Cincinnati Financial Corp (CINF)
Financial | Property & Casualty Insurance
CEO: Steven J. Johnston
Cincinnati Financial Corp receives a in our proprietary ranking system that combines valuation, moat, operational performance, and financial strength. View the Top 50 tickrz ranked stocks here.
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. Cincinnati Financial Corp's valuation score is comprised of a P/E ratio of 19.1x, a P/B ratio of 1.6x, a P/S ratio of 2.1x, and an EV/EBITDA ratio of 13.5x. .
WARREN BUFFETT RANKING
Cincinnati Financial Corp ranks 38 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a strong score, meaning it ranks highly on valuation, moat, volatility, and financial strength factors.
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. Cincinnati Financial Corp appears to have a durable competitive advantage within the Financial sector.
Interest coverage of 15.53x, a debt/equity ratio of 12% and a Moat Rank of 129 translate to a strong Financial Strength score.
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 4.72% over the last 12 months. This performance is weak compared to other stocks in the S&P 500, earning it a rank of 334.
VALUE + YIELD
Shares currently yield 2.77%. Our dividend ranking approach looks at a company's dividend growth rate, payout ratio, business moat, and valuation. Based on our methodology, Cincinnati Financial Corp ranks 34 among the S&P 500 constituents.
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. Its 28.3% 5 year annualized EPS growth, 7.1% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of 6.6% speak to its impressive growth ranking.