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Cincinnati Financial Corporation (CINF)

POSITIVE
Financial ServicesInsurance - Property & CasualtyUnited States

Price

$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

Undervalued

Fair Value

$355.16

Current Price

$177.68

Margin of Safety

+50.0%

Fair Value Range

$230.85 - $479.47

Estimation Methods

Analyst Target:$192.67
DCF:$355.00
PE-based:$417.76
Graham Growth:$723.92
EPV:$136.41
Analyst Consensus:Buy (10B / 6H / 0S)
Last Earnings Surprise:-23.86%

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

7/9

Strong financial health

score
criteria

Earnings Quality

0.56

Moderate: some gap between profits and cash

Share Dilution

-40.0%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Steven Justus Johnston C.F.A., CERA, FCAS, MAAAExecutive Chairman65
Mr. Stephen Michael SprayPresident, CEO & Director59
Mr. Michael James Sewell CPACFO, Principal Accounting Officer, Executive VP & Treasurer61
Ms. Teresa Currin Cracas Esq.Chief Risk Officer & Executive VP of The Cincinnati Insurance Company59
Mr. John Scott KellingtonChief Information Officer & Executive VP of The Cincinnati Insurance Company63
Mr. Steven Anthony Soloria C.F.A., C.P.C.U.Executive VP & Chief Investment Officer58
Mr. Dennis E. McDaniel C.M.A., CPA, C.P.C.U., CFMVP & Investor Relations Officer65
Mr. Thomas Christopher Hogan Esq.Executive VP, Chief Legal Officer & Company Secretary32
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 Company58

Audit Risk

6

Board Risk

10

Compensation Risk

4

Shareholder Rights Risk

8

Latest News

Recent headlines for CINF, sourced from Markets Gazette.

No recent news for CINF.
Disclaimer

This platform is for educational purposes only. It does not provide financial, investment, or trading advice. All scores, valuations, and signals are based on automated analysis of publicly available data that may be incomplete or inaccurate. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

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