CINCINNATI FINANCIAL CORP (CINF) Stock Fundamental Analysis
USA - NASDAQ:CINF - US1720621010 - Common Stock
153.02 USD
+1.63 (+1.08%)
153.02 USD
0 (0%)
Taking everything into account, CINF scores 4 out of 10 in our fundamental rating. 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CINF was profitable.
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
With an excellent Return On Assets value of 4.69%, CINF belongs to the best of the industry, outperforming 82.99% of the companies in the same industry.
CINF has a Return On Equity of 12.73%. This is in the better half of the industry: CINF outperforms 61.90% of its industry peers.
The Return On Invested Capital of CINF (4.78%) is better than 78.23% 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's Profit Margin of 15.59% is amongst the best of the industry. CINF outperforms 83.67% of its industry peers.
In the last couple of years the Profit Margin of CINF has declined.
The Operating Margin of CINF (19.70%) is better than 75.51% 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
CINF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CINF has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CINF has been reduced compared to 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 0.31, 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 89.12% 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's Debt to Equity ratio of 0.06 is amongst the best of the industry. CINF outperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.31 | ||
| Altman-Z | N/A |
ROIC/WACC0.56
WACC8.55%
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%.
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)-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 5.44% 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-16.96%
EPS Next 2Y6.84%
EPS Next 3Y5.44%
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.
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
CINF is valuated rather expensively with a Price/Earnings ratio of 24.33.
CINF's Price/Earnings ratio is a bit more expensive when compared to the industry. CINF is more expensive than 75.51% of the companies in the same industry.
CINF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
CINF is valuated rather expensively with a Price/Forward Earnings ratio of 17.71.
65.99% 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 (22.94), we can say CINF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 17.71 |
4.2 Price Multiples
CINF's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CINF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.25 | ||
| EV/EBITDA | 9.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.95
EPS Next 2Y6.84%
EPS Next 3Y5.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.30%, CINF has a reasonable but not impressive dividend return.
CINF's Dividend Yield is a higher than the industry average which is at 3.20.
CINF's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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
27.86% of the earnings are spent on dividend by CINF. This is a low number and sustainable payout ratio.
CINF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.86%
EPS Next 2Y6.84%
EPS Next 3Y5.44%
153.02
+1.63 (+1.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.26%
Inst Owner Change-0.04%
Ins Owners1.72%
Ins Owner Change0.39%
Market Cap23.93B
Analysts77.33
Price Target166.6 (8.87%)
Short Float %1.11%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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%
PT rev (3m)6.87%
EPS NQ rev (1m)11.05%
EPS NQ rev (3m)14.73%
EPS NY rev (1m)0%
EPS NY rev (3m)11.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 17.71 | ||
| P/S | 2.05 | ||
| P/FCF | 9.25 | ||
| P/OCF | 9.19 | ||
| P/B | 1.67 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 9.7 |
EPS(TTM)6.29
EY4.11%
EPS(NY)8.64
Fwd EY5.65%
FCF(TTM)16.55
FCFY10.82%
OCF(TTM)16.66
OCFY10.89%
SpS74.64
BVpS91.45
TBVpS91.45
PEG (NY)N/A
PEG (5Y)1.95
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
WACC8.55%
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-16.96%
EPS Next 2Y6.84%
EPS Next 3Y5.44%
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%