THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - NYSE:CI - US1255231003 - Common Stock
244.41 USD
-2.69 (-1.09%)
245.358 USD
+0.95 (+0.39%)
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 is valued quite cheap, while showing a decent growth score. This is a good combination! CI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CI had positive earnings in the past year.
CI had a positive operating cash flow in the past year.
Each year in the past 5 years CI has been profitable.
Each year in the past 5 years CI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.31%, CI is in the better half of the industry, outperforming 66.34% of the companies in the same industry.
The Return On Equity of CI (12.48%) is better than 76.24% of its industry peers.
With a decent Return On Invested Capital value of 8.77%, CI is doing good in the industry, outperforming 75.25% of the companies in the same industry.
CI had an Average Return On Invested Capital over the past 3 years of 7.53%. This is in line with the industry average of 9.33%.
The 3 year average ROIC (7.53%) for CI is below the current ROIC(8.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 12.48% | ||
| ROIC | 8.77% |
ROA(3y)3.41%
ROA(5y)3.82%
ROE(3y)11.49%
ROE(5y)12.53%
ROIC(3y)7.53%
ROIC(5y)6.93%
1.3 Margins
Looking at the Profit Margin, with a value of 1.92%, CI is in the better half of the industry, outperforming 60.40% of the companies in the same industry.
In the last couple of years the Profit Margin of CI has declined.
Looking at the Operating Margin, with a value of 3.75%, CI is in line with its industry, outperforming 56.44% of the companies in the same industry.
CI's Operating Margin has declined in the last couple of years.
The Gross Margin of CI (9.86%) is worse than 74.26% of its industry peers.
CI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.75% | ||
| PM (TTM) | 1.92% | ||
| GM | 9.86% |
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
CI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CI has been reduced compared to 1 year ago.
Compared to 5 years ago, CI has less shares outstanding
The debt/assets ratio for CI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.62 indicates that CI is not a great score, but indicates only limited risk for bankruptcy at the moment.
CI has a Altman-Z score (2.62) which is comparable to the rest of the industry.
The Debt to FCF ratio of CI is 7.80, which is on the high side as it means it would take CI, 7.80 years of fcf income to pay off all of its debts.
CI's Debt to FCF ratio of 7.80 is in line compared to the rest of the industry. CI outperforms 58.42% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that CI is somewhat dependend on debt financing.
The Debt to Equity ratio of CI (0.66) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 7.8 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.99
WACC8.82%
2.3 Liquidity
CI has a Current Ratio of 0.79. This is a bad value and indicates that CI is not financially healthy enough and could expect problems in meeting its short term obligations.
CI has a Current ratio of 0.79. This is amonst the worse of the industry: CI underperforms 85.15% of its industry peers.
CI has a Quick Ratio of 0.79. This is a bad value and indicates that CI is not financially healthy enough and could expect problems in meeting its short term obligations.
CI has a worse Quick ratio (0.68) than 82.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.68 |
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.
Looking at the last year, CI shows a very strong growth in Revenue. The Revenue has grown by 26.56%.
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)26.56%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%9.22%
3.2 Future
The Earnings Per Share is expected to grow by 11.65% 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 5.75% on average per year.
EPS Next Y11.61%
EPS Next 2Y11.54%
EPS Next 3Y11.84%
EPS Next 5Y11.65%
Revenue Next Year9.32%
Revenue Next 2Y6.86%
Revenue Next 3Y6.55%
Revenue Next 5Y5.75%
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
The Price/Earnings ratio is 8.60, which indicates a very decent valuation of CI.
93.07% of the companies in the same industry are more expensive than CI, based on the Price/Earnings ratio.
CI is valuated cheaply when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.19, the valuation of CI can be described as very cheap.
97.03% of the companies in the same industry are more expensive than CI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, CI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 7.19 |
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 83.17% of the companies listed in the same industry.
71.29% 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 | 16.54 | ||
| EV/EBITDA | 7.27 |
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)0.74
PEG (5Y)0.86
EPS Next 2Y11.54%
EPS Next 3Y11.84%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 2.02%.
