Cincinnati Financial (CINF) AI Stock Analysis

• Market Cap: $24.56B
• Dividend Yield: 2.14%
• Average Volume (3M): 546.46K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.44
• 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: 677,407
• 30 Day Avg. Volume: 546,464
• 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: 1.05
• Enterprise Value/Revenue: 2.14
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 9.18
• 1Y Price Target: $171.50
• Price Target Upside: 7.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 7.08
• Revenue Forecast (FY): $9.96B

• Rating: 74 Outperform
• Price Target: $170.00 ▲(6.22% Upside)

Cincinnati Financial's overall stock score reflects its strong financial foundation and attractive valuation. The company's robust balance sheet and consistent revenue growth are significant strengths. However, technical indicators suggest bearish momentum, and there are strategic challenges highlighted in the earnings call, such as slower premium growth and issues in specific market segments.

Positive Factors

Revenue Growth

The 11% growth in net written premiums indicates strong demand for Cincinnati Financial's insurance products, supporting long-term revenue expansion.

Investment Income Growth

The 18% increase in investment income enhances financial stability and provides additional resources for business expansion and shareholder returns.

Financial Stability

A low debt-to-total capital ratio ensures financial flexibility and reduces risk, supporting sustainable growth and operational resilience.

Negative Factors

Declining Margins

Decreasing margins and stagnant free cash flow can pressure profitability and limit reinvestment capacity, impacting long-term competitiveness.

Catastrophe Loss Impact

High catastrophe losses increase claims costs, affecting profitability and potentially leading to higher premiums, impacting customer retention.

Reinsurance Market Softening

A softening reinsurance market and decreased premiums may reduce revenue from this segment, impacting overall growth and profitability.

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 premiums from its insurance operations. The company earns money by collecting premiums from policyholders and then paying out claims when necessary. Its key revenue streams include personal and commercial property insurance, casualty insurance, and life insurance. Additionally, Cincinnati Financial invests the premiums it collects in various financial instruments, which generates investment income. The company also benefits from its strong relationships with independent agents, which helps drive sales and enhance customer retention. Investment gains from the company's diversified portfolio further contribute to its overall earnings.

Cincinnati Financial Financial Statement Overview

Summary

Cincinnati Financial demonstrates a strong financial position with consistent revenue growth and solid profitability margins. The balance sheet is robust with low leverage, and cash flow generation is efficient. However, declining EBIT and EBITDA margins and stagnant free cash flow growth warrant attention.

Income Statement

Cincinnati Financial shows a solid revenue growth rate of 6.42% in the TTM, indicating a positive trajectory. The gross profit margin is strong at 68.92%, and the net profit margin is healthy at 15.59%. However, there is a noticeable decline in EBIT and EBITDA margins compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.06, reflecting strong financial stability. The return on equity is robust at 13.06%, indicating effective use of equity. The equity ratio stands at 36.81%, showcasing a solid capital structure with a good balance between debt and equity.

Cash Flow

Operating cash flow to net income ratio is strong at 3.03, indicating efficient cash generation relative to net income. However, free cash flow growth is stagnant at 0%, which could be a concern if it persists. The free cash flow to net income ratio is nearly 1, showing that the company converts most of its net income into free cash flow.

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	6.38B	5.60B	10.01B	6.56B	9.63B	7.54B
EBITDA	2.81B	3.04B	2.44B	-514.00M	3.87B	0.00
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	1.46B	983.00M	907.00M	1.26B	1.14B	900.00M
Total Debt	858.00M	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: 160.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 160.04 is above the 20-day moving average (MA) of 155.92, above the 50-day MA of 155.95, and above the 200-day MA of 145.96, indicating a bullish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 58.46 is Neutral, neither overbought nor oversold. The STOCH value of 76.78 is Neutral, 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
WRB	77 Outperform	$28.14B	15.55	20.92%	1.79%	11.08%	22.01%
AFG	76 Outperform	$10.97B	14.43	―	6.86%	0.34%	―
MKL	74 Outperform	$24.99B	12.41	11.86%	―	-6.96%	-26.28%
RLI	74 Outperform	$5.56B	15.87	19.49%	4.32%	3.72%	-16.23%
CINF	74 Outperform	$24.56B	11.71	14.53%	2.14%	-0.63%	-30.68%
CNA	69 Neutral	$12.00B	12.12	9.03%	8.57%	5.41%	-23.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Cincinnati Financial Corporate Events

