Analyzing Cincinnati Financial Before Making a Purchase

By Chris Stiles • Wednesday, October 29 15:24 • Permanent Link

More and more people are talking about Cincinnati Financial over the last few weeks. Is it worth buying the Property & Casualty Insurance stock at a price of $151.17? Only time will tell. The information below will give you a basic idea of what this investment may entail:

Cincinnati Financial has moved 5.8% over the last year, and the S&P 500 logged a change of 18.5%
CINF has an average analyst rating of buy and is -10.55% away from its mean target price of $169.0 per share
Its trailing earnings per share (EPS) is $13.45
Cincinnati Financial has a trailing 12 month Price to Earnings (P/E) ratio of 11.2 while the S&P 500 average is 29.3
Its forward earnings per share (EPS) is $7.33 and its forward P/E ratio is 20.6
The company has a Price to Book (P/B) ratio of 1.53 in contrast to the S&P 500's average ratio of 4.74
Cincinnati Financial is part of the Finance sector, which has an average P/E ratio of 15.92 and an average P/B of 1.78
CINF has reported YOY quarterly earnings growth of 36.7% and gross profit margins of 0.2%
The company has a free cash flow of $1.7 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
Cincinnati Financial Corporation provides property casualty insurance products in the United States. The company operates through five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The Commercial Lines Insurance segment offers coverage for commercial casualty and property, commercial auto, and workers' compensation. This segment also provides contract and commercial surety bonds, and fidelity bonds; management liability; and machinery and equipment insurance products. The Personal Lines Insurance segment offers personal auto; homeowner; and other personal lines insurance, such as dwelling fire, inland marine, personal umbrella liability, and watercraft coverages. 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, as well as other coverages comprising miscellaneous errors and omissions, professional liability, and excess liability; 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; universal life insurance; and worksite and whole life insurance products, as well as 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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.