| 2014 | 2015 | 2016 | 2018 | 2019 (projected) | Cincinnati Financial Cost of Revenue | 2,856,000,000 | 2,808,000,000 | 3,107,000,000 | 2,796,300,000 | 2,418,078,947 | Cincinnati Financial Consolidated Income | 525,000,000 | 634,000,000 | 591,000,000 | 531,900,000 | 486,894,737 |
Cincinnati Financial to continue ascent in July
 | By Rifka Kats | Macroaxis Story |
The company current daily volatility is 1.23 percent, with beta of 0.0 and alpha of 0.0 over S&P 500. Macroaxis considers Cincinnati Financial very steady given 1 month investment horizon. Cincinnati Financial secures Sharpe Ratio (or Efficiency) of 0.3905 which signifies that the organization had 0.3905% of return per unit of risk over the last 1 month. Our philosophy towards foreseeing volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found nineteen technical indicators for Cincinnati Financial Corporation which you can use to evaluate future volatility of the firm. Please makes use of Cincinnati Financial Coefficient Of Variation of 300.06, Risk Adjusted Performance of 0.01 and Mean Deviation of 0.742 to double-check if our risk estimates are consistent with your expectations.
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Reviewed by Vlad Skutelnik
Cincinnati Financial currently holds 877M in liabilities with Debt to Equity (D/E) ratio of 10.1 indicating the stock may have difficulties to generate enough cash to satisfy its financial obligations. This firm dividends can provide a clue to current valuation of the stock. Cincinnati Financial one year expected dividend income is about $1.02 per share. Now, lets check Cincinnati Financial Number of Employees. Based on recorded statements Cincinnati Financial Corporation is currently employing 5K people. This is 69.39% lower than that of the Financial Services sector, and 47.61% lower than that of Insurance - Property & Casualty industry, The Number of Employees for all stocks is 73.47% higher than Cincinnati Financial. Cincinnati Financial financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Cincinnati Financial, including all of Cincinnati Financial's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Cincinnati Financial assets, the company is considered highly leveraged. Understanding the composition and structure of overall Cincinnati Financial debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Cincinnati Total Liabilities
Cincinnati Financial liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Cincinnati Financial has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Cincinnati Financial balance sheet include debt obligations and money owed to different Cincinnati Financial vendors, workers, and loan providers. Below is the chart of Cincinnati short long-term liabilities accounts currently reported on its balance sheet. You can use Cincinnati Financial financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Cincinnati Financial's Liquidity
Cincinnati Financial financial leverage refers to using borrowed capital as a funding source to finance Cincinnati Financial ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cincinnati Financial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cincinnati Financial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cincinnati Financial's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Cincinnati Financial's total debt and its cash.
Breaking it down a bit more
The latest price spikes of Cincinnati Financial could raise concerns from investors as the firm closed today at a share price of 102.3 on 503788.000 in volume. The company management were quite successful positioning the firm components to exploit market volatility in July 2019. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.2316. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Cincinnati Financial is trading at 103.54. This is 0.31% down. Day high is 103.72. Cincinnati Financial Weighted Average Shares is increasing over the last 5 years. Also, Cincinnati Financial Selling General and Administrative Expense is increasing over the last 5 years.
To conclude, our present buy-hold-sell recommendation on the firm is Cautious Hold. We believe Cincinnati Financial is overvalued with very small chance of distress for the next two years.
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