THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CI - US1255231003 - Common Stock
280.41 USD
+1.21 (+0.43%)
283.5 USD
+3.09 (+1.1%)
We assign a fundamental rating of 5 out of 10 to CI. CI was compared to 103 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! Finally 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.
- 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's Return On Assets of 3.89% is fine compared to the rest of the industry. CI outperforms 68.93% of its industry peers.
- The Return On Equity of CI (14.70%) is better than 80.58% of its industry peers.
- CI's Return On Invested Capital of 8.31% is fine compared to the rest of the industry. CI outperforms 74.76% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CI is in line with the industry average of 9.21%.
- The 3 year average ROIC (7.53%) for CI is below the current ROIC(8.31%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 2.29%, CI is in the better half of the industry, outperforming 62.14% of the companies in the same industry.
- In the last couple of years the Profit Margin of CI has declined.
- 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.
- CI has a Gross Margin of 9.55%. This is in the lower half of the industry: CI underperforms 74.76% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CI is destroying value.
- Compared to 1 year ago, CI has less shares outstanding
- CI has less shares outstanding than it did 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.
- 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.
- Looking at the Debt to FCF ratio, with a value of 4.58, CI is in the better half of the industry, outperforming 68.93% 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 of 0.74. This is comparable to the rest of the industry: CI outperforms 50.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.98
WACC8.5%
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 82.52% 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 78.64% 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.
- CI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.05% yearly.
- The Revenue has grown by 15.26% in the past year. This is quite good.
- 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 8.86% on average per year.
- Based on estimates for the next years, CI will show a small growth in Revenue. The Revenue will grow by 5.58% on average per year.
EPS Next Y11.67%
EPS Next 2Y7.03%
EPS Next 3Y8.01%
EPS Next 5Y8.86%
Revenue Next Year11.03%
Revenue Next 2Y7.86%
Revenue Next 3Y7.24%
Revenue Next 5Y5.58%
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
- With a Price/Earnings ratio of 9.87, the valuation of CI can be described as very reasonable.
- CI's Price/Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 94.17% 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 27.25.
- CI is valuated reasonably with a Price/Forward Earnings ratio of 8.95.
- CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 92.23% of the companies 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 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CI indicates a rather cheap valuation: CI is cheaper than 80.58% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CI is valued cheaper than 86.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.07 | ||
| EV/EBITDA | 7.96 |
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.
- The decent profitability rating of CI may justify a higher PE ratio.
PEG (NY)0.85
PEG (5Y)0.98
EPS Next 2Y7.03%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
- CI has a Yearly Dividend Yield of 2.15%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.45, CI pays a better dividend. On top of this CI pays more dividend than 94.17% of the companies listed in the same industry.
- CI's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
5.2 History
- On average, the dividend of CI grows each year by 169.26%, which is quite nice.
- 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
- CI pays out 26.01% of its income as dividend. This is a 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 2Y7.03%
EPS Next 3Y8.01%
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 11.67% in the next year.