When you look at NYSE:CI, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Jul 8, 2024

Uncover the potential of THE CIGNA GROUP (NYSE:CI) as our stock screener's choice for an undervalued stock. NYSE:CI maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Assessing Valuation for NYSE:CI

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:CI boasts a 8 out of 10:

Based on the Price/Earnings ratio, CI is valued cheaply inside the industry as 90.35% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CI to the average of the S&P500 Index (28.36), we can say CI is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.67, the valuation of CI can be described as very reasonable.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 91.23% of the companies in the same industry.
CI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.19.
Based on the Enterprise Value to EBITDA ratio, CI is valued cheaply inside the industry as 82.46% 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 92.11% 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.
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 13.83% in the coming years.

Profitability Assessment of 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 Return On Assets of 2.36%. This is in the better half of the industry: CI outperforms 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 8.79%, CI is in the better half of the industry, outperforming 73.68% 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 last Return On Invested Capital (8.13%) for CI is above the 3 year average (7.18%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 1.76%, CI is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
CI's Operating Margin of 4.52% is fine compared to the rest of the industry. CI outperforms 63.16% of its industry peers.

Health Analysis 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:

With a decent Altman-Z score value of 2.34, CI is doing good in the industry, outperforming 63.16% 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.
The Debt to FCF ratio of CI (3.23) is better than 83.33% of its industry peers.

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.
The Revenue has grown by 12.61% in the past year. This is quite good.
CI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.15% yearly.
CI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.60% yearly.
Based on estimates for the next years, CI will show a quite strong growth in Revenue. The Revenue will grow by 9.87% on average per year.

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Our latest full fundamental report of CI contains the most current fundamental analsysis.

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.