; management has filed rate increases (closed block ~10.2% approval effective 01/01/2026; open block filings asked ~16.8% with expected approvals around ~14.5% effective 07/01/2026) with full impact expected to show by Q4 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Operating Earnings Growth
Operating earnings per diluted share were $1.05 for Q1 2026, up 33% year-over-year and up 42% excluding significant items.
Read all positive updates
Company Guidance
Management affirmed its original 2026 guidance while noting strong Q1 results (operating EPS $1.05, +33% YoY and +42% excluding significant items) and said it will refine guidance later in the year; trailing twelve‑month operating ROE was 13.1% (12.2% excl. items) versus a three‑year ROE waypoint of 12% that the team said is likely to be raised for 2027 but will not be updated until early next year. Capital and liquidity metrics remain within targets: consolidated RBC managed in a 360–390% range, holding‑company liquidity $280 million (vs. $150 million minimum), and debt‑to‑capital 26.4% (target 25–28%); the company returned $77 million to shareholders in Q1, including $60 million of buybacks that reduced weighted‑average diluted shares by ~7%. On the financial and investment front management highlighted net investment income +6% YoY, average book value of invested assets +4.2% YoY, net insurance liabilities and related assets +4.8% in the quarter, ~ $1.3 billion of new investments at ~5‑year duration, thirteen consecutive quarters of new‑money rates above 6%, an expense ratio of 18.9% (expected to normalize over the year), and timing details that MedSup rate increases will be substantially in effect by Q4 2026.CNO Financial Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.51B | 4.49B | 4.45B | 4.15B | 3.58B | 4.12B |
| Gross Profit | 1.91B | 2.01B | 1.70B | 1.53B | 1.79B | 1.70B |
| EBITDA | 857.90M | 842.80M | 1.07B | 862.80M | 1.20B | 1.07B |
| Net Income | 245.50M | 229.30M | 404.00M | 276.50M | 630.60M | 570.30M |
Balance Sheet | ||||||
| Total Assets | 38.96B | 38.79B | 37.85B | 35.03B | 33.13B | 36.20B |
| Cash, Cash Equivalents and Short-Term Investments | 9.39B | 8.87B | 24.69B | 22.28B | 20.63B | 24.91B |
| Total Debt | 4.30B | 4.05B | 4.52B | 4.15B | 3.88B | 4.00B |
| Total Liabilities | 36.47B | 36.15B | 35.33B | 32.81B | 31.36B | 30.94B |
| Stockholders Equity | 2.50B | 2.64B | 2.52B | 2.22B | 1.77B | 5.26B |
Cash Flow | ||||||
| Free Cash Flow | 687.80M | 675.70M | 627.70M | 582.90M | 495.40M | 598.30M |
| Operating Cash Flow | 687.80M | 675.70M | 627.70M | 582.90M | 495.40M | 598.30M |
| Investing Cash Flow | -1.31B | -1.67B | -1.49B | -872.30M | -1.78B | -1.53B |
| Financing Cash Flow | 754.90M | -22.60M | 1.97B | 533.50M | 1.20B | 667.60M |
CNO Financial Technical Analysis
Positive
43.63
Price Trends
47.85
Positive
44.72
Positive
42.66
Positive
Market Momentum
1.42
Positive
67.42
Neutral
70.87
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 43.63 is below the 20-day moving average (MA) of 50.93, below the 50-day MA of 47.85, and above the 200-day MA of 42.66, indicating a bullish trend. The MACD of 1.42 indicates Positive momentum. The RSI at 67.42 is Neutral, neither overbought nor oversold. The STOCH value of 70.87 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 32 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.70B | 7.20 | 11.42% | 2.91% | 17.32% | -0.37% | |
67 Neutral | $4.89B | 20.72 | 9.56% | 1.54% | 5.03% | -12.76% | |
67 Neutral | $7.07B | 4.10 | 16.79% | 3.93% | 8.45% | 21.80% | |
66 Neutral | $3.68B | 17.96 | 2.46% | ― | -1.14% | 7.17% | |
61 Neutral | $7.29B | -17.30 | -3.73% | 2.98% | -20.54% | -652.89% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | $3.68B | -23.03 | -1.07% | ― | -16.15% | -133.67% |
* General Sector Average
CNO
CNO Financial
52.64
15.76
42.74%
GNW
Genworth Financial
9.54
1.71
21.84%
LNC
Lincoln National
38.39
5.71
17.48%
BHF
Brighthouse Financial
64.88
14.18
27.97%
JXN
Jackson Financial Incorporation
109.36
24.22
28.45%
FG
F&G Annuities & Life Inc
28.38
-1.73
-5.76%
CNO Financial Corporate Events
Executive/Board ChangesShareholder Meetings
CNO Financial Shareholders Back Board, Pay and Auditor
Positive
May 13, 2026
On May 12, 2026, CNO Financial held its 2026 Annual Meeting of Shareholders, where investors elected nine directors to one-year terms ending at the 2027 annual meeting, with each nominee receiving strong majority support across the shareholder bas...
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.