Cincinnati Financial Corporation (CINF) Company Bio
Cincinnati Financial offers business, home and auto insurance, our main business, through The Cincinnati Insurance Company and its two standard market property casualty companies. The company was founded in 1950 and is based in Fairfield, Ohio.
CINF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Cincinnati Financial Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cincinnati Financial Corp ranked in the 51th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for CINF, they are:
The company's balance sheet shows it gets 93% of its capital from equity, and 7% of its capital from debt. Its equity weight surpasses that of 86.64% of free cash flow generating stocks in the Financial Services sector.
The business' balance sheet suggests that 7% of the company's capital is sourced from debt; this is greater than merely 18.61% of the free cash flow producing stocks we're observing.
CINF's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 40.7% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CINF, try PROS, ASFI, FCFS, BSIG, and CNA.
Investment Thesis Cincinnati Financial Corporation (CINF) currently yields a 3.12% dividend that has seen 60 years of growth. This puts CINF in the rarified air of Dividend King, having passed the threshold of 50 consecutive years of dividend growth a full decade ago. As an income investor this alone is...
Michael Remes on Seeking Alpha | September 16, 2020
CINCINNATI, Sept. 9, 2020 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) announced that Martin J. Mullen, CPCU, chief claims officer for its lead subsidiary, The Cincinnati Insurance Company, will retire at year-end. Mullen joined the company in 1977 as a field claims…
CINCINNATI, Aug. 14, 2020 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) announced that the board of its subsidiary company, CFC Investment Company, made the following officer changes at its regular meeting held earlier today: Chairman and Chief Executive Officer Steven J….
CINCINNATI, Aug. 6, 2020 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) announced that the board of directors at today's meeting added two new director seats, appointing Nancy C. Benacci, CFA, as an independent director and Charles O. Schiff as a nonindependent director….