THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CI - US1255231003 - Common Stock
278.95 USD
-4.96 (-1.75%)
278.69 USD
-0.26 (-0.09%)
We assign a fundamental rating of 5 out of 10 to CI. CI was compared to 100 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 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
In the past year CI was profitable.
CI had a positive operating cash flow in the past year.
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
CI has a Return On Assets of 3.89%. This is in the better half of the industry: CI outperforms 69.31% of its industry peers.
The Return On Equity of CI (14.70%) is better than 80.20% of its industry peers.
CI has a better Return On Invested Capital (8.31%) than 74.26% 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 9.19%.
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
CI's Profit Margin of 2.29% is fine compared to the rest of the industry. CI outperforms 62.38% 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 57.43% of its industry peers.
CI's Operating Margin has declined in the last couple of years.
CI has a Gross Margin of 9.55%. This is in the lower half of the industry: CI underperforms 75.25% of its industry peers.
In the last couple of years the Gross Margin of CI has declined.
| 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.
The number of shares outstanding for CI has been reduced compared to 5 years ago.
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.
Looking at the Altman-Z score, with a value of 2.63, CI is in line with its industry, outperforming 55.45% of the companies in the same 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 68.32% of its industry peers.
CI has a Debt/Equity ratio of 0.74. This is a neutral value indicating CI is somewhat dependend on debt financing.
CI's Debt to Equity ratio of 0.74 is in line compared to the rest of the industry. CI outperforms 49.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.97
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CI may have some problems paying its short term obligations.
CI has a worse Current ratio (0.83) than 83.17% 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 80.20% 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.
The Revenue has grown by 15.26% in the past year. This is quite good.
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 8.86% yearly.
CI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.58% yearly.
EPS Next Y11.68%
EPS Next 2Y7.07%
EPS Next 3Y7.99%
EPS Next 5Y8.86%
Revenue Next Year10.96%
Revenue Next 2Y7.74%
Revenue Next 3Y7.17%
Revenue Next 5Y5.58%
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
The Price/Earnings ratio is 9.82, which indicates a very decent valuation of CI.
Compared to the rest of the industry, the Price/Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 94.06% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. CI is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.90, which indicates a very decent valuation of CI.
Based on the Price/Forward Earnings ratio, CI is valued cheaper than 92.08% of the companies in the same industry.
CI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 8.9 |
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 80.20% of the companies listed in the same industry.
86.14% 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 | 10.02 | ||
| EV/EBITDA | 7.95 |
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)0.84
PEG (5Y)0.98
EPS Next 2Y7.07%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 2.13%. 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 0.59. CI pays more dividend than 93.07% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, CI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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
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 2Y7.07%
EPS Next 3Y7.99%
278.95
-4.96 (-1.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.65%
Inst Owner Change0.04%
Ins Owners0.33%
Ins Owner Change-0.04%
Market Cap74.52B
Revenue(TTM)268.08B
Net Income(TTM)6.15B
Analysts82.42
Price Target332.04 (19.03%)
Short Float %1.71%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend5.53
Dividend Growth(5Y)169.26%
DP26.01%
Div Incr Years4
Div Non Decr Years19
Ex-DateN/A
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)-1.07%
PT rev (3m)-9.95%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-2.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 8.9 | ||
| P/S | 0.28 | ||
| P/FCF | 10.02 | ||
| P/OCF | 8.6 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.95 |
EPS(TTM)28.41
EY10.18%
EPS(NY)31.34
Fwd EY11.24%
FCF(TTM)27.84
FCFY9.98%
OCF(TTM)32.43
OCFY11.63%
SpS1003.55
BVpS156.5
TBVpS-120.14
PEG (NY)0.84
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
WACC8.58%
ROIC/WACC0.97
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 2Y7.07%
EPS Next 3Y7.99%
EPS Next 5Y8.86%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%9.5%
Revenue Next Year10.96%
Revenue Next 2Y7.74%
Revenue Next 3Y7.17%
Revenue Next 5Y5.58%
EBIT growth 1Y0.13%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year22.59%
EBIT Next 3Y9.56%
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 of THE CIGNA GROUP (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.
What is the financial health of THE CIGNA GROUP (CI) stock?
The financial health rating of THE CIGNA GROUP (CI) is 3 / 10.
Can you provide the expected EPS growth for CI stock?
The Earnings per Share (EPS) of THE CIGNA GROUP (CI) is expected to grow by 11.68% in the next year.