Cincinnati Financial Price To Book vs. Revenue

CINF Stock  USD 144.57  2.34  1.65%   
Taking into consideration Cincinnati Financial's profitability measurements, Cincinnati Financial may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Cincinnati Financial's ability to earn profits and add value for shareholders. At this time, Cincinnati Financial's Days Of Sales Outstanding is most likely to increase significantly in the upcoming years. At this time, Cincinnati Financial's Income Tax Expense is most likely to increase significantly in the upcoming years. The Cincinnati Financial's current Income Before Tax is estimated to increase to about 2.4 B, while Total Other Income Expense Net is projected to decrease to roughly 10.4 M.
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 Financial's Revenue Breakdown by Earning Segment

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Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cincinnati Financial. If investors know Cincinnati will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cincinnati Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.41)
Dividend Share
3.18
Earnings Share
19.46
Revenue Per Share
77.606
Quarterly Revenue Growth
0.833
The market value of Cincinnati Financial is measured differently than its book value, which is the value of Cincinnati that is recorded on the company's balance sheet. Investors also form their own opinion of Cincinnati Financial's value that differs from its market value or its book value, called intrinsic value, which is Cincinnati Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cincinnati Financial's market value can be influenced by many factors that don't directly affect Cincinnati Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
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.

Cincinnati Financial Revenue vs. Price To Book 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.
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Cincinnati Financial is rated below average in price to book category among its peers. It also is rated below average in revenue category among its peers totaling about  6,187,739,464  of Revenue per Price To Book. At this time, Cincinnati Financial's Total Revenue is most likely to increase significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Cincinnati Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Cincinnati Revenue vs. Price To Book

Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Cincinnati Financial

P/B

 = 

MV Per Share

BV Per Share

 = 
1.62 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Cincinnati Financial

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
10.01 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Cincinnati Revenue vs Competition

Cincinnati Financial is rated below average in revenue category among its peers. Market size based on revenue of Financials industry is currently estimated at about 256.45 Billion. Cincinnati Financial holds roughly 10.01 Billion in revenue claiming about 4% of equities under Financials industry.
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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.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-435 M-413.2 M
Operating Income2.3 B2.4 B
Net Income1.8 B1.9 B
Income Tax Expense433 M454.6 M
Income Before Tax2.3 B2.4 B
Total Other Income Expense Net11 M10.4 M
Net Loss-558.9 M-531 M
Net Income From Continuing Ops1.7 B1.1 B
Non Operating Income Net Other385.2 M342.4 M
Interest Income852 M475.9 M
Net Interest Income-47.7 M-50.1 M
Change To NetincomeB1.1 B
Net Income Per Share 11.74  12.33 
Income Quality 1.11  1.66 
Net Income Per E B T 0.81  0.61 

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.

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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.

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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Recreation theme has 34 constituents at this time.
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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:
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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 Stocks Directory module to find actively traded stocks across global markets.
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.
Potential Cincinnati Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Cincinnati Financial investors may work on each financial statement separately, they are all related. The changes in Cincinnati Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cincinnati Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.