Cincinnati Financial Corp

Finance
Property-Casualty Insurers
www.cinfin.com

Earnings Score
Moat Score
Safety Score

Market Cap $23.95B
PE 8
Debt $849.00M
Cash $1.75B
EV $23.05B
FCF $2.56B

Earnings

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Sales & Net Margins

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Earnings	$3.07B
EBIT	$3.87B
ROE	22%
ROA	10%
FCF	$2.56B
Equity	$13.80B
Growth Stability	-24%
PE	7.8
PEG	0.61
PB	1.74
P/FCF	9.36
P/S	1.97
Price/Cash	0.07
Debt/Equity	0.06
Debt/FCF	0.33
Net Margins	21%
Op. Margins	32%
Earnings CAGR	8%
Sales Growth YoY	83%
Sales Growth QoQ	31%
Sales CAGR	9%
FCF CAGR	11%
Equity CAGR	8%
Earnings Stability	0.05
Earnings Growth YoY	-928%
Earnings Growth QoQ	163%

Earnings CAGR 5Y	13%
Sales CAGR 5Y	9%
FCF CAGR 5Y	15%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	16%
Sales CAGR 3Y	16%
FCF CAGR 3Y	10%
Equity CAGR 3Y	5%
Market Cap	$23.95B
Revenue	$12.16B
Dividend Yield	2%
Payout Ratio	16%
Assets	$37.01B
Total Debt	$849.00M
Cash	$1.75B
Shares Outstanding	156.2M
EV	23.05B
Earnings Score	7%
Moat Score	94%
Safety Score	67%
Final Score	56%
Shares Growth 3y	-1%
Equity Growth QoQ	8%
Equity Growth YoY	30%

Assets & ROA

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Stockholders Equity & ROE

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Cincinnati Financial Corp is a property and casualty insurance company that generates income through written premiums. A select group of independent agencies actively markets the company's business, home, and automotive insurance within their communities. These agents offer the company's personal lines as well as its standard market, excess, and surplus commercial line policies in many regions in the United States. Cincinnati Financial also offers leasing and financing services. The vast majority of the company's revenue is generated through commercial lines, followed by personal lines.

SEC Filings

Direct access to Cincinnati Financial Corp (CINF) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Cincinnati Financial Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Cincinnati Financial Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 8%

Stability 5%

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Cincinnati Financial Corp Discounted Cash Flow

Fully customizable DCF calculator online for Cincinnati Financial Corp.

Years

Calculation mode

= $57B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2.6B	$2.9B	$3.2B	$3.5B	$3.9B	$4.4B	$4.9B	$5.5B	$6.1B	$6.8B	$7.6B	$76B
DCF		$2.6B	$2.6B	$2.7B	$2.7B	$2.7B	$2.8B	$2.8B	$2.8B	$2.9B	$2.9B	$29B
Value	$57B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	11%	12%	11%	18%	5%	25%	16%	31%	-7%	18%	21%
ROA	-	5%	4%	4%	1%	10%	6%	12%	-2%	7%	10%
ROE	-	10%	8%	13%	4%	20%	11%	22%	-5%	15%	22%

Good Net Margins (21.45%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0.78	0.76	0.8	0.72	0.71	0.57	0.43	0.41	0.42	0.33
Debt over Equity	0.13	0.13	0.12	0.1	0.11	0.09	0.08	0.06	0.08	0.07	0.06
Growth Stability	-	-	-	100%	38%	100%	100%	100%	-24%	100%	-24%

Good Debt/FCF ratio (0.33)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.06)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-24%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	4%	6%	5%	-6%	47%	-5%	28%	-32%	53%	9%
Earnings YoY growth	-	21%	-7%	77%	-73%	596%	-39%	142%	-116%	-479%	13%
Equity YoY growth	-	-2%	10%	17%	-5%	26%	9%	21%	-20%	15%	6%
FCF YoY growth	-	22%	3%	-5%	12%	2%	24%	34%	4%	-0%	15%