Despite its growth, NYSE:CI remains within the realm of affordability.

Last update: Jun 10, 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.

Unpacking NYSE:CI's Growth Rating

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:

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.
Looking at the last year, CI shows a quite strong growth in Revenue. The Revenue has grown by 12.61% in the last year.
Measured over the past years, CI shows a very strong growth in Revenue. The Revenue has been growing by 32.15% on average per year.
The Earnings Per Share is expected to grow by 12.54% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.76% on average over the next years. This is quite good.

Assessing Valuation for NYSE:CI

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:CI scores a 8 out of 10:

91.23% of the companies in the same industry are more expensive than CI, based on the Price/Earnings ratio.
CI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.12.
The Price/Forward Earnings ratio is 10.23, which indicates a very decent valuation of CI.
Based on the Price/Forward Earnings ratio, CI is valued cheaper than 91.23% of the companies in the same industry.
CI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 19.99.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CI indicates a rather cheap valuation: CI is cheaper than 81.58% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CI is valued cheaper than 91.23% 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.
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 13.84% in the coming years.

How do we evaluate the Health for NYSE:CI?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CI has achieved a 5 out of 10:

CI has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as CI would need 3.23 years to pay back of all of its debts.
CI's Debt to FCF ratio of 3.23 is amongst the best of the industry. CI outperforms 83.33% of its industry peers.

Understanding NYSE:CI's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:CI scores a 6 out of 10:

With a decent Return On Assets value of 2.36%, CI is doing good in the industry, outperforming 67.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.79%, CI is in the better half of the industry, outperforming 74.56% of the companies in the same industry.
CI has a better Return On Invested Capital (8.13%) than 78.07% 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.
CI has a Profit Margin of 1.76%. This is in the better half of the industry: CI outperforms 66.67% of its industry peers.
CI has a better Operating Margin (4.52%) than 63.16% 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 article should in no way be interpreted as advice. 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.