Investors seeking growth at a reasonable cost should explore NYSE:CI.

Last update: Oct 28, 2024

Consider THE CIGNA GROUP (NYSE:CI) as an affordable growth stock, identified by our stock screening tool. NYSE:CI is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Analysis 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 18.68% over the past year.
Measured over the past years, CI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.91% on average per year.
The Revenue has grown by 17.09% in the past year. This is quite good.
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.
The Revenue is expected to grow by 9.87% on average over the next years. This is quite good.

Understanding NYSE:CI's Valuation Score

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 9 out of 10:

Based on the Price/Earnings ratio of 11.84, the valuation of CI can be described as reasonable.
91.23% 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 30.92. CI is valued rather cheaply when compared to this.
CI is valuated reasonably with a Price/Forward Earnings ratio of 9.64.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 92.98% of the companies in the same industry.
CI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
84.21% of the companies in the same industry are more expensive than CI, based on the Enterprise Value to EBITDA ratio.
CI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CI is cheaper than 87.72% of the companies 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 13.72% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NYSE:CI

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:CI scores a 5 out of 10:

CI has a Altman-Z score of 2.38. This is in the better half of the industry: CI outperforms 62.28% of its industry peers.
CI has a Debt to FCF ratio of 4.01. This is amongst the best in the industry. CI outperforms 81.58% of its industry peers.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CI has achieved a 6:

Looking at the Return On Assets, with a value of 2.39%, CI is in the better half of the industry, outperforming 67.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.97%, CI is in the better half of the industry, outperforming 74.56% of the companies in the same industry.
CI has a Return On Invested Capital of 8.45%. This is amongst the best in the industry. CI outperforms 84.21% of its industry peers.
The 3 year average ROIC (7.18%) for CI is below the current ROIC(8.45%), indicating increased profibility in the last year.
With a decent Profit Margin value of 1.70%, CI is doing good in the industry, outperforming 68.42% of the companies in the same industry.
The Operating Margin of CI (4.39%) is better than 62.28% 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 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.