NYSE:CI, a growth stock which is not overvalued.

Last update: May 20, 2024

Here's THE CIGNA GROUP (NYSE:CI) for you, a growth stock our stock screener believes is undervalued. NYSE:CI is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Exploring NYSE:CI's Growth

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:

The Earnings Per Share has grown by an nice 15.60% over the past year.
The Earnings Per Share has been growing by 11.91% on average over the past years. This is quite good.
The Revenue has grown by 12.61% in the past year. This is quite good.
The Revenue has been growing by 32.15% on average over the past years. This is a very strong growth!
CI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.54% yearly.
Based on estimates for the next years, CI will show a quite strong growth in Revenue. The Revenue will grow by 9.76% on average per year.

Valuation Assessment of 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 8 for valuation:

Based on the Price/Earnings ratio, CI is valued cheaply inside the industry as 90.43% of the companies are valued more expensively.
CI is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.26 indicates a reasonable valuation of CI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 90.43% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.15. CI is valued slightly cheaper when compared to this.
CI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CI is cheaper than 81.74% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CI is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
CI's 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 13.57% in the coming years.

Health Assessment of 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 (2.37) than 63.48% of its industry peers.
The Debt to FCF ratio of CI is 3.23, which is a good value as it means it would take CI, 3.23 years of fcf income to pay off all of its debts.
CI has a Debt to FCF ratio of 3.23. This is amongst the best in the industry. CI outperforms 83.48% of its industry peers.

Profitability Examination for NYSE:CI

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CI, the assigned 6 is noteworthy for profitability:

CI's Return On Assets of 2.36% is fine compared to the rest of the industry. CI outperforms 66.96% of its industry peers.
CI's Return On Equity of 8.79% is fine compared to the rest of the industry. CI outperforms 72.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.13%, CI is in the better half of the industry, outperforming 79.13% of the companies in the same industry.
The 3 year average ROIC (7.18%) for CI is below the current ROIC(8.13%), indicating increased profibility in the last year.
CI has a Profit Margin of 1.76%. This is in the better half of the industry: CI outperforms 65.22% of its industry peers.
The Operating Margin of CI (4.52%) is better than 63.48% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of CI

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.