CI's Dividend Yield is rather good when compared to the industry average which is at 2.46. CI pays more dividend than 92.08% of the companies in the same industry.
CI's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
On average, the dividend of CI grows each year by 169.26%, 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)169.26%
Div Incr Years4
Div Non Decr Years19
5.3 Sustainability
CI pays out 31.63% 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.
DP31.63%
EPS Next 2Y11.54%
EPS Next 3Y11.84%
244.41
-2.69 (-1.09%)
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 Change0.03%
Ins Owners0.34%
Ins Owner Change0.01%
Market Cap65.24B
Revenue(TTM)247.12B
Net Income(TTM)5.02B
Analysts81.18
Price Target368.65 (50.83%)
Short Float %1.44%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend5.53
Dividend Growth(5Y)169.26%
DP31.63%
Div Incr Years4
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.38%
Min EPS beat(2)-2.29%
Max EPS beat(2)3.05%
EPS beat(4)2
Avg EPS beat(4)-3.91%
Min EPS beat(4)-17.61%
Max EPS beat(4)3.05%
EPS beat(8)5
Avg EPS beat(8)-1.68%
EPS beat(12)7
Avg EPS beat(12)-1.03%
EPS beat(16)10
Avg EPS beat(16)0.95%
Revenue beat(2)2
Avg Revenue beat(2)4.87%
Min Revenue beat(2)4.42%
Max Revenue beat(2)5.31%
Revenue beat(4)4
Avg Revenue beat(4)3.63%
Min Revenue beat(4)0.59%
Max Revenue beat(4)5.31%
Revenue beat(8)6
Avg Revenue beat(8)1.75%
Revenue beat(12)6
Avg Revenue beat(12)0.69%
Revenue beat(16)8
Avg Revenue beat(16)0.42%
PT rev (1m)0%
PT rev (3m)-3.74%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-3.04%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)4.8%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)3.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 7.19 | ||
| P/S | 0.25 | ||
| P/FCF | 16.54 | ||
| P/OCF | 12.33 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.27 |
EPS(TTM)28.41
EY11.62%
EPS(NY)34.01
Fwd EY13.92%
FCF(TTM)14.78
FCFY6.05%
OCF(TTM)19.83
OCFY8.11%
SpS981.62
BVpS150.65
TBVpS-123
PEG (NY)0.74
PEG (5Y)0.86
Graham Number310.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 12.48% | ||
| ROCE | 10.37% | ||
| ROIC | 8.77% | ||
| ROICexc | 9.27% | ||
| ROICexgc | 49.85% | ||
| OM | 3.75% | ||
| PM (TTM) | 1.92% | ||
| GM | 9.86% | ||
| FCFM | 1.51% |
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-Score7
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 7.8 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 50.83% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 7.13 | ||
| Cash Conversion | 42.38% | ||
| Profit Quality | 78.6% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 2.62 |
F-Score7
WACC8.82%
ROIC/WACC0.99
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 Y11.61%
EPS Next 2Y11.54%
EPS Next 3Y11.84%
EPS Next 5Y11.65%
Revenue 1Y (TTM)26.56%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%9.22%
Revenue Next Year9.32%
Revenue Next 2Y6.86%
Revenue Next 3Y6.55%
Revenue Next 5Y5.75%
EBIT growth 1Y3.03%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year21.27%
EBIT Next 3Y9.36%
EBIT Next 5Y6.64%
FCF growth 1Y-65.45%
FCF growth 3Y14.05%
FCF growth 5Y1.21%
OCF growth 1Y-58.98%
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 5 / 10.
Can you provide the PE and PB ratios for CI stock?
The Price/Earnings (PE) ratio for THE CIGNA GROUP (CI) is 8.6 and the Price/Book (PB) ratio is 1.62.
What is the financial health of THE CIGNA GROUP (CI) stock?
The financial health rating of THE CIGNA GROUP (CI) is 3 / 10.