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Cincinnati Financial

DB:CCJ
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CCJ
DB
$17B
Market Cap
  1. Home
  2. DE
  3. Insurance
Company description

Cincinnati Financial Corporation, together with its subsidiary, provides property casualty insurance products in the United States. The last earnings update was 90 days ago. More info.


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CCJ Share Price and Events
7 Day Returns
-0.7%
DB:CCJ
-0.6%
DE Insurance
-0.9%
DE Market
1 Year Returns
56.5%
DB:CCJ
19.7%
DE Insurance
-7.4%
DE Market
CCJ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cincinnati Financial (CCJ) -0.7% 1.6% 22.9% 56.5% 39.9% 166.7%
DE Insurance -0.6% 1.1% 1.4% 19.7% 61.5% 60.8%
DE Market -0.9% -0.4% -3.7% -7.4% 8.1% 12%
1 Year Return vs Industry and Market
  • CCJ outperformed the Insurance industry which returned 19.7% over the past year.
  • CCJ outperformed the Market in Germany which returned -7.4% over the past year.
Price Volatility
CCJ
Industry
5yr Volatility vs Market

CCJ Value

 Is Cincinnati Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cincinnati Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cincinnati Financial.

DB:CCJ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $55.63 * 6.9%
$3.85
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $55.63
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:CCJ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.685 (1 + (1- 21%) (5.05%))
0.807
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.807 * 5.96%)
5.04%

Discounted Cash Flow Calculation for DB:CCJ using Excess Returns Model Model

The calculations below outline how an intrinsic value for Cincinnati Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:CCJ Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6.9% – 5.04%) * $55.63)
$1.05
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $1.05 / (5.04% - 0.23%)
$21.77
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $55.63 + $21.77
$77.4
DB:CCJ Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:CCJ represents 0.89042x of NasdaqGS:CINF
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89042x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 77.40 x 0.89042
€68.92
Value per share (EUR) From above. €68.92
Current discount Discount to share price of €94.83
= -1 x (€94.83 - €68.92) / €68.92
-37.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Cincinnati Financial is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cincinnati Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cincinnati Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:CCJ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $6.22
NasdaqGS:CINF Share Price ** NasdaqGS (2019-07-22) in USD $106.5
Germany Insurance Industry PE Ratio Median Figure of 6 Publicly-Listed Insurance Companies 13.42x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cincinnati Financial.

DB:CCJ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CINF Share Price ÷ EPS (both in USD)

= 106.5 ÷ 6.22

17.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cincinnati Financial is overvalued based on earnings compared to the DE Insurance industry average.
  • Cincinnati Financial is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Cincinnati Financial's expected growth come at a high price?
Raw Data
DB:CCJ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-38.3%per year
Germany Insurance Industry PEG Ratio Median Figure of 5 Publicly-Listed Insurance Companies 3.13x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.43x

*Line of best fit is calculated by linear regression .

DB:CCJ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.13x ÷ -38.3%

-0.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cincinnati Financial earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Cincinnati Financial's assets?
Raw Data
DB:CCJ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $52.88
NasdaqGS:CINF Share Price * NasdaqGS (2019-07-22) in USD $106.5
Germany Insurance Industry PB Ratio Median Figure of 6 Publicly-Listed Insurance Companies 1.08x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.72x
DB:CCJ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CINF Share Price ÷ Book Value per Share (both in USD)

= 106.5 ÷ 52.88

2.01x

* Primary Listing of Cincinnati Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cincinnati Financial is overvalued based on assets compared to the DE Insurance industry average.
X
Value checks
We assess Cincinnati Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Cincinnati Financial has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CCJ Future Performance

 How is Cincinnati Financial expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-38.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cincinnati Financial expected to grow at an attractive rate?
  • Cincinnati Financial's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Cincinnati Financial's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Cincinnati Financial's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:CCJ Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:CCJ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -38.3%
DB:CCJ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts -0.9%
Germany Insurance Industry Earnings Growth Rate Market Cap Weighted Average 4.5%
Germany Insurance Industry Revenue Growth Rate Market Cap Weighted Average 5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:CCJ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:CCJ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 6,419 616 3
2019-12-31 6,740 1,120 2
DB:CCJ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 6,342 1,227 1,013
2018-12-31 5,407 1,181 287
2018-09-30 6,108 1,132 1,381
2018-06-30 5,605 1,071 930
2018-03-31 5,433 1,070 813
2017-12-31 5,732 1,052 1,045
2017-09-30 5,633 1,026 503
2017-06-30 5,623 1,061 581
2017-03-31 5,608 986 604
2016-12-31 5,449 1,115 591
2016-09-30 5,400 1,144 647
2016-06-30 5,276 1,093 641

