10Y annualized return is
very good
at 10.6% per year
CINF has met or exceeded earnings expectations in
the majority of
recent quarters (8/10)
Attractive Price-to-Earnings Ratio
Low Price-to-Sales Ratio
Strong Net Profit Margin
High Return on Equity
Low Debt Levels
Strong Liquidity Ratios
Strong Operating Performance
Robust Premium Growth
Financial Strength and Flexibility
Capital Management and Dividend Growth
Positive Outlook for Reinsurance Market
Moderate EV/EBITDA Ratio
Operating Profit Margin
Interest Coverage Ratio
Impact of Catastrophic Losses
Potential Pricing Cycle Moderation
Cincinnati Financial Corporation demonstrates strong business quality through excellent operating metrics, robust growth, and financial stability. Future prospects remain positive, though potential challenges from catastrophic losses and pricing cycle moderation need to be monitored closely.
Analysis Date: February 11, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Cincinnati Financial Corporation is a company that helps protect people and businesses from losses by offering different types of insurance. They provide coverage for things like cars, homes, and businesses, so if something bad happens—like an accident or damage—they can help pay for the costs. The company also sells life insurance, which offers financial support to families when a loved one passes away. Additionally, they invest money in various assets to grow their funds and support their insurance products.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Latest News
Cincinnati Financial (CINF) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get pr...
CINCINNATI , April 8, 2025 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) plans to release its first-quarter 2025 results on Monday, ...
In an age of rising tariffs, earnings growth is one thing S&P 500 investors can lean on. But for some companies, you don't even have that to count on.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$564.93
Current Market Price: $132.00
IV/P Ratio: 4.28x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
77.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for CINF
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (8.97)
P/B ratio ≤ 1.5 (1.48)
Current ratio ≥ 2.0 (1.16x)
Long-term debt < Net current assets (0.45x)
Margin of safety (77.0%)
CINF does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
10.67%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
100.00%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
20.22%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
CINF's net profit margin of 20.22% indicates strong profitability after accounting for all expenses, which is above average for the industry.
With a return on equity of 17.24%, CINF demonstrates effective use of equity financing to generate profits.
The operating profit margin of 12.05% is decent but could be improved to enhance overall profitability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.06x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.16x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
CINF has a debt-to-equity ratio of 0.06, indicating very low reliance on debt for financing, which is a strong point for financial stability.
Current, quick, and cash ratios all at approximately 1.16 show that the company is well-positioned to cover its short-term obligations.
While the interest coverage ratio is high at 25.77, it is important to maintain this level to ensure ongoing financial health.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Cincinnati Financial Corporation reported strong operating performance with a combined ratio of 93.4% for the full year 2024, showcasing improvement in underwriting efficiency. This indicates effective cost management and profitability within the insurance sector.
The company experienced significant premium growth, with a 17% increase in net written premiums for Q4 2024. The growth was driven by strong retention rates and new business development, indicating effective underwriting practices.
Cincinnati Financial maintains a strong financial position with total shareholders' equity of nearly $14 billion and a debt-to-capital ratio under 10%, demonstrating financial resilience and capability for future investments.
The company has a strong history of returning capital to shareholders with a 7% increase in dividends planned for April 2025, extending their streak to 65 years, which reflects confidence in future performance.
Cincinnati Re is expected to remain profitable and capitalize on opportunities in the reinsurance market, indicating a proactive approach to risk management and growth in premium income.
The recent California wildfires are expected to incur estimated losses of $450 to $525 million, which could impact short-term profitability despite the long-term resilience and planning measures in place.
Concerns about moderation in pricing cycles, particularly in commercial lines, may affect future premium growth, requiring careful monitoring of underwriting practices.