NYSE:CI appears to be flying under the radar despite its strong fundamentals.

Last update: Jun 17, 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.

Valuation Assessment of NYSE:CI

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:CI has achieved a 8 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 91.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.42, CI is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.09, the valuation of CI can be described as very reasonable.
91.15% of the companies in the same industry are more expensive than CI, based on the Price/Forward Earnings ratio.
CI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.02.
Based on the Enterprise Value to EBITDA ratio, CI is valued cheaper than 82.30% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CI indicates a rather cheap valuation: CI is cheaper than 91.15% of the companies listed 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.
CI's earnings are expected to grow with 13.83% in the coming years. This may justify a more expensive valuation.

What does the Profitability looks like for NYSE:CI

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CI has earned a 6 out of 10:

CI has a better Return On Assets (2.36%) than 67.26% of its industry peers.
CI has a better Return On Equity (8.79%) than 74.34% 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 77.88% of the companies in the same industry.
The last Return On Invested Capital (8.13%) for CI is above the 3 year average (7.18%), which is a sign of increasing profitability.
CI has a Profit Margin of 1.76%. This is in the better half of the industry: CI outperforms 66.37% of its industry peers.
Looking at the Operating Margin, with a value of 4.52%, CI is in the better half of the industry, outperforming 62.83% of the companies in the same industry.

ChartMill's Evaluation of Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:CI has earned a 5 out of 10:

With a decent Altman-Z score value of 2.36, CI is doing good in the industry, outperforming 61.95% of the companies in the same industry.
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 has a Debt to FCF ratio of 3.23. This is amongst the best in the industry. CI outperforms 83.19% of its industry peers.

How do we evaluate the Growth for NYSE:CI?

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:CI was assigned a score of 7 for growth:

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.
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.
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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

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.