CINCINNATI FINANCIAL CORP (CINF) Stock Fundamental Analysis
USA - NASDAQ:CINF - US1720621010 - Common Stock
165.69 USD
+0.48 (+0.29%)
165.69 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CINF. 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
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
The Return On Assets of CINF (4.69%) is better than 83.45% of its industry peers.
CINF's Return On Equity of 12.73% is fine compared to the rest of the industry. CINF outperforms 62.07% of its industry peers.
With a decent Return On Invested Capital value of 4.78%, CINF is doing good in the industry, outperforming 78.62% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 15.59%, CINF belongs to the top of the industry, outperforming 84.14% of the companies in the same industry.
CINF's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.70%, CINF is in the better half of the industry, outperforming 75.17% of the companies in the same industry.
In the last couple of years the Operating Margin of CINF has declined.
| 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.
Compared to 1 year ago, CINF has less shares outstanding
The number of shares outstanding for CINF has been reduced compared to 5 years ago.
Compared to 1 year ago, CINF has an improved debt to assets ratio.
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 88.97% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that CINF is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.06, CINF belongs to the top of the industry, outperforming 80.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.31 | ||
| Altman-Z | N/A |
ROIC/WACC0.55
WACC8.71%
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.
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.
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
Based on estimates for the next years, CINF will show a small growth in Earnings Per Share. The EPS will grow by 5.44% on average per year.
CINF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.18% yearly.
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.
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 26.34, CINF can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CINF indicates a slightly more expensive valuation: CINF is more expensive than 76.55% of the companies listed in the same industry.
CINF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.18, CINF is valued on the expensive side.
CINF's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CINF is more expensive than 67.59% of the companies in the same industry.
CINF's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.34 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CINF.
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 | 10.01 | ||
| EV/EBITDA | 10.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.12
EPS Next 2Y6.84%
EPS Next 3Y5.44%
5. Dividend
5.1 Amount
CINF has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
CINF's Dividend Yield is comparable with the industry average which is at 3.33.
Compared to an average S&P500 Dividend Yield of 2.44, CINF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
On average, the dividend of CINF grows each year by 7.50%, which is quite nice.
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.
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%
165.69
+0.48 (+0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.26%
Inst Owner Change0%
Ins Owners1.72%
Ins Owner Change0.39%
Market Cap25.91B
Analysts77.33
Price Target166.6 (0.55%)
Short Float %1.11%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)-2.24%
EPS NQ rev (3m)3.24%
EPS NY rev (1m)0.72%
EPS NY rev (3m)12.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.34 | ||
| Fwd PE | 19.18 | ||
| P/S | 2.22 | ||
| P/FCF | 10.01 | ||
| P/OCF | 9.95 | ||
| P/B | 1.81 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 10.48 |
EPS(TTM)6.29
EY3.8%
EPS(NY)8.64
Fwd EY5.21%
FCF(TTM)16.55
FCFY9.99%
OCF(TTM)16.66
OCFY10.05%
SpS74.64
BVpS91.45
TBVpS91.45
PEG (NY)N/A
PEG (5Y)2.12
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
WACC8.71%
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-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%