NYSE:CI is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: May 27, 2024

THE CIGNA GROUP (NYSE:CI) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:CI showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Exploring NYSE:CI's Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:CI, the assigned 8 reflects its valuation:

CI's Price/Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 90.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of CI to the average of the S&P500 Index (28.27), we can say CI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.06, the valuation of CI can be described as reasonable.
Based on the Price/Forward Earnings ratio, CI is valued cheaper than 91.30% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.18, CI is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CI indicates a rather cheap valuation: CI is cheaper than 80.87% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CI is valued cheaply inside the industry as 92.17% 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.
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 13.84% in the coming years.

Understanding NYSE:CI's Profitability

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:

Looking at the Return On Assets, with a value of 2.36%, CI is in the better half of the industry, outperforming 66.96% of the companies in the same industry.
CI has a Return On Equity of 8.79%. This is in the better half of the industry: CI outperforms 73.04% of its industry peers.
CI has a Return On Invested Capital of 8.13%. This is in the better half of the industry: CI outperforms 78.26% of its industry peers.
The 3 year average ROIC (7.18%) for CI is below the current ROIC(8.13%), indicating increased profibility in the last year.
The Profit Margin of CI (1.76%) is better than 65.22% of its industry peers.
The Operating Margin of CI (4.52%) is better than 63.48% of its industry peers.

Health Assessment of NYSE:CI

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:CI scores a 5 out of 10:

CI has a better Altman-Z score (2.36) than 60.87% 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's Debt to FCF ratio of 3.23 is amongst the best of the industry. CI outperforms 83.48% of its industry peers.

A Closer Look at Growth for NYSE:CI

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:CI scores a 7 out of 10:

CI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.60%, which is quite good.
CI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.91% yearly.
CI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.61%.
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 12.54% on average over the next years. This is quite good.
CI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.76% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of CI for a complete fundamental analysis.

Keep in mind

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.