Corporate Webpages Cincinnati Financial Corporation
Cinncinati Financial Corporation was founded in 1968, and
quickly became one of the 20 largest casualty insurance
companies in the U.S. admidst a large field of competitors. It
strove to become global, particularly in England and former
commonwealth countries, growing so fast as to have significant
intrinsic value.
Researchers are generally favorable but analysts are reserved
and their stock price projections are lower. The company had an
earnings drop in 2017 which pushed its average to current p/e
ratio below 1.0, a rare situation today among American corporations.
The suggestion is that earnings power is greater than suspected.
Ratios look good financially, but the corporation has an
unacceptably-low Zenith Index, and a rather complex management
reporting in standard SEC format.
There was some significant insider buying activity a few months
back, but overall insiders are selling. The company has a
portfolio of stock market investments which apparently have not
been doing as well as expected in the current market.
News for this company consists mainly of a flood of "helpful
hints" articles produced by the company's public relations
effots related to protecting property and thus reducing
insurance incidents.
The stock still shows positive overall sentiment but has been
trending down for the last three months of 2019, only to shoot
back up again on prospects for the New Year. Insurance
companies in general have been performing well as a group in the
stock market. This is despite a number of tragedies related to
weather and brush fires.
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Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Avg. P/E To Current P/E
Financial Ratios
Intrinsic Value (Disc.
CashFlow)
Fair Value
Estimator
Projected
Earnings
Research
Reports
Analysts'
Opinions
Insider
Activity
Institutional
Activity
Sentiment
Short Interest
Standard &
Poor's
Management's
Discussion
Channel Potential
MACD
Histogram
Intraday
Chart
Val
Idea
Stock
Consultant
Point
& Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series
Forecast
Neural Network Prediction
Stock
Options
Ultimate Trading Systems
Recommendation
Company
Profile |
Company
History |
News |
Comparison |
Similar Companies Performance:
Bond
Issue |
Zenith Index
|
Under current market conditions, a Zenith Index Score of 1.20 or above is
required for a positive rating on this factor. 1.21 -1.30 is considered
acceptable, 1.30-1.40 is considered strong and
> 1.40 is considered
exceptionally strong. Accounting statements in this section often contain
mistakes, especially in earlier years' totals, but data is deemed sufficient for
us to give a rating. More accurate financial statements follow in the next
section.
Cincinnati Financial Corporation (CINF) Exchange: Nasdaq 6200 South Gilmore Road Fairfield, OH 45014 Sector: Financial Services United States Industry: InsuranceGÇöProperty & Casualty Cincinnati Financial Corporation, together with its subsidiary, provides property casualty insurance products in the United States. The company operates in five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The Commercial Lines Insurance segment provides coverage for commercial casualty, commercial property, commercial auto, and workers' compensation. It also offers director and officer liability insurance, contract and commercial surety bonds, and fidelity bonds; coverage for property, liability, and business interruption; and machinery and equipment coverage. The Personal Lines Insurance segment provides personal auto insurance; homeowners insurance; and dwelling fire, inland marine, personal umbrella liability, and watercraft coverages to individuals. 