CINCINNATI FINANCIAL CORP (CINF) Stock Fundamental Analysis
NASDAQ:CINF - Nasdaq - US1720621010 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CINF. CINF was compared to 145 industry peers in the Insurance industry. CINF has only an average score on both its financial health and profitability. CINF has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CINF was profitable.
In the past year CINF had a positive cash flow from operations.
CINF had positive earnings in 4 of the past 5 years.
In the past 5 years CINF always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.88%, CINF belongs to the top of the industry, outperforming 81.38% of the companies in the same industry.
CINF has a Return On Equity of 10.55%. This is comparable to the rest of the industry: CINF outperforms 54.48% of its industry peers.
CINF has a Return On Invested Capital of 3.96%. This is in the better half of the industry: CINF outperforms 77.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 10.55% | ||
| ROIC | 3.96% |
ROA(3y)3.42%
ROA(5y)4.81%
ROE(3y)9.02%
ROE(5y)12.16%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CINF has a Profit Margin of 13.19%. This is in the better half of the industry: CINF outperforms 77.24% of its industry peers.
In the last couple of years the Profit Margin of CINF has declined.
The Operating Margin of CINF (16.68%) is better than 72.41% of its industry peers.
In the last couple of years the Operating Margin of CINF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.68% | ||
| PM (TTM) | 13.19% | ||
| GM | N/A |
OM growth 3Y-12.75%
OM growth 5Y-4.23%
PM growth 3Y-12.9%
PM growth 5Y-4.31%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CINF is destroying value.
CINF has less shares outstanding than it did 1 year ago.
CINF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CINF has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of CINF is 0.31, which is an excellent value as it means it would take CINF, only 0.31 years of fcf income to pay off all of its debts.
CINF has a Debt to FCF ratio of 0.31. This is amongst the best in the industry. CINF outperforms 87.59% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that CINF is not too dependend on debt financing.
CINF's Debt to Equity ratio of 0.06 is amongst the best of the industry. CINF outperforms 83.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.31 | ||
| Altman-Z | N/A |
ROIC/WACC0.44
WACC8.94%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
CINF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.34%.
CINF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.45% yearly.
Looking at the last year, CINF shows a small growth in Revenue. The Revenue has grown by 2.44% in the last year.
Measured over the past years, CINF shows a small growth in Revenue. The Revenue has been growing by 7.43% on average per year.
EPS 1Y (TTM)-18.34%
EPS 3Y5.7%
EPS 5Y12.45%
EPS Q2Q%-113.95%
Revenue 1Y (TTM)2.44%
Revenue growth 3Y5.59%
Revenue growth 5Y7.43%
Sales Q2Q%-12.57%
3.2 Future
Based on estimates for the next years, CINF will show a small growth in Earnings Per Share. The EPS will grow by 2.53% on average per year.
Based on estimates for the next years, CINF will show a small growth in Revenue. The Revenue will grow by 2.65% on average per year.
EPS Next Y-25.83%
EPS Next 2Y5.4%
EPS Next 3Y2.53%
EPS Next 5YN/A
Revenue Next Year-2.34%
Revenue Next 2Y2.71%
Revenue Next 3Y2.65%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.28 indicates a quite expensive valuation of CINF.
73.10% of the companies in the same industry are cheaper than CINF, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CINF is valued at the same level.
CINF is valuated rather expensively with a Price/Forward Earnings ratio of 17.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CINF indicates a slightly more expensive valuation: CINF is more expensive than 68.28% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CINF to the average of the S&P500 Index (21.76), we can say CINF is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.28 | ||
| Fwd PE | 17.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CINF is on the same level as its industry peers.
CINF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.9 | ||
| EV/EBITDA | 11.57 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.11
EPS Next 2Y5.4%
EPS Next 3Y2.53%
5. Dividend
5.1 Amount
CINF has a Yearly Dividend Yield of 2.35%. Purely for dividend investing, there may be better candidates out there.
CINF's Dividend Yield is a higher than the industry average which is at 3.67.
Compared to an average S&P500 Dividend Yield of 2.35, CINF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
5.2 History
On average, the dividend of CINF grows each year by 7.50%, which is quite nice.
