Latest news with #CincinnatiFinancial
Yahoo
4 days ago
- Business
- Yahoo
Cincinnati Financial (NASDAQ:CINF) jumps 3.4% this week, though earnings growth is still tracking behind five-year shareholder returns
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For example, the Cincinnati Financial Corporation (NASDAQ:CINF) share price has soared 111% in the last half decade. Most would be very happy with that. We note the stock price is up 3.4% in the last seven days. After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, Cincinnati Financial achieved compound earnings per share (EPS) growth of 82% per year. The EPS growth is more impressive than the yearly share price gain of 16% over the same period. Therefore, it seems the market has become relatively pessimistic about the company. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. This free interactive report on Cincinnati Financial's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Cincinnati Financial's TSR for the last 5 years was 141%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! It's nice to see that Cincinnati Financial shareholders have received a total shareholder return of 33% over the last year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 19% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Cincinnati Financial better, we need to consider many other factors. Take risks, for example - Cincinnati Financial has 2 warning signs (and 1 which is significant) we think you should know about. Cincinnati Financial is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
21-05-2025
- Business
- Globe and Mail
CINF Lags Industry, Trades at a Premium: How to Play the Stock
Shares of Cincinnati Financial Corporation CINF have gained 4.5% year to date, underperforming the industry 's 11.8% growth and the Finance sector's return of 5.7%. The insurer outperformed the Zacks S&P 500 composite's rise of 0.2% in the same time frame. The stock is trading at a 7.2% discount to its 52-week high of $161.75. It is trading well above the 50-day simple moving average (SMA), indicating a bullish trend. The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of an uptrend or downtrend. CINF vs. Industry, Sector & S&P 500 Year to Date CINF Shares Are Expensive CINF shares are trading at a premium to the industry. Its price-to-book value of 1.75X is higher than the industry average of 1.57X. The company has a Value Score of C, indicative of expensive valuation. Yet it is cheaper than The Progressive Corporation PGR and The Travelers Companies Inc. TRV, which are also trading at a premium to the industry. Northbound Estimate Revisions Instill Confidence in CINF The Zacks Consensus Estimate for 2025 and 2026 has moved 6.7% and 1.8% north, respectively, in the past 30 days, reflecting analyst optimism on the stock. The Zacks Consensus Estimate for 2025 earnings stands at $5.26, suggesting a decrease of 31% on 12.1% higher revenues of $11.1 billion. The consensus estimate for 2026 earnings stands at $8.12, suggesting an increase of 54.4% on 7.9% higher revenues of $12 billion. The expected long-term earnings growth rate is pegged at 2.8%. Factors Favoring CINF Prudent pricing, an agent-centric model, a higher level of insured exposures and disciplined expansion of Cincinnati Re should benefit premiums, the primary driver of an insurer's top line. CINF boasts above-average industry premium growth. CINF is focused on expanding its commercial lines segment by appointing more agencies, strengthening its local field operations, enhancing internal expertise, and offering a broad product portfolio that supports a larger share of agencies' commercial business. Ongoing initiatives to refine pricing accuracy and reduce loss costs are anticipated to further improve the segment's profitability. Since its inception in 2008, Cincinnati Financial's Excess and Surplus (E&S) line has consistently performed well. It is utilizing technology and data analytics to identify new and emerging risks in businesses that require insurance solutions or additional value-added services. A strong emphasis on superior service is expected to continue driving growth and profitability within this segment. Its agent-focused business model, CINFny, remains dedicated to securing new business by delivering outstanding service and expanding insurance offerings to better serve the clients of its agency partners. Cincinnati Financial's consistent cash flow continues to boost liquidity. Cash flow, in addition to higher bond yields, continues to boost investment income growth. The insurer has increased dividends for 65 years straight, a record that is believed to be matched by only seven other U.S. publicly traded companies. The dividend increases reflected strong operating performance and signaled management's and the board's positive outlook and confidence in outstanding capital, liquidity and financial flexibility. Its dividend yield of 2.4% is better than the industry average of 0.2%, making the stock an attractive pick for yield-seeking investors. CINF's Return on Capital Return on equity in the trailing 12 months was 8.2%, better than the industry average of 6.6%. This highlights the company's efficiency in utilizing shareholders' funds. However, its return on invested capital (ROIC), which reflects efficiency in utilizing funds to generate income, of 2.3% is poor when compared with the industry average of 5.9%. How to Play CINF Stock Cincinnati Financial is poised to grow on its solid agent network, sturdy financial health, and an impressive dividend history. The average target price of $152 reflects a 1.2% upside potential from its last closing price. However, its business is significantly concentrated in the Midwest region, which is prone to catastrophes. As such, its operations have substantial catastrophe loss exposure, which makes its earnings volatile. Given premium valuation, it is better to adopt a wait-and-see approach on this Zack Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Travelers Companies, Inc. (TRV): Free Stock Analysis Report Cincinnati Financial Corporation (CINF): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis Report
