Cincinnati Financial Corp
Exchange: NASDAQSector: Financial ServicesIndustry: Insurance - Property & Casualty
Cincinnati Financial Corporation offers primarily business, home and auto insurance, our main business, through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life insurance, fixed annuities and surplus lines property and casualty insurance.
Did you know?
Free cash flow has been growing at 17.3% annually.
Current Price
$163.95
+0.43%GoodMoat Value
$497.20
203.3% undervaluedProfile
Valuation (TTM)
Market Cap$25.58B
P/E10.69
EV$24.45B
P/B1.61
Shares Out156.02M
P/Sales2.03
Revenue$12.63B
EV/EBITDA7.82
Cincinnati Financial Corp (CINF) Stock Analysis
GoodMoat Analysis
Cincinnati Financial Corp appears to be a high-quality, profitable insurer trading at a significant discount to its estimated intrinsic value. Its strong underwriting culture and disciplined capital allocation create a durable competitive advantage, while its valuation metrics suggest a favourable margin of safety.
Read full analysis
Cincinnati Financial Corp is a property and casualty insurer operating primarily through a network of independent agents. Its competitive moat, assessed through the GoodMoat framework, is built on a strong brand and culture of disciplined underwriting, which is reflected in its superior profitability metrics. The company demonstrates high-quality financials, with a robust ROE of 15.0%, a strong operating margin of 24.0%, and a very healthy profit margin of 18.9%. Its balance sheet is conservative, with a low debt-to-equity ratio of 0.056, and it generates significant free cash flow, evidenced by a 12.7% FCF yield. Applying the Decision Framework, the business passes the Moat & Quality Gate with its strong returns and financial discipline. The valuation is highly favourable, with the current P/E of 10.1x appearing low for a company with this level of profitability and 21.8% YoY revenue growth. The provided GoodMoat Target price of $497.20 implies a substantial margin of safety from the current price of $155.45, far exceeding the 40% threshold that indicates a deeply undervalued situation. This combination of a quality business at a compelling price makes it a strong candidate for further due diligence by a value investor. Analysis based on data as of 2024-05-15.
Market Cap$25.58B
Current Price$163.95
P/E Ratio10.69
Forward P/E—
PEG Ratio0.16
EPS$15.17
Book Value$101.98
P/B Ratio1.61
CINF Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 17.3% FCF growth (CAGR)
Cash vs Debt
Net Cash: 545M
Revenue
7.9B
FY19
7.5B
FY20
9.6B
FY21
6.6B
FY22
10.0B
FY23
11.3B
FY24
12.6B
FY25
Net Income
2.0B
FY19
1.2B
FY20
3.0B
FY21
—
FY22
1.8B
FY23
2.3B
FY24
2.4B
FY25
CINF 52-Week Range
$124.86
$171.63
50-Day MA: $162.02200-Day MA: $156.82
Did you know?
Free cash flow has been growing at 17.3% annually.
Cincinnati Financial Corp (CINF) Financial Summary
Cincinnati Financial Corp (CINF) is a Financial Services company in the Insurance - Property & Casualty industry, listed on NASDAQ. The stock currently trades at $163.95 with a market capitalization of $25.58B.
Key valuation metrics include a P/E ratio of 10.69, price-to-book ratio of 1.61, and EPS of $15.17. The company reports a profit margin of 18.9% and return on equity of 15.0%.
CINF Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $25.58B |
| P/E Ratio | 10.69 |
| EPS | $15.17 |
| P/B Ratio | 1.61 |
| P/S Ratio | 2.03 |
| EV/EBITDA | 7.82 |
| Dividend Yield | 2.05% |
| Profit Margin | 18.9% |
| Return on Equity | 15.0% |
| Debt/Equity | 0.06 |
CINF Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $7.92B | $2.00B |
| FY20 | $7.54B | $1.22B |
| FY21 | $9.63B | $2.97B |
| FY22 | $6.56B | $-487.00M |
| FY23 | $10.01B | $1.84B |
| FY24 | $11.34B | $2.29B |
| FY25 | $12.63B | $2.39B |
Cincinnati Financial Corp (CINF) Valuation
Based on GoodMoat's DCF model, Cincinnati Financial Corp has a fair value estimate of $497.20. At the current price of $163.95, the stock appears 67.0% undervalued relative to our intrinsic value estimate.
CINF Quality Indicators
Cincinnati Financial Corp maintains a profit margin of 18.9% and an operating margin of 24.0%. Return on equity stands at 15.0%. Debt-to-equity ratio is 0.06.
About Cincinnati Financial Corp
Cincinnati Financial Corporation offers primarily business, home and auto insurance, our main business, through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life insurance, fixed annuities and surplus lines property and casualty insurance.
CINF Free Cash Flow
Cincinnati Financial Corp generated $3.09B in trailing twelve-month free cash flow, representing an FCF yield of 12.09%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
CINF Shares Outstanding
Cincinnati Financial Corp has 0.16 billion shares outstanding at a share price of $163.95, giving it a market capitalization of $25.58B.
CINF Recent Insider Trades
Recent insider transactions at Cincinnati Financial Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Debbink Dirk J (Director) | BUY | 1,000 | $162580.00 |