THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CI - US1255231003 - Common Stock
278.35 USD
+0.15 (+0.05%)
278.35 USD
0 (0%)
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. While CI is still in line with the averages on profitability rating, there are concerns on its financial health. CI may be a bit undervalued, certainly considering the very reasonable score on growth CI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CI was profitable.
CI had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 3.89%, CI is doing good in the industry, outperforming 70.30% of the companies in the same industry.
CI's Return On Equity of 14.70% is amongst the best of the industry. CI outperforms 81.19% of its industry peers.
With a decent Return On Invested Capital value of 8.31%, CI is doing good in the industry, outperforming 75.25% 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 9.27%.
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
CI's Profit Margin of 2.29% is fine compared to the rest of the industry. CI outperforms 62.38% of its industry peers.
In the last couple of years the Profit Margin of CI has declined.
CI's Operating Margin of 3.72% is in line compared to the rest of the industry. CI outperforms 56.44% of its industry peers.
In the last couple of years the Operating Margin of CI has declined.
With a Gross Margin value of 9.55%, CI is not doing good in the industry: 76.24% of the companies in the same industry are doing better.
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
CI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CI has less shares outstanding
The number of shares outstanding for CI has been reduced compared to 5 years ago.
Compared to 1 year ago, CI has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 2.63, CI is in line with its industry, outperforming 55.45% of the companies in the same 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.
With a decent Debt to FCF ratio value of 4.58, CI is doing good in the industry, outperforming 68.32% of the companies in the same industry.
CI has a Debt/Equity ratio of 0.74. This is a neutral value indicating CI is somewhat dependend on debt financing.
The Debt to Equity ratio of CI (0.74) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.98
WACC8.45%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CI may have some problems paying its short term obligations.
CI's Current ratio of 0.83 is on the low side compared to the rest of the industry. CI is outperformed by 84.16% 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.
CI's Quick ratio of 0.73 is on the low side compared to the rest of the industry. CI is outperformed by 80.20% 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.
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)15.26%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%9.5%
3.2 Future
The Earnings Per Share is expected to grow by 9.72% 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 6.32% on average per year.
EPS Next Y11.52%
EPS Next 2Y9.88%
EPS Next 3Y10.52%
EPS Next 5Y9.72%
Revenue Next Year9.64%
Revenue Next 2Y7.26%
Revenue Next 3Y6.89%
Revenue Next 5Y6.32%
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
CI is valuated reasonably with a Price/Earnings ratio of 9.80.
Based on the Price/Earnings ratio, CI is valued cheaper than 92.08% 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 26.15.
Based on the Price/Forward Earnings ratio of 8.43, the valuation of CI can be described as reasonable.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 95.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CI to the average of the S&P500 Index (36.12), we can say CI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 8.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CI is valued cheaper than 81.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CI is valued cheaply inside the industry as 85.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10 | ||
| EV/EBITDA | 7.94 |
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.
PEG (NY)0.85
PEG (5Y)0.98
EPS Next 2Y9.88%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 2.24%.
Compared to an average industry Dividend Yield of 2.60, CI pays a better dividend. On top of this CI pays more dividend than 92.08% of the companies listed in the same industry.
CI's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
The dividend of CI is nicely growing with an annual growth rate of 169.26%!
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 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 2Y9.88%
EPS Next 3Y10.52%
278.35
+0.15 (+0.05%)
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 Change-1.54%
Ins Owners0.34%
Ins Owner Change0.01%
Market Cap74.36B
Revenue(TTM)268.08B
Net Income(TTM)6.15B
Analysts81.71
Price Target335.26 (20.45%)
Short Float %1.4%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend5.53
Dividend Growth(5Y)169.26%
DP26.01%
Div Incr Years4
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.44%
Min EPS beat(2)-2.29%
Max EPS beat(2)-0.6%
EPS beat(4)1
Avg EPS beat(4)-4.36%
Min EPS beat(4)-17.61%
Max EPS beat(4)3.05%
EPS beat(8)5
Avg EPS beat(8)-1.57%
EPS beat(12)6
Avg EPS beat(12)-1.3%
EPS beat(16)9
Avg EPS beat(16)0.51%
Revenue beat(2)2
Avg Revenue beat(2)2.66%
Min Revenue beat(2)0.9%
Max Revenue beat(2)4.42%
Revenue beat(4)4
Avg Revenue beat(4)2.81%
Min Revenue beat(4)0.59%
Max Revenue beat(4)5.31%
Revenue beat(8)7
Avg Revenue beat(8)2%
Revenue beat(12)7
Avg Revenue beat(12)0.91%
Revenue beat(16)8
Avg Revenue beat(16)0.46%
PT rev (1m)-9.07%
PT rev (3m)-9.27%
EPS NQ rev (1m)-1.94%
EPS NQ rev (3m)-0.87%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)2.65%
Revenue NQ rev (3m)2.73%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)4.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 8.43 | ||
| P/S | 0.28 | ||
| P/FCF | 10 | ||
| P/OCF | 8.58 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.94 |
EPS(TTM)28.41
EY10.21%
EPS(NY)33.01
Fwd EY11.86%
FCF(TTM)27.84
FCFY10%
OCF(TTM)32.43
OCFY11.65%
SpS1003.55
BVpS156.5
TBVpS-120.14
PEG (NY)0.85
PEG (5Y)0.98
Graham Number316.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 14.7% | ||
| ROCE | 9.83% | ||
| ROIC | 8.31% | ||
| ROICexc | 8.92% | ||
| ROICexgc | 40.82% | ||
| OM | 3.72% | ||
| PM (TTM) | 2.29% | ||
| GM | 9.55% | ||
| FCFM | 2.77% |
ROA(3y)3.41%
ROA(5y)3.82%
ROE(3y)11.49%
ROE(5y)12.53%
ROIC(3y)7.53%
ROIC(5y)6.93%
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-Score6
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.58 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 45.46% | ||
| Cap/Sales | 0.46% | ||
| Interest Coverage | 7.4 | ||
| Cash Conversion | 68.38% | ||
| Profit Quality | 120.99% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.63 |
F-Score6
WACC8.45%
ROIC/WACC0.98
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 Y11.52%
EPS Next 2Y9.88%
EPS Next 3Y10.52%
EPS Next 5Y9.72%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%9.5%
Revenue Next Year9.64%
Revenue Next 2Y7.26%
Revenue Next 3Y6.89%
Revenue Next 5Y6.32%
EBIT growth 1Y0.13%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year21.27%
EBIT Next 3Y9.36%
EBIT Next 5Y5.28%
FCF growth 1Y-31.72%
FCF growth 3Y14.05%
FCF growth 5Y1.21%
OCF growth 1Y-30.38%
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 6 / 10.
Can you provide the PE and PB ratios for CI stock?
The Price/Earnings (PE) ratio for THE CIGNA GROUP (CI) is 9.8 and the Price/Book (PB) ratio is 1.78.
What is the financial health of THE CIGNA GROUP (CI) stock?
The financial health rating of THE CIGNA GROUP (CI) is 3 / 10.