CINCINNATI FINANCIAL CORP (CINF) Stock Fundamental Analysis
NASDAQ:CINF - Nasdaq - US1720621010 - Common Stock - Currency: USD
Overall CINF gets a fundamental rating of 5 out of 10. We evaluated CINF against 143 industry peers in the Insurance industry. CINF has an average financial health and profitability rating. While showing a medium growth rate, CINF is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CINF had positive earnings in the past year.
In the past year CINF had a positive cash flow from operations.
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
With an excellent Return On Assets value of 6.28%, CINF belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.45%, CINF is in the better half of the industry, outperforming 72.03% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.43%, CINF belongs to the best of the industry, outperforming 85.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 16.45% | ||
| ROIC | 6.43% |
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
With an excellent Profit Margin value of 20.22%, CINF belongs to the best of the industry, outperforming 88.81% of the companies in the same industry.
In the last couple of years the Profit Margin of CINF has declined.
Looking at the Operating Margin, with a value of 25.68%, CINF belongs to the top of the industry, outperforming 89.51% of the companies in the same industry.
CINF's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.68% | ||
| PM (TTM) | 20.22% | ||
| 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
CINF has a debt to FCF ratio of 0.33. This is a very positive value and a sign of high solvency as it would only need 0.33 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.33, CINF belongs to the top of the industry, outperforming 88.81% 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 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.33 | ||
| Altman-Z | N/A |
ROIC/WACC0.73
WACC8.81%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.33% over the past year.
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.
Looking at the last year, CINF shows a quite strong growth in Revenue. The Revenue has grown by 13.22% in the last year.
The Revenue has been growing slightly by 7.43% on average over the past years.
EPS 1Y (TTM)25.33%
EPS 3Y5.7%
EPS 5Y12.45%
EPS Q2Q%37.72%
Revenue 1Y (TTM)13.22%
Revenue growth 3Y5.59%
Revenue growth 5Y7.43%
Sales Q2Q%-24.37%
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 4.37% on average per year.
CINF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.58% yearly.
EPS Next Y-32.16%
EPS Next 2Y4.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.36%
Revenue Next 2Y2.58%
Revenue Next 3YN/A
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
A Price/Earnings ratio of 17.47 indicates a rather expensive valuation of CINF.
63.64% of the companies in the same industry are cheaper than CINF, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, CINF is valued a bit cheaper.
A Price/Forward Earnings ratio of 25.75 indicates a quite expensive valuation of CINF.
Based on the Price/Forward Earnings ratio, CINF is valued a bit more expensive than 72.03% of the companies in the same industry.
CINF is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 25.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CINF is valued a bit cheaper than the industry average as 68.53% of the companies are valued more expensively.
CINF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.88 | ||
| EV/EBITDA | 6.76 |
4.3 Compensation for Growth
The decent profitability rating of CINF may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.4
EPS Next 2Y4.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CINF has a Yearly Dividend Yield of 2.63%.
Compared to an average industry Dividend Yield of 3.28, CINF pays a bit more dividend than its industry peers.
CINF's Dividend Yield is comparable with the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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 21.38% 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.
DP21.38%
EPS Next 2Y4.37%
EPS Next 3YN/A
132.24
+0.13 (+0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners68.72%
Inst Owner Change0.01%
Ins Owners1.71%
Ins Owner Change0.63%
Market Cap20.70B
Analysts76.25
Price Target160.14 (21.1%)
Short Float %1.66%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend3.13
Dividend Growth(5Y)7.5%
DP21.38%
Div Incr Years29
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.52%
Min EPS beat(2)-4.79%
Max EPS beat(2)61.83%
EPS beat(4)2
Avg EPS beat(4)22.08%
Min EPS beat(4)-4.79%
Max EPS beat(4)61.83%
EPS beat(8)6
Avg EPS beat(8)28.14%
EPS beat(12)8
Avg EPS beat(12)15.98%
EPS beat(16)12
Avg EPS beat(16)24.05%
Revenue beat(2)1
Avg Revenue beat(2)11.75%
Min Revenue beat(2)-5.33%
Max Revenue beat(2)28.83%
Revenue beat(4)3
Avg Revenue beat(4)10.37%
Min Revenue beat(4)-5.33%
Max Revenue beat(4)28.83%
Revenue beat(8)5
Avg Revenue beat(8)8.51%
Revenue beat(12)5
Avg Revenue beat(12)-3.53%
Revenue beat(16)8
Avg Revenue beat(16)6.12%
PT rev (1m)0%
PT rev (3m)0.43%
EPS NQ rev (1m)-33.33%
EPS NQ rev (3m)-133.18%
EPS NY rev (1m)-2.24%
EPS NY rev (3m)-31.29%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 25.75 | ||
| P/S | 1.83 | ||
| P/FCF | 7.88 | ||
| P/OCF | 7.82 | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 6.76 |
EPS(TTM)7.57
EY5.72%
EPS(NY)5.14
Fwd EY3.88%
FCF(TTM)16.78
FCFY12.69%
OCF(TTM)16.92
OCFY12.79%
SpS72.41
BVpS89.01
TBVpS89.01
PEG (NY)N/A
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.28% | ||
| ROE | 16.45% | ||
| ROCE | 7.98% | ||
| ROIC | 6.43% | ||
| ROICexc | 6.6% | ||
| ROICexgc | 7.08% | ||
| OM | 25.68% | ||
| PM (TTM) | 20.22% | ||
| GM | N/A | ||
| FCFM | 23.17% |
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-12.84%
ROICexcg growth 5Y-4.6%
ROICexc growth 3Y-12.68%
ROICexc growth 5Y-4.37%
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-Score9
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.33 | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 16.92% | ||
| Cap/Sales | 0.19% | ||
| Interest Coverage | 54.92 | ||
| Cash Conversion | 87.11% | ||
| Profit Quality | 114.62% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.81%
ROIC/WACC0.73
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)25.33%
EPS 3Y5.7%
EPS 5Y12.45%
EPS Q2Q%37.72%
EPS Next Y-32.16%
EPS Next 2Y4.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.22%
Revenue growth 3Y5.59%
Revenue growth 5Y7.43%
Sales Q2Q%-24.37%
Revenue Next Year-1.36%
Revenue Next 2Y2.58%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y24.94%
EBIT growth 3Y-7.87%
EBIT growth 5Y2.89%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.15%
FCF growth 3Y10.14%
FCF growth 5Y17.28%
OCF growth 1Y29.09%
OCF growth 3Y10.17%
OCF growth 5Y17%