THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CI - US1255231003 - Common Stock
276.11 USD
-1.04 (-0.38%)
276.11 USD
0 (0%)
Taking everything into account, CI scores 5 out of 10 in our fundamental rating. CI was compared to 100 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, 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.
Each year in the past 5 years CI had a positive operating cash flow.
1.2 Ratios
CI has a better Return On Assets (3.89%) than 69.00% of its industry peers.
Looking at the Return On Equity, with a value of 14.70%, CI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.31%, CI is in the better half of the industry, outperforming 75.00% 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 9.44%.
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 has a better Profit Margin (2.29%) than 62.00% of its industry peers.
In the last couple of years the Profit Margin of CI has declined.
CI has a Operating Margin of 3.72%. This is comparable to the rest of the industry: CI outperforms 58.00% of its industry peers.
In the last couple of years the Operating Margin of CI has declined.
Looking at the Gross Margin, with a value of 9.55%, CI is doing worse than 76.00% of the companies in the same industry.
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
The debt/assets ratio for CI is higher compared to a year ago.
2.2 Solvency
CI has an Altman-Z score of 2.63. 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.
The Altman-Z score of CI (2.63) is comparable to the rest of the 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.
CI has a better Debt to FCF ratio (4.58) than 69.00% 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/WACC0.99
WACC8.39%
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.
The Current ratio of CI (0.83) is worse than 83.00% of its industry peers.
A Quick Ratio of 0.73 indicates that CI may have some problems paying its short term obligations.
The Quick ratio of CI (0.73) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
CI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.35%.
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.
Looking at the last year, CI shows a quite strong growth in Revenue. The Revenue has grown by 15.26% in the last year.
CI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.98% yearly.
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.
CI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.32% yearly.
EPS Next Y11.68%
EPS Next 2Y7.23%
EPS Next 3Y7.93%
EPS Next 5Y9.72%
Revenue Next Year10.99%
Revenue Next 2Y7.72%
Revenue Next 3Y7.17%
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 9.72, the valuation of CI can be described as reasonable.
CI's Price/Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 92.00% 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 26.43.
With a Price/Forward Earnings ratio of 8.78, the valuation of CI can be described as very reasonable.
95.00% 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 23.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
CI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CI is cheaper than 79.00% of the companies in the same industry.
CI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CI is cheaper than 86.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.92 | ||
| EV/EBITDA | 7.91 |
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.
PEG (NY)0.83
PEG (5Y)0.97
EPS Next 2Y7.23%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 2.22%. 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 0.57. CI pays more dividend than 93.00% of the companies in the same industry.
CI's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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 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
5.3 Sustainability
CI pays out 26.01% of its income as dividend. This is a sustainable payout ratio.
CI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.01%
EPS Next 2Y7.23%
EPS Next 3Y7.93%
276.11
-1.04 (-0.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.56%
Inst Owner Change-1.52%
Ins Owners0.33%
Ins Owner Change-0.04%
Market Cap73.76B
Revenue(TTM)268.08B
Net Income(TTM)6.15B
Analysts82.35
Price Target335.63 (21.56%)
Short Float %1.5%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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)-8.96%
PT rev (3m)-8.97%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-2.23%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)2.31%
Revenue NY rev (1m)1.23%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 8.78 | ||
| P/S | 0.28 | ||
| P/FCF | 9.92 | ||
| P/OCF | 8.51 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.91 |
EPS(TTM)28.41
EY10.29%
EPS(NY)31.43
Fwd EY11.38%
FCF(TTM)27.84
FCFY10.08%
OCF(TTM)32.43
OCFY11.75%
SpS1003.55
BVpS156.5
TBVpS-120.14
PEG (NY)0.83
PEG (5Y)0.97
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
WACC8.39%
ROIC/WACC0.99
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 Y11.68%
EPS Next 2Y7.23%
EPS Next 3Y7.93%
EPS Next 5Y9.72%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%9.5%
Revenue Next Year10.99%
Revenue Next 2Y7.72%
Revenue Next 3Y7.17%
Revenue Next 5Y6.32%
EBIT growth 1Y0.13%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year21.81%
EBIT Next 3Y8.81%
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 7 / 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 5 / 10.
Can you provide the PE and PB ratios for CI stock?
The Price/Earnings (PE) ratio for THE CIGNA GROUP (CI) is 9.72 and the Price/Book (PB) ratio is 1.76.
What is the financial health of THE CIGNA GROUP (CI) stock?
The financial health rating of THE CIGNA GROUP (CI) is 3 / 10.