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; 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 products; universal life insurance products; worksite products, such as term life, whole life, and disability insurance; and whole life insurance products, as well as markets deferred annuities and immediate 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. Cincinnati Financial Corporation was founded in 1950 and is headquartered in Fairfield, Ohio. Last Trade: 114.85 52-Week Range: 118.19 - 83.00 Employees: Avg.Volume: 602,529 Shares Corporate Governance: Pillar scores are Audit: 1; Board: 10; Shareholder Rights: 8; Compensation: 3. (A lower number means less governance risk.) EPS: 12.10 Dividend Amount: $ 2.40 Yield: 2.09% Ex-Dividend Date: Mar 17, 2020 Payout Ratio: 18.51 Key Statistics: Trailing P/E: 9.52 Target Price: 110.50 Qrtly Stock Price Growth (yoy): 34.15% Beta: 0.57 Qrtly S&P Index Growth (yoy): 203.10% Short Ratio: 4.11% Qrtly Revenue Growth (yoy): 52.00% Shares Out: 162900000 Qrtly Earnings Growth (yoy): 0.00% Book Value: 60.55 Debt/Equity: 8.97% Price/Book Value: 0.00 Operating Profit Margin: 31.87% Price/Sales: 0.00 Profit Margin: 25.20% Market Cap: 18,768,000,000 Return on Equity: 22.57% Enterprise Value: 0 Return on Assets: 6.67% Operating Cash Flow: 0 Free Cash Flow: 0 Annual Income Statement: (All numbers in thousands) Period Ending 12/31/2019 12/31/2018 12/31/2017 Total Revenue 7,924,000 5,407,000 5,732,000 Cost of Revenue 0 0 0 Gross Profit 0 0 0 Operating Expenses: Research & Development 0 0 0 Selling, General & Administrative 0 0 0 Total Operating Expenses 0 0 0 Operating Income or Loss 0 0 0 Income from Continuing Operations: Total Other Income/Expenses Net 9,000 5,000 5,000 Interest Expense 53,000 53,000 53,000 Income Before Taxes 2,472,000 251,000 730,000 Income Tax Expense 475,000 -36,000 -315,000 Net Income from Continuing Op.s 1,997,000 287,000 1,045,000 Non-recurring Events: Extraordinary Items 0 0 0 Net Income 1,997,000 287,000 1,045,000 Net Income Avail to Common Shares 1,997,000 287,000 1,045,000 Annual Cash Flow Statement: (All numbers in thousands) Period Ending 12/31/2019 12/31/2018 12/31/2017 Net Income 1,997,000 287,000 1,045,000 Operating Activities: Depreciation 0 63,000 55,000 Changes in Accounts Recv'bls 0 -109,000 77,000 Changes in Liabilities 0 1,161,000 1,036,000 Changes in Inventories 0 0 0 Changes in other Oper'g Acts 0 395,000 470,000 Total Cash Flow f Operations 0 1,181,000 1,052,000 Investing Activities: Capital Exenditures 0 -20,000 -16,000 Investments 0 0 0 Other Cash Flows fr Investing 0 -8,000 -9,000 Total Cash Flows from Investing 0 -451,000 -558,000 Financing Activities: Dividends Paid 0 -336,000 -400,000 Sale of Purchase of Stock 0 0 0 Other Cash Flows fr Financing 0 -159,000 -9,000 Total Cash Flows from Financing 0 -603,000 -614,000 Change in Cash & Cash Equiv. 0 127,000 -120,000 Annual Balance Sheets: (All Numbers in Thousands) Period Ending 12/31/2019 12/31/2018 12/31/2017 Current Assets: Cash & Cash Equivalents 784,000 657,000 777,000 Short Term Investments 0 0 0 Net Receivables 2,260,000 2,155,000 2,212,000 Inventory 0 0 0 Other Current Assets 0 0 0 Total Current Assets 0 0 0 Long-Term Investments 0 0 0 Property, Plant & Equipt 195,000 185,000 183,000 Goodwill 0 0 0 Intangible Assets 0 0 0 Other Assets 0 0 0 Total Assets 21,935,000 21,843,000 20,386,000 Current Liabilities: Accounts Payable 0 0 0 Current Portion LT Debt 0 0 0 Other Current Liabilities 0 0 0 Total Current Liabilities 0 0 0 Long Term Debt 788,000 787,000 787,000 Other Liabilities 0 0 0 Total Liabilities 14,102,000 13,600,000 13,326,000 Stockholder Equity: Common Stock 397,000 397,000 397,000 Retained Earnings 7,625,000 5,180,000 5,037,000 Capital Surplus 22,000 2,788,000 1,693,000 Total Stockholder Equity 7,833,000 8,243,000 7,060,000 Cincinnati Financial Corporation (CINF) [Indices near +3.0, near zero, or < zero bear special attention.] P/E Ratio Tests: P/E Ratio < 28? 