Cincinnati Financial (CINF) AI Stock Analysis

• Market Cap: $26.07B
• Dividend Yield: 2.04%
• Average Volume (3M): 508.53K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.40
• Revenue Growth: -0.63%
• EPS Growth: -30.68%
• Country: US
• Employees: 5,624
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 2.85
• Shares Outstanding: 156,018,510
• 10 Day Avg. Volume: 535,331
• 30 Day Avg. Volume: 508,533
• PEG Ratio: 0.40
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.98
• P/FCF Ratio: 8.56
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.14
• Enterprise Value/Gross Profit: 4.63
• Enterprise Value/Ebitda: 9.18
• 1Y Price Target: $171.50
• Price Target Upside: 2.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 7.3
• Revenue Forecast (FY): $9.96B

• Rating: 76 Outperform
• Price Target: $183.00 ▲(8.99% Upside)

Cincinnati Financial's strong financial performance, attractive valuation, and positive earnings call sentiment contribute to a solid overall stock score. The technical analysis suggests potential short-term weakness, but the long-term outlook remains positive. The company's strategic initiatives and financial flexibility further enhance its market position.

Positive Factors

Strong Financial Health

The company's low debt-to-equity ratio and strong cash flow management indicate financial stability, providing a solid foundation for long-term growth and resilience in the insurance market.

Improved Underwriting Performance

Improved underwriting performance reflects effective risk management and pricing strategies, enhancing profitability and competitive positioning in the insurance industry.

Investment Income Growth

Robust investment income growth strengthens financial performance, providing additional resources for strategic initiatives and shareholder returns, supporting long-term value creation.

Negative Factors

Deceleration in Premium Growth

Slower premium growth may indicate increased competition or market saturation, potentially impacting future revenue growth and market share expansion.

Commercial Auto and Casualty Concerns

Challenges in commercial auto and casualty lines could lead to reserve adjustments, impacting profitability and requiring strategic adjustments to mitigate risks.

Large Losses in Commercial Lines

Rising large losses in commercial lines may increase volatility and pressure margins, necessitating enhanced risk management and pricing strategies.

Cincinnati Financial Business Overview & Revenue Model

Company Description

Cincinnati Financial Corporation, together with its subsidiaries, 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, commercial property, commercial auto, and workers' compensation. It also provides director and officer liability insurance, contract and commercial surety bonds, and fidelity bonds; and machinery and equipment coverage. The Personal Lines Insurance segment offers personal auto insurance; homeowner 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; and whole life insurance products. 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.

How the Company Makes Money

Cincinnati Financial generates revenue primarily through underwriting insurance policies and collecting premiums from policyholders. Its key revenue streams include premium income from property and casualty insurance, which encompasses both commercial and personal lines, and life insurance. The company also earns investment income from its diversified investment portfolio, which includes stocks, bonds, and real estate. Additionally, Cincinnati Financial benefits from a strong network of independent agents who sell its products, enhancing its market reach and customer acquisition. The company's financial performance can be influenced by factors such as underwriting profitability, investment returns, and the overall economic environment.

Cincinnati Financial Financial Statement Overview

Summary

Cincinnati Financial exhibits strong financial health with robust profitability, low leverage, and efficient cash flow management. The company is well-positioned in its industry with a solid growth trajectory, although there is a slight decline in operational efficiency that should be monitored.

Income Statement

Cincinnati Financial shows a solid revenue growth rate of 3.48% in the TTM, indicating a positive trajectory. The gross profit margin is healthy at 52.86%, and the net profit margin is strong at 17.57%, reflecting efficient cost management. However, the EBIT and EBITDA margins have slightly decreased compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.056, highlighting strong financial stability and low leverage. The return on equity is robust at 14.80%, indicating effective use of shareholder funds. The equity ratio is also strong, reflecting a solid capital structure.

