Cincinnati Financial Stock Return On Equity
| CINF Stock | USD 117.52 2.22 1.93% |
Cincinnati Financial fundamentals help investors to digest information that contributes to Cincinnati Financial's financial success or failures. It also enables traders to predict the movement of Cincinnati Stock. The fundamental analysis module provides a way to measure Cincinnati Financial's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Cincinnati Financial stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.15 | 0.10 |
Cincinnati | Return On Equity |
Cincinnati Financial Company Return On Equity Analysis
Cincinnati Financial's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Cincinnati Financial Return On Equity | 0.16 |
Most of Cincinnati Financial's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Cincinnati Financial is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Cincinnati Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Cincinnati Financial is extremely important. It helps to project a fair market value of Cincinnati Stock properly, considering its historical fundamentals such as Return On Equity. Since Cincinnati Financial's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Cincinnati Financial's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Cincinnati Financial's interrelated accounts and indicators.
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Cincinnati Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, Cincinnati Financial has a Return On Equity of 0.1627. This is 88.78% lower than that of the Insurance sector and significantly higher than that of the Financials industry. The return on equity for all United States stocks is 152.48% lower than that of the firm.
Cincinnati Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Cincinnati Financial's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Cincinnati Financial could also be used in its relative valuation, which is a method of valuing Cincinnati Financial by comparing valuation metrics of similar companies.Cincinnati Financial is currently under evaluation in return on equity category among related companies.
Cincinnati Financial ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Cincinnati Financial's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Cincinnati Financial's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Cincinnati Fundamentals
| Return On Equity | 0.16 | |||
| Return On Asset | 0.0466 | |||
| Profit Margin | 0.18 % | |||
| Operating Margin | 0.45 % | |||
| Current Valuation | 18.31 B | |||
| Shares Outstanding | 156.69 M | |||
| Shares Owned By Insiders | 1.54 % | |||
| Shares Owned By Institutions | 66.18 % | |||
| Number Of Shares Shorted | 2.1 M | |||
| Price To Earning | 34.21 X | |||
| Price To Book | 1.54 X | |||
| Price To Sales | 1.86 X | |||
| Revenue | 10.01 B | |||
| Gross Profit | (533 M) | |||
| EBITDA | 2.28 B | |||
| Net Income | 1.84 B | |||
| Cash And Equivalents | 1.08 B | |||
| Cash Per Share | 6.89 X | |||
| Total Debt | 874 M | |||
| Debt To Equity | 0.09 % | |||
| Current Ratio | 1.15 X | |||
| Book Value Per Share | 77.06 X | |||
| Cash Flow From Operations | 2.05 B | |||
| Short Ratio | 1.56 X | |||
| Earnings Per Share | 11.66 X | |||
| Price To Earnings To Growth | (158.72) X | |||
| Target Price | 130.57 | |||
| Number Of Employees | 5.43 K | |||
| Beta | 0.62 | |||
| Market Capitalization | 18.34 B | |||
| Total Asset | 32.06 B | |||
| Retained Earnings | 13.08 B | |||
| Annual Yield | 0.03 % | |||
| Five Year Return | 2.52 % | |||
| Net Asset | 32.06 B | |||
| Last Dividend Paid | 3.0 |
About Cincinnati Financial Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Cincinnati Financial's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Cincinnati Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Cincinnati Financial based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
When determining whether Cincinnati Financial is a strong investment it is important to analyze Cincinnati Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cincinnati Financial's future performance. For an informed investment choice regarding Cincinnati Stock, refer to the following important reports: Check out Cincinnati Financial Piotroski F Score and Cincinnati Financial Altman Z Score analysis. For more detail on how to invest in Cincinnati Stock please use our How to Invest in Cincinnati Financial guide.You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Complementary Tools for Cincinnati Stock analysis
When running Cincinnati Financial's price analysis, check to measure Cincinnati Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cincinnati Financial is operating at the current time. Most of Cincinnati Financial's value examination focuses on studying past and present price action to predict the probability of Cincinnati Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cincinnati Financial's price. Additionally, you may evaluate how the addition of Cincinnati Financial to your portfolios can decrease your overall portfolio volatility.
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Is Cincinnati Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cincinnati Financial. If investors know Cincinnati will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cincinnati Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.17 | Dividend Share 3 | Earnings Share 11.66 | Revenue Per Share 63.777 | Quarterly Revenue Growth 0.077 |
The market value of Cincinnati Financial is measured differently than its book value, which is the value of Cincinnati that is recorded on the company's balance sheet. Investors also form their own opinion of Cincinnati Financial's value that differs from its market value or its book value, called intrinsic value, which is Cincinnati Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cincinnati Financial's market value can be influenced by many factors that don't directly affect Cincinnati Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cincinnati Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cincinnati Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cincinnati Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.