Don't overlook NYSE:CI—a stock with solid growth prospects and a reasonable valuation.

Last update: Jul 23, 2024

THE CIGNA GROUP (NYSE:CI) was identified as an affordable growth stock by our stock screener. NYSE:CI is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Assessing Growth Metrics for NYSE:CI

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:CI, the assigned 7 reflects its growth potential:

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.
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%.
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.
Based on estimates for the next years, CI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.60% on average per year.
CI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.87% yearly.

What does the Valuation looks like 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:

89.66% 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 29.08.
A Price/Forward Earnings ratio of 10.17 indicates a reasonable valuation of CI.
Based on the Price/Forward Earnings ratio, CI is valued cheaply inside the industry as 92.24% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.74. CI is valued rather cheaply when compared to this.
81.90% of the companies in the same industry are more expensive than CI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CI is valued cheaply inside the industry as 92.24% 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.
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

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:CI has earned a 5 out of 10:

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.
With an excellent Debt to FCF ratio value of 3.23, CI belongs to the best of the industry, outperforming 83.62% of the companies in the same industry.

Profitability Insights: 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:

With a decent Return On Assets value of 2.36%, CI is doing good in the industry, outperforming 66.38% of the companies in the same industry.
The Return On Equity of CI (8.79%) is better than 73.28% of its industry peers.
With a decent Return On Invested Capital value of 8.13%, CI is doing good in the industry, outperforming 78.45% 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's Profit Margin of 1.76% is fine compared to the rest of the industry. CI outperforms 65.52% of its industry peers.
CI has a better Operating Margin (4.52%) than 62.93% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of CI

Disclaimer

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.