THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CI - US1255231003 - Common Stock
278.35 USD
+0.15 (+0.05%)
278.35 USD
0 (0%)
Taking everything into account, CI scores 5 out of 10 in our fundamental rating. CI was compared to 101 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of CI while its profitability can be described as average. CI is valued quite cheap, while showing a decent growth score. This is a good combination! CI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CI was profitable.
In the past year CI had a positive cash flow from operations.
Each year in the past 5 years CI has been profitable.
CI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CI has a Return On Assets of 3.89%. This is in the better half of the industry: CI outperforms 70.30% of its industry peers.
The Return On Equity of CI (14.70%) is better than 81.19% of its industry peers.
CI has a better Return On Invested Capital (8.31%) than 75.25% of its industry peers.
CI had an Average Return On Invested Capital over the past 3 years of 7.53%. This is in line with the industry average of 9.27%.
The last Return On Invested Capital (8.31%) for CI is above the 3 year average (7.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 14.7% | ||
| ROIC | 8.31% |
ROA(3y)3.41%
ROA(5y)3.82%
ROE(3y)11.49%
ROE(5y)12.53%
ROIC(3y)7.53%
ROIC(5y)6.93%
1.3 Margins
With a decent Profit Margin value of 2.29%, CI is doing good in the industry, outperforming 62.38% of the companies in the same industry.
CI's Profit Margin has declined in the last couple of years.
CI's Operating Margin of 3.72% is in line compared to the rest of the industry. CI outperforms 56.44% of its industry peers.
CI's Operating Margin has declined in the last couple of years.
CI has a worse Gross Margin (9.55%) than 76.24% of its industry peers.
CI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.72% | ||
| PM (TTM) | 2.29% | ||
| GM | 9.55% |
OM growth 3Y-6.1%
OM growth 5Y-7.49%
PM growth 3Y-23.32%
PM growth 5Y-16%
GM growth 3Y-7.3%
GM growth 5Y-8.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CI is destroying value.
The number of shares outstanding for CI has been reduced compared to 1 year ago.
Compared to 5 years ago, CI has less shares outstanding
Compared to 1 year ago, CI has a worse debt to assets ratio.
2.2 Solvency
CI has an Altman-Z score of 2.63. This is not the best score and indicates that CI is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.63, CI perfoms like the industry average, outperforming 56.44% of the companies in the same industry.
The Debt to FCF ratio of CI is 4.58, which is a neutral value as it means it would take CI, 4.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CI (4.58) is better than 68.32% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that CI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, CI perfoms like the industry average, outperforming 49.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.98
WACC8.45%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CI may have some problems paying its short term obligations.
With a Current ratio value of 0.83, CI is not doing good in the industry: 83.17% of the companies in the same industry are doing better.
A Quick Ratio of 0.73 indicates that CI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.73, CI is doing worse than 79.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.35% 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 10.05% yearly.
CI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.26%.
Measured over the past years, CI shows a quite strong growth in Revenue. The Revenue has been growing by 9.98% on average per year.
EPS 1Y (TTM)3.35%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%4.26%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%9.5%
3.2 Future
Based on estimates for the next years, CI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.72% on average per year.
The Revenue is expected to grow by 6.32% on average over the next years.
EPS Next Y11.52%
EPS Next 2Y9.88%
EPS Next 3Y10.52%
EPS Next 5Y9.72%
Revenue Next Year9.64%
Revenue Next 2Y7.26%
Revenue Next 3Y6.89%
Revenue Next 5Y6.32%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CI is valuated reasonably with a Price/Earnings ratio of 9.80.
92.08% of the companies in the same industry are more expensive than CI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.15, CI is valued rather cheaply.
CI is valuated reasonably with a Price/Forward Earnings ratio of 8.43.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 95.05% of the companies listed 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 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 8.43 |
4.2 Price Multiples
81.19% 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 85.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10 | ||
| EV/EBITDA | 7.94 |
4.3 Compensation for Growth
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.
PEG (NY)0.85
PEG (5Y)0.98
EPS Next 2Y9.88%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.24%, CI has a reasonable but not impressive dividend return.
CI's Dividend Yield is rather good when compared to the industry average which is at 2.60. CI pays more dividend than 92.08% of the companies in the same industry.
CI's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
On average, the dividend of CI grows each year by 169.26%, which is quite nice.
CI has paid a dividend for at least 10 years, which is a reliable track record.
CI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)169.26%
Div Incr Years4
Div Non Decr Years19
5.3 Sustainability
CI pays out 26.01% of its income as dividend. This is a sustainable payout ratio.
