NYSE:CI stands out as a growth opportunity that won't break the bank.

Last update: Apr 29, 2024

Take a closer look at THE CIGNA GROUP (NYSE:CI), an affordable growth stock uncovered by our stock screener. NYSE:CI boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Growth Examination for NYSE:CI

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:CI, the assigned 7 reflects its growth potential:

CI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.05%, which is quite good.
The Earnings Per Share has been growing by 11.91% on average over the past years. This is quite good.
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.
Based on estimates for the next years, CI will show a quite strong growth in Revenue. The Revenue will grow by 9.51% on average per year.

Valuation Analysis for NYSE:CI

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:CI was assigned a score of 7 for valuation:

Based on the Price/Earnings ratio, CI is valued cheaper than 87.07% of the companies in the same industry.
CI is valuated rather cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 90.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.35, CI is valued a bit cheaper.
Based on the Enterprise Value to EBITDA ratio, CI is valued a bit cheaper than 77.59% of the companies in the same industry.
CI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CI is cheaper than 86.21% of the companies in the same industry.
CI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CI may justify a higher PE ratio.
A more expensive valuation may be justified as CI's earnings are expected to grow with 13.57% in the coming years.

Health Insights: NYSE:CI

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CI was assigned a score of 5 for health:

CI has a better Altman-Z score (2.35) than 61.21% 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.
With an excellent Debt to FCF ratio value of 3.02, CI belongs to the best of the industry, outperforming 81.03% of the companies in the same industry.

Analyzing Profitability Metrics

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:

CI's Return On Assets of 3.38% is fine compared to the rest of the industry. CI outperforms 73.28% of its industry peers.
With a decent Return On Equity value of 11.17%, CI is doing good in the industry, outperforming 77.59% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.65%, CI is doing good in the industry, outperforming 79.31% 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.
Looking at the Profit Margin, with a value of 2.64%, CI is in the better half of the industry, outperforming 70.69% of the companies in the same industry.
CI has a Operating Margin of 4.63%. This is in the better half of the industry: CI outperforms 64.66% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of CI contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.