THE CIGNA GROUP (CI) Stock Fundamental Analysis
NYSE:CI - New York Stock Exchange, Inc. - US1255231003 - Common Stock - Currency: USD
Taking everything into account, CI scores 4 out of 10 in our fundamental rating. CI was compared to 109 industry peers in the Health Care Providers & Services industry. While CI is still in line with the averages on profitability rating, there are concerns on its financial health. CI is valued quite cheap, but it does not seem to be growing.
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.
Of the past 5 years CI 4 years were profitable.
Of the past 5 years CI 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.93%, CI is doing good in the industry, outperforming 61.68% of the companies in the same industry.
With a decent Return On Equity value of 7.22%, CI is doing good in the industry, outperforming 69.16% of the companies in the same industry.
CI has a better Return On Invested Capital (8.68%) than 80.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CI is in line with the industry average of 8.18%.
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
Looking at the Profit Margin, with a value of 1.31%, CI is in the better half of the industry, outperforming 63.55% of the companies in the same industry.
CI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.28%, CI perfoms like the industry average, outperforming 59.81% of the companies in the same industry.
In the last couple of years the Operating Margin of CI has declined.
The Gross Margin of CI (11.21%) is worse than 76.64% of its industry peers.
In the last couple of years the Gross Margin of CI has declined.
| 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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.44 indicates that CI is not a great score, but indicates only limited risk for bankruptcy at the moment.
CI has a Altman-Z score of 2.44. This is comparable to the rest of the industry: CI outperforms 55.14% of 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.
CI's Debt to FCF ratio of 6.33 is fine compared to the rest of the industry. CI outperforms 67.29% of its industry peers.
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 42.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.33 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.05
WACC8.23%
2.3 Liquidity
CI has a Current 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.
The Current ratio of CI (0.86) is worse than 84.11% 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.
The Quick ratio of CI (0.77) is worse than 81.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.92% over the past year.
Measured over the past years, CI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.05% on average per year.
EPS 1Y (TTM)8.92%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%-2.21%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.44%
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 12.03% on average per year.
Based on estimates for the next years, CI will show a small growth in Revenue. The Revenue will grow by 5.35% on average per year.
EPS Next Y11.87%
EPS Next 2Y11.69%
EPS Next 3Y11.57%
EPS Next 5Y12.03%
Revenue Next Year3.52%
Revenue Next 2Y4.25%
Revenue Next 3Y4.62%
Revenue Next 5Y5.35%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.30 indicates a reasonable valuation of CI.
87.85% of the companies in the same industry are more expensive than CI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.98. CI is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.10 indicates a reasonable valuation of CI.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 88.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.66. CI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.1 |
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 80.37% of the companies listed in the same industry.
CI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CI is cheaper than 77.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.31 | ||
| EV/EBITDA | 8.41 |
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)0.95
PEG (5Y)1.12
EPS Next 2Y11.69%
EPS Next 3Y11.57%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 1.99%. 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 3.06. CI pays more dividend than 89.72% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, CI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
On average, the dividend of CI grows each year by 163.63%, 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)163.63%
Div Incr Years4
Div Non Decr Years19
5.3 Sustainability
CI pays out 50.71% of its income as dividend. 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 2Y11.69%
EPS Next 3Y11.57%
308.85
+5.93 (+1.96%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.1%
Inst Owner Change-0.36%
Ins Owners0.36%
Ins Owner Change0%
Market Cap84.56B
Analysts81.82
Price Target366.24 (18.58%)
Short Float %1.53%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend4.9
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)-7.08%
PT rev (3m)-9.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.1 | ||
| P/S | 0.36 | ||
| P/FCF | 16.31 | ||
| P/OCF | 12.78 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.41 |
EPS(TTM)27.34
EY8.85%
EPS(NY)30.58
Fwd EY9.9%
FCF(TTM)18.93
FCFY6.13%
OCF(TTM)24.17
OCFY7.83%
SpS849.51
BVpS153.75
TBVpS-117.13
PEG (NY)0.95
PEG (5Y)1.12
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
WACC8.23%
ROIC/WACC1.05
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)8.92%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%-2.21%
EPS Next Y11.87%
EPS Next 2Y11.69%
EPS Next 3Y11.57%
EPS Next 5Y12.03%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.44%
Revenue Next Year3.52%
Revenue Next 2Y4.25%
Revenue Next 3Y4.62%
Revenue Next 5Y5.35%
EBIT growth 1Y21.08%
EBIT growth 3Y2.33%
EBIT growth 5Y13.82%
EBIT Next Year39.85%
EBIT Next 3Y13.97%
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%