Analysts Give Cincinnati Financial Mixed Ratings with Price Target Range of $100-$130
January 30, 2023
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Cincinnati Financial ($NASDAQ:CINF) Corporation is a holding company that offers property and casualty insurance, life insurance, and investment products. The company operates through five subsidiaries: Cincinnati Casualty Company, The Cincinnati Insurance Company, Cincinnati Indemnity Company, Cincinnati Specialty Underwriters Insurance Company, and Weastec Insurance Company. All of these subsidiaries are key players in the property and casualty insurance industry, providing coverage for businesses and individuals. Analysts polled by Capital IQ have given Cincinnati Financial an average hold rating and price target range of $100 to $130. BMO Capital initiated coverage of it at a Market Perform rating and a price target of $106. This wide range reflects the fact that analysts are split on their opinion of the stock. Some view it as a strong investment due to its strong balance sheet, good dividend yield, and low valuation compared to its peers.
Others point to its weak operating fundamentals and uncertain outlook for the industry as a whole. This is largely due to the uncertainty surrounding the global economy and the impact it will have on the insurance industry. Despite this decline, analysts remain hopeful that the company will be able to weather the storm and maintain its strong position in the industry. While some see it as a strong investment due to its strong balance sheet and good dividend yield, others are concerned about its weak operating fundamentals and uncertain outlook for the industry. Investors should carefully consider these factors before investing in Cincinnati Financial stock.
Share Price
On Monday, the stock opened at $103.4 and closed at $105.2, up 2.4% from its previous closing price of $102.7. This indicates that the stock may be gaining in popularity and momentum. This suggests that there is a wide range of opinions on the stock’s potential growth or decline.
The consensus rating for Cincinnati Financial is “Hold”. Investors should consider these ratings carefully before making any investment decisions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cincinnati Financial. More…
| Total Revenues | Net Income | Net Margin |
| 6.77k | -29 | 30.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cincinnati Financial. More…
| Operations | Investing | Financing |
| 1.82k | -1.06k | -685 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cincinnati Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 29.19k | 18.64k | 67.17 |
Key Ratios Snapshot
Some of the financial key ratios for Cincinnati Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.4% | – | 38.7% |
| FCF Margin | ROE | ROA |
| 26.7% | -0.5% | -0.2% |
VI Analysis
CINCINNATI FINANCIAL is a company that exudes long term potential, as reflected in its fundamentals. According to VI Star Chart, the company has a high health score of 7/10, indicating that it is capable of riding out any crisis without risk of bankruptcy due to its cash flows and debt. CINCINNATI FINANCIAL is classified as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. Investors who are looking for a steady income generated from dividends may be interested in CINCINNATI FINANCIAL. The company is strong when it comes to dividends, but weak in terms of asset, growth, and profitability. It is also important to consider the company’s risk profile when deciding if it is suitable for investment. Overall, CINCINNATI FINANCIAL is a potential option for investors who are looking for a steady dividend income with relatively low risk. Investors should do their due diligence to determine if the company is a good fit for their investment goals and risk tolerance level. More…
VI Peers
Cincinnati Financial Corp, Mercury General Corp, United Fire Group Inc, and FedNat Holding Co are all insurance companies. They offer similar products and services, but each has its own strengths and weaknesses. Cincinnati Financial Corp is the largest of the four, with the most assets and the most customers. Mercury General Corp has the most diverse product line, offering everything from auto insurance to life insurance. United Fire Group Inc is the most innovative of the four, constantly developing new products and services. FedNat Holding Co is the most stable of the four, with a strong financial rating and a long history of profitability.
– Mercury General Corp ($NYSE:MCY)
Mercury General Corporation is an insurance holding company that, through its subsidiaries, provides personal automobile insurance in the United States. The company operates through four segments: Personal Auto, Commercial Auto, Other Business, and Investment.
Mercury General’s market cap has declined significantly over the past few years, from over $5 billion in 2015 to just over $1.6 billion as of 2022. The company’s return on equity has also been negative in recent years, reaching -16.66% in 2021.
The company has struggled in recent years due to a combination of factors, including increased competition, higher claims costs, and lower investment returns. Mercury General has taken steps to improve its financial performance, including reducing expenses and increasing its focus on higher-margin business segments. However, it remains to be seen whether these efforts will be enough to turn the company around in the long term.
– United Fire Group Inc ($NASDAQ:UFCS)
United Fire Group, Inc., through its subsidiaries, provides insurance protection in the property and casualty market for individuals, families, and businesses worldwide. The company operates in three segments: Property and Casualty, Reinsurance, and Life. The Property and Casualty segment offers commercial and personal lines of property and casualty insurance products, including automobile, homeowners, workers’ compensation, general liability, commercial multi-peril, and commercial automobile insurance products; and reinsurance products. The Reinsurance segment provides property and casualty reinsurance products. The Life segment offers life insurance and annuity products. United Fire Group, Inc. was founded in 1834 and is headquartered in Cedar Rapids, Iowa.
– FedNat Holding Co ($NASDAQ:FNHC)
Founded in 1934, Federated National Holding Company is a provider of personal and commercial property and casualty insurance products in the United States. The company operates through the following segments: Personal Lines, Commercial Lines, and Specialty Lines. Federated National Holding Company offers its products through a network of independent agents and brokers.
Summary
Analysts have given Cincinnati Financial mixed ratings, with a price target range of $100 to $130. The company is seen as having a strong balance sheet and good capital structure, with a high return on equity and good dividend yield. The stock has shown some volatility over the past year, with analysts divided on whether it is undervalued or overvalued.
Some analysts are more bullish, seeing potential for capital appreciation, while others are more cautious, citing potential risks. Overall, investors should research the company before investing and consider their own risk tolerance before making a decision.
