The Value of Cincinnati Financial Corporation (CINF) Overpriced by -3.19%?

Publicly-traded company Cincinnati Financial Corporation (NASDAQ:CINF) had a closing price of $112.10 yesterday. Meanwhile, the average 12-month price target from Wall Street analysts is currently $108.63, this means that the stock is overpriced by -3.19%. In the past 52 weeks the company’s stock price has moved within the range of $71.21 to $118.19.

This particular stock’s 5-day moving average is 112.04, its 20-day moving average is 114.29 and its 100-day moving average is 110.30. Cincinnati Financial Corporation (CINF) currently has 164.99M shares outstanding, which means that its market capitalization is $18.50B.

The Details: Cincinnati Financial Corporation (CINF) Financial Health

When considering a potential stock, there are multiple indicators we can take into consideration that give us an idea of the company’s financial health. Checking out a company’s profit margin, for instance, shows us how much of its net sales revenue it retains as earnings. This figure is determined by taking total income and dividing it by net sales. CINF currently has a profit margin of 14.20%.

Seeing a company’s operating margin is useful as well, as it lets us know how much profit the company keeps – after taking into account depreciation and its operating expenses. Cincinnati Financial Corporation (CINF) has an operating margin of 17.90%.

We can also see what the current Return on Assets is for the company, which is a percentage that lets us know how well it is utilizing its net assets to turn a profit. The lower the percentage, the worse the company is making use of its assets. At the moment, Cincinnati Financial Corporation Return on Assets is 3.90%.

What Does Wall Street Say about Company?

When investors are considering buying a new stock, they often want to know the general Wall Street consensus on the company – by checking out the average analyst rating, for instance. At the moment, the average analyst rating for CINF is Hold. Out of 9 total analysts who were surveyed, 1 rated it a sell, 0 rated it a underweight, 0 rated it an overweight, 6 rated it hold, and 2 rated it a Buy.

Three months ago, on the other hand, the average analyst rating for Cincinnati Financial Corporation (CINF) was a Hold – from a survey of 10 analysts. Of the analysts who provided ratings, 8 rated the company a Hold, 1 rated it a Sell, 0 rated it an overweight, 0 rated it an underweight, and 1 rated it a Buy.

Understanding Profitability at Cincinnati Financial Corporation (CINF)

Checking out a public company’s Earnings per Share (EPS) is a smart way of assessing its profitability. In the most recent financial results released by Cincinnati Financial Corporation, for the quarter ending on 12/2019, the company posted EPS of 1.08. The average estimate of Wall Street analysts had projected 1.08.

Wall Street analysts, on average, are forecasting the company’s EPS to be 1.09, compared to 0.98 reported in the same quarter last year. When it comes to net revenue, the average estimate from a total of 3 analysts is 1.56B – compared to 710M posted in the year-ago period.