Investors should take note of NYSE:CI, a growth stock that remains attractively priced.

Last update: Jul 1, 2024

Our stock screener has singled out THE CIGNA GROUP (NYSE:CI) as an attractive growth opportunity. NYSE:CI is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

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.
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%.
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 12.60% 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 9.87% yearly.

Evaluating Valuation: NYSE:CI

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:CI has earned a 8 for valuation:

89.38% of the companies in the same industry are more expensive than CI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.36. CI is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.01, which indicates a very decent valuation of CI.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 90.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.16. CI is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, CI is valued cheaply inside the industry as 81.42% of the companies are valued more expensively.
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.
The 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.
CI's earnings are expected to grow with 13.83% in the coming years. This may justify a more expensive valuation.

Health Analysis for 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 (2.36) than 61.06% of its industry peers.
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 better Debt to FCF ratio (3.23) than 83.19% of its industry peers.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:CI, the assigned 6 is a significant indicator of profitability:

CI has a Return On Assets of 2.36%. This is in the better half of the industry: CI outperforms 66.37% of its industry peers.
CI has a Return On Equity of 8.79%. This is in the better half of the industry: CI outperforms 73.45% of its industry peers.
With a decent Return On Invested Capital value of 8.13%, CI is doing good in 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.
The Profit Margin of CI (1.76%) is better than 65.49% of its industry peers.
CI's Operating Margin of 4.52% is fine compared to the rest of the industry. CI outperforms 62.83% of its industry peers.

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

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

Disclaimer

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.