Cincinnati Financial Corporation
Cincinnati Financial Corporation Fundamental Analysis
Cincinnati Financial Corporation (CINF) shows strong financial fundamentals with a PE ratio of 10.67, profit margin of 18.95%, and ROE of 16.13%. The company generates $12.5B in annual revenue with strong year-over-year growth of 13.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CINF's fundamental strength across five key dimensions:
Efficiency Score
WeakCINF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCINF trades at attractive valuation levels.
Growth Score
ExcellentCINF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCINF maintains a strong and stable balance sheet.
Profitability Score
ExcellentCINF achieves industry-leading margins.
Key Financial Metrics
Is CINF Expensive or Cheap?
P/E Ratio
CINF trades at 10.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CINF's PEG of 0.91 indicates potential undervaluation.
Price to Book
The market values Cincinnati Financial Corporation at 1.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.24 times EBITDA. This is generally considered low.
How Well Does CINF Make Money?
Net Profit Margin
For every $100 in sales, Cincinnati Financial Corporation keeps $18.95 as profit after all expenses.
Operating Margin
Core operations generate 23.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.13 in profit for every $100 of shareholder equity.
ROA
Cincinnati Financial Corporation generates $5.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cincinnati Financial Corporation produces operating cash flow of $2.78B, showing steady but balanced cash generation.
Free Cash Flow
Cincinnati Financial Corporation generates strong free cash flow of $2.77B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $17.77 in free cash annually.
FCF Yield
CINF converts 11.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How CINF Stacks Against Its Sector Peers
| Metric | CINF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.67 | 18.86 | Better (Cheaper) |
| ROE | 16.13% | 847.00% | Weak |
| Net Margin | 18.95% | 4202.00% | Weak |
| Debt/Equity | 0.06 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 1.66 | 667.17 | Neutral |
| ROA | 5.84% | -21543.00% (disorted) | Weak |
CINF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cincinnati Financial Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.98%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
21.11%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
131.40%
Industry Style: Value, Dividend, Cyclical
High Growth