Reuters
28-04-2025
- Business
- Reuters
Cincinnati Financial swings to quarterly loss on California wildfire woes
April 28 (Reuters) - Insurance firm Cincinnati Financial (CINF.O), opens new tab swung to a first-quarter loss on Monday, as catastrophic losses from the California fires and a decrease in investment gains weighed on earnings. The California fires resulted in an estimated $250 billion in economic losses, making them one of the most expensive natural disasters in American history, and damaging insurers' earnings. Fairfield, Ohio-based Cincinnati Financial said that its after-tax catastrophe losses rose by $356 million in the reported quarter. However, CEO Stephen Spray said that the company was prepared "for the unprecedented losses our policyholders suffered from the wildfires in California." Shares of the company, which have shed 5.5% in 2025, were down marginally in trading after the bell. Cincinnati offers a range of insurance products, including property and casualty insurance for individuals, businesses and organizations, and collects premiums from policyholders. The company's earned premiums grew 13% to $2.34 billion for the quarter ended March 31. Its biggest segment, commercial lines insurance, saw premiums rise 9% to $1.18 billion. Cincinnati Financial posted a net loss of $90 million, or 57 cents per share, in the three months ended March 31, compared to a profit of $755 million, or $4.78 per share, in the year-ago period. The company also attributed the quarterly loss to an after-tax net effect of a $536 million decrease in net investment gains.
Yahoo
28-04-2025
- Business
- Yahoo
Cincinnati Financial swings to quarterly loss on California wildfire woes
(Reuters) -Insurance firm Cincinnati Financial swung to a first-quarter loss on Monday, as catastrophic losses from the California fires and a decrease in investment gains weighed on earnings. The California fires resulted in an estimated $250 billion in economic losses, making them one of the most expensive natural disasters in American history, and damaging insurers' earnings. Peers' profits were also dented, including Hartford Insurance Group's, which more than doubled catastrophe losses, according to its quarterly report last week. Fairfield, Ohio-based Cincinnati Financial said that its after-tax catastrophe losses rose by $356 million in the reported quarter. However, CEO Stephen Spray said that the company was prepared "for the unprecedented losses our policyholders suffered from the wildfires in California." Shares of the company, which have shed 5.5% in 2025, were down marginally in trading after the bell. Cincinnati offers a range of insurance products, including property and casualty insurance for individuals, businesses and organizations, and collects premiums from policyholders. The company's earned premiums grew 13% to $2.34 billion for the quarter ended March 31. Its biggest segment, commercial lines insurance, saw premiums rise 9% to $1.18 billion. Cincinnati Financial posted a net loss of $90 million, or 57 cents per share, in the three months ended March 31, compared to a profit of $755 million, or $4.78 per share, in the year-ago period. The company also attributed the quarterly loss to an after-tax net effect of a $536 million decrease in net investment gains. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Cincinnati Financial (NasdaqGS:CINF) Sees 9% Share Dip Over Last Month
Cincinnati Financial experienced a share price decline of 9% over the past month amidst broader market challenges, including heightened volatility due to new tariffs and concerns about economic growth. During a period where the Dow Jones increased slightly and the S&P 500 dropped 12%, the losses seen by Cincinnati Financial paralleled wider market responses rather than specific adverse events at the company level. The company's downturn likely echoed the broader climate of uncertainty, with the effects of trade policies impacting market sentiment overall. Other major sectors saw mixed outcomes, with technology stocks rebounding amid trade tensions. We've identified 1 warning sign with Cincinnati Financial and understanding the impact should be part of your investment process. The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. The recent decline in Cincinnati Financial's share price, amid a volatile market environment, may have heightened concerns about its potential future performance. However, when examining a broader timeframe, the company's total return including share price appreciation and dividends has been quite positive at 66.42% over the past five years. Despite recent challenges, such long-term gains suggest past resilience and effective compensation strategies, which have contributed to maintaining investor interest. Compared to industry benchmarks, Cincinnati Financial's stock demonstrated moderate underperformance over the past year, not matching the returns of the broader US insurance industry. The impact of the news and market dynamics on revenue and earnings forecasts could be significant. Precision pricing and agency network expansion were expected to bolster growth, but adverse market conditions might dampen these prospects. Analysts project earnings to decline notably in the coming years, with profit margins shrinking significantly. As for pricing targets, the company currently trades at a discount to analyst expectations. With an analyst consensus price target of US$157.00, the current share price of US$139.96 suggests room for potential share price appreciation, assuming market conditions align with analyst projections. However, whether the company can navigate potential risks and meet these forecasts remains subject to broader economic factors and execution of its strategic initiatives. Navigate through the intricacies of Cincinnati Financial with our comprehensive balance sheet health report here. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:CINF. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
