Cincinnati FinancialCINF +2.57%69 Return-on-Tangible-Equity is 6.93% as of Mar. 2026, which is 53% below its 10-year median of 14.85. GuruFocus rates CINF with a GF Score™ of 69/100 and a GF Value™ of $164.63 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 500 Insurance companies, Cincinnati Financial ranks better than 64.8% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Cincinnati Financial's annualized net income for the quarter that ended in Mar. 2026 was $1,096 Mil. Cincinnati Financial's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $15,813 Mil. Therefore, Cincinnati Financial's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.93%.
The historical rank and industry rank for Cincinnati Financial's Return-on-Tangible-Equity or its related term are showing as below:
CINF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.12 Med: 14.85 Max: 24.84
Current: 18.37
During the past 13 years, Cincinnati Financial's highest Return-on-Tangible-Equity was 24.84%. The lowest was -4.12%. And the median was 14.85%.
CINF's Return-on-Tangible-Equity is ranked better than 64.8% of 500
companies
in the Insurance industry
Industry Median: 13.53
vs CINF: 18.37
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Cincinnati Financial Return-on-Tangible-Equity Related Terms
Cincinnati Financial Return-on-Tangible-Equity Historical Data
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The historical data trend for Cincinnati Financial's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CINF vs WRB, MKL, L: Return-on-Tangible-Equity Comparison
For the Insurance - Property & Casualty subindustry, Cincinnati Financial's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cincinnati Financial Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, Cincinnati Financial's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Cincinnati Financial's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.93% mean?
Cincinnati Financial (CINF) has a Return-on-Tangible-Equity of 6.93% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Cincinnati Financial and its competitors. This is 53% below median its historical median of 14.85. According to the industry distribution chart, Cincinnati Financial ranks #176 out of 500 companies in the Insurance industry, placing it in the top 35.2%.
Is Cincinnati Financial's Return-on-Tangible-Equity too high?
Cincinnati Financial's current Return-on-Tangible-Equity of 6.93% is 53% below median its 10-year median of 14.85. The Insurance industry median Return-on-Tangible-Equity is 13.53. Cincinnati Financial's value of 6.93% is 48.8% below this industry median. Based on the distribution chart, Cincinnati Financial ranks #176 out of 500 companies in the Insurance industry, which is above the industry midpoint. Overall, Cincinnati Financial has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cincinnati Financial's Return-on-Tangible-Equity compare to WRB and MKL?
According to the Insurance industry distribution chart, Cincinnati Financial ranks #176 out of 500 companies for Return-on-Tangible-Equity. This puts Cincinnati Financial in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.53. Cincinnati Financial's value of 6.93% is 48.8% below this benchmark. While the company's 10-year median is 14.85 vs. the industry median of 13.53, Cincinnati Financial has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.53, based on 500 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cincinnati Financial's current Return-on-Tangible-Equity of 6.93% is 48.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Cincinnati Financial and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cincinnati Financial's current Return-on-Tangible-Equity is 6.93%, which is 53% below median its own 10-year median of 14.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cincinnati Financial stock overvalued right now?
Based on GuruFocus' analysis, Cincinnati Financial (CINF) is currently considered Modestly Overvalued. The stock's GF Value™ is $164.63, compared to a current price of $192.00 — trading 16.6% above its estimated fair value. The current Return-on-Tangible-Equity is 6.93%, which is 53% below median its 10-year median of 14.85 and 48.8% below the Insurance industry median of 13.53. Cincinnati Financial's overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Cincinnati Financial (CINF), the current Return-on-Tangible-Equity is 6.93% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cincinnati Financial (CINF) Overvalued in 2026?
Based on GuruFocus' analysis, Cincinnati Financial stock appears to be overvalued.
The current stock price of $192.00 is trading 16.6% above its estimated GF Value™ of $164.63.
GuruFocus considers Cincinnati Financial to be Modestly Overvalued.
Key valuation signals for CINF:
Return-on-Tangible-Equity: 6.93% (53% below median its 10-year median of 14.85)
GF Value™: $164.63 vs. price of $192.00 (16.6% above fair value)
Industry Position: 48.8% below the Insurance median (#176 of 500)
No single metric tells the full story. See the CINF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cincinnati Financial Corp is a property and casualty insurance company that generates income through written premiums. A select group of independent agencies actively markets the company's business, home, and automotive insurance within their communities. These agents offer the company's personal lines as well as its standard market, excess, and surplus commercial line policies in many regions in the United States. Cincinnati Financial also offers leasing and financing services. The company operates in segments: Commercial lines insurance, Personal lines insurance, Excess and surplus lines insurance, Life insurance, and Investments. The vast majority of the company's revenue is generated through commercial lines, followed by personal lines.
69GF Score
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