Consider THE CIGNA GROUP (NYSE:CI) as an affordable growth stock, identified by our stock screening tool. NYSE:CI is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.
Growth Insights: NYSE:CI
Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:CI boasts a 7 out of 10:
- The Earnings Per Share has grown by an nice 8.05% over the past year.
- CI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.91% yearly.
- Looking at the last year, CI shows a quite strong growth in Revenue. The Revenue has grown by 8.42% in the last year.
- The Revenue has been growing by 32.15% on average over the past years. This is a very strong growth!
- The Earnings Per Share is expected to grow by 11.43% on average over the next years. This is quite good.
- The Revenue is expected to grow by 9.51% on average over the next years. This is quite good.
Looking at the Valuation
An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:CI has received a 7 out of 10:
- CI's Price/Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 89.66% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.07, CI is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio, CI is valued cheaper than 91.38% of the companies in the same industry.
- CI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
- Based on the Enterprise Value to EBITDA ratio, CI is valued a bit cheaper than the industry average as 77.59% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, CI is valued cheaper than 85.34% of the companies in the same industry.
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CI has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as CI's earnings are expected to grow with 13.35% in the coming years.
Exploring NYSE:CI's Health
ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:CI, the assigned 5 for health provides valuable insights:
- CI's Altman-Z score of 2.36 is fine compared to the rest of the industry. CI outperforms 60.34% of its industry peers.
- CI has a debt to FCF ratio of 3.02. This is a good value and a sign of high solvency as CI would need 3.02 years to pay back of all of its debts.
- CI has a Debt to FCF ratio of 3.02. This is amongst the best in the industry. CI outperforms 80.17% of its industry peers.
Evaluating Profitability: NYSE:CI
ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:CI was assigned a score of 6 for profitability:
- The Return On Assets of CI (3.38%) is better than 73.28% of its industry peers.
- CI has a Return On Equity of 11.17%. This is in the better half of the industry: CI outperforms 77.59% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.65%, CI is in the better half of the industry, outperforming 77.59% of the companies in the same industry.
- The 3 year average ROIC (7.18%) for CI is below the current ROIC(7.65%), indicating increased profibility in the last year.
- The Profit Margin of CI (2.64%) is better than 71.55% of its industry peers.
- The Operating Margin of CI (4.63%) is better than 63.79% of its industry peers.
Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.
Our latest full fundamental report of CI contains the most current fundamental analsysis.
Disclaimer
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.