Cincinnati Financial Corporation (CINF)
POSITIVEPrice
$177.68
Market Cap
$27.27B
Fundamental
76
Technical
75
Composite
76
AI Analysis
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Overview
Cincinnati Financial Corporation provides property casualty insurance products in the United States. The company operates through 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 and property, commercial auto, and workers' compensation. This segment also provides contract and commercial surety bonds, and fidelity bonds; management liability; and machinery and equipment insurance products. The Personal Lines Insurance segment offers personal auto; homeowner; and other personal lines insurance, such as dwelling fire, inland marine, personal umbrella liability, and watercraft coverages. 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, as well as other coverages comprising miscellaneous errors and omissions, professional liability, and excess liability; 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; universal life insurance; and worksite and whole life insurance products, as well as 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. The company was founded in 1950 and is headquartered in Fairfield, Ohio.
Balance Sheet & Liquidity
Revenue
$4.27B
Net Income
$1.26B
Free Cash Flow
$943M
Total Equity
$16.67B
Total Liabilities
$26.56B
Current Ratio
1.63
Interest Coverage
112.57
Debt/EBITDA
16.85
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Fair Value Estimation
UndervaluedFair Value
$355.16
Current Price
$177.68
Margin of Safety
+50.0%
Fair Value Range
$230.85 - $479.47
Estimation Methods
Valuation Metrics
P/E Ratio
21.83
ROE
7.5%
P/B Ratio
1.64
P/FCF
28.92
Gross Margin
-
ROIC
7.5%
Value Creation (Economic Moat)
ROIC
7.5%
WACC
4.0%
ROIC − WACC
+3.4 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (21)
- EPS shows upward trend
- EPS CAGR 16.76%
- Price CAGR 8.90%
- ROIC 7.5%
- P/FCF 28.92
- P/B Ratio 1.64
- Debt/Equity ratio
- Operating Margin 36.9%
- Positive Free Cash Flow
- Current Ratio
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 20.9%
- Revenue Growth 5Y 10.9%
- Analyst Consensus 63% Buy
- Earnings Surprise avg 8.0%
- PEG Ratio 0.54
- Share Dilution -0.4%
- Net Margin Trend 29.4% vs 9.6%
- Piotroski F-Score 7/9
Failed (5)
- CapEx intensity
- Debt/EBITDA
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings Quality (OCF/NI) 0.56
Unavailable (2)
- Gross Margin NaN%
- Dividend Payout NaN%
Price Chart
Technical Indicators
RSI (14)
48.51
SMA 50
$174.26
SMA 200
$165.48
MACD
-0.84
Volatility
1.5%
Momentum (12m)
20.5%
RSI 48.5, SMA trend bullish, momentum 20.5%.
Piotroski F-Score
Strong financial health
Earnings Quality
Moderate: some gap between profits and cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Steven Justus Johnston C.F.A., CERA, FCAS, MAAA | Executive Chairman | 65 |
| Mr. Stephen Michael Spray | President, CEO & Director | 59 |
| Mr. Michael James Sewell CPA | CFO, Principal Accounting Officer, Executive VP & Treasurer | 61 |
| Ms. Teresa Currin Cracas Esq. | Chief Risk Officer & Executive VP of The Cincinnati Insurance Company | 59 |
| Mr. John Scott Kellington | Chief Information Officer & Executive VP of The Cincinnati Insurance Company | 63 |
| Mr. Steven Anthony Soloria C.F.A., C.P.C.U. | Executive VP & Chief Investment Officer | 58 |
| Mr. Dennis E. McDaniel C.M.A., CPA, C.P.C.U., CFM | VP & Investor Relations Officer | 65 |
| Mr. Thomas Christopher Hogan Esq. | Executive VP, Chief Legal Officer & Company Secretary | 32 |
| Betsy E. Ertel C.P.C.U. | Vice President of Corporate Communications | - |
| Mr. Donald Joseph Doyle Jr., AIM, C.P.C.U. | Senior Vice President of The Cincinnati Insurance Company | 58 |
Audit Risk
6
Board Risk
10
Compensation Risk
4
Shareholder Rights Risk
8
Latest News
Recent headlines for CINF, sourced from Markets Gazette.