THE CIGNA GROUP (CI) Stock Fundamental Analysis
NYSE:CI - New York Stock Exchange, Inc. - US1255231003 - Common Stock - Currency: USD
Overall CI gets a fundamental rating of 5 out of 10. We evaluated CI against 106 industry peers in the Health Care Providers & Services industry. CI has an average financial health and profitability rating. CI is not valued too expensively and it also shows a decent growth rate.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.20%, CI is in the better half of the industry, outperforming 60.38% of the companies in the same industry.
With a decent Return On Equity value of 8.37%, CI is doing good in the industry, outperforming 70.75% of the companies in the same industry.
The Return On Invested Capital of CI (8.30%) is better than 75.47% 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 8.79%.
The 3 year average ROIC (7.53%) for CI is below the current ROIC(8.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 8.37% | ||
| ROIC | 8.3% |
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
With a Profit Margin value of 1.39%, CI perfoms like the industry average, outperforming 58.49% of the companies in the same industry.
In the last couple of years the Profit Margin of CI has declined.
The Operating Margin of CI (3.92%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CI has declined.
CI has a worse Gross Margin (10.51%) than 75.47% of its industry peers.
In the last couple of years the Gross Margin of CI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.92% | ||
| PM (TTM) | 1.39% | ||
| GM | 10.51% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CI has been reduced compared to 1 year ago.
CI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CI is higher compared to a year ago.
2.2 Solvency
CI has an Altman-Z score of 2.58. This is not the best score and indicates that CI is in the grey zone with still only limited risk for bankruptcy at the moment.
CI has a Altman-Z score of 2.58. This is comparable to the rest of the industry: CI outperforms 57.55% of its industry peers.
The Debt to FCF ratio of CI is 3.57, which is a good value as it means it would take CI, 3.57 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.57, CI is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that CI is somewhat dependend on debt financing.
CI has a Debt to Equity ratio of 0.73. This is comparable to the rest of the industry: CI outperforms 47.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.04
WACC7.96%
2.3 Liquidity
CI has a Current Ratio of 0.84. This is a bad value and indicates that CI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.84, CI is doing worse than 82.08% of the companies in the same industry.
CI has a Quick Ratio of 0.84. This is a bad value and indicates that CI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.73, CI is not doing good in the industry: 79.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
CI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.92%, which is quite good.
The Earnings Per Share has been growing by 10.05% on average over the past years. This is quite good.
The Revenue has grown by 26.56% in the past year. This is a very strong growth!
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)8.92%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%-2.21%
Revenue 1Y (TTM)26.56%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
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 11.25% on average per year.
CI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.62% yearly.
EPS Next Y11.53%
EPS Next 2Y11.57%
EPS Next 3Y11.57%
EPS Next 5Y11.25%
Revenue Next Year3.29%
Revenue Next 2Y3.97%
Revenue Next 3Y4.43%
Revenue Next 5Y4.62%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.07 indicates a correct valuation of CI.
Based on the Price/Earnings ratio, CI is valued cheaply inside the industry as 83.96% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. CI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.83, the valuation of CI can be described as very reasonable.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 88.68% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. CI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CI is valued a bit cheaper than 76.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CI is valued cheaper than 86.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | 8.96 |
4.3 Compensation for Growth
CI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.05
PEG (5Y)1.2
EPS Next 2Y11.57%
EPS Next 3Y11.57%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.65, CI pays a better dividend. On top of this CI pays more dividend than 89.62% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.57, CI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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 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 45.63% of its income as dividend. This is a bit on the high side, but may be sustainable.
CI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.63%
EPS Next 2Y11.57%
EPS Next 3Y11.57%
330.13
+0.69 (+0.21%)
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 Change0.01%
Ins Owners0.36%
Ins Owner Change2.92%
Market Cap89.50B
Analysts80.59
Price Target366.5 (11.02%)
Short Float %1.44%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Yearly Dividend5.53
Dividend Growth(5Y)169.26%
DP45.63%
Div Incr Years4
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.19%
Min EPS beat(2)-17.61%
Max EPS beat(2)1.22%
EPS beat(4)3
Avg EPS beat(4)-3.4%
Min EPS beat(4)-17.61%
Max EPS beat(4)1.81%
EPS beat(8)5
Avg EPS beat(8)-1.85%
EPS beat(12)8
Avg EPS beat(12)0.81%
EPS beat(16)11
Avg EPS beat(16)1.36%
Revenue beat(2)2
Avg Revenue beat(2)2.4%
Min Revenue beat(2)0.59%
Max Revenue beat(2)4.2%
Revenue beat(4)3
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)4.2%
Revenue beat(8)4
Avg Revenue beat(8)0.39%
Revenue beat(12)4
Avg Revenue beat(12)-0.38%
Revenue beat(16)7
Avg Revenue beat(16)-0.16%
PT rev (1m)0.07%
PT rev (3m)-8.8%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-7.45%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-5.54%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 10.83 | ||
| P/S | 0.36 | ||
| P/FCF | 9.99 | ||
| P/OCF | 8.64 | ||
| P/B | 2.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.96 |
EPS(TTM)27.34
EY8.28%
EPS(NY)30.49
Fwd EY9.24%
FCF(TTM)33.04
FCFY10.01%
OCF(TTM)38.22
OCFY11.58%
SpS911.52
BVpS151.35
TBVpS-120.81
PEG (NY)1.05
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 8.37% | ||
| ROCE | 9.9% | ||
| ROIC | 8.3% | ||
| ROICexc | 9.05% | ||
| ROICexgc | 48.85% | ||
| OM | 3.92% | ||
| PM (TTM) | 1.39% | ||
| GM | 10.51% | ||
| FCFM | 3.62% |
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%
ROICexcg growth 3Y24.32%
ROICexcg 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 Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 50.67% | ||
| Cap/Sales | 0.57% | ||
| Interest Coverage | 7.22 | ||
| Cash Conversion | 83.12% | ||
| Profit Quality | 260.83% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.58 |
F-Score6
WACC7.96%
ROIC/WACC1.04
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)8.92%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%-2.21%
EPS Next Y11.53%
EPS Next 2Y11.57%
EPS Next 3Y11.57%
EPS Next 5Y11.25%
Revenue 1Y (TTM)26.56%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%28.44%
Revenue Next Year3.29%
Revenue Next 2Y3.97%
Revenue Next 3Y4.43%
Revenue Next 5Y4.62%
EBIT growth 1Y7.51%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year19.1%
EBIT Next 3Y9.95%
EBIT Next 5Y8.65%
FCF growth 1Y-12.53%
FCF growth 3Y14.05%
FCF growth 5Y1.21%
OCF growth 1Y-12.27%
OCF growth 3Y12.95%
OCF growth 5Y1.79%