CINCINNATI FINANCIAL CORP (CINF) Stock Fundamental Analysis
USA - NASDAQ:CINF - US1720621010 - Common Stock
164.64 USD
+3.26 (+2.02%)
164.64 USD
0 (0%)
CINF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. CINF has only an average score on both its financial health and profitability. CINF does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year CINF was profitable.
In the past year CINF had a positive cash flow from operations.
Of the past 5 years CINF 4 years were profitable.
In the past 5 years CINF always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.23%, CINF belongs to the best of the industry, outperforming 86.30% of the companies in the same industry.
The Return On Equity of CINF (13.77%) is better than 67.12% of its industry peers.
CINF has a better Return On Invested Capital (5.32%) than 82.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 13.77% | ||
| ROIC | 5.32% |
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 17.57% is amongst the best of the industry. CINF outperforms 86.30% of its industry peers.
In the last couple of years the Profit Margin of CINF has declined.
CINF has a better Operating Margin (22.12%) than 84.25% of its industry peers.
In the last couple of years the Operating Margin of CINF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.12% | ||
| PM (TTM) | 17.57% | ||
| 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.
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 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.
CINF has a better Debt to FCF ratio (0.29) than 89.04% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that CINF is not too dependend on debt financing.
CINF has a Debt to Equity ratio of 0.05. This is amongst the best in the industry. CINF outperforms 82.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | N/A |
ROIC/WACC0.62
WACC8.64%
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 15.05%, which is quite good.
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.
The Revenue has decreased by -0.63% in the past year.
The Revenue has been growing slightly by 7.43% on average over the past years.
EPS 1Y (TTM)15.05%
EPS 3Y5.7%
EPS 5Y12.45%
EPS Q2Q%100.7%
Revenue 1Y (TTM)-0.63%
Revenue growth 3Y5.59%
Revenue growth 5Y7.43%
Sales Q2Q%-25.06%
3.2 Future
CINF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.96% yearly.
CINF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.45% yearly.
EPS Next Y-5.5%
EPS Next 2Y7.03%
EPS Next 3Y6.96%
EPS Next 5YN/A
Revenue Next Year1.56%
Revenue Next 2Y2.63%
Revenue Next 3Y4.45%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 21.33, the valuation of CINF can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CINF indicates a slightly more expensive valuation: CINF is more expensive than 71.92% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, CINF is valued at the same level.
A Price/Forward Earnings ratio of 18.98 indicates a rather expensive valuation of CINF.
Based on the Price/Forward Earnings ratio, CINF is valued a bit more expensive than 70.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CINF to the average of the S&P500 Index (32.68), we can say CINF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.33 | ||
| Fwd PE | 18.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CINF is on the same level as its industry peers.
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 | 9.22 | ||
| EV/EBITDA | 8.73 |
4.3 Compensation for Growth
CINF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.71
EPS Next 2Y7.03%
EPS Next 3Y6.96%
5. Dividend
5.1 Amount
CINF has a Yearly Dividend Yield of 2.21%. 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 2.39, CINF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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
24.36% 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.
DP24.36%
EPS Next 2Y7.03%
EPS Next 3Y6.96%
164.64
+3.26 (+2.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.26%
Inst Owner Change-0.15%
Ins Owners1.72%
Ins Owner Change0.35%
Market Cap25.75B
Revenue(TTM)12.08B
Net Income(TTM)2.12B
Analysts77.33
Price Target171.53 (4.18%)
Short Float %1.08%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend3.13
Dividend Growth(5Y)7.5%
DP24.36%
Div Incr Years29
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.84%
Min EPS beat(2)35.72%
Max EPS beat(2)37.96%
EPS beat(4)4
Avg EPS beat(4)49.39%
Min EPS beat(4)35.72%
Max EPS beat(4)62.05%
EPS beat(8)6
Avg EPS beat(8)29.86%
EPS beat(12)9
Avg EPS beat(12)29.68%
EPS beat(16)12
Avg EPS beat(16)23.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.52%
Min Revenue beat(2)-14.88%
Max Revenue beat(2)13.85%
Revenue beat(4)1
Avg Revenue beat(4)-3.35%
Min Revenue beat(4)-14.88%
Max Revenue beat(4)13.85%
Revenue beat(8)5
Avg Revenue beat(8)8.3%
Revenue beat(12)6
Avg Revenue beat(12)4.85%
Revenue beat(16)7
Avg Revenue beat(16)1.9%
PT rev (1m)2.96%
PT rev (3m)6.21%
EPS NQ rev (1m)22.13%
EPS NQ rev (3m)23.74%
EPS NY rev (1m)5.98%
EPS NY rev (3m)18.65%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)4.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.33 | ||
| Fwd PE | 18.98 | ||
| P/S | 2.13 | ||
| P/FCF | 9.22 | ||
| P/OCF | 9.17 | ||
| P/B | 1.67 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 8.73 |
EPS(TTM)7.72
EY4.69%
EPS(NY)8.67
Fwd EY5.27%
FCF(TTM)17.85
FCFY10.84%
OCF(TTM)17.95
OCFY10.9%
SpS77.23
BVpS98.52
TBVpS98.52
PEG (NY)N/A
PEG (5Y)1.71
Graham Number130.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 13.77% | ||
| ROCE | 6.6% | ||
| ROIC | 5.32% | ||
| ROICexc | 5.52% | ||
| ROICexgc | 5.93% | ||
| OM | 22.12% | ||
| PM (TTM) | 17.57% | ||
| GM | N/A | ||
| FCFM | 23.11% |
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
ROICexgc growth 3Y-12.78%
ROICexgc 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 | 0.05 | ||
| Debt/FCF | 0.29 | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 11.35% | ||
| Cap/Sales | 0.13% | ||
| Interest Coverage | 50.42 | ||
| Cash Conversion | 99.79% | ||
| Profit Quality | 131.53% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.64%
ROIC/WACC0.62
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)15.05%
EPS 3Y5.7%
EPS 5Y12.45%
EPS Q2Q%100.7%
EPS Next Y-5.5%
EPS Next 2Y7.03%
EPS Next 3Y6.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.63%
Revenue growth 3Y5.59%
Revenue growth 5Y7.43%
Sales Q2Q%-25.06%
Revenue Next Year1.56%
Revenue Next 2Y2.63%
Revenue Next 3Y4.45%
Revenue Next 5YN/A
EBIT growth 1Y-31.89%
EBIT growth 3Y-7.87%
EBIT growth 5Y2.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y33.35%
FCF growth 3Y10.14%
FCF growth 5Y17.28%
OCF growth 1Y33.29%
OCF growth 3Y10.17%
OCF growth 5Y17%
CINCINNATI FINANCIAL CORP / CINF FAQ
What is the ChartMill fundamental rating of CINCINNATI FINANCIAL CORP (CINF) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CINF.
What is the valuation status for CINF stock?
ChartMill assigns a valuation rating of 2 / 10 to CINCINNATI FINANCIAL CORP (CINF). This can be considered as Overvalued.
What is the profitability of CINF stock?
CINCINNATI FINANCIAL CORP (CINF) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for CINF stock?
The Price/Earnings (PE) ratio for CINCINNATI FINANCIAL CORP (CINF) is 21.33 and the Price/Book (PB) ratio is 1.67.
Can you provide the dividend sustainability for CINF stock?
The dividend rating of CINCINNATI FINANCIAL CORP (CINF) is 6 / 10 and the dividend payout ratio is 24.36%.