THE CIGNA GROUP (CI)
US1255231003 - Common Stock
We assign a fundamental rating of 6 out of 10 to CI. CI was compared to 114 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of CI get a neutral evaluation. Nothing too spectacular is happening here. CI is evaluated to be cheap and growing strongly. This does not happen too often!
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.
CI had positive earnings in each of the past 5 years.
CI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CI has a better Return On Assets (1.93%) than 64.60% of its industry peers.
Looking at the Return On Equity, with a value of 7.22%, CI is in the better half of the industry, outperforming 71.68% of the companies in the same industry.
CI has a Return On Invested Capital of 8.68%. This is amongst the best in the industry. CI outperforms 84.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CI is in line with the industry average of 8.05%.
The 3 year average ROIC (7.18%) for CI is below the current ROIC(8.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.22% | ||
| ROIC | 8.68% |
ROA(3y)3.83%
ROA(5y)4.04%
ROE(3y)12.5%
ROE(5y)13.11%
ROIC(3y)7.18%
ROIC(5y)6.91%
1.3 Margins
CI has a Profit Margin of 1.31%. This is in the better half of the industry: CI outperforms 64.60% of its industry peers.
CI's Profit Margin has declined in the last couple of years.
CI's Operating Margin of 4.28% is fine compared to the rest of the industry. CI outperforms 61.06% of its industry peers.
In the last couple of years the Operating Margin of CI has declined.
CI's Gross Margin of 11.21% is on the low side compared to the rest of the industry. CI is outperformed by 76.11% of its industry peers.
CI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.28% | ||
| PM (TTM) | 1.31% | ||
| GM | 11.21% |
OM growth 3Y-4.2%
OM growth 5Y-13.87%
PM growth 3Y-20.58%
PM growth 5Y-13.44%
GM growth 3Y-4.88%
GM growth 5Y-17.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CI is creating some value.
CI has less shares outstanding than it did 1 year ago.
CI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CI has been reduced compared to a year ago.
2.2 Solvency
CI has an Altman-Z score of 2.48. 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 2.48. This is in the better half of the industry: CI outperforms 62.83% of its industry peers.
CI has a debt to FCF ratio of 6.33. This is a slightly negative value and a sign of low solvency as CI would need 6.33 years to pay back of all of its debts.
CI has a Debt to FCF ratio of 6.33. This is in the better half of the industry: CI outperforms 75.22% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that CI is somewhat dependend on debt financing.
CI has a Debt to Equity ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.33 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.12
WACC7.74%
2.3 Liquidity
A Current Ratio of 0.86 indicates that CI may have some problems paying its short term obligations.
CI's Current ratio of 0.86 is on the low side compared to the rest of the industry. CI is outperformed by 81.42% of its industry peers.
A Quick Ratio of 0.77 indicates that CI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, CI is doing worse than 78.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
CI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.13%, which is quite good.
The Earnings Per Share has been growing by 11.91% on average over the past years. This is quite good.
CI shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.48%.
Measured over the past years, CI shows a very strong growth in Revenue. The Revenue has been growing by 32.15% on average per year.
EPS 1Y (TTM)18.13%
EPS 3Y10.87%
EPS 5Y11.91%
EPS Q2Q%10.93%
Revenue 1Y (TTM)22.48%
Revenue growth 3Y6.82%
Revenue growth 5Y32.15%
Sales Q2Q%29.79%
3.2 Future
The Earnings Per Share is expected to grow by 12.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.87% on average over the next years. This is quite good.
EPS Next Y16.98%
EPS Next 2Y13.83%
EPS Next 3Y13.24%
EPS Next 5Y12.6%
Revenue Next Year26.13%
Revenue Next 2Y14.14%
Revenue Next 3Y10.86%
Revenue Next 5Y9.87%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.95, which indicates a very decent valuation of CI.
Based on the Price/Earnings ratio, CI is valued cheaper than 89.38% 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 29.20.
Based on the Price/Forward Earnings ratio of 10.10, 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 91.15% 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 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 10.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CI indicates a rather cheap valuation: CI is cheaper than 81.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CI is valued cheaply inside the industry as 82.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.62 | ||
| EV/EBITDA | 8.98 |
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.
A more expensive valuation may be justified as CI's earnings are expected to grow with 13.24% in the coming years.
PEG (NY)0.7
PEG (5Y)1
EPS Next 2Y13.83%
EPS Next 3Y13.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.73%, CI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.18, CI pays a better dividend. On top of this CI pays more dividend than 87.61% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.21, CI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
On average, the dividend of CI grows each year by 163.63%, which is quite nice.
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)163.63%
Div Incr Years3
Div Non Decr Years18
5.3 Sustainability
50.71% of the earnings are spent on dividend by CI. 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.
DP50.71%
EPS Next 2Y13.83%
EPS Next 3Y13.24%
THE CIGNA GROUP
NYSE:CI (11/22/2024, 7:25:51 PM)
After market: 328.45 0 (0%)328.45
-1.62 (-0.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap91.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 10.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.7
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.28% | ||
| PM (TTM) | 1.31% | ||
| GM | 11.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)18.13%
EPS 3Y10.87%
EPS 5Y
EPS Q2Q%
EPS Next Y16.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.48%
Revenue growth 3Y6.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y