Cash Flow

Cincinnati Financial's free cash flow growth rate of 8.31% in the TTM is impressive, showing strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 3.27, indicating efficient cash conversion. The free cash flow to net income ratio is nearly 1, demonstrating that the company effectively converts its earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.08B	11.34B	10.01B	6.56B	9.63B	7.54B
Gross Profit	5.58B	5.60B	4.74B	1.54B	5.72B	3.40B
EBITDA	2.81B	3.04B	2.44B	-514.00M	3.87B	1.66B
Net Income	2.12B	2.29B	1.84B	-487.00M	2.97B	1.22B
Balance Sheet
Total Assets	40.57B	36.50B	32.77B	29.73B	31.39B	27.54B
Cash, Cash Equivalents and Short-Term Investments	2.46B	17.46B	14.70B	13.40B	14.16B	13.24B
Total Debt	883.00M	875.00M	874.00M	891.00M	897.00M	899.00M
Total Liabilities	25.16B	22.57B	20.67B	19.17B	18.28B	16.75B
Stockholders Equity	15.41B	13.94B	12.10B	10.56B	13.11B	10.79B
Cash Flow
Free Cash Flow	2.80B	2.63B	2.03B	2.04B	1.97B	1.47B
Operating Cash Flow	2.81B	2.65B	2.05B	2.05B	1.98B	1.49B
Investing Cash Flow	-2.22B	-1.70B	-1.61B	-933.00M	-1.06B	-560.00M
Financing Cash Flow	-875.00M	-877.00M	-801.00M	-994.00M	-685.00M	-798.00M

Cincinnati Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 167.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CINF, the sentiment is Positive. The current price of 167.91 is above the 20-day moving average (MA) of 165.13, above the 50-day MA of 161.23, and above the 200-day MA of 150.23, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 82.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CINF.

Cincinnati Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLI	83 Outperform	$6.07B	17.30	19.49%	3.98%	3.72%	-16.23%
MKL	82 Outperform	$27.13B	13.55	11.86%	―	-6.96%	-26.28%
CNA	79 Outperform	$12.89B	13.01	9.03%	8.03%	5.41%	-23.52%
CINF	76 Outperform	$26.07B	12.44	14.53%	2.04%	-0.63%	-30.68%
WRB	73 Outperform	$26.26B	14.52	20.92%	1.91%	11.08%	22.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AFG	67 Neutral	$11.51B	14.47	16.91%	6.73%	―	-10.75%

Cincinnati Financial Corporate Events

Cincinnati Financial Declares Quarterly Cash Dividend

On November 14, 2025, Cincinnati Financial Corporation declared an 87 cents-per-share regular quarterly cash dividend, payable on January 15, 2026, to shareholders of record as of December 22, 2025. This decision reflects the board’s confidence in the company’s capital position and operational performance, aiming to deliver steady value to shareholders while maintaining a disciplined approach to risk management.

Cincinnati Financial Highlights Strategic Focus in New Slides

On November 7, 2025, Cincinnati Financial Corporation released presentation slides for investor presentations starting November 10, 2025. The slides highlight the company’s strategic focus on premium growth, financial strength, and long-term value creation, with a target value creation ratio of 10% to 13% over the next five years. The company reported a strong performance for the third quarter of 2025, with significant growth in earnings per share, operating income, and investment income, alongside a reduction in the combined ratio due to lower catastrophe losses. These developments underscore Cincinnati Financial’s robust market positioning and commitment to enhancing shareholder value.

Cincinnati Financial Secures $400M Credit Facility

On October 10, 2025, Cincinnati Financial Corporation and its subsidiary, CFC Investment Company, entered into a new $400 million unsecured revolving credit facility with Fifth Third Bank and other lenders, replacing a previous $300 million facility. This new credit agreement, which expires in 2030 with potential extensions, enhances the company’s financial flexibility and includes features like a $400 million accordion and sublimits for letters of credit and swing line loans, potentially impacting the company’s operations and stakeholder interests positively.