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%)
Overall CI gets a fundamental rating of 5 out of 10. We evaluated CI against 101 industry peers in the Health Care Providers & Services industry. CI has a medium profitability rating, but doesn't score so well on its financial health evaluation. CI is valued quite cheap, while showing a decent growth score. This is a good combination! Finally CI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CI was profitable.
In the past year CI had a positive cash flow from operations.
Each year in the past 5 years CI has been profitable.
In the past 5 years CI always reported a positive cash flow from operatings.
1.2 Ratios
CI has a Return On Assets of 3.89%. This is in the better half of the industry: CI outperforms 70.30% of its industry peers.
CI's Return On Equity of 14.70% is amongst the best of the industry. CI outperforms 81.19% of its industry peers.
CI has a Return On Invested Capital of 8.31%. This is in the better half of the industry: CI outperforms 75.25% of its industry peers.
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 9.27%.
The last Return On Invested Capital (8.31%) for CI is above the 3 year average (7.53%), which is a sign of increasing profitability.
| 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
The Profit Margin of CI (2.29%) is better than 62.38% of its industry peers.
CI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.72%, CI perfoms like the industry average, outperforming 56.44% 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 (9.55%) is worse than 76.24% of its industry peers.
CI's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CI is destroying value.
CI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CI has less shares outstanding
CI has a worse debt/assets ratio than last year.
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.
CI has a Altman-Z score of 2.63. This is comparable to the rest of the industry: CI outperforms 55.45% of 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.
CI has a better Debt to FCF ratio (4.58) than 68.32% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that CI is somewhat dependend on debt financing.
CI has a Debt to Equity ratio (0.74) which 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
WACC8.46%
2.3 Liquidity
CI has a Current 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 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 has a Quick ratio of 0.73. This is amonst the worse of the industry: CI underperforms 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.
The Earnings Per Share has been growing by 10.05% on average over the past years. This is quite good.
CI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.26%.
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
CI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.72% yearly.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 9.80, the valuation of CI can be described as reasonable.
92.08% of the companies in the same industry are more expensive than CI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CI to the average of the S&P500 Index (26.15), we can say CI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.43, the valuation of CI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 95.05% of the companies listed in the same industry.
CI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| 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 cheaply inside the industry as 81.19% of the companies are valued more expensively.
85.15% 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 | 10 | ||
| EV/EBITDA | 7.94 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CI 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%.
CI's Dividend Yield is rather good when compared to the industry average which is at 2.60. CI pays more dividend than 92.08% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, CI has a dividend comparable with the average S&P500 company.
| 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
WACC8.46%
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.