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CINCINNATI FINANCIAL CORP (CINF) Stock Fundamental Analysis

NASDAQ:CINF - Nasdaq - US1720621010 - Common Stock

140.13  -0.53 (-0.38%)

After market: 140.13 0 (0%)

Fundamental Rating

6

Taking everything into account, CINF scores 6 out of 10 in our fundamental rating. CINF was compared to 143 industry peers in the Insurance industry. CINF scores excellent on profitability, but there are some minor concerns on its financial health. CINF is valued quite expensive, but it does show an excellent growth. Finally CINF also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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7

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.
Of the past 5 years CINF 4 years were profitable.
Each year in the past 5 years CINF had a positive operating cash flow.
CINF Yearly Net Income VS EBIT VS OCF VS FCFCINF Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

1.2 Ratios

With an excellent Return On Assets value of 8.30%, CINF belongs to the best of the industry, outperforming 95.04% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.24%, CINF belongs to the top of the industry, outperforming 84.40% of the companies in the same industry.
CINF has a better Return On Invested Capital (8.58%) than 91.49% of its industry peers.
Industry RankSector 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
CINF Yearly ROA, ROE, ROICCINF Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

1.3 Margins

Looking at the Profit Margin, with a value of 25.26%, CINF belongs to the top of the industry, outperforming 90.78% of the companies in the same industry.
CINF's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 32.27%, CINF belongs to the top of the industry, outperforming 93.62% of the companies in the same industry.
CINF's Operating Margin has improved in the last couple of years.
Industry RankSector 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
CINF Yearly Profit, Operating, Gross MarginsCINF Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

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4

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.
Compared to 5 years ago, CINF has less shares outstanding
CINF has a better debt/assets ratio than last year.
CINF Yearly Shares OutstandingCINF Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
CINF Yearly Total Debt VS Total AssetsCINF Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.2 Solvency

The Debt to FCF ratio of CINF is 0.34, which is an excellent value as it means it would take CINF, only 0.34 years of fcf income to pay off all of its debts.
CINF has a Debt to FCF ratio of 0.34. This is amongst the best in the industry. CINF outperforms 88.65% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that CINF is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.06, CINF belongs to the best of the industry, outperforming 84.40% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.34
Altman-Z N/A
ROIC/WACC0.95
WACC9.08%
CINF Yearly LT Debt VS Equity VS FCFCINF Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
CINF Yearly Current Assets VS Current LiabilitesCINF Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M

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7

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.
The Revenue has grown by 24.40% in the past year. This is a very strong growth!
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

Based on estimates for the next years, CINF will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.38% on average per year.
CINF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.71% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CINF Yearly Revenue VS EstimatesCINF Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B 10B
CINF Yearly EPS VS EstimatesCINF Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.88, which indicates a rather expensive current valuation of CINF.
Based on the Price/Earnings ratio, CINF is valued a bit more expensive than 68.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of CINF to the average of the S&P500 Index (28.29), we can say CINF is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.75, which indicates a rather expensive current valuation of CINF.
67.38% of the companies in the same industry are cheaper than CINF, based on the Price/Forward Earnings ratio.
CINF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
Industry RankSector Rank
PE 20.88
Fwd PE 18.75
CINF Price Earnings VS Forward Price EarningsCINF Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CINF is valued a bit cheaper than 77.31% of the companies in the same industry.
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 RankSector Rank
P/FCF 8.56
EV/EBITDA 5.17
CINF Per share dataCINF EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CINF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.1
PEG (5Y)1.67
EPS Next 2Y11.23%
EPS Next 3Y10.38%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.27%, CINF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.99, CINF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, CINF has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.27%

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
CINF Yearly Dividends per shareCINF Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3

5.3 Sustainability

15.67% of the earnings are spent on dividend by CINF. This is a low number and sustainable payout ratio.
The dividend of CINF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.67%
EPS Next 2Y11.23%
EPS Next 3Y10.38%
CINF Yearly Income VS Free CF VS DividendCINF Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B
CINF Dividend Payout.CINF Dividend Payout, showing the Payout Ratio.CINF Dividend Payout.PayoutRetained Earnings

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CINCINNATI FINANCIAL CORP

NASDAQ:CINF (1/21/2025, 8:00:00 PM)

After market: 140.13 0 (0%)

140.13

-0.53 (-0.38%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-24 2024-10-24/amc
Earnings (Next)02-10 2025-02-10/amc
Inst Owners68.26%
Inst Owner Change0.16%
Ins Owners1.7%
Ins Owner Change0.34%
Market Cap21.91B
Analysts76.25
Price Target159.46 (13.79%)
Short Float %1.31%
Short Ratio3.4
Dividend
Industry RankSector Rank
Dividend Yield 2.27%
Yearly Dividend2.89
Dividend Growth(5Y)7.07%
DP15.67%
Div Incr Years29
Div Non Decr Years29
Ex-DateN/A
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)2.63%
PT rev (3m)14.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.86%
Valuation
Industry RankSector Rank
PE 20.88
Fwd PE 18.75
P/S 1.8
P/FCF 8.56
P/OCF 8.48
P/B 1.59
P/tB 1.59
EV/EBITDA 5.17
EPS(TTM)6.71
EY4.79%
EPS(NY)7.47
Fwd EY5.33%
FCF(TTM)16.36
FCFY11.68%
OCF(TTM)16.53
OCFY11.8%
SpS77.76
BVpS88.31
TBVpS88.31
PEG (NY)3.1
PEG (5Y)1.67
Profitability
Industry RankSector 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 RankSector 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
WACC9.08%
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%