| CCJ Stock | | | EUR 130.65 2.30 1.73% |
Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in Cincinnati Financial. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in board of governors.
For more detail on how to invest in Cincinnati Stock please use our
How to Invest in Cincinnati Financial guide.
Cincinnati Financial Company Z Score Analysis
Cincinnati Financial's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Current Cincinnati Financial Z Score | | | | 12.6 |
Most of Cincinnati Financial's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Cincinnati Financial is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
| First Factor | = | 1.2 * ( | Working Capital | / | Total Assets ) |
|
| Second Factor | = | 1.4 * ( | Retained Earnings | / | Total Assets ) |
|
| Thrid Factor | = | 3.3 * ( | EBITAD | / | Total Assets ) |
|
| Fouth Factor | = | 0.6 * ( | Market Value of Equity | / | Total Liabilities ) |
|
| Fifth Factor | = | 0.99 * ( | Revenue | / | Total Assets ) |
|
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
In accordance with the company's disclosures, Cincinnati Financial has a Z Score of 12.6. This is much higher than that of the Financial Services sector and 207.32% higher than that of the
Insurance - Property & Casualty industry. The z score for all Germany stocks is 44.5% lower than that of the firm.
Cincinnati Z Score Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Cincinnati Financial's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Cincinnati Financial could also be used in its relative valuation, which is a method of valuing Cincinnati Financial by comparing valuation metrics of similar companies.
Cincinnati Financial is currently under evaluation in z score category among its peers.
Cincinnati Fundamentals
About Cincinnati Financial Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Cincinnati Financial's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Cincinnati Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Cincinnati Financial based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing
financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our
fundamental analysis page.
Currently Active Assets on Macroaxis
Additional Information and Resources on Investing in Cincinnati Stock
When determining whether Cincinnati Financial is a strong investment it is important to analyze Cincinnati Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cincinnati Financial's
future performance.
For an informed investment choice regarding Cincinnati Stock, refer to the following important reports: Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in Cincinnati Financial. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in board of governors.
For more detail on how to invest in Cincinnati Stock please use our
How to Invest in Cincinnati Financial guide.
You can also try the
Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Please note, there is a significant difference between Cincinnati Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cincinnati Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cincinnati Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.