THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - NYSE:CI - US1255231003 - Common Stock
269.66 USD
-1.23 (-0.45%)
270 USD
+0.34 (+0.13%)
CI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 100 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally CI also has an excellent dividend rating.
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.
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's Return On Assets of 3.89% is fine compared to the rest of the industry. CI outperforms 70.00% of its industry peers.
The Return On Equity of CI (14.70%) is better than 81.00% of its industry peers.
CI has a better Return On Invested Capital (8.31%) than 74.00% 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 9.45%.
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
Looking at the Profit Margin, with a value of 2.29%, CI is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
CI's Profit Margin has declined in the last couple of years.
CI has a Operating Margin of 3.72%. This is comparable to the rest of the industry: CI outperforms 56.00% 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: 76.00% of the companies in the same industry are doing better.
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
CI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CI has been reduced compared to 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 2.62 indicates that CI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CI (2.62) 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.95
WACC8.74%
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 84.00% of its industry peers.
A Quick Ratio of 0.73 indicates that CI may have some problems paying its short term obligations.
With a Quick ratio value of 0.73, CI is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| 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%.
CI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.05% yearly.
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
The Earnings Per Share is expected to grow by 10.13% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y11.52%
EPS Next 2Y9.88%
EPS Next 3Y10.52%
EPS Next 5Y10.13%
Revenue Next Year9.64%
Revenue Next 2Y7.26%
Revenue Next 3Y6.89%
Revenue Next 5Y5.65%
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
CI is valuated reasonably with a Price/Earnings ratio of 9.49.
Compared to the rest of the industry, the Price/Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 91.00% of the companies listed in the same industry.
CI is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
CI is valuated reasonably with a Price/Forward Earnings ratio of 8.17.
94.00% of the companies in the same industry are more expensive than CI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, CI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 8.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CI is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CI indicates a rather cheap valuation: CI is cheaper than 86.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.68 | ||
| EV/EBITDA | 7.78 |
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.
The decent profitability rating of CI may justify a higher PE ratio.
PEG (NY)0.82
PEG (5Y)0.94
EPS Next 2Y9.88%
EPS Next 3Y10.52%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 2.36%.
Compared to an average industry Dividend Yield of 2.55, CI pays a better dividend. On top of this CI pays more dividend than 92.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
On average, the dividend of CI grows each year by 169.26%, which is quite nice.
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
26.01% of the earnings are spent on dividend by CI. This is a low number and sustainable payout ratio.
CI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.01%
EPS Next 2Y9.88%
EPS Next 3Y10.52%
269.66
-1.23 (-0.45%)
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-2.4%
Ins Owners0.34%
Ins Owner Change0.01%
Market Cap71.98B
Revenue(TTM)268.08B
Net Income(TTM)6.15B
Analysts81.71
Price Target368.65 (36.71%)
Short Float %1.44%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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)-0.02%
PT rev (3m)-0.23%
EPS NQ rev (1m)-2.07%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)2.31%
Revenue NQ rev (3m)6.26%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)4.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 8.17 | ||
| P/S | 0.27 | ||
| P/FCF | 9.68 | ||
| P/OCF | 8.31 | ||
| P/B | 1.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.78 |
EPS(TTM)28.41
EY10.54%
EPS(NY)33.01
Fwd EY12.24%
FCF(TTM)27.86
FCFY10.33%
OCF(TTM)32.46
OCFY12.04%
SpS1004.3
BVpS156.61
TBVpS-120.23
PEG (NY)0.82
PEG (5Y)0.94
Graham Number316.4
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 | 2.62 |
F-Score6
WACC8.74%
ROIC/WACC0.95
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 5Y10.13%
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 5Y5.65%
EBIT growth 1Y0.13%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year21.27%
EBIT Next 3Y9.36%
EBIT Next 5Y5.93%
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 9.49 and the Price/Book (PB) ratio is 1.72.
What is the financial health of THE CIGNA GROUP (CI) stock?
The financial health rating of THE CIGNA GROUP (CI) is 3 / 10.