Cincinnati Financial’s Earnings Call: Strong Gains Amid Challenges

Cincinnati Financial’s recent earnings call presented a mixed sentiment, balancing robust financial performance with strategic challenges. The company showcased strong investment income growth and improved underwriting results, leading to significant gains in net income and value creation. However, concerns were raised about slower premium growth, challenges in commercial auto and casualty lines, and increased large losses, particularly in the California market.

Cincinnati Financial Faces Profitability Challenges Amid New Trade Regulations

Cincinnati Financial faces a potential business risk due to recent changes in international trade regulations and foreign trade policies, such as tariffs. These changes could result in higher than expected inflation and disrupt supply chains, thereby affecting the company’s insurance loss costs and premiums. Such economic shifts may lead to increased operational expenses and pose challenges in maintaining competitive pricing. Consequently, Cincinnati Financial might experience pressure on its profitability and market position.

Cincinnati Financial Reports Strong Q3 2025 Earnings

Cincinnati Financial Corporation is a prominent player in the insurance sector, offering a range of property casualty and life insurance products across the United States. The company is known for its strong financial foundation and commitment to providing comprehensive insurance solutions.

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.

The most recent analyst rating on (CINF) stock is a Buy with a $177.00 price target. To see the full list of analyst forecasts on Cincinnati Financial stock, see the CINF Stock Forecast page.

Cincinnati Financial Declares Quarterly Cash Dividend

On August 22, 2025, Cincinnati Financial Corporation announced that its board of directors declared an 87 cents-per-share regular quarterly cash dividend, payable on October 15, 2025, to shareholders of record as of September 22, 2025. This announcement highlights the company’s strong capital position and its commitment to generating shareholder value, marking 65 consecutive years of increasing annual cash dividends, a milestone achieved by only a few public companies in the U.S.

The most recent analyst rating on (CINF) stock is a Hold with a $145.00 price target. To see the full list of analyst forecasts on Cincinnati Financial stock, see the CINF Stock Forecast page.

Cincinnati Financial Releases Investor Presentation Slides

On August 11, 2025, Cincinnati Financial Corporation released presentation slides for investor presentations starting August 12, 2025. The company reported a 4.6% Value Creation Ratio (VCR) for the first half of 2025, which is below its target range of 10% to 13%. Despite this, the company achieved significant growth in property casualty net written premiums and investment income. The second quarter of 2025 saw an increase in earnings per share and non-GAAP operating income, driven by higher renewal pricing and improved underwriting performance. The company continues to focus on premium growth, underwriting expertise, and strategic investments to enhance profitability and shareholder value.

The most recent analyst rating on (CINF) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Cincinnati Financial stock, see the CINF Stock Forecast page.

Cincinnati Financial Reports Strong Q2 2025 Earnings

Cincinnati Financial Corporation is a prominent insurance company based in Ohio, specializing in property and casualty insurance, life insurance, and investment services. The company is known for its strong regional presence and commitment to providing comprehensive insurance solutions to its clients.

Cincinnati Financial’s Earnings Call Highlights Strong Growth

Cincinnati Financial’s latest earnings call conveyed a generally positive sentiment, highlighting strong operating performance and significant investment income growth. Despite these positive aspects, the company acknowledged challenges such as the impact of California wildfires, a decrease in personal lines premiums, and pressures in the commercial auto segment.