THE CIGNA GROUP (CI)
US1255231003 - Common Stock
Overall CI gets a fundamental rating of 6 out of 10. We evaluated CI against 108 industry peers in the Health Care Providers & Services industry. CI has only an average score on both its financial health and profitability. CI is growing strongly while it also seems undervalued. This is an interesting combination
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.
CI had positive earnings in each of the past 5 years.
CI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CI has a better Return On Assets (1.93%) than 62.62% of its industry peers.
Looking at the Return On Equity, with a value of 7.22%, CI is in the better half of the industry, outperforming 69.16% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.68%, CI belongs to the top of the industry, outperforming 82.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CI is in line with the industry average of 8.15%.
The 3 year average ROIC (7.18%) for CI is below the current ROIC(8.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.22% | ||
| ROIC | 8.68% |
ROA(3y)3.83%
ROA(5y)4.04%
ROE(3y)12.5%
ROE(5y)13.11%
ROIC(3y)7.18%
ROIC(5y)6.91%
1.3 Margins
CI has a Profit Margin of 1.31%. This is in the better half of the industry: CI outperforms 62.62% of its industry peers.
In the last couple of years the Profit Margin of CI has declined.
CI has a Operating Margin of 4.28%. This is in the better half of the industry: CI outperforms 60.75% of its industry peers.
CI's Operating Margin has declined in the last couple of years.
CI's Gross Margin of 11.21% is on the low side compared to the rest of the industry. CI is outperformed by 75.70% of its industry peers.
CI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.28% | ||
| PM (TTM) | 1.31% | ||
| GM | 11.21% |
OM growth 3Y-4.2%
OM growth 5Y-13.87%
PM growth 3Y-20.58%
PM growth 5Y-13.44%
GM growth 3Y-4.88%
GM growth 5Y-17.28%
2. Health
2.1 Basic Checks
CI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CI has been reduced compared to 1 year ago.
CI has less shares outstanding than it did 5 years ago.
CI has a better debt/assets ratio than last year.
2.2 Solvency
CI has an Altman-Z score of 2.41. 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 2.41, CI perfoms like the industry average, outperforming 55.14% of the companies in the same industry.
CI has a debt to FCF ratio of 6.33. This is a slightly negative value and a sign of low solvency as CI would need 6.33 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.33, CI is doing good in the industry, outperforming 71.03% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that CI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, CI is in line with its industry, outperforming 43.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.33 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.13
WACC7.69%
2.3 Liquidity
A Current Ratio of 0.86 indicates that CI may have some problems paying its short term obligations.
CI's Current ratio of 0.86 is on the low side compared to the rest of the industry. CI is outperformed by 81.31% of its industry peers.
A Quick Ratio of 0.77 indicates that CI may have some problems paying its short term obligations.
CI has a worse Quick ratio (0.77) than 78.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
CI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.13%, which is quite good.
Measured over the past years, CI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.91% on average per year.
Looking at the last year, CI shows a very strong growth in Revenue. The Revenue has grown by 22.48%.
The Revenue has been growing by 32.15% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)18.13%
EPS 3Y10.87%
EPS 5Y11.91%
EPS Q2Q%10.93%
Revenue 1Y (TTM)22.48%
Revenue growth 3Y6.82%
Revenue growth 5Y32.15%
Sales Q2Q%29.79%
3.2 Future
The Earnings Per Share is expected to grow by 12.36% on average over the next years. This is quite good.
Based on estimates for the next years, CI will show a quite strong growth in Revenue. The Revenue will grow by 9.07% on average per year.
EPS Next Y16.99%
EPS Next 2Y13.41%
EPS Next 3Y13.15%
EPS Next 5Y12.36%
Revenue Next Year26.37%
Revenue Next 2Y14.24%
Revenue Next 3Y10.95%
Revenue Next 5Y9.07%
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
CI is valuated reasonably with a Price/Earnings ratio of 10.19.
Based on the Price/Earnings ratio, CI is valued cheaper than 91.59% of the companies in the same industry.
CI is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.68, the valuation of CI can be described as very reasonable.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 92.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.99. CI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 8.68 |
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 84.11% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CI indicates a rather cheap valuation: CI is cheaper than 81.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.03 | ||
| EV/EBITDA | 7.89 |
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.
CI's earnings are expected to grow with 13.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)0.86
EPS Next 2Y13.41%
EPS Next 3Y13.15%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 2.04%.
Compared to an average industry Dividend Yield of 2.83, CI pays a better dividend. On top of this CI pays more dividend than 89.72% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
The dividend of CI is nicely growing with an annual growth rate of 163.63%!