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cincinnati Financial's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Cincinnati Financial's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:CCJ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Cincinnati Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CCJ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 3.75 4.05 3.55 5.00
2019-12-31 6.80 6.92 6.67 4.00
DB:CCJ Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 6.22
2018-12-31 1.76
2018-09-30 8.45
2018-06-30 5.68
2018-03-31 4.96
2017-12-31 6.36
2017-09-30 3.06
2017-06-30 3.53
2017-03-31 3.67
2016-12-31 3.59
2016-09-30 3.94
2016-06-30 3.90

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Cincinnati Financial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Cincinnati Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cincinnati Financial has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CCJ Past Performance

  How has Cincinnati Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cincinnati Financial's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cincinnati Financial's year on year earnings growth rate has been positive over the past 5 years.
  • Cincinnati Financial's 1-year earnings growth exceeds its 5-year average (24.6% vs 13%)
  • Cincinnati Financial's earnings growth has exceeded the DE Insurance industry average in the past year (24.6% vs 9.4%).
Earnings and Revenue History
Cincinnati Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cincinnati Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CCJ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 6,342.00 1,013.00
2018-12-31 5,407.00 287.00
2018-09-30 6,108.00 1,381.00
2018-06-30 5,605.00 930.00
2018-03-31 5,433.00 813.00
2017-12-31 5,732.00 1,045.00
2017-09-30 5,633.00 503.00
2017-06-30 5,623.00 581.00
2017-03-31 5,608.00 604.00
2016-12-31 5,449.00 591.00
2016-09-30 5,400.00 647.00
2016-06-30 5,276.00 641.00
2016-03-31 5,221.00 694.00
2015-12-31 5,142.00 634.00
2015-09-30 5,141.00 645.00
2015-06-30 5,143.00 654.00
2015-03-31 5,041.00 562.00
2014-12-31 4,945.00 525.00
2014-09-30 4,855.00 480.00
2014-06-30 4,727.00 428.00
2014-03-31 4,617.00 454.00
2013-12-31 4,531.00 517.00
2013-09-30 4,429.00 587.00
2013-06-30 4,312.00 567.00
2013-03-31 4,228.00 489.00
2012-12-31 4,111.00 421.00
2012-09-30 3,996.00 363.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cincinnati Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cincinnati Financial used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.
  • Cincinnati Financial's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Cincinnati Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cincinnati Financial has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CCJ Health

 How is Cincinnati Financial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cincinnati Financial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cincinnati Financial is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cincinnati Financial's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Cincinnati Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cincinnati Financial Company Filings, last reported 3 months ago.

DB:CCJ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 8,630.00 820.00 802.00
2018-12-31 7,833.00 820.00 784.00
2018-09-30 8,334.00 817.00 616.00
2018-06-30 7,916.00 848.00 521.00
2018-03-31 7,946.00 811.00 604.00
2017-12-31 8,243.00 811.00 657.00
2017-09-30 7,523.00 804.00 674.00
2017-06-30 7,373.00 804.00 606.00
2017-03-31 7,256.00 804.00 543.00
2016-12-31 7,060.00 807.00 777.00
2016-09-30 7,121.00 806.00 700.00
2016-06-30 6,971.00 814.00 547.00
2016-03-31 6,735.00 821.00 613.00
2015-12-31 6,427.00 821.00 544.00
2015-09-30 6,350.00 826.00 494.00
2015-06-30 6,497.00 840.00 562.00
2015-03-31 6,608.00 840.00 665.00
2014-12-31 6,573.00 835.00 591.00
2014-09-30 6,376.00 839.00 412.00
2014-06-30 6,343.00 839.00 462.00
2014-03-31 6,168.00 894.00 521.00
2013-12-31 6,070.00 894.00 433.00
2013-09-30 5,816.00 894.00 511.00
2013-06-30 5,699.00 894.00 382.00
2013-03-31 5,785.00 935.00 380.00
2012-12-31 5,453.00 894.00 487.00
2012-09-30 5,359.00 894.00 416.00
  • Cincinnati Financial's level of debt (10.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (15.2% vs 10.2% today).
  • Debt is well covered by operating cash flow (139.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 23x coverage).
X
Financial health checks
We assess Cincinnati Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cincinnati Financial has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CCJ Dividends

