Cincinnati Financial Intrinsic Value Calculator – Cincinnati Financial Corp. Stock Falls 0.13% Despite Positive Trading Day
June 15, 2023
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Cincinnati Financial ($NASDAQ:CINF) Corp. stock fell 0.13% to close at $102.92 on Tuesday, despite the overall positive performance of the stock market. Despite the encouraging activity in the markets, Cincinnati Financial Corp. lagged behind its competitors for the day. Cincinnati Financial Corp. is an insurance holding company that provides property and casualty insurance products and services in the United States.
The company operates through four primary segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, and Life Insurance. Cincinnati Financial Corp. is traded on the NASDAQ under the symbol CINF.
Analysis – Cincinnati Financial Intrinsic Value Calculator
At GoodWhale, we have conducted a thorough analysis of CINCINNATI FINANCIAL‘s financials, arriving at the conclusion that the fair value of CINCINNATI FINANCIAL shares is around $103.0. This assessment was made through our proprietary Valuation Line – a method of calculating the worth of a company based on its current and expected future performance. At the time of writing, CINCINNATI FINANCIAL shares are being traded at $102.9. We believe this is a fair price, as it is in line with our estimated fair value. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cincinnati Financial. More…
| Total Revenues | Net Income | Net Margin |
| 7.58k | 5 | 0.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cincinnati Financial. More…
| Operations | Investing | Financing |
| 2.1k | -1.13k | -1k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cincinnati Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 30.47k | 19.73k | 68.33 |
Key Ratios Snapshot
Some of the financial key ratios for Cincinnati Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.2% | – | -0.3% |
| FCF Margin | ROE | ROA |
| 27.6% | -0.1% | -0.0% |
Peers
Cincinnati Financial Corp, Mercury General Corp, United Fire Group Inc, and FedNat Holding Co are all insurance companies. They offer similar products and services, but each has its own strengths and weaknesses. Cincinnati Financial Corp is the largest of the four, with the most assets and the most customers. Mercury General Corp has the most diverse product line, offering everything from auto insurance to life insurance. United Fire Group Inc is the most innovative of the four, constantly developing new products and services. FedNat Holding Co is the most stable of the four, with a strong financial rating and a long history of profitability.
– Mercury General Corp ($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
Cincinnati Financial Corp. performed poorly on Tuesday, with its stock falling 0.13% to close at $102.92. This was in contrast to the positive performance of the wider stock market, suggesting that Cincinnati Financial’s returns were lagging behind its competitors. Investment analysts from a variety of sources have pointed out that Cincinnati Financial’s weak returns may be due to a number of factors, including an unfavorable economic environment, the company’s overall risk profile, or a lack of investor confidence in the company’s long-term strategy. Investors should continue to monitor Cincinnati Financial’s performance in order to make informed decisions about whether or not to invest in the company.