CINF has paid a dividend for at least 10 years, which is a reliable track record.
CINF has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.5%
Div Incr Years29
Div Non Decr Years29
5.3 Sustainability
CINF pays out 34.49% of its income as dividend. This is a sustainable payout ratio.
The dividend of CINF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.49%
EPS Next 2Y5.4%
EPS Next 3Y2.53%
147.41
-0.44 (-0.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.27%
Inst Owner Change0%
Ins Owners1.72%
Ins Owner Change0.77%
Market Cap23.04B
Analysts76.25
Price Target155.89 (5.75%)
Short Float %1.12%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend3.13
Dividend Growth(5Y)7.5%
DP34.49%
Div Incr Years29
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)61.94%
Min EPS beat(2)61.83%
Max EPS beat(2)62.05%
EPS beat(4)3
Avg EPS beat(4)37.66%
Min EPS beat(4)-4.79%
Max EPS beat(4)62.05%
EPS beat(8)6
Avg EPS beat(8)33.38%
EPS beat(12)8
Avg EPS beat(12)20.71%
EPS beat(16)12
Avg EPS beat(16)26.18%
Revenue beat(2)0
Avg Revenue beat(2)-6.18%
Min Revenue beat(2)-7.03%
Max Revenue beat(2)-5.33%
Revenue beat(4)2
Avg Revenue beat(4)4.58%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)28.83%
Revenue beat(8)5
Avg Revenue beat(8)7.95%
Revenue beat(12)5
Avg Revenue beat(12)-1.15%
Revenue beat(16)7
Avg Revenue beat(16)3.8%
PT rev (1m)0%
PT rev (3m)-2.65%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)3.23%
EPS NY rev (1m)0.63%
EPS NY rev (3m)6.62%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.28 | ||
| Fwd PE | 17.53 | ||
| P/S | 2.1 | ||
| P/FCF | 8.9 | ||
| P/OCF | 8.84 | ||
| P/B | 1.68 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)5.61
EY3.81%
EPS(NY)8.41
Fwd EY5.7%
FCF(TTM)16.56
FCFY11.23%
OCF(TTM)16.67
OCFY11.31%
SpS70.17
BVpS87.77
TBVpS87.77
PEG (NY)N/A
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 10.55% | ||
| ROCE | 4.92% | ||
| ROIC | 3.96% | ||
| ROICexc | 4.07% | ||
| ROICexgc | 4.41% | ||
| OM | 16.68% | ||
| PM (TTM) | 13.19% | ||
| GM | N/A | ||
| FCFM | 23.6% |
ROA(3y)3.42%
ROA(5y)4.81%
ROE(3y)9.02%
ROE(5y)12.16%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-12.78%
ROICexcg growth 5Y-4.57%
ROICexc growth 3Y-12.63%
ROICexc growth 5Y-4.34%
OM growth 3Y-12.75%
OM growth 5Y-4.23%
PM growth 3Y-12.9%
PM growth 5Y-4.31%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.31 | ||
| Debt/EBITDA | 0.41 | ||
| Cap/Depr | 12.59% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 132.08% | ||
| Profit Quality | 178.85% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.94%
ROIC/WACC0.44
Cap/Depr(3y)14.94%
Cap/Depr(5y)17.13%
Cap/Sales(3y)0.2%
Cap/Sales(5y)0.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.34%
EPS 3Y5.7%
EPS 5Y12.45%
EPS Q2Q%-113.95%
EPS Next Y-25.83%
EPS Next 2Y5.4%
EPS Next 3Y2.53%
EPS Next 5YN/A
Revenue 1Y (TTM)2.44%
Revenue growth 3Y5.59%
Revenue growth 5Y7.43%
Sales Q2Q%-12.57%
Revenue Next Year-2.34%
Revenue Next 2Y2.71%
Revenue Next 3Y2.65%
Revenue Next 5YN/A
EBIT growth 1Y-39.28%
EBIT growth 3Y-7.87%
EBIT growth 5Y2.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y23.89%
FCF growth 3Y10.14%
FCF growth 5Y17.28%
OCF growth 1Y23.86%
OCF growth 3Y10.17%
OCF growth 5Y17%