 What is Cincinnati Financial's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.1%
Current annual income from Cincinnati Financial dividends. Estimated to be 2.22% next year.
If you bought €2,000 of Cincinnati Financial shares you are expected to receive €42 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cincinnati Financial's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Cincinnati Financial's dividend is below the markets top 25% of dividend payers in Germany (3.9%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:CCJ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Germany Insurance Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:CCJ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.36 1.00
2020-12-31 2.40 5.00
2019-12-31 2.33 5.00
DB:CCJ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-29 2.240 2.208
2019-02-01 2.240 2.612
2018-11-16 2.120 2.703
2018-08-10 2.120 2.762
2018-05-07 2.120 3.004
2018-04-25 2.120 2.992
2017-11-17 2.000 2.686
2017-08-18 2.000 2.652
2017-05-08 2.000 2.740
2017-01-27 2.000 2.777
2016-11-18 1.920 2.565
2016-08-12 1.920 2.589
2016-05-02 1.920 2.686
2016-01-29 1.920 3.011
2015-11-20 1.840 3.156
2015-08-14 1.840 3.291
2015-05-04 1.840 3.519
2015-01-30 1.840 3.491
2014-11-21 1.760 3.420
2014-08-15 1.760 3.627
2014-04-28 1.760 3.649
2014-01-31 1.760 3.707
2013-11-15 1.680 3.283
2013-08-16 1.680 3.492
2013-04-29 1.630 3.399
2013-02-04 1.630 3.517
2012-08-17 1.630 4.104
2012-06-01 1.610 4.302
2012-02-06 1.610 4.594
2011-11-21 1.610 5.275
2011-08-15 1.610 5.895
2011-05-23 1.600 5.676
2011-01-31 1.600 4.927
2010-11-22 1.600 5.065
2010-08-16 1.600 5.532
2010-05-24 1.580 5.821
2010-02-03 1.580 5.634
2009-11-23 1.580 6.040
2009-08-17 1.580 6.179
2009-05-22 1.560 6.707
2009-02-02 1.560 6.955
2008-11-18 1.560 5.793
2008-08-18 1.560 5.970

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Cincinnati Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Cincinnati Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cincinnati Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cincinnati Financial has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CCJ Management

 What is the CEO of Cincinnati Financial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Johnston
COMPENSATION $3,444,610
AGE 59
TENURE AS CEO 8.2 years
CEO Bio

Mr. Steven Justus Johnston, also known as Steve, FCAS, MAAA, CFA, CERA, has been the President of The Cincinnati Life Insurance Company at Cincinnati Financial Corp. since January 01, 2015. Mr. Johnston has been the Chief Executive Officer and President of Cincinnati Financial Corp. and Cincinnati Specialty Underwriters Insurance Company since May 2, 2011. Mr. Johnston has been President of The Cincinnati Insurance Company, Inc., The Cincinnati Indemnity Company and CSU Producer Resources Inc. and Chief Executive Officer of all subsidiaries of Cincinnati Financial Corp. since May 2, 2011. Mr. Johnston served as the Chief Financial Officer, Secretary, Senior Vice President and Treasurer of Cincinnati Financial Corporation from July 1, 2008 to May 2, 2011. Mr. Johnston served as Chief Financial Officer and Secretary of Cincinnati Casualty Company and Cincinnati Insurance Company from July 1, 2008 to May 2, 2011. He served as the Chief Financial Officer and Senior Vice President of Cincinnati Indemnity Company until May 2, 2011. He has more than 25 years of property casualty insurance and financial leadership experience, including a broad background in accounting and finance, actuarial, reinsurance, technology, investments and management of investor and ratings agency relationships. He served as a Senior Vice President of Milbank Insurance Company. Mr. Johnston served as a Senior Vice President and Senior Vice President of Mutual State Auto Financial Corporation, a subsidiary of Mutual since August 1999 and as Principal Accounting Officer. He served as Treasurer of Mutual and State Auto Financial Corporation from April 1997 to June 19, 2006 and these Vice President from May 1995 to August 1999 and Chief Financial Officer from April 1997 to June 19, 2006. Mr. Johnston has been a Director of Cincinnati Financial Corp. since May 2011. Mr. Johnston has been a Director at CFC Investment Company, The Cincinnati Insurance Company, The Cincinnati Casualty Company, The Cincinnati Indemnity Company, The Cincinnati Specialty Underwriters Insurance Company and The Cincinnati Life Insurance Company since January 30, 2009. He served as a Director of State Automobile Mutual Insurance Company, Inc. Mr. Johnston is a Member of the Casualty Actuarial Society. He is a Member of American Academy of Actuaries since 1987. He is Chartered Financial Analyst since 1997. He is Chartered Enterprise Risk Analyst since 2013.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Steve's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Cincinnati Financial management team in years:

9.3
Average Tenure
59
Average Age
  • The average tenure for the Cincinnati Financial management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Steve Johnston

TITLE
President
COMPENSATION
$3M
AGE
59
TENURE
8.2 yrs

Mike Sewell

TITLE
CFO, Senior VP & Treasurer
COMPENSATION
$2M
AGE
55
TENURE
8.2 yrs

Marty Hollenbeck

TITLE
Chief Investment Officer
COMPENSATION
$2M
AGE
59
TENURE
10.5 yrs

Jacob Scherer

TITLE
EVP & Chief Insurance Officer - The Cincinnati Insurance Company
COMPENSATION
$3M
AGE
66
TENURE
11 yrs

