NasdaqGS:CINF

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid 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


Market Performance


7 Day Return

-0.4%

CINF

0.1%

US Insurance

0.5%

US Market


1 Year Return

51.6%

CINF

13.8%

US Insurance

6.8%

US Market

Return vs Industry: CINF exceeded the US Insurance industry which returned 13.8% over the past year.

Return vs Market: CINF exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

CINFIndustryMarket
7 Day-0.4%0.1%0.5%
30 Day1.7%-1.8%-0.8%
90 Day8.7%-1.6%-0.9%
1 Year55.3%51.6%16.6%13.8%9.2%6.8%
3 Year76.1%61.7%44.6%33.5%45.6%36.2%
5 Year177.6%137.4%69.6%49.4%63.2%45.4%

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

Valuation

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

15.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CINF ($115.72) is trading above our estimate of fair value ($50.64)

Significantly Below Fair Value: CINF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CINF is good value based on its PE Ratio (15.4x) compared to the Insurance industry average (15.6x).

PE vs Market: CINF is good value based on its PE Ratio (15.4x) compared to the US market (17.7x).


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 (2.1x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Cincinnati Financial forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-39.6%

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 (-39.6% per year).

Earnings vs Market: CINF's earnings are forecast to decline over the next 3 years (-39.6% 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 (-1.8% per year).

High Growth Revenue: CINF's revenue is forecast to decline over the next 3 years (-1.8% 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 (6.6%).


Next Steps

Past Performance

How has Cincinnati Financial performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CINF's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: CINF's earnings growth over the past year (31.6%) exceeds its 5-year average (14.6% per year).

Earnings vs Industry: CINF earnings growth over the past year (31.6%) exceeded the Insurance industry 1.4%.


Return on Equity

High ROE: CINF's Return on Equity (13.4%) is considered low.


Return on Assets

ROA vs Industry: CINF has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: CINF has significantly improved its Return on Capital Employed over the past 3 years.


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 4.426660x 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

Dividend

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

1.93%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CINF's dividend (1.94%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CINF's dividend (1.94%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 reasonably low payout ratio (29%), 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 (64% payout ratio).


Next Steps

Management

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

9.6yrs

Average management tenure


CEO

Steve Johnston (59yo)

8.4yrs

Tenure

US$3,444,610

Compensation

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 ($USD3.44M) is below average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

9.6yrs

Average Tenure

59yo

Average Age

Experienced Management: CINF's management team is seasoned and experienced (9.6 years average tenure).


Board Age and Tenure

17.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CINF's board of directors are seasoned and experienced ( 17.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$20,00020 Aug 19
Dirk Debbink
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares182.32
Max PriceUS$109.70
BuyUS$30,00020 Feb 19
Dirk Debbink
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares350.96
Max PriceUS$85.48

Ownership Breakdown


Management Team

  • Jacob Scherer (66yo)

    EVP & Chief Insurance Officer - The Cincinnati Insurance Company

    • Tenure: 11.3yrs
    • Compensation: US$2.89m
  • Steve Johnston (59yo)

    President

    • Tenure: 8.4yrs
    • Compensation: US$3.44m
  • Dennis McDaniel (59yo)

    VP & Investor Relations Officer

    • Tenure: 10.8yrs
  • Marty Hollenbeck (59yo)

    Chief Investment Officer

    • Tenure: 10.8yrs
    • Compensation: US$1.80m
  • Martin Mullen (63yo)

    Chief Claims Officer & Senior VP of The Cincinnati Insurance Company

    • Tenure: 11.8yrs
    • Compensation: US$1.59m
  • Lisa Love (59yo)

    Senior VP

    • Tenure: 8.4yrs
  • Mike Sewell (55yo)

    CFO, Senior VP & Treasurer

    • Tenure: 8.4yrs
    • Compensation: US$2.16m
  • R. Sandercox

    MD & Head of Specialty Casualty Reinsurance

    • Tenure: 3.2yrs
  • Gregory Ziegler

    Human Resources Director

    • Tenure: 0yrs
  • Betsy Ertel

    Vice President of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Gretchen Price (64yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$187.29k
  • Ken Stecher (72yo)

    Non-Executive Chairman of the Board

    • Tenure: 8.4yrs
    • Compensation: US$270.97k
  • Steve Johnston (59yo)

    President

    • Tenure: 8.4yrs
    • Compensation: US$3.44m
  • William Bahl (67yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$278.86k
  • Kenneth Lichtendahl (70yo)

    Independent Director

    • Tenure: 31.5yrs
    • Compensation: US$167.87k
  • Thomas Schiff (71yo)

    Director

    • Tenure: 44.5yrs
    • Compensation: US$209.12k
  • Larry Webb (63yo)

    Director

    • Tenure: 40.5yrs
    • Compensation: US$226.32k
  • William McMullen (58yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$231.24k
  • Douglas Skidmore (56yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$176.10k
  • Dirk Debbink (63yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$174.13k

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$18.901b
  • Shares outstanding: 163.34m
  • Website: https://www.cinfin.com

Number of Employees


Location

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

Listings

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
CINF34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.5 COM USD2.00BRBRLMay 2019

Biography

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, Person ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:34
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.