Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card!
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Cincinnati Financial Corporation ( NASDAQ:CINF ) due to its excellent fundamentals in more than one area. CINF is a financially-sound , dividend-paying company with a an impressive history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Cincinnati Financial here .
Excellent balance sheet established dividend payer
Over the past year, CINF has grown its earnings by 25%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, CINF also outperformed its industry, which delivered a growth of 6.6%. This is what investors like to see! CINF's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that CINF has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. CINF seems to have put its debt to good use, generating operating cash levels of 1.4x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
CINF is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Cincinnati Financial, I've put together three fundamental factors you should look at:
- Future Outlook : What are well-informed industry analysts predicting for CINF’s future growth? Take a look at our free research report of analyst consensus for CINF’s outlook.
- Valuation : What is CINF worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CINF is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CINF? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.