2.9412 P/E Ratio > 5? 1.0000 P/E Ratio Vs Growth Rate: 0.0000 Forward P/E Ratio < 28? 0.0000 Price/Sales Ratio < 2.3? 1.0000 Inventory/Sales < 5%? 1.0000 Sales < $1 Billion? 0.1262 Operating Margin < 7.5%? 0.2353 Balance Sheet Tests: Debt/Equity < 0.40? 3.0000 Long-Term Debt Service: 3.0000 LTD Being Reduced? -3.0000 Short-Term Debt Service: 0.0000 Current Ratio > 2? 1.0000 Working Capital >= 1.5? 1.0000 Leverage Ratio < 20%? 0.7586 Debt/Assets < 1? 3.0000 Quick Ratio > 1? 3.0000 Inventory Turnover > 1? 1.0000 Share Equity Increase: 2.1178 Market Cap.< 1.5 Billion? 0.0799 Intangibles < 3% Assets? 3.0000 Income Tests: Profit Margin < 7.5%? 3.0000 EPS Annual Growth > 10%? 0.0144 Dividend Yield > 2.0%? 0.9569 EPS 3-yr Growth > 15? 0.0785 Enterprise Value/Revenue 2.3685 EPS Growth Consistent? 0.0000 Enterprise Value/EBITDA: 3.0000 Collection < 45 days? 0.4323 EPS Qrtly Growth > 10%? 0.0000 Gross Pft/Cur. LTD > 1? 3.0000 Borrowing Int. Rate < 6%? 0.8921 Stock Performance Tests: Volatility > 25%? 1.1910 % Held by Insiders < 5%? 0.7610 Beta > 1.25? 0.4560 % Held by Institut. < 50? 0.7732 50 Da MA > 200 Da MA? -0.0590 % Held by Institut. > 30? 2.1557 52-Wk Change vs. S&P 500: 0.6567 Short Ratio > 5? 0.8220 Price/Book Value < 3? 3.0000 Short % of Float > 20? 0.0845 Return on Assets > 17%? 0.3924 Average Volume > 100,000? 3.0000 Cash Flow Tests: Oper. C.F. > Lever'd C.F: 0.0000 Positive Free Cash Flow? -1.0000 Positive Oper. Cash Flow? -1.0000 Price to C.F.Ratio < 14?: 0.0000 Cash Flow / Assets > 10%? 0.0000 CINF Cincinnati Financial Corporation Overall Zenith Index: 1.0048
Financial
Statements |
CINCINNATI FINANCIAL CORP (CINF) INCOME STATEMENT Fiscal year ends in December. USD in thousand 2014-12 2015-12 2016-12 2017-12 2018-12 TTM Revenue 4,945,000 5,142,000 5,449,000 5,732,000 5,407,000 6,482,000 Gross profit 4,945,000 5,142,000 5,449,000 5,732,000 5,407,000 6,482,000 Operating expenses Operating income 4,945,000 5,142,000 5,449,000 5,732,000 5,407,000 6,482,000 Interest Expense 53,000 53,000 53,000 53,000 53,000 53,000 Other income (expense) -4,171,000 -4,208,000 -4,584,000 -4,949,000 -5,103,000 -5,319,000 Income before taxes 721,000 881,000 812,000 730,000 251,000 1,110,000 Provision for income taxes 196,000 247,000 221,000 -315,000 -36,000 191,000 Net income from continuing operations 525,000 634,000 591,000 1,045,000 287,000 919,000 Net income 525,000 634,000 591,000 1,045,000 287,000 919,000 Net income available to common shareholders 525,000 634,000 591,000 1,045,000 287,000 919,000 Earnings per share Basic 3.21 3.87 3.59 6.36 1.76 5.63 Diluted 3.18 3.83 3.55 6.29 1.75 5.56 Weighted average shares outstanding Basic 163,500 164,000 164,500 164,200 163,200 163,125 Diluted 165,100 165,600 166,500 166,000 164,500 164,800 ____________________________________________________________________________________________________________________________________________ CINCINNATI FINANCIAL CORP (CINF) BALANCE SHEET Fiscal year ends in December. USD in thousand 2014-12 2015-12 2016-12 2017-12 2018-12 Assets Current assets Cash Total cash 591,000 544,000 777,000 657,000 784,000 Receivables 2,073,000 2,102,000 2,212,000 2,155,000 2,260,000 Prepaid expenses 29,000 54,000 62,000 42,000 44,000 Other current assets -2,693,000 -2,700,000 -3,051,000 -2,854,000 -3,088,000 Total