THE CIGNA GROUP (CI) Stock Fundamental Analysis
NYSE:CI - New York Stock Exchange, Inc. - US1255231003 - Common Stock - Currency: USD
CI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 109 industry peers in the Health Care Providers & Services industry. CI has an average financial health and profitability rating. CI has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
In the past year CI was profitable.
CI had a positive operating cash flow in the past year.
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
The Return On Assets of CI (1.93%) is better than 62.04% of its industry peers.
CI has a Return On Equity of 7.22%. This is in the better half of the industry: CI outperforms 69.44% of its industry peers.
CI's Return On Invested Capital of 8.68% is amongst the best of the industry. CI outperforms 82.41% 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 8.15%.
The last Return On Invested Capital (8.68%) for CI is above the 3 year average (7.18%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 1.31%, CI is doing good in the industry, outperforming 62.96% of the companies in the same industry.
In the last couple of years the Profit Margin of CI has declined.
With a decent Operating Margin value of 4.28%, CI is doing good in the industry, outperforming 61.11% of the companies in the same industry.
In the last couple of years the Operating Margin of CI has declined.
CI has a Gross Margin of 11.21%. This is in the lower half of the industry: CI underperforms 75.93% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CI is creating some value.
CI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CI has been reduced compared to 5 years ago.
The debt/assets ratio for CI has been reduced compared to a year ago.
2.2 Solvency
CI has an Altman-Z score of 2.44. 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.
CI has a Altman-Z score (2.44) which is in line with its industry peers.
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 71.30% of the companies in the same industry.
CI has a Debt/Equity ratio of 0.76. This is a neutral value indicating 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 42.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.33 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.12
WACC7.73%
2.3 Liquidity
A Current Ratio of 0.86 indicates that CI may have some problems paying its short term obligations.
CI has a worse Current ratio (0.86) than 81.48% of its industry peers.
CI has a Quick Ratio of 0.86. 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 Quick ratio, with a value of 0.77, CI is doing worse than 78.70% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 11.91% on average over the past years. This is quite good.
The Revenue has grown by 22.48% in the past year. This is a very strong growth!
Measured over the past years, CI shows a very strong growth in Revenue. The Revenue has been growing by 32.15% on average per year.
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
CI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.36% yearly.
The Revenue is expected to grow by 9.27% on average over the next years. This is quite good.
EPS Next Y16.99%
EPS Next 2Y13.41%
EPS Next 3Y13.15%
EPS Next 5Y12.36%
Revenue Next Year26.06%
Revenue Next 2Y14.1%
Revenue Next 3Y10.95%
Revenue Next 5Y9.27%
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
Based on the Price/Earnings ratio of 11.02, the valuation of CI can be described as reasonable.
Based on the Price/Earnings ratio, CI is valued cheaper than 91.67% 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 28.42.
The Price/Forward Earnings ratio is 9.38, which indicates a very decent valuation of CI.
89.81% of the companies in the same industry are more expensive than CI, based on the Price/Forward Earnings ratio.
CI is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 9.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CI is valued cheaper than 83.33% of the companies 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 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.25 | ||
| EV/EBITDA | 8.45 |
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.
CI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CI's earnings are expected to grow with 13.15% in the coming years.
PEG (NY)0.65
PEG (5Y)0.92
EPS Next 2Y13.41%
EPS Next 3Y13.15%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 1.90%.
Compared to an average industry Dividend Yield of 2.85, CI pays a better dividend. On top of this CI pays more dividend than 87.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, CI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
On average, the dividend of CI grows each year by 163.63%, which is quite nice.
CI has paid a dividend for at least 10 years, which is a reliable track record.
CI has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of CI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.71%
EPS Next 2Y13.41%
EPS Next 3Y13.15%
THE CIGNA GROUP
NYSE:CI (1/28/2025, 8:04:00 PM)
After market: 302.82 0 (0%)302.82
-2.9 (-0.95%)
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 Change-0.28%
Ins Owners0.35%
Ins Owner Change-0.3%
Market Cap84.23B
Analysts82.94
Price Target401.86 (32.71%)
Short Float %1.77%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend4.9
Dividend Growth(5Y)163.63%
DP50.71%
Div Incr Years4
Div Non Decr Years19
Ex-DateN/A
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)-0.76%
PT rev (3m)-0.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.56%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.76%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 9.38 | ||
| P/S | 0.36 | ||
| P/FCF | 16.25 | ||
| P/OCF | 12.73 | ||
| P/B | 2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.45 |
EPS(TTM)27.49
EY9.08%
EPS(NY)32.28
Fwd EY10.66%
FCF(TTM)18.64
FCFY6.15%
OCF(TTM)23.79
OCFY7.86%
SpS836.19
BVpS151.34
TBVpS-115.3
PEG (NY)0.65
PEG (5Y)0.92
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 | 2.44 |
F-Score6
WACC7.73%
ROIC/WACC1.12
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 Year26.06%
Revenue Next 2Y14.1%
Revenue Next 3Y10.95%
Revenue Next 5Y9.27%
EBIT growth 1Y21.08%
EBIT growth 3Y2.33%
EBIT growth 5Y13.82%
EBIT Next Year39.85%
EBIT Next 3Y15.77%
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%