Martin Mullen

TITLE
Chief Claims Officer & Senior VP of The Cincinnati Insurance Company
COMPENSATION
$2M
AGE
63
TENURE
11.5 yrs

Dennis McDaniel

TITLE
VP & Investor Relations Officer
AGE
59
TENURE
10.5 yrs

Lisa Love

TITLE
Senior VP
AGE
59
TENURE
8.2 yrs

Betsy Ertel

TITLE
Vice President of Corporate Communications

Gregory Ziegler

TITLE
Human Resources Director

R. Sandercox

TITLE
MD & Head of Specialty Casualty Reinsurance
TENURE
2.9 yrs
Board of Directors Tenure

Average tenure and age of the Cincinnati Financial board of directors in years:

17.5
Average Tenure
63.5
Average Age
  • The average tenure for the Cincinnati Financial board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Ken Stecher

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$271K
AGE
72
TENURE
8.2 yrs

Steve Johnston

TITLE
President
COMPENSATION
$3M
AGE
59
TENURE
8.2 yrs

William Bahl

TITLE
Lead Independent Director
COMPENSATION
$279K
AGE
67

William McMullen

TITLE
Director
COMPENSATION
$231K
AGE
58
TENURE
18.5 yrs

Gretchen Price

TITLE
Director
COMPENSATION
$187K
AGE
64
TENURE
17.5 yrs

Kenneth Lichtendahl

TITLE
Director
COMPENSATION
$168K
AGE
70
TENURE
31.3 yrs

Thomas Schiff

TITLE
Director
COMPENSATION
$209K
AGE
71
TENURE
44.3 yrs

Larry Webb

TITLE
Director
COMPENSATION
$226K
AGE
63
TENURE
40.3 yrs

Douglas Skidmore

TITLE
Director
COMPENSATION
$176K
AGE
56
TENURE
15.3 yrs

Dirk Debbink

TITLE
Director
COMPENSATION
$174K
AGE
63
TENURE
6.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
20. Feb 19 Buy Dirk Debbink Individual 15. Feb 19 15. Feb 19 351 €75.82 €26,610
X
Management checks
We assess Cincinnati Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cincinnati Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CCJ News

Simply Wall St News

CCJ Company Info

Description

Cincinnati Financial Corporation, together with its subsidiary, provides property casualty insurance products in the United States. The company operates in five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The Commercial Lines Insurance segment provides coverage for commercial casualty, commercial property, commercial auto, and workers’ compensation. It also offers director and officer liability insurance, contract and commercial surety bonds, and fidelity bonds; coverage for property, liability, and business interruption; and machinery and equipment coverage. The Personal Lines Insurance segment provides personal auto insurance; homeowners insurance; and dwelling fire, inland marine, personal umbrella liability, and watercraft coverages to individuals. The Excess and Surplus Lines Insurance segment offers commercial casualty insurance that covers businesses for third-party liability from accidents occurring on their premises or arising out of their operations, such as injuries sustained from products; and commercial property insurance, which insures buildings, inventory, equipment, and business income from loss or damage due to various causes, such as fire, wind, hail, water, theft, and vandalism. The Life Insurance segment provides term life insurance products; universal life insurance products; worksite products, such as term life, whole life, and disability insurance; and whole life insurance products, as well as markets deferred annuities and immediate annuities. The Investments segment invests in fixed-maturity investments, including taxable and tax-exempt bonds, and redeemable preferred stocks; and equity investments comprising common and nonredeemable preferred stocks. The company also offers commercial leasing and financing services; and insurance brokerage services. Cincinnati Financial Corporation was founded in 1950 and is headquartered in Fairfield, Ohio.

Details
Name: Cincinnati Financial Corporation
CCJ
Exchange: DB
Founded: 1950
$15,572,754,352
163,229,828
Website: http://www.cinfin.com
Address: Cincinnati Financial Corporation
6200 South Gilmore Road,
Fairfield,
Ohio, 45014,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CINF Common Stock Nasdaq Global Select US USD 14. Dec 1972
DB CCJ Common Stock Deutsche Boerse AG DE EUR 14. Dec 1972
LSE 0HYE Common Stock London Stock Exchange GB USD 14. Dec 1972
BOVESPA CINF34 BDR EACH REP 0.5 COM USD2.00 Bolsa de Valores de Sao Paulo BR BRL 17. May 2019
Number of employees
Current staff
Staff numbers
4,999
Cincinnati Financial employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/23 23:22
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/21
Last earnings filing: 2019/04/24
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.