CINF

Cincinnati FinancialNasdaqGS:CINF Stock Report

Market Cap

US$18.8b

7D

-0.8%

1Y

49.3%

Updated

19 Sep, 2021

Data

Company Financials +
CINF fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends5/6

CINF Overview

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

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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CINF's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

CINF

-0.7%

US Insurance

-0.6%

US Market


1 Year Return

49.3%

CINF

35.9%

US Insurance

33.8%

US Market

Return vs Industry: CINF exceeded the US Insurance industry which returned 35.9% over the past year.

Return vs Market: CINF exceeded the US Market which returned 33.8% over the past year.


Shareholder returns

CINFIndustryMarket
7 Day-0.8%-0.7%-0.6%
30 Day-5.6%-0.5%2.0%
90 Day-0.4%6.4%4.7%
1 Year52.9%49.3%39.2%35.9%35.8%33.8%
3 Year59.3%47.3%34.2%24.1%60.0%50.1%
5 Year78.6%55.4%79.0%56.6%123.0%98.7%

Long-Term 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

Cincinnati Financial Fundamentals Summary

How do Cincinnati Financial's earnings and revenue compare to its market cap?
CINF fundamental statistics
Market CapUS$18.77b
Earnings (TTM)US$2.86b
Revenue (TTM)US$9.44b

6.6x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CINF income statement (TTM)
RevenueUS$9.44b
Cost of RevenueUS$5.72b
Gross ProfitUS$3.73b
ExpensesUS$870.00m
EarningsUS$2.86b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)17.74
Gross Margin39.46%
Net Profit Margin30.24%
Debt/Equity Ratio7.2%

How did CINF perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

14%

Payout Ratio

Valuation

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

33.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CINF ($116.45) is trading below our estimate of fair value ($173.98)

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 (6.6x) compared to the US Insurance industry average (9.5x).

PE vs Market: CINF is good value based on its PE Ratio (6.6x) compared to the US market (17.8x).


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 (1.6x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Cincinnati Financial forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-43.9%

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 (-43.9% per year).

Earnings vs Market: CINF's earnings are forecast to decline over the next 3 years (-43.9% 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 (-4.4% per year).

High Growth Revenue: CINF's revenue is forecast to decline over the next 3 years (-4.4% 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 (6.5%).


Past Performance

How has Cincinnati Financial performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CINF has high quality earnings.

Growing Profit Margin: CINF's current net profit margins (30.2%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: CINF's earnings have grown significantly by 26.2% per year over the past 5 years.

Accelerating Growth: CINF's earnings growth over the past year (412.7%) exceeds its 5-year average (26.2% per year).

Earnings vs Industry: CINF earnings growth over the past year (412.7%) exceeded the Insurance industry 76%.


Return on Equity

High ROE: CINF's Return on Equity (24.1%) is considered high.


Financial Health

How is Cincinnati Financial's financial position?


Financial Position Analysis

Short Term Liabilities: CINF's short term assets ($4.2B) exceed its short term liabilities ($3.5B).

Long Term Liabilities: CINF's short term assets ($4.2B) do not cover its long term liabilities ($14.3B).


Debt to Equity History and Analysis

Debt Level: CINF's debt to equity ratio (7.2%) is considered satisfactory.

Reducing Debt: CINF's debt to equity ratio has reduced from 11.7% to 7.2% over the past 5 years.

Debt Coverage: CINF's debt is well covered by operating cash flow (211.6%).

Interest Coverage: CINF's interest payments on its debt are well covered by EBIT (68.4x coverage).


Balance Sheet


Dividend

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

2.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CINF's dividend (2.16%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: CINF's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 (13.9%), CINF's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CINF's dividends in 3 years are forecast to be well covered by earnings (48.2% payout ratio).


Next Steps

Management

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

10.3yrs

Average management tenure


CEO

Steve Johnston (61 yo)

10.33yrs

Tenure

US$3,839,784

Compensation

Mr. Steven Justus Johnston, also known as Steve, FCAS, MAAA, CFA, CERA, is Chief Executive Officer and Chairman at CFC Investment Company and has been its President since August 2020. Mr. Johnston has been...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD3.84M) is below average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CINF's management team is seasoned and experienced (10.3 years average tenure).


Board Members

Experienced Board: CINF's board of directors are seasoned and experienced ( 11.6 years average tenure).


Ownership

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$18.770b
  • Shares outstanding: 161.18m
  • Website: https://www.cinfin.com

Number of Employees


Location

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

Listings


Biography

Cincinnati Financial Corporation, together with its subsidiary, provides property casualty insurance products in the United States. The company operates through five segments: Commercial Lines Insurance, P...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:01
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.