CINCINNATI FINANCIAL CORP (CINF)
US1720621010 - Common Stock
Taking everything into account, CINF scores 5 out of 10 in our fundamental rating. CINF was compared to 140 industry peers in the Insurance industry. CINF has an average financial health and profitability rating. CINF is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years CINF had a positive operating cash flow.
1.2 Ratios
CINF's Return On Assets of 5.62% is amongst the best of the industry. CINF outperforms 86.33% of its industry peers.
With a decent Return On Equity value of 15.23%, CINF is doing good in the industry, outperforming 73.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.76%, CINF belongs to the top of the industry, outperforming 86.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.62% | ||
| ROE | 15.23% | ||
| ROIC | 5.76% |
ROA(3y)4.46%
ROA(5y)5.13%
ROE(3y)11.03%
ROE(5y)12.92%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 18.41%, CINF belongs to the best of the industry, outperforming 84.89% of the companies in the same industry.
CINF's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.27%, CINF is in the better half of the industry, outperforming 79.86% of the companies in the same industry.
In the last couple of years the Operating Margin of CINF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.27% | ||
| PM (TTM) | 18.41% | ||
| GM | N/A |
OM growth 3Y4.13%
OM growth 5Y32.85%
PM growth 3Y4.49%
PM growth 5Y28.24%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CINF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CINF remains at a similar level compared to 1 year ago.
CINF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CINF has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of CINF is 0.43, which is an excellent value as it means it would take CINF, only 0.43 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.43, CINF belongs to the best of the industry, outperforming 89.93% of the companies in the same industry.
CINF has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
CINF has a Debt to Equity ratio of 0.07. This is amongst the best in the industry. CINF outperforms 87.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | N/A |
ROIC/WACC0.63
WACC9.21%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
CINF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.79%, which is quite impressive.
CINF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.51% yearly.
The Revenue has grown by 52.64% in the past year. This is a very strong growth!
Measured over the past years, CINF shows a quite strong growth in Revenue. The Revenue has been growing by 13.12% on average per year.
EPS 1Y (TTM)42.79%
EPS 3Y22.57%
EPS 5Y12.51%
EPS growth Q2Q79.53%
Revenue 1Y (TTM)52.64%
Revenue growth 3Y9.94%
Revenue growth 5Y13.12%
Revenue growth Q2Q7.77%
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 6.27% on average per year.
The Revenue is expected to grow by 7.44% on average over the next years.
EPS Next Y6.28%
EPS Next 2Y8.75%
EPS Next 3Y6.27%
EPS Next 5YN/A
Revenue Next Year8.49%
Revenue Next 2Y7.44%
Revenue Next 3YN/A
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 19.09, which indicates a rather expensive current valuation of CINF.
Based on the Price/Earnings ratio, CINF is valued a bit more expensive than the industry average as 61.15% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of CINF to the average of the S&P500 Index (24.83), we can say CINF is valued slightly cheaper.
CINF is valuated rather expensively with a Price/Forward Earnings ratio of 17.96.
Based on the Price/Forward Earnings ratio, CINF is valued a bit more expensive than the industry average as 65.47% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of CINF to the average of the S&P500 Index (21.32), we can say CINF is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 17.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CINF.
Based on the Price/Free Cash Flow ratio, CINF is valued a bit more expensive than 60.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.76 | ||
| EV/EBITDA | 14.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CINF may justify a higher PE ratio.
PEG (NY)3.04
PEG (5Y)1.53
EPS Next 2Y8.75%
EPS Next 3Y6.27%
5. Dividend
5.1 Amount
CINF has a Yearly Dividend Yield of 2.72%. 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 4.31.
CINF's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
The dividend of CINF is nicely growing with an annual growth rate of 7.07%!
CINF has been paying a dividend for at least 10 years, so it has a reliable track record.
CINF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.07%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
24.63% of the earnings are spent on dividend by CINF. This is a low number and sustainable payout ratio.
The dividend of CINF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.63%
EPS Next 2Y8.75%
EPS Next 3Y6.27%
CINCINNATI FINANCIAL CORP
NASDAQ:CINF (4/17/2024, 7:00:00 PM)
After market: 115.3 0 (0%)115.3
-1.77 (-1.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap36.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 17.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.04
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.62% | ||
| ROE | 15.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.27% | ||
| PM (TTM) | 18.41% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)42.79%
EPS 3Y22.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)52.64%
Revenue growth 3Y9.94%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y