Cincinnati Financial Corporation
Find Ratings ReportsCINCINNATI FINANCIAL CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector.
During the same period, stockholders' equity ("net worth") has increased by 14.87% from the same quarter last year.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 3356.0 | 3115.0 |
EBITDA ($mil) | 0.0 | 0.0 |
EBIT ($mil) | 1504.0 | 1300.0 |
Net Income ($mil) | 1183.0 | 1013.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1871.0 | 1973.0 |
Total Assets ($mil) | 32769.0 | 29736.0 |
Total Debt ($mil) | 874.0 | 891.0 |
Equity ($mil) | 12098.0 | 10531.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 44.82 | 41.73 |
EBITDA Margin | 0.0 | 0.0 |
Operating Margin | 44.82 | 41.73 |
Sales Turnover | 0.31 | 0.22 |
Return on Assets | 5.62 | -1.63 |
Return on Equity | 15.23 | -4.62 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.0 | 0.0 |
Debt/Capital | 0.07 | 0.08 |
Interest Expense | 14.0 | 13.0 |
Interest Coverage | 107.43 | 100.0 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 157.0 | 157.1 |
Div / share | 0.75 | 0.69 |
EPS | 7.5 | 6.41 |
Book value / share | 77.06 | 67.03 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 749378.0 | 676533.0 |
BUY. CINCINNATI FINANCIAL CORP's P/E ratio indicates a significant discount compared to an average of 21.84 for the Insurance Carriers and Related Activities subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.55 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 3.52. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, CINCINNATI FINANCIAL CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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CINF 10.27 | Peers 21.84 | CINF 9.17 | Peers 13.60 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. CINF is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CINF is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CINF 17.36 | Peers 14.42 | CINF NM | Peers 0.87 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. CINF is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CINF's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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CINF 1.55 | Peers 3.52 | CINF 489.00 | Peers 95.58 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CINF is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. CINF is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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CINF 1.88 | Peers 1.96 | CINF 52.56 | Peers 37.25 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CINF is trading at a valuation on par with its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. CINF has a sales growth rate that significantly exceeds its peers. |
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