CINCINNATI FINANCIAL CORP (CINF) Stock Fundamental Analysis
USA - NASDAQ:CINF - US1720621010 - Common Stock
153.27 USD
-1.86 (-1.2%)
153.27 USD
0 (0%)
Overall CINF gets a fundamental rating of 4 out of 10. We evaluated CINF against 146 industry peers in the Insurance industry. CINF has only an average score on both its financial health and profitability. CINF is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CINF had positive earnings in the past year.
CINF had a positive operating cash flow in the past year.
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
CINF has a Return On Assets of 4.69%. This is amongst the best in the industry. CINF outperforms 82.88% of its industry peers.
CINF has a Return On Equity of 12.73%. This is in the better half of the industry: CINF outperforms 61.64% of its industry peers.
The Return On Invested Capital of CINF (4.78%) is better than 80.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 12.73% | ||
| ROIC | 4.78% |
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 15.59%. This is amongst the best in the industry. CINF outperforms 84.25% of its industry peers.
In the last couple of years the Profit Margin of CINF has declined.
CINF has a Operating Margin of 19.70%. This is in the better half of the industry: CINF outperforms 75.34% of its industry peers.
CINF's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.7% | ||
| PM (TTM) | 15.59% | ||
| 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
CINF has a debt to FCF ratio of 0.31. This is a very positive value and a sign of high solvency as it would only need 0.31 years to pay back of all of its debts.
CINF's Debt to FCF ratio of 0.31 is amongst the best of the industry. CINF outperforms 88.36% of its industry peers.
CINF has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
CINF has a better Debt to Equity ratio (0.06) than 80.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.31 | ||
| Altman-Z | N/A |
ROIC/WACC0.56
WACC8.58%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
CINF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.50%.
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 quite strong growth in Revenue. The Revenue has grown by 9.64% in the last year.
The Revenue has been growing slightly by 7.43% on average over the past years.
EPS 1Y (TTM)-9.5%
EPS 3Y5.7%
EPS 5Y12.45%
EPS Q2Q%52.71%
Revenue 1Y (TTM)9.64%
Revenue growth 3Y5.59%
Revenue growth 5Y7.43%
Sales Q2Q%27.67%
3.2 Future
The Earnings Per Share is expected to grow by 5.17% on average over the next years.
The Revenue is expected to grow by 4.18% on average over the next years.
EPS Next Y-17.55%
EPS Next 2Y6.36%
EPS Next 3Y5.17%
EPS Next 5YN/A
Revenue Next Year1.47%
Revenue Next 2Y2.43%
Revenue Next 3Y4.18%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.37, which indicates a rather expensive current valuation of CINF.
Compared to the rest of the industry, the Price/Earnings ratio of CINF indicates a slightly more expensive valuation: CINF is more expensive than 74.66% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CINF to the average of the S&P500 Index (27.20), we can say CINF is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 17.90, the valuation of CINF can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CINF is valued a bit more expensive than the industry average as 67.12% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.71. CINF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.37 | ||
| Fwd PE | 17.9 |
4.2 Price Multiples
CINF's Enterprise Value to EBITDA is on the same level as the industry average.
CINF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.26 | ||
| EV/EBITDA | 9.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.96
EPS Next 2Y6.36%
EPS Next 3Y5.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.22%, CINF has a reasonable but not impressive dividend return.
CINF's Dividend Yield is a higher than the industry average which is at 3.43.
CINF's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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 27.86% 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.
DP27.86%
EPS Next 2Y6.36%
EPS Next 3Y5.17%
153.27
-1.86 (-1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.33%
Inst Owner Change-0.87%
Ins Owners1.72%
Ins Owner Change0.39%
Market Cap23.97B
Analysts76.25
Price Target166.6 (8.7%)
Short Float %1.07%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend3.13
Dividend Growth(5Y)7.5%
DP27.86%
Div Incr Years29
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)50%
Min EPS beat(2)37.96%
Max EPS beat(2)62.05%
EPS beat(4)3
Avg EPS beat(4)39.26%
Min EPS beat(4)-4.79%
Max EPS beat(4)62.05%
EPS beat(8)6
Avg EPS beat(8)30.59%
EPS beat(12)9
Avg EPS beat(12)27.21%
EPS beat(16)12
Avg EPS beat(16)23.69%
Revenue beat(2)1
Avg Revenue beat(2)3.41%
Min Revenue beat(2)-7.03%
Max Revenue beat(2)13.85%
Revenue beat(4)2
Avg Revenue beat(4)7.58%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)28.83%
Revenue beat(8)5
Avg Revenue beat(8)7.58%
Revenue beat(12)6
Avg Revenue beat(12)4.92%
Revenue beat(16)7
Avg Revenue beat(16)2.78%
PT rev (1m)0.82%
PT rev (3m)6.87%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)4.53%
EPS NY rev (1m)11.16%
EPS NY rev (3m)11.86%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)3.9%
Revenue NY rev (3m)4.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.37 | ||
| Fwd PE | 17.9 | ||
| P/S | 2.05 | ||
| P/FCF | 9.26 | ||
| P/OCF | 9.2 | ||
| P/B | 1.68 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 9.72 |
EPS(TTM)6.29
EY4.1%
EPS(NY)8.56
Fwd EY5.59%
FCF(TTM)16.55
FCFY10.8%
OCF(TTM)16.66
OCFY10.87%
SpS74.64
BVpS91.45
TBVpS91.45
PEG (NY)N/A
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 12.73% | ||
| ROCE | 5.93% | ||
| ROIC | 4.78% | ||
| ROICexc | 4.9% | ||
| ROICexgc | 5.32% | ||
| OM | 19.7% | ||
| PM (TTM) | 15.59% | ||
| GM | N/A | ||
| FCFM | 22.17% |
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-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.31 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 11.56% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | 43.38 | ||
| Cash Conversion | 106.5% | ||
| Profit Quality | 142.2% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.58%
ROIC/WACC0.56
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)-9.5%
EPS 3Y5.7%
EPS 5Y12.45%
EPS Q2Q%52.71%
EPS Next Y-17.55%
EPS Next 2Y6.36%
EPS Next 3Y5.17%
EPS Next 5YN/A
Revenue 1Y (TTM)9.64%
Revenue growth 3Y5.59%
Revenue growth 5Y7.43%
Sales Q2Q%27.67%
Revenue Next Year1.47%
Revenue Next 2Y2.43%
Revenue Next 3Y4.18%
Revenue Next 5YN/A
EBIT growth 1Y-15.94%
EBIT growth 3Y-7.87%
EBIT growth 5Y2.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22.83%
FCF growth 3Y10.14%
FCF growth 5Y17.28%
OCF growth 1Y22.76%
OCF growth 3Y10.17%
OCF growth 5Y17%