CINCINNATI FINANCIAL CORP (CINF)
US1720621010 - Common Stock
Taking everything into account, CINF scores 5 out of 10 in our fundamental rating. CINF was compared to 141 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 shows excellent growth, but is valued quite expensive already. CINF also has an excellent dividend rating.
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.
CINF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CINF has a better Return On Assets (8.30%) than 95.00% of its industry peers.
With an excellent Return On Equity value of 22.24%, CINF belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
CINF has a better Return On Invested Capital (8.58%) than 92.14% of its industry peers.
| 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
The Profit Margin of CINF (25.26%) is better than 90.00% of its industry peers.
In the last couple of years the Profit Margin of CINF has grown nicely.
Looking at the Operating Margin, with a value of 32.27%, CINF belongs to the top of the industry, outperforming 93.57% of the companies in the same industry.
CINF's Operating Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CINF is destroying value.
Compared to 1 year ago, CINF has about the same amount of shares outstanding.
CINF has less shares outstanding than it did 5 years ago.
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.
Looking at the Debt to FCF ratio, with a value of 0.34, CINF belongs to the top of the industry, outperforming 88.57% 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 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.95
WACC9.05%
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.
The Earnings Per Share has been growing by 12.51% on average over the past years. This is quite good.
Looking at the last year, CINF shows a very strong growth in Revenue. The Revenue has grown by 24.40%.
The Revenue has been growing by 13.12% on average over the past years. This is quite good.
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 10.38% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.71% on average over the next years. This is quite good.
EPS Next Y6.73%
EPS Next 2Y11.23%
EPS Next 3Y10.38%
EPS Next 5YN/A
Revenue Next Year25.16%
Revenue Next 2Y10.26%
Revenue Next 3Y8.71%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 21.55, 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 67.14% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. CINF is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 19.35, CINF is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CINF is valued a bit more expensive than 67.14% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CINF to the average of the S&P500 Index (23.73), we can say CINF is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 19.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CINF indicates a somewhat cheap valuation: CINF is cheaper than 77.86% of the companies listed in the same industry.
CINF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.83 | ||
| EV/EBITDA | 5.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CINF does not grow enough to justify the current Price/Earnings ratio.
CINF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.2
PEG (5Y)1.72
EPS Next 2Y11.23%
EPS Next 3Y10.38%
5. Dividend
5.1 Amount
CINF has a Yearly Dividend Yield of 2.28%.
CINF's Dividend Yield is a higher than the industry average which is at 4.35.
Compared to an average S&P500 Dividend Yield of 2.36, CINF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
On average, the dividend of CINF grows each year by 7.07%, which is quite nice.
CINF has paid a dividend for at least 10 years, which is a reliable track record.
CINF has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.07%
Div Incr Years29
Div Non Decr Years29
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 2Y11.23%
EPS Next 3Y10.38%
CINCINNATI FINANCIAL CORP
NASDAQ:CINF (12/20/2024, 8:02:28 PM)
After market: 144.57 0 (0%)144.57
+2.34 (+1.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners68.26%
Inst Owner Change0.95%
Ins Owners1.7%
Ins Owner Change0.34%
Market Cap22.60B
Analysts76.25
Price Target155.38 (7.48%)
Short Float %1.31%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
Dividend Growth(5Y)7.07%
DP15.67%
Div Incr Years29
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.39%
Min EPS beat(2)-4.79%
Max EPS beat(2)31.56%
EPS beat(4)2
Avg EPS beat(4)10.34%
Min EPS beat(4)-4.79%
Max EPS beat(4)31.56%
EPS beat(8)5
Avg EPS beat(8)19.82%
EPS beat(12)8
Avg EPS beat(12)14.43%
EPS beat(16)12
Avg EPS beat(16)22.23%
Revenue beat(2)2
Avg Revenue beat(2)15.34%
Min Revenue beat(2)1.84%
Max Revenue beat(2)28.83%
Revenue beat(4)4
Avg Revenue beat(4)19.96%
Min Revenue beat(4)1.84%
Max Revenue beat(4)33.02%
Revenue beat(8)5
Avg Revenue beat(8)8.96%
Revenue beat(12)6
Avg Revenue beat(12)3.65%
Revenue beat(16)9
Avg Revenue beat(16)10.18%
PT rev (1m)8.17%
PT rev (3m)11.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.81%
EPS NY rev (1m)0.26%
EPS NY rev (3m)-3.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)7.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 19.35 | ||
| P/S | 1.86 | ||
| P/FCF | 8.83 | ||
| P/OCF | 8.75 | ||
| P/B | 1.64 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 5.34 |
EPS(TTM)6.71
EY4.64%
EPS(NY)7.47
Fwd EY5.17%
FCF(TTM)16.36
FCFY11.32%
OCF(TTM)16.53
OCFY11.43%
SpS77.76
BVpS88.31
TBVpS88.31
PEG (NY)3.2
PEG (5Y)1.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.3% | ||
| ROE | 22.24% | ||
| ROCE | 10.61% | ||
| ROIC | 8.58% | ||
| ROICexc | 9.01% | ||
| ROICexgc | 9.66% | ||
| OM | 32.27% | ||
| PM (TTM) | 25.26% | ||
| GM | N/A | ||
| FCFM | 21.04% |
ROA(3y)4.46%
ROA(5y)5.13%
ROE(3y)11.03%
ROE(5y)12.92%
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 3Y7.8%
ROICexcg growth 5Y38.31%
ROICexc growth 3Y7.85%
ROICexc growth 5Y38.45%
OM growth 3Y4.13%
OM growth 5Y32.85%
PM growth 3Y4.49%
PM growth 5Y28.24%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.34 | ||
| Debt/EBITDA | 0.22 | ||
| Cap/Depr | 18.7% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | 74.02 | ||
| Cash Conversion | 63.61% | ||
| Profit Quality | 83.32% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC9.05%
ROIC/WACC0.95
Cap/Depr(3y)14.67%
Cap/Depr(5y)20.41%
Cap/Sales(3y)0.19%
Cap/Sales(5y)0.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.4%
EPS 3Y22.57%
EPS 5Y12.51%
EPS Q2Q%-14.46%
EPS Next Y6.73%
EPS Next 2Y11.23%
EPS Next 3Y10.38%
EPS Next 5YN/A
Revenue 1Y (TTM)24.4%
Revenue growth 3Y9.94%
Revenue growth 5Y13.12%
Sales Q2Q%83.32%
Revenue Next Year25.16%
Revenue Next 2Y10.26%
Revenue Next 3Y8.71%
Revenue Next 5YN/A
EBIT growth 1Y84.52%
EBIT growth 3Y14.48%
EBIT growth 5Y50.28%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y36.86%
FCF growth 3Y11.41%
FCF growth 5Y11.87%
OCF growth 1Y37.16%
OCF growth 3Y11.23%
OCF growth 5Y11.68%