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)163.63%
Div Incr Years4
Div Non Decr Years19
5.3 Sustainability
50.71% of the earnings are spent on dividend by CI. This is a bit on the high side, but may be sustainable.
CI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.71%
EPS Next 2Y13.41%
EPS Next 3Y13.15%
THE CIGNA GROUP
NYSE:CI (12/24/2024, 8:03:33 PM)
Premarket: 280.888 +0.83 (+0.3%)280.06
-1.57 (-0.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.01%
Inst Owner Change0.67%
Ins Owners0.35%
Ins Owner Change-0.23%
Market Cap77.90B
Analysts83.53
Price Target404.94 (44.59%)
Short Float %1.16%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Dividend Growth(5Y)163.63%
DP50.71%
Div Incr Years4
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.52%
Min EPS beat(2)1.22%
Max EPS beat(2)1.81%
EPS beat(4)4
Avg EPS beat(4)1.22%
Min EPS beat(4)0.88%
Max EPS beat(4)1.81%
EPS beat(8)5
Avg EPS beat(8)0.23%
EPS beat(12)8
Avg EPS beat(12)2.13%
EPS beat(16)11
Avg EPS beat(16)2.01%
Revenue beat(2)2
Avg Revenue beat(2)2.47%
Min Revenue beat(2)0.74%
Max Revenue beat(2)4.2%
Revenue beat(4)3
Avg Revenue beat(4)1.2%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)4.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.04%
Revenue beat(12)4
Avg Revenue beat(12)-0.33%
Revenue beat(16)7
Avg Revenue beat(16)-0.1%
PT rev (1m)-0.02%
PT rev (3m)0.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.56%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)3.76%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 8.68 | ||
| P/S | 0.33 | ||
| P/FCF | 15.03 | ||
| P/OCF | 11.77 | ||
| P/B | 1.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.89 |
EPS(TTM)27.49
EY9.82%
EPS(NY)32.28
Fwd EY11.53%
FCF(TTM)18.64
FCFY6.65%
OCF(TTM)23.79
OCFY8.5%
SpS836.19
BVpS151.34
TBVpS-115.3
PEG (NY)0.6
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.22% | ||
| ROCE | 9.9% | ||
| ROIC | 8.68% | ||
| ROICexc | 9.3% | ||
| ROICexgc | 41.67% | ||
| OM | 4.28% | ||
| PM (TTM) | 1.31% | ||
| GM | 11.21% | ||
| FCFM | 2.23% |
ROA(3y)3.83%
ROA(5y)4.04%
ROE(3y)12.5%
ROE(5y)13.11%
ROIC(3y)7.18%
ROIC(5y)6.91%
ROICexc(3y)7.71%
ROICexc(5y)7.43%
ROICexgc(3y)35.93%
ROICexgc(5y)32.02%
ROCE(3y)8.14%
ROCE(5y)7.83%
ROICexcg growth 3Y13.37%
ROICexcg growth 5Y24.41%
ROICexc growth 3Y6.54%
ROICexc growth 5Y18.38%
OM growth 3Y-4.2%
OM growth 5Y-13.87%
PM growth 3Y-20.58%
PM growth 5Y-13.44%
GM growth 3Y-4.88%
GM growth 5Y-17.28%
F-Score6
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.33 | ||
| Debt/EBITDA | 2.48 | ||
| Cap/Depr | 49.55% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 7.39 | ||
| Cash Conversion | 51.49% | ||
| Profit Quality | 170.58% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.41 |
F-Score6
WACC7.69%
ROIC/WACC1.13
Cap/Depr(3y)45.13%
Cap/Depr(5y)40.64%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.71%
Profit Quality(3y)140.41%
Profit Quality(5y)139.18%
High Growth Momentum
Growth
EPS 1Y (TTM)18.13%
EPS 3Y10.87%
EPS 5Y11.91%
EPS Q2Q%10.93%
EPS Next Y16.99%
EPS Next 2Y13.41%
EPS Next 3Y13.15%
EPS Next 5Y12.36%
Revenue 1Y (TTM)22.48%
Revenue growth 3Y6.82%
Revenue growth 5Y32.15%
Sales Q2Q%29.79%
Revenue Next Year26.37%
Revenue Next 2Y14.24%
Revenue Next 3Y10.95%
Revenue Next 5Y9.07%
EBIT growth 1Y21.08%
EBIT growth 3Y2.33%
EBIT growth 5Y13.82%
EBIT Next Year40.1%
EBIT Next 3Y15.8%
EBIT Next 5Y11.75%
FCF growth 1Y-45.88%
FCF growth 3Y3.43%
FCF growth 5Y25.86%
OCF growth 1Y-38.9%
OCF growth 3Y4.51%
OCF growth 5Y25.66%