THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CI - US1255231003 - Common Stock
283.91 USD
+4.79 (+1.72%)
285.01 USD
+1.1 (+0.39%)
CI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Health Care Providers & Services industry. CI has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on CI. CI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CI was profitable.
CI had a positive operating cash flow in the past year.
In the past 5 years CI has always been profitable.
CI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CI has a better Return On Assets (3.89%) than 69.31% of its industry peers.
Looking at the Return On Equity, with a value of 14.70%, CI belongs to the top of the industry, outperforming 80.20% of the companies in the same industry.
CI has a better Return On Invested Capital (8.31%) than 74.26% 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 9.21%.
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
CI has a Profit Margin of 2.29%. This is in the better half of the industry: CI outperforms 62.38% of its industry peers.
In the last couple of years the Profit Margin of CI has declined.
CI's Operating Margin of 3.72% is in line compared to the rest of the industry. CI outperforms 57.43% of its industry peers.
In the last couple of years the Operating Margin of CI has declined.
With a Gross Margin value of 9.55%, CI is not doing good in the industry: 75.25% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CI has declined.
| 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
An Altman-Z score of 2.64 indicates that CI is not a great score, but indicates only limited risk for bankruptcy at the moment.
CI's Altman-Z score of 2.64 is in line compared to the rest of the industry. CI outperforms 55.45% of its industry peers.
CI has a debt to FCF ratio of 4.58. This is a neutral value as CI would need 4.58 years to pay back of all of its debts.
CI's Debt to FCF ratio of 4.58 is fine compared to the rest of the industry. CI outperforms 68.32% of its industry peers.
CI has a Debt/Equity ratio of 0.74. This is a neutral value indicating CI is somewhat dependend on debt financing.
CI has a Debt to Equity ratio (0.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.97
WACC8.59%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CI may have some problems paying its short term obligations.
The Current ratio of CI (0.83) is worse than 83.17% of its industry peers.
A Quick Ratio of 0.73 indicates that CI may have some problems paying its short term obligations.
The Quick ratio of CI (0.73) is worse than 80.20% of its industry peers.
| 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.
Measured over the past years, CI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.05% on average per year.
CI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.26%.
CI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.98% yearly.
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.
CI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.32% yearly.
EPS Next Y11.68%
EPS Next 2Y7.07%
EPS Next 3Y7.99%
EPS Next 5Y9.72%
Revenue Next Year10.96%
Revenue Next 2Y7.74%
Revenue Next 3Y7.17%
Revenue Next 5Y6.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CI is valuated reasonably with a Price/Earnings ratio of 9.99.
CI's Price/Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 92.08% of the companies in the same industry.
CI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.00.
The Price/Forward Earnings ratio is 9.06, which indicates a very decent valuation of CI.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 93.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.70. CI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
CI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CI is cheaper than 80.20% of the companies in the same industry.
86.14% of the companies in the same industry are more expensive than CI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.2 | ||
| EV/EBITDA | 8.06 |
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)0.86
PEG (5Y)0.99
EPS Next 2Y7.07%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.19%, CI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.60, CI pays a better dividend. On top of this CI pays more dividend than 93.07% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, CI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
The dividend of CI is nicely growing with an annual growth rate of 169.26%!
CI has been paying a dividend for at least 10 years, so it has a reliable track record.
CI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)169.26%
Div Incr Years4
Div Non Decr Years19
5.3 Sustainability
26.01% of the earnings are spent on dividend by CI. This is a low number and sustainable payout ratio.
The dividend of CI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.01%
EPS Next 2Y7.07%
EPS Next 3Y7.99%
283.91
+4.79 (+1.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.65%
Inst Owner Change0%
Ins Owners0.33%
Ins Owner Change-0.04%
Market Cap75.84B
Revenue(TTM)268.08B
Net Income(TTM)6.15B
Analysts82.35
Price Target332.04 (16.95%)
Short Float %1.71%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend5.53
Dividend Growth(5Y)169.26%
DP26.01%
Div Incr Years4
Div Non Decr Years19
Ex-DateN/A
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)-0.96%
PT rev (3m)-9.95%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 9.06 | ||
| P/S | 0.28 | ||
| P/FCF | 10.2 | ||
| P/OCF | 8.75 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.06 |
EPS(TTM)28.41
EY10.01%
EPS(NY)31.34
Fwd EY11.04%
FCF(TTM)27.84
FCFY9.81%
OCF(TTM)32.43
OCFY11.42%
SpS1003.55
BVpS156.5
TBVpS-120.14
PEG (NY)0.86
PEG (5Y)0.99
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 | 2.64 |
F-Score6
WACC8.59%
ROIC/WACC0.97
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 Y11.68%
EPS Next 2Y7.07%
EPS Next 3Y7.99%
EPS Next 5Y9.72%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%9.5%
Revenue Next Year10.96%
Revenue Next 2Y7.74%
Revenue Next 3Y7.17%
Revenue Next 5Y6.32%
EBIT growth 1Y0.13%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year22.59%
EBIT Next 3Y9.56%
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 of THE CIGNA GROUP (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.
What is the financial health of THE CIGNA GROUP (CI) stock?
The financial health rating of THE CIGNA GROUP (CI) is 3 / 10.
Can you provide the expected EPS growth for CI stock?
The Earnings per Share (EPS) of THE CIGNA GROUP (CI) is expected to grow by 11.68% in the next year.