THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CI - US1255231003 - Common Stock
277.28 USD
-1.07 (-0.38%)
277.28 USD
0 (0%)
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. There are concerns on the financial health of CI while its profitability can be described as average. CI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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 70.30% 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 81.19% of the companies in the same industry.
CI's Return On Invested Capital of 8.31% is fine compared to the rest of the industry. CI outperforms 75.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CI is in line with the industry average of 9.26%.
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.
In the last couple of years the Profit Margin of CI has declined.
With a Operating Margin value of 3.72%, CI perfoms like the industry average, outperforming 56.44% of the companies in the same industry.
CI's Operating Margin has declined in the last couple of years.
CI's Gross Margin of 9.55% is on the low side compared to the rest of the industry. CI is outperformed by 76.24% of its industry peers.
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.
Compared to 1 year ago, CI has less shares outstanding
The number of shares outstanding for CI has been reduced compared to 5 years ago.
CI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.63 indicates that CI is not a great score, but indicates only limited risk for bankruptcy at the moment.
CI has a Altman-Z score (2.63) which is comparable to the rest of the 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.
Looking at the Debt to FCF ratio, with a value of 4.58, CI is in the better half of the industry, outperforming 68.32% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that 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 | 2.63 |
ROIC/WACC0.98
WACC8.45%
2.3 Liquidity
CI has a Current Ratio of 0.83. This is a bad value and indicates that CI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.83, CI is doing worse than 83.17% of the companies in the same industry.
A Quick Ratio of 0.73 indicates that CI may have some problems paying its short term obligations.
CI has a worse Quick ratio (0.73) than 79.21% 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.
The Earnings Per Share has been growing by 10.05% on average over the past years. This is quite good.
Looking at the last year, CI shows a quite strong growth in Revenue. The Revenue has grown by 15.26% in the last year.
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
The Earnings Per Share is expected to grow by 9.72% on average over the next years. This is quite good.
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
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.
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
With a Price/Earnings ratio of 9.76, the valuation of CI can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 92.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, CI is valued rather cheaply.
A Price/Forward Earnings ratio of 8.40 indicates a reasonable valuation of CI.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 95.05% of the companies in the same industry.
CI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
CI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CI is cheaper than 81.19% of the companies in the same industry.
85.15% 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 | 9.96 | ||
| EV/EBITDA | 7.94 |
4.3 Compensation for Growth
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.
PEG (NY)0.85
PEG (5Y)0.97
EPS Next 2Y9.88%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 2.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.60, CI pays a better dividend. On top of this CI pays more dividend than 92.08% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, CI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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 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
26.01% of the earnings are spent on dividend by CI. This is a low number and 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%
277.28
-1.07 (-0.38%)
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 Cap74.07B
Revenue(TTM)268.08B
Net Income(TTM)6.15B
Analysts81.71
Price Target335.26 (20.91%)
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 | 9.76 | ||
| Fwd PE | 8.4 | ||
| P/S | 0.28 | ||
| P/FCF | 9.96 | ||
| P/OCF | 8.55 | ||
| P/B | 1.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.94 |
EPS(TTM)28.41
EY10.25%
EPS(NY)33.01
Fwd EY11.9%
FCF(TTM)27.84
FCFY10.04%
OCF(TTM)32.43
OCFY11.7%
SpS1003.55
BVpS156.5
TBVpS-120.14
PEG (NY)0.85
PEG (5Y)0.97
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 9.76 and the Price/Book (PB) ratio is 1.77.
What is the financial health of THE CIGNA GROUP (CI) stock?
The financial health rating of THE CIGNA GROUP (CI) is 3 / 10.