current assets 0 0 0 0 0 Non-current assets Property, plant and equipment Net property, plant and equipment 194,000 185,000 183,000 185,000 195,000 Equity and other investments 14,386,000 14,423,000 15,500,000 17,051,000 16,732,000 Other long-term assets -14,580,000 -14,608,000 -15,683,000 -17,236,000 -16,927,000 Total non-current assets 0 0 0 0 0 Total assets 0 0 0 0 0 Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt 49,000 35,000 20,000 24,000 32,000 Other current liabilities -49,000 -35,000 -20,000 -24,000 -32,000 Total current liabilities 0 0 0 0 0 Non-current liabilities Long-term debt 791,000 786,000 787,000 787,000 788,000 Capital leases 36,000 35,000 39,000 40,000 46,000 Deferred taxes liabilities 840,000 638,000 865,000 745,000 627,000 Other long-term liabilities -1,667,000 -1,459,000 -1,691,000 -1,572,000 -1,461,000 Total non-current liabilities 0 0 0 0 0 Total liabilities 0 0 0 0 0 Stockholders' equity Common stock 397,000 397,000 397,000 397,000 397,000 Additional paid-in capital 1,214,000 1,232,000 1,252,000 1,265,000 1,281,000 Retained earnings 4,505,000 4,762,000 5,037,000 5,180,000 7,625,000 Treasury stock -1,287,000 -1,308,000 -1,319,000 -1,387,000 -1,492,000 Accumulated other comprehensive income 1,744,000 1,344,000 1,693,000 2,788,000 22,000 Total stockholders' equity 6,573,000 6,427,000 7,060,000 8,243,000 7,833,000 Total liabilities and stockholders' equity 6,573,000 6,427,000 7,060,000 8,243,000 7,833,000 ____________________________________________________________________________________________________________________________________________ CINCINNATI FINANCIAL CORP (CINF) Statement of CASH FLOW Fiscal year ends in December. USD in thousand 2014-12 2015-12 2016-12 2017-12 2018-12 TTM Cash Flows From Operating Activities Net income 525,000 634,000 591,000 1,045,000 287,000 919,000 Depreciation & amortization 51,000 52,000 48,000 55,000 63,000 69,000 Investments losses (gains) -133,000 -70,000 -124,000 -148,000 408,000 -328,000 Deferred income taxes 37,000 16,000 38,000 -444,000 -47,000 59,000 Stock based compensation 19,000 20,000 23,000 26,000 28,000 29,000 Change in working capital 327,000 368,000 479,000 470,000 395,000 446,000 Accounts receivable -60,000 -48,000 -113,000 77,000 -109,000 -151,000 Other working capital 387,000 416,000 592,000 393,000 504,000 597,000 Other non-cash items 47,000 44,000 48,000 48,000 47,000 41,000 Net cash provided by operating activities 873,000 1,064,000 1,103,000 1,052,000 1,181,000 1,235,000 Cash Flows From Investing Activities Investments in property, plant, and equipmen -9,000 -10,000 -13,000 -16,000 -20,000 -28,000 Purchases of investments -1,695,000 -2,214,000 -2,447,000 -2,251,000 -1,989,000 -2,153,000 Sales/Maturities of investments 1,380,000 1,584,000 1,991,000 1,718,000 1,566,000 1,590,000 Other investing activities 13,000 16,000 13,000 -9,000 -8,000 -6,000 Net cash used for investing activities -311,000 -624,000 -456,000 -558,000 -451,000 -597,000 Cash Flows From Financing Activities Debt issued 0 0 0 4,000 0 0 Debt repayment -55,000 -14,000 -15,000 0 0 0 Common stock repurchased -21,000 -53,000 -39,000 -92,000 -125,000 -5,000 Dividend paid -278,000 -366,000 -306,000 -400,000 -336,000 -350,000 Other financing activities -50,000 -54,000 -54,000 -126,000 -142,000 -112,000 Net cash provided by (used for) financing -404,000 -487,000 -414,000 -614,000 -603,000 -467,000 Net change in cash 158,000 -47,000 233,000 -120,000 127,000 171,000 Cash at beginning of period 433,000 591,000 544,000 777,000 657,000 616,000 Cash at end of period 591,000 544,000 777,000 657,000 784,000 787,000 Free Cash Flow Operating cash flow 873,000 1,064,000 1,103,000 1,052,000 1,181,000 1,235,000 Capital expenditure -9,000 -10,000 -13,000 -16,000 -20,000 -28,000 Free cash flow 864,000 1,054,000 1,090,000 1,036,000 1,161,000 1,207,000 ____________________________________________________________________________________________________________________________________________
