CINCINNATI FINANCIAL CORP (CINF) Stock Fundamental Analysis
NASDAQ:CINF - US1720621010 - Common Stock
153.6 USD
+0.2 (+0.13%)
154.214 USD
+0.61 (+0.4%)
We assign a fundamental rating of 4 out of 10 to CINF. CINF was compared to 143 industry peers in the Insurance industry. CINF has an average financial health and profitability rating. CINF does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
CINF had positive earnings in the past year.
In the past year CINF had a positive cash flow from operations.
CINF had positive earnings in 4 of the past 5 years.
CINF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.69%, CINF belongs to the top of the industry, outperforming 83.22% of the companies in the same industry.
With a decent Return On Equity value of 12.73%, CINF is doing good in the industry, outperforming 60.84% of the companies in the same industry.
CINF has a Return On Invested Capital of 4.78%. This is amongst the best in the industry. CINF outperforms 81.12% 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
With an excellent Profit Margin value of 15.59%, CINF belongs to the best of the industry, outperforming 83.92% of the companies in the same industry.
In the last couple of years the Profit Margin of CINF has declined.
CINF has a better Operating Margin (19.70%) than 78.32% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CINF is destroying value.
CINF has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CINF has less shares outstanding
CINF has a better debt/assets ratio than last year.
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.
Looking at the Debt to FCF ratio, with a value of 0.31, CINF belongs to the top of the industry, outperforming 88.11% of the companies in the same industry.
CINF has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
CINF's Debt to Equity ratio of 0.06 is amongst the best of the industry. CINF outperforms 82.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.31 | ||
| Altman-Z | N/A |
ROIC/WACC0.55
WACC8.74%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for CINF have decreased by -9.50% in the last year.
The Earnings Per Share has been growing by 12.45% on average over the past years. This is quite good.
CINF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.64%.
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
CINF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.17% yearly.
Based on estimates for the next years, CINF will show a small growth in Revenue. The Revenue will grow by 4.18% on average per year.
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
With a Price/Earnings ratio of 24.42, CINF is valued on the expensive side.
75.52% of the companies in the same industry are cheaper than CINF, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.08. CINF is around the same levels.
CINF is valuated rather expensively with a Price/Forward Earnings ratio of 17.94.
68.53% of the companies in the same industry are cheaper than CINF, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CINF to the average of the S&P500 Index (22.72), we can say CINF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.42 | ||
| Fwd PE | 17.94 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CINF.
CINF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.28 | ||
| 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
CINF has a Yearly Dividend Yield of 2.28%.
Compared to an average industry Dividend Yield of 3.52, CINF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, CINF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
The dividend of CINF is nicely growing with an annual growth rate of 7.50%!
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)7.5%
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%
153.6
+0.2 (+0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.33%
Inst Owner Change-0.88%
Ins Owners1.72%
Ins Owner Change0.69%
Market Cap24.02B
Analysts76.25
Price Target165.24 (7.58%)
Short Float %1.25%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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)2.32%
PT rev (3m)6.58%
EPS NQ rev (1m)2.78%
EPS NQ rev (3m)4%
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 | 24.42 | ||
| Fwd PE | 17.94 | ||
| P/S | 2.06 | ||
| P/FCF | 9.28 | ||
| P/OCF | 9.22 | ||
| P/B | 1.68 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 9.72 |
EPS(TTM)6.29
EY4.1%
EPS(NY)8.56
Fwd EY5.58%
FCF(TTM)16.55
FCFY10.77%
OCF(TTM)16.66
OCFY10.85%
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
WACC8.74%
ROIC/WACC0.55
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%