Cincinnati Financial Current Valuation vs. Return On Asset
| CCJ Stock | EUR 138.45 2.05 1.50% |
For Cincinnati Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cincinnati Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cincinnati Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cincinnati Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cincinnati Financial over time as well as its relative position and ranking within its peers.
Cincinnati |
Cincinnati Financial Return On Asset vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cincinnati Financial's current stock value. Our valuation model uses many indicators to compare Cincinnati Financial value to that of its competitors to determine the firm's financial worth. Cincinnati Financial is rated fifth in current valuation category among its peers. It is rated below average in return on asset category among its peers . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cincinnati Financial's earnings, one of the primary drivers of an investment's value.Cincinnati Current Valuation vs. Competition
Cincinnati Financial is rated fifth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Insurance - Property & Casualty industry is currently estimated at about 190.6 Billion. Cincinnati Financial holds roughly 15.27 Billion in current valuation claiming about 8% of equities under Insurance - Property & Casualty industry.
Cincinnati Return On Asset vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Cincinnati Financial |
| = | 15.27 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Cincinnati Financial |
| = | -0.0131 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Cincinnati Return On Asset Comparison
Cincinnati Financial is rated below average in return on asset category among its peers.
Cincinnati Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cincinnati Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cincinnati Financial will eventually generate negative long term returns. The profitability progress is the general direction of Cincinnati Financial's change in net profit over the period of time. It can combine multiple indicators of Cincinnati Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Cincinnati Financial Corporation, together with its subsidiary, provides property casualty insurance products in the United States. Cincinnati Financial Corporation was founded in 1950 and is headquartered in Fairfield, Ohio. CINCINNATI FINL operates under Insurance - Property Casualty classification in Germany and is traded on Frankfurt Stock Exchange. It employs 4999 people.
Cincinnati Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cincinnati Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cincinnati Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cincinnati Financial's important profitability drivers and their relationship over time.
Use Cincinnati Financial in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cincinnati Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cincinnati Financial will appreciate offsetting losses from the drop in the long position's value.Cincinnati Financial Pair Trading
Cincinnati Financial Pair Trading Analysis
The ability to find closely correlated positions to Cincinnati Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cincinnati Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cincinnati Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cincinnati Financial to buy it.
The correlation of Cincinnati Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cincinnati Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cincinnati Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cincinnati Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Cincinnati Financial position
In addition to having Cincinnati Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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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. 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
To fully project Cincinnati Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cincinnati Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cincinnati Financial's income statement, its balance sheet, and the statement of cash flows.