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THE CIGNA GROUP (CI) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:CI - US1255231003 - Common Stock

273.72 USD
-6.69 (-2.39%)
Last: 1/27/2026, 11:46:07 AM
Fundamental Rating

5

Taking everything into account, CI scores 5 out of 10 in our fundamental rating. CI was compared to 103 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 may be a bit undervalued, certainly considering the very reasonable score on growth CI also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • CI had positive earnings in the past year.
  • In the past year CI had a positive cash flow from operations.
  • In the past 5 years CI has always been profitable.
  • CI had a positive operating cash flow in each of the past 5 years.
CI Yearly Net Income VS EBIT VS OCF VS FCFCI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

  • CI's Return On Assets of 3.89% is fine compared to the rest of the industry. CI outperforms 68.93% of its industry peers.
  • CI's Return On Equity of 14.70% is amongst the best of the industry. CI outperforms 80.58% of its industry peers.
  • CI's Return On Invested Capital of 8.31% is fine compared to the rest of the industry. CI outperforms 74.76% 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 9.21%.
  • The 3 year average ROIC (7.53%) for CI is below the current ROIC(8.31%), indicating increased profibility in the last year.
Industry RankSector 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%
CI Yearly ROA, ROE, ROICCI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • CI has a Profit Margin of 2.29%. This is in the better half of the industry: CI outperforms 62.14% of its industry peers.
  • In the last couple of years the Profit Margin of CI has declined.
  • CI has a Operating Margin (3.72%) which is in line with its industry peers.
  • CI's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 9.55%, CI is not doing good in the industry: 74.76% of the companies in the same industry are doing better.
  • CI's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
CI Yearly Profit, Operating, Gross MarginsCI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CI is destroying value.
  • The number of shares outstanding for CI has been reduced compared to 1 year ago.
  • The number of shares outstanding for CI has been reduced compared to 5 years ago.
  • The debt/assets ratio for CI is higher compared to a year ago.
CI Yearly Shares OutstandingCI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
CI Yearly Total Debt VS Total AssetsCI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

2.2 Solvency

  • An Altman-Z score of 2.64 indicates that CI is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • CI has a Altman-Z score (2.64) which is in line with its industry peers.
  • 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 68.93% of the companies in the same industry.
  • A Debt/Equity ratio of 0.74 indicates that CI is somewhat dependend on debt financing.
  • CI has a Debt to Equity ratio of 0.74. This is comparable to the rest of the industry: CI outperforms 50.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 4.58
Altman-Z 2.64
ROIC/WACC0.98
WACC8.5%
CI Yearly LT Debt VS Equity VS FCFCI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.3 Liquidity

  • A Current Ratio of 0.83 indicates that CI may have some problems paying its short term obligations.
  • With a Current ratio value of 0.83, CI is not doing good in the industry: 82.52% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.73 indicates that CI may have some problems paying its short term obligations.
  • CI has a worse Quick ratio (0.73) than 78.64% of its industry peers.
Industry RankSector Rank
Current Ratio 0.83
Quick Ratio 0.73
CI Yearly Current Assets VS Current LiabilitesCI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

5

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.35% over the past year.
  • The Earnings Per Share has been growing by 10.05% on average over the past years. This is quite good.
  • Looking at the last year, CI shows a quite strong growth in Revenue. The Revenue has grown by 15.26% in the last year.
  • The Revenue has been growing by 9.98% on average over the past years. This is quite good.
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

  • CI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.86% yearly.
  • Based on estimates for the next years, CI will show a small growth in Revenue. The Revenue will grow by 5.58% on average per year.
EPS Next Y11.67%
EPS Next 2Y7.03%
EPS Next 3Y8.01%
EPS Next 5Y8.86%
Revenue Next Year11.03%
Revenue Next 2Y7.86%
Revenue Next 3Y7.24%
Revenue Next 5Y5.58%

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.
CI Yearly Revenue VS EstimatesCI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 100B 200B 300B
CI Yearly EPS VS EstimatesCI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20 40 60

8

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 9.63 indicates a reasonable valuation of CI.
  • 94.17% of the companies in the same industry are more expensive than CI, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.25, CI is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 8.74, the valuation of CI can be described as very reasonable.
  • 91.26% 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 25.98, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.63
Fwd PE 8.74
CI Price Earnings VS Forward Price EarningsCI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CI is valued cheaply inside the industry as 80.58% of the companies are valued more expensively.
  • 86.41% of the companies in the same industry are more expensive than CI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.83
EV/EBITDA 7.98
CI Per share dataCI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600 800 1K

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)0.83
PEG (5Y)0.96
EPS Next 2Y7.03%
EPS Next 3Y8.01%

7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.15%, CI has a reasonable but not impressive dividend return.
  • CI's Dividend Yield is rather good when compared to the industry average which is at 0.45. CI pays more dividend than 94.17% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, CI has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.15%

5.2 History

  • The dividend of CI is nicely growing with an annual growth rate of 169.26%!
  • 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)169.26%
Div Incr Years4
Div Non Decr Years19
CI Yearly Dividends per shareCI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

5.3 Sustainability

  • 26.01% of the earnings are spent on dividend by CI. This is a low number and 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 2Y7.03%
EPS Next 3Y8.01%
CI Yearly Income VS Free CF VS DividendCI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B
CI Dividend Payout.CI Dividend Payout, showing the Payout Ratio.CI Dividend Payout.PayoutRetained Earnings

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 of THE CIGNA GROUP (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.


What is the financial health of THE CIGNA GROUP (CI) stock?

The financial health rating of THE CIGNA GROUP (CI) is 3 / 10.


Can you provide the expected EPS growth for CI stock?

The Earnings per Share (EPS) of THE CIGNA GROUP (CI) is expected to grow by 11.67% in the next year.