THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CI - US1255231003 - Common Stock
274.86 USD
+1.11 (+0.41%)
274.86 USD
0 (0%)
CI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 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. Finally CI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CI had positive earnings in the past year.
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 68.63% of its industry peers.
CI's Return On Equity of 14.70% is fine compared to the rest of the industry. CI outperforms 79.41% of its industry peers.
CI's Return On Invested Capital of 8.31% is fine compared to the rest of the industry. CI outperforms 74.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CI is below the industry average of 9.61%.
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
The Profit Margin of CI (2.29%) is better than 61.76% of its industry peers.
CI's Profit Margin has declined in the last couple of years.
The Operating Margin of CI (3.72%) is comparable to the rest of the industry.
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: 76.47% 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.
CI has less shares outstanding than it did 1 year ago.
CI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CI has a worse debt to assets ratio.
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.
The Altman-Z score of CI (2.63) 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 68.63% of the companies in the same industry.
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 | 2.63 |
ROIC/WACC0.98
WACC8.52%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CI may have some problems paying its short term obligations.
CI has a Current ratio of 0.83. This is amonst the worse of the industry: CI underperforms 83.33% of its industry peers.
CI has a Quick 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.
The Quick ratio of CI (0.73) is worse than 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
CI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.35%.
CI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.05% yearly.
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.
Based on estimates for the next years, CI will show a small growth in Revenue. The Revenue will grow by 6.32% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 9.67, the valuation of CI can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 91.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CI to the average of the S&P500 Index (26.59), we can say CI is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.77, the valuation of CI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CI is valued cheaper than 94.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, CI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 8.77 |
4.2 Price Multiples
79.41% 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 cheaper than 86.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.87 | ||
| EV/EBITDA | 7.84 |
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.
PEG (NY)0.83
PEG (5Y)0.96
EPS Next 2Y7.07%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 2.20%. Purely for dividend investing, there may be better candidates out there.
CI's Dividend Yield is rather good when compared to the industry average which is at 0.58. CI pays more dividend than 93.14% of the companies in the same industry.
CI's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
The dividend of CI is nicely growing with an annual growth rate of 169.26%!
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
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%
274.86
+1.11 (+0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.56%
Inst Owner Change-1.5%
Ins Owners0.33%
Ins Owner Change-0.04%
Market Cap73.42B
Revenue(TTM)268.08B
Net Income(TTM)6.15B
Analysts82.35
Price Target332.04 (20.8%)
Short Float %1.5%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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)-9.93%
PT rev (3m)-9.95%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)1.2%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 8.77 | ||
| P/S | 0.27 | ||
| P/FCF | 9.87 | ||
| P/OCF | 8.47 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.84 |
EPS(TTM)28.41
EY10.34%
EPS(NY)31.34
Fwd EY11.4%
FCF(TTM)27.84
FCFY10.13%
OCF(TTM)32.43
OCFY11.8%
SpS1003.55
BVpS156.5
TBVpS-120.14
PEG (NY)0.83
PEG (5Y)0.96
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
WACC8.52%
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 Y11.68%
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 Year21.81%
EBIT Next 3Y8.81%
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 7 / 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 5 / 10.
Can you provide the PE and PB ratios for CI stock?
The Price/Earnings (PE) ratio for THE CIGNA GROUP (CI) is 9.67 and the Price/Book (PB) ratio is 1.76.
What is the financial health of THE CIGNA GROUP (CI) stock?
The financial health rating of THE CIGNA GROUP (CI) is 3 / 10.