CINCINNATI FINANCIAL CORP (CINF)
US1720621010 - Common Stock
Overall CINF gets a fundamental rating of 5 out of 10. We evaluated CINF against 140 industry peers in the Insurance industry. While CINF belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CINF is valued quite expensive, but it does show an excellent growth. CINF also has an excellent dividend rating.
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
CINF has a Return On Assets of 8.30%. This is amongst the best in the industry. CINF outperforms 97.84% of its industry peers.
CINF's Return On Equity of 22.24% is amongst the best of the industry. CINF outperforms 88.49% of its industry peers.
With an excellent Return On Invested Capital value of 8.58%, CINF belongs to the best of the industry, outperforming 93.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 22.24% | ||
| ROIC | 8.58% |
ROA(3y)4.46%
ROA(5y)5.13%
ROE(3y)11.03%
ROE(5y)12.92%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 25.26%, CINF belongs to the best of the industry, outperforming 92.81% of the companies in the same industry.
CINF's Profit Margin has improved in the last couple of years.
CINF's Operating Margin of 32.27% is amongst the best of the industry. CINF outperforms 94.24% of its industry peers.
In the last couple of years the Operating Margin of CINF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.27% | ||
| PM (TTM) | 25.26% | ||
| GM | N/A |
OM growth 3Y4.13%
OM growth 5Y32.85%
PM growth 3Y4.49%
PM growth 5Y28.24%
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 about the same amout of 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
CINF has a debt to FCF ratio of 0.34. This is a very positive value and a sign of high solvency as it would only need 0.34 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.34, CINF belongs to the best of the industry, outperforming 92.09% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that CINF is not too dependend on debt financing.
The Debt to Equity ratio of CINF (0.06) is better than 85.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.96
WACC8.91%
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 33.40%, which is quite impressive.
Measured over the past years, CINF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.51% on average per year.
Looking at the last year, CINF shows a very strong growth in Revenue. The Revenue has grown by 24.40%.
Measured over the past years, CINF shows a quite strong growth in Revenue. The Revenue has been growing by 13.12% on average per year.
EPS 1Y (TTM)33.4%
EPS 3Y22.57%
EPS 5Y12.51%
EPS Q2Q%-14.46%
Revenue 1Y (TTM)24.4%
Revenue growth 3Y9.94%
Revenue growth 5Y13.12%
Sales Q2Q%83.32%
3.2 Future
The Earnings Per Share is expected to grow by 10.36% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.02% on average over the next years. This is quite good.
EPS Next Y6.45%
EPS Next 2Y11.26%
EPS Next 3Y10.36%
EPS Next 5YN/A
Revenue Next Year25.04%
Revenue Next 2Y9.54%
Revenue Next 3Y8.02%
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 stable.
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
A Price/Earnings ratio of 23.08 indicates a rather expensive valuation of CINF.
Compared to the rest of the industry, the Price/Earnings ratio of CINF indicates a slightly more expensive valuation: CINF is more expensive than 64.75% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. CINF is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 20.71, the valuation of CINF can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CINF indicates a slightly more expensive valuation: CINF is more expensive than 66.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, CINF is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 20.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CINF is valued a bit cheaper than 76.26% of the companies in the same industry.
CINF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.46 | ||
| EV/EBITDA | 5.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CINF may justify a higher PE ratio.
PEG (NY)3.58
PEG (5Y)1.84
EPS Next 2Y11.26%
EPS Next 3Y10.36%
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.
Compared to an average industry Dividend Yield of 4.25, CINF pays a bit more dividend than its industry peers.
CINF's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of CINF is nicely growing with an annual growth rate of 7.07%!
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)7.07%
Div Incr Years28
Div Non Decr Years28
5.3 Sustainability
15.67% of the earnings are spent on dividend by CINF. This is a low number and sustainable payout ratio.
CINF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.67%
EPS Next 2Y11.26%
EPS Next 3Y10.36%
CINCINNATI FINANCIAL CORP
NASDAQ:CINF (11/21/2024, 8:19:40 PM)
After market: 154.85 0 (0%)154.85
+3.23 (+2.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 20.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.58
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 22.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.27% | ||
| PM (TTM) | 25.26% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)33.4%
EPS 3Y22.57%
EPS 5Y
EPS Q2Q%
EPS Next Y6.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.4%
Revenue growth 3Y9.94%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y