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 144 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.
CINF had a positive operating cash flow in the past year.
Of the past 5 years CINF 4 years were profitable.
Each year in the past 5 years CINF had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.88%, CINF belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
CINF has a Return On Equity (10.55%) which is comparable to the rest of the industry.
The Return On Invested Capital of CINF (3.96%) is better than 77.78% 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
With a decent Profit Margin value of 13.19%, CINF is doing good in the industry, outperforming 76.39% of the companies in the same industry.
In the last couple of years the Profit Margin of CINF has declined.
With a decent Operating Margin value of 16.68%, CINF is doing good in the industry, outperforming 72.22% of the companies in the same industry.
CINF's Operating Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for CINF has been reduced compared to 1 year ago.
Compared to 5 years ago, CINF has less shares outstanding
The debt/assets ratio for CINF has been reduced compared to a year ago.
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 87.50% 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.
With an excellent Debt to Equity ratio value of 0.06, CINF belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.31 | ||
| Altman-Z | N/A |
ROIC/WACC0.42
WACC9.47%
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 strongly by -18.34% in the last year.
Measured over the past years, CINF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.45% on average per year.
Looking at the last year, CINF shows a small growth in Revenue. The Revenue has grown by 2.44% in the last year.
CINF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.43% yearly.
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
The Earnings Per Share is expected to grow by 2.53% on average over the next years.
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-26.1%
EPS Next 2Y5.1%
EPS Next 3Y2.53%
EPS Next 5YN/A
Revenue Next Year-2.6%
Revenue Next 2Y2.11%
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.
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
CINF is valuated quite expensively with a Price/Earnings ratio of 26.56.
73.61% 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 27.15. CINF is around the same levels.
CINF is valuated rather expensively with a Price/Forward Earnings ratio of 17.82.
Based on the Price/Forward Earnings ratio, CINF is valued a bit more expensive than 65.97% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, CINF is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.56 | ||
| Fwd PE | 17.82 |
4.2 Price Multiples
CINF's Enterprise Value to EBITDA ratio is in line with 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 | ||
| EV/EBITDA | 11.69 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.13
EPS Next 2Y5.1%
EPS Next 3Y2.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.39%, CINF has a reasonable but not impressive dividend return.
CINF's Dividend Yield is a higher than the industry average which is at 3.51.
CINF's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
The dividend of CINF is nicely growing with an annual growth rate of 7.50%!
CINF has paid a dividend for at least 10 years, which is 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 34.49% of its income as dividend. This is a sustainable payout ratio.
CINF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.49%
EPS Next 2Y5.1%
EPS Next 3Y2.53%
NASDAQ:CINF (7/1/2025, 1:03:02 PM)
149
+0.08 (+0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.27%
Inst Owner Change2.99%
Ins Owners1.72%
Ins Owner Change0.77%
Market Cap23.29B
Analysts76.25
Price Target155.89 (4.62%)
Short Float %1.12%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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)0.55%
PT rev (3m)-2.65%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)3.24%
EPS NY rev (1m)0.26%
EPS NY rev (3m)6.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.56 | ||
| Fwd PE | 17.82 | ||
| P/S | 2.12 | ||
| P/FCF | 9 | ||
| P/OCF | 8.94 | ||
| P/B | 1.7 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 11.69 |
EPS(TTM)5.61
EY3.77%
EPS(NY)8.36
Fwd EY5.61%
FCF(TTM)16.56
FCFY11.11%
OCF(TTM)16.67
OCFY11.19%
SpS70.17
BVpS87.77
TBVpS87.77
PEG (NY)N/A
PEG (5Y)2.13
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
WACC9.47%
ROIC/WACC0.42
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-26.1%
EPS Next 2Y5.1%
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-2.6%
Revenue Next 2Y2.11%
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%