Average to Current P/E
Ratios |
(CINF) Cincinnati Financial Corp. 2015 2016 2017 2018 2019 Annual Earnings: 3.83 3.55 6.30 1.74 12.10 Average Price During Year: 53.35 68.60 74.00 74.32 98.65 P/E Ratio: 13.93 19.32 11.75 42.71 8.15 Average 5-Year P/E Ratio = 19.17 Current Price = 115.21 Previous 5 Quarter Earnings: -2.78 4.22 2.59 1.50 3.79 Current Annualized (Last Four Quarters) Earnings = 7.88 ________ Average PE / Current PE = 1.31 -------- ...a number above 1.00 is good 1.00 or below is bad
Financial
Ratios |
. . . . . . . . . . . . Lowest to Highest, Compared to Industry
Intrinsic Value
(DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Fair Value
Estimator |
Fair Value Estimate:
Projected
Earnings |
Research
Reports |
Analysts'
Opinions |
Insider
Activity |
Institutional
Activity |
Institutional Ownership:
Sentiment
|
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest
Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Standard &
Poor's |
Management's Discussion of
Results of Operations Excerpts |
Channeling
Potential |
The summary below includes a value for `Degree,' which refers on a scale of 1 to 10 the range of a channel in the period under consi- deration compared to the total range of price movement. It also looks for the last closing price to be within the channel, otherwise zeroed. The `Index' is the `Degree' weighted for volatility. Generally, the the higher the index, the more suitable is the stock for trading as a `rolling stock' between channel high and low points. Results for CINNCINATI FINANCIAL CORP.: Symbol? CINF Total Months Available: 25 Months in Cycle? 4 Months Covered by Periods: 12 Period 1 Period 2 Period 3 H1 L1 H2 L2 H3 L3 103.41 83.00 118.19 101.55 117.90 102.69 RANGE = 118.19 TO 83.00 Close = 114.08 CHANNEL = 103.41 TO 102.69 Degree = 0 Volatility = 0.63% Index = 0
MACD Histogram
Divergence |
The theory is that connecting the two most recent peaks or valleys of the MACD histogram will signal the direction of the next major move.
Intraday
Chart |
2 Days:
Val
Idea |
4 out of 9 favorable, (negative opinion.)
Stock
Consultant |
Point & Figure
Chart |
Wall Street
Analyzer |
Marketspace
Chart |
Time Series
Forecast |
Neural Network
Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading
Systems |
2 out of 3 of the ultimate systems favor an upmove.
System Below:
Short term outlook: Positive: Bright Green, Negative: Bright
Red
Long term outlook: Postive: Dark Green, Negative: Dark Red.
Recommendation |
Factors | Weighted Points |
---|---|
News | + 1 |
Comparison | + 1 |
Industry | + 1 |
Bond Issue | + 1 |
Zenith Index | - 1 |
Non-GAAP vs. GAAP Earnings | - 1 |
Cash Flow | + 1 |
Average to Current P/E | + 1 |
Ratios | + 1 |
Intrinsic Value DCF | + 1 |
Fair Value Estimator | + 1 |
Projected Earnings | + 1 |
Research Reports | + 1 |
Analysts | - 1 |
Executive Perquisites | - 1 |
Insider Activity | - 1 |
Institutional Activity | - 1 |
Management Reporting | + 1 |
Short Interest | - 1 |
Sentiment | + 1 |
Standard & Poor's | - 1 |
MACD Histogram Divergence | + 1 |
Val Idea | - 1 |
Stock Consultant | - 1 |
Point & Figure | + 1 |
Wall Street Analyzer | - 1 |
Marketspace Chart | + 1 |
Time Series Chart | - 1 |
Neural Network | - 1 |
Stock Options | + 1 |
Ultimate Trading Systems | + 1 |
Total | + 5 |
Place 260 shares of Cinncinati Financial Corporation (CINF) on the Active List.