CI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.01%
EPS Next 2Y9.88%
EPS Next 3Y10.52%
278.35
+0.15 (+0.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.02%
Inst Owner Change-1.54%
Ins Owners0.34%
Ins Owner Change0.01%
Market Cap74.36B
Revenue(TTM)268.08B
Net Income(TTM)6.15B
Analysts81.71
Price Target335.26 (20.45%)
Short Float %1.4%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend5.53
Dividend Growth(5Y)169.26%
DP26.01%
Div Incr Years4
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.44%
Min EPS beat(2)-2.29%
Max EPS beat(2)-0.6%
EPS beat(4)1
Avg EPS beat(4)-4.36%
Min EPS beat(4)-17.61%
Max EPS beat(4)3.05%
EPS beat(8)5
Avg EPS beat(8)-1.57%
EPS beat(12)6
Avg EPS beat(12)-1.3%
EPS beat(16)9
Avg EPS beat(16)0.51%
Revenue beat(2)2
Avg Revenue beat(2)2.66%
Min Revenue beat(2)0.9%
Max Revenue beat(2)4.42%
Revenue beat(4)4
Avg Revenue beat(4)2.81%
Min Revenue beat(4)0.59%
Max Revenue beat(4)5.31%
Revenue beat(8)7
Avg Revenue beat(8)2%
Revenue beat(12)7
Avg Revenue beat(12)0.91%
Revenue beat(16)8
Avg Revenue beat(16)0.46%
PT rev (1m)-9.07%
PT rev (3m)-9.27%
EPS NQ rev (1m)-1.94%
EPS NQ rev (3m)-0.87%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)2.65%
Revenue NQ rev (3m)2.73%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)4.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 8.43 | ||
| P/S | 0.28 | ||
| P/FCF | 10 | ||
| P/OCF | 8.58 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.94 |
EPS(TTM)28.41
EY10.21%
EPS(NY)33.01
Fwd EY11.86%
FCF(TTM)27.84
FCFY10%
OCF(TTM)32.43
OCFY11.65%
SpS1003.55
BVpS156.5
TBVpS-120.14
PEG (NY)0.85
PEG (5Y)0.98
Graham Number316.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 14.7% | ||
| ROCE | 9.83% | ||
| ROIC | 8.31% | ||
| ROICexc | 8.92% | ||
| ROICexgc | 40.82% | ||
| OM | 3.72% | ||
| PM (TTM) | 2.29% | ||
| GM | 9.55% | ||
| FCFM | 2.77% |
ROA(3y)3.41%
ROA(5y)3.82%
ROE(3y)11.49%
ROE(5y)12.53%
ROIC(3y)7.53%
ROIC(5y)6.93%
ROICexc(3y)8.17%
ROICexc(5y)7.51%
ROICexgc(3y)41.92%
ROICexgc(5y)35.13%
ROCE(3y)8.97%
ROCE(5y)8.27%
ROICexgc growth 3Y24.32%
ROICexgc growth 5Y14.18%
ROICexc growth 3Y11.69%
ROICexc growth 5Y5.98%
OM growth 3Y-6.1%
OM growth 5Y-7.49%
PM growth 3Y-23.32%
PM growth 5Y-16%
GM growth 3Y-7.3%
GM growth 5Y-8.44%
F-Score6
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.58 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 45.46% | ||
| Cap/Sales | 0.46% | ||
| Interest Coverage | 7.4 | ||
| Cash Conversion | 68.38% | ||
| Profit Quality | 120.99% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.63 |
F-Score6
WACC8.45%
ROIC/WACC0.98
Cap/Depr(3y)48.86%
Cap/Depr(5y)45.02%
Cap/Sales(3y)0.7%
Cap/Sales(5y)0.69%
Profit Quality(3y)189.84%
Profit Quality(5y)158.3%
High Growth Momentum
Growth
EPS 1Y (TTM)3.35%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%4.26%
EPS Next Y11.52%
EPS Next 2Y9.88%
EPS Next 3Y10.52%
EPS Next 5Y9.72%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%9.5%
Revenue Next Year9.64%
Revenue Next 2Y7.26%
Revenue Next 3Y6.89%
Revenue Next 5Y6.32%
EBIT growth 1Y0.13%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year21.27%
EBIT Next 3Y9.36%
EBIT Next 5Y5.28%
FCF growth 1Y-31.72%
FCF growth 3Y14.05%
FCF growth 5Y1.21%
OCF growth 1Y-30.38%
OCF growth 3Y12.95%
OCF growth 5Y1.79%
THE CIGNA GROUP / CI FAQ
What is the fundamental rating for CI stock?
ChartMill assigns a fundamental rating of 5 / 10 to CI.
What is the valuation status for CI stock?
ChartMill assigns a valuation rating of 8 / 10 to THE CIGNA GROUP (CI). This can be considered as Undervalued.
How profitable is THE CIGNA GROUP (CI) stock?
THE CIGNA GROUP (CI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for CI stock?
The Price/Earnings (PE) ratio for THE CIGNA GROUP (CI) is 9.8 and the Price/Book (PB) ratio is 1.78.
What is the financial health of THE CIGNA GROUP (CI) stock?
The financial health rating of THE CIGNA GROUP (CI) is 3 / 10.