CNO Financial Group Inc. Common Stock (CNO)

FairStock Score: 39/100 — MIXED

Key Financials

Strengths

• Generates $1.2 billion in annual free cash flow (29.2% yield on market cap)

Concerns

• Altman Z-Score of 0.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

CNO Financial Group Inc. Common Stock is a small-cap financial services company valued at $4.1 billion. The business generates $4.5 billion in annual revenue with a 2.1% net margin and $1.2 billion in free cash flow. From a quality standpoint, CNO shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.2 warrants caution. On valuation, the stock is reasonably priced at 19.0x earnings, with trades above its Graham Number with a negative 15% margin. Growth dynamics show revenue growing at 4.2% and profit growth of -44.1%. The 1.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 39/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $1.2 billion in annual free cash flow (29.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer