NYSE:CI is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Jul 30, 2024

Uncover the hidden value in THE CIGNA GROUP (NYSE:CI) as our stock screening tool recommends it as an undervalued choice. NYSE:CI maintains a robust financial position and offers an attractive pricing perspective. 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:

Based on the Price/Earnings ratio, CI is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
CI is valuated rather cheaply when we compare the Price/Earnings ratio to 24.50, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.50, the valuation of CI can be described as reasonable.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 93.10% 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 20.69.
Based on the Enterprise Value to EBITDA ratio, CI is valued cheaper than 82.76% of the companies in the same industry.
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.
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.

Understanding NYSE:CI's Profitability

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 66.38% of its industry peers.
CI has a better Return On Equity (8.79%) than 73.28% of its industry peers.
CI has a Return On Invested Capital of 8.13%. This is in the better half of the industry: CI outperforms 78.45% 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.
The Profit Margin of CI (1.76%) is better than 65.52% of its industry peers.
CI's Operating Margin of 4.52% is fine compared to the rest of the industry. CI outperforms 62.93% of its industry peers.

A Closer Look at Health for NYSE:CI

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CI has received a 5 out of 10:

With a decent Altman-Z score value of 2.38, CI is doing good in the industry, outperforming 61.21% 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.
With an excellent Debt to FCF ratio value of 3.23, CI belongs to the best of the industry, outperforming 84.48% of the companies in the same industry.

Deciphering NYSE:CI's Growth Rating

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:

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%.
The Revenue has been growing by 32.15% on average over the past years. This is a very strong growth!
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.

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

Keep in mind

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.