Stock Analysis Report

Executive Summary

Cincinnati Financial Corporation, together with its subsidiary, provides property casualty insurance products in the United States.

Snowflake Analysis

Outstanding track record established dividend payer.

Similar Companies

Share Price & News

How has Cincinnati Financial's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: CINF's share price has been volatile over the past 3 months.

Market Performance

7 Day Return




US Insurance


US Market

1 Year Return




US Insurance


US Market

Return vs Industry: CINF exceeded the US Insurance industry which returned -24.7% over the past year.

Return vs Market: CINF matched the US Market which returned -14.9% over the past year.

Shareholder returns

7 Day-6.5%-6.1%-2.0%
30 Day-29.8%-28.4%-19.7%
90 Day-33.3%-33.3%-23.2%
1 Year-15.7%-17.6%-23.6%-25.5%-13.4%-15.1%
3 Year10.1%1.1%-11.8%-18.7%10.9%3.7%
5 Year54.5%32.7%10.6%-2.8%28.4%14.4%

Price Volatility Vs. Market

How volatile is Cincinnati Financial's share price compared to the market and industry in the last 5 years?

Simply Wall St News


Is Cincinnati Financial undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CINF ($72.92) is trading below our estimate of fair value ($140.55)

Significantly Below Fair Value: CINF is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: CINF is good value based on its PE Ratio (6x) compared to the Insurance industry average (8.7x).

PE vs Market: CINF is good value based on its PE Ratio (6x) compared to the US market (12.5x).

Price to Earnings Growth Ratio

PEG Ratio: CINF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: CINF is overvalued based on its PB Ratio (1.2x) compared to the US Insurance industry average (0.8x).

Next Steps

Future Growth

How is Cincinnati Financial forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CINF's earnings are forecast to decline over the next 3 years (-53.9% per year).

Earnings vs Market: CINF's earnings are forecast to decline over the next 3 years (-53.9% per year).

High Growth Earnings: CINF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CINF's revenue is expected to decline over the next 3 years (-6.6% per year).

High Growth Revenue: CINF's revenue is forecast to decline over the next 3 years (-6.6% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CINF's Return on Equity is forecast to be low in 3 years time (6.7%).

Next Steps

Past Performance

How has Cincinnati Financial performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CINF has high quality earnings.

Growing Profit Margin: CINF's current net profit margins (25.2%) are higher than last year (5.3%).

Past Earnings Growth Analysis

Earnings Trend: CINF's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: CINF's earnings growth over the past year (595.8%) exceeds its 5-year average (18.7% per year).

Earnings vs Industry: CINF earnings growth over the past year (595.8%) exceeded the Insurance industry 43.7%.

Return on Equity

High ROE: CINF's Return on Equity (20.2%) is considered high.

Next Steps

Financial Health

How is Cincinnati Financial's financial position? (This company is analysed differently as a bank or financial institution)

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Inventory Level: CINF has a low level of unsold assets or inventory.

Debt Coverage by Assets: CINF's debt is covered by short term assets (assets are 4.3x debt).

Financial Institutions Analysis

Asset Level: CINF's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CINF has a sufficient allowance for bad loans.

Low Risk Liabilities: CINF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CINF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CINF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CINF has an appropriate level of bad loans.

Next Steps


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


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CINF's dividend (3.29%) is higher than the bottom 25% of dividend payers in the US market (2.04%).

High Dividend: CINF's dividend (3.29%) is low compared to the top 25% of dividend payers in the US market (5.7%).

Stability and Growth of Payments

Stable Dividend: CINF's dividends per share have been stable in the past 10 years.

Growing Dividend: CINF's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.3%), CINF's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: CINF's dividends in 3 years are forecast to be covered by earnings (65.5% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Steve Johnston (59yo)





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 ha ...

CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD5.53M) is below average for companies of similar size in the US market ($USD11.87M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.

Leadership Team

Steven Johnston
President8.92yrsUS$5.53m0.16% $18.0m
Michael Sewell
CFO, Principal Accounting Officer8.92yrsUS$3.23m0.054% $6.2m
Martin Hollenbeck
Chief Investment Officer11.25yrsUS$2.68m0.044% $5.1m
Stephen Spray
Senior VP & Chief Insurance Officer of the Cincinnati Insurance Company8.25yrsUS$2.48m0.018% $2.1m
Martin Mullen
Chief Claims Officer & Senior VP of the Cincinnati Insurance Company12.25yrsUS$3.27m0.061% $7.0m
Dennis McDaniel
VP & Investor Relations Officer11.25yrsno datano data
Lisa Love
Senior VP8.92yrsno data0.023% $2.6m
Betsy Ertel
Vice President of Corporate Communicationsno datano datano data
Angela Delaney
Senior Vice President of Sales & Marketingno datano datano data
Gregory Ziegler
Human Resources Directorno datano datano data


Average Tenure


Average Age

Experienced Management: CINF's management team is seasoned and experienced (8.9 years average tenure).

Board Members

Steven Johnston
President8.92yrsUS$5.53m0.16% $18.0m
Gretchen Price
Independent Director18.25yrsUS$211.25k0.018% $2.1m
Kenneth Stecher
Non-Executive Chairman of the Board8.92yrsUS$263.43k0.095% $11.0m
William Bahl
Lead Independent Directorno dataUS$266.30k0.14% $15.9m
Kenneth Lichtendahl
Independent Director32yrsUS$206.00k0.023% $2.7m
Thomas Schiff
Director45yrsUS$206.14k0.99% $114.2m
Larry Webb
Director41yrsUS$220.28k0.31% $35.7m
William McMullen
Independent Director19.25yrsUS$223.71k0.033% $3.8m
Douglas Skidmore
Independent Director16yrsUS$206.49k0.026% $3.0m
Dirk Debbink
Independent Director7.42yrsUS$205.84k0.021% $2.4m


Average Tenure


Average Age

Experienced Board: CINF's board of directors are seasoned and experienced ( 18.3 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: CINF insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Cincinnati Financial Corporation's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: Cincinnati Financial Corporation
  • Ticker: CINF
  • Exchange: NasdaqGS
  • Founded: 1950
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$11.524b
  • Shares outstanding: 162.25m
  • Website:

Number of Employees


  • Cincinnati Financial Corporation
  • 6200 South Gilmore Road
  • Fairfield
  • Ohio
  • 45014-5141
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CINFNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
CCJDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972
0HYELSE (London Stock Exchange)YesCommon StockGBUSDDec 1972
CCJBRSE (Berne Stock Exchange)YesCommon StockCHCHFDec 1972
CINF34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.5 COM USD2.00BRBRLMay 2019


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 offers coverage for commercial casualty, commercial property, commercial auto, and workers’ compensation. It also provides director and officer liability insurance, contract and commercial surety bonds, and fidelity bonds; and machinery and equipment coverage. The Personal Lines Insurance segment offers 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; 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. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 04:47
End of Day Share Price2020/04/03 00:00
Annual Earnings2019/12/31

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.