THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - NYSE:CI - US1255231003 - Common Stock
293.76 USD
-2.83 (-0.95%)
293.76 USD
0 (0%)
Taking everything into account, CI scores 5 out of 10 in our fundamental rating. CI was compared to 101 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CI. 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.
In the past 5 years CI always reported a positive cash flow from operatings.
1.2 Ratios
CI has a Return On Assets of 3.31%. This is in the better half of the industry: CI outperforms 67.33% of its industry peers.
The Return On Equity of CI (12.48%) is better than 78.22% of its industry peers.
The Return On Invested Capital of CI (8.77%) is better than 77.23% 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 3 year average ROIC (7.53%) for CI is below the current ROIC(8.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 12.48% | ||
| ROIC | 8.77% |
ROA(3y)3.41%
ROA(5y)3.82%
ROE(3y)11.49%
ROE(5y)12.53%
ROIC(3y)7.53%
ROIC(5y)6.93%
1.3 Margins
With a decent Profit Margin value of 1.92%, CI is doing good in the industry, outperforming 61.39% of the companies in the same industry.
CI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.75%, CI perfoms like the industry average, outperforming 56.44% of the companies in the same industry.
CI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 9.86%, CI is not doing good in the industry: 73.27% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.75% | ||
| PM (TTM) | 1.92% | ||
| GM | 9.86% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CI is still creating some value.
Compared to 1 year ago, CI has less shares outstanding
CI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.69 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 2.69, CI is in the better half of the industry, outperforming 60.40% of the companies in the same industry.
CI has a debt to FCF ratio of 7.80. This is a slightly negative value and a sign of low solvency as CI would need 7.80 years to pay back of all of its debts.
CI has a Debt to FCF ratio of 7.80. This is comparable to the rest of the industry: CI outperforms 59.41% of its industry peers.
CI has a Debt/Equity ratio of 0.66. This is a neutral value indicating CI is somewhat dependend on debt financing.
The Debt to Equity ratio of CI (0.66) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 7.8 | ||
| Altman-Z | 2.69 |
ROIC/WACC1.06
WACC8.31%
2.3 Liquidity
A Current Ratio of 0.79 indicates that CI may have some problems paying its short term obligations.
The Current ratio of CI (0.79) is worse than 85.15% of its industry peers.
A Quick Ratio of 0.68 indicates that CI may have some problems paying its short term obligations.
With a Quick ratio value of 0.68, CI is not doing good in the industry: 82.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.01% over the past year.
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 20.23% in the past year. This is a very strong growth!
The Revenue has been growing by 9.98% on average over the past years. This is quite good.
EPS 1Y (TTM)5.01%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%7.14%
Revenue 1Y (TTM)20.23%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%11%
3.2 Future
The Earnings Per Share is expected to grow by 11.65% on average over the next years. This is quite good.
CI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.70% yearly.
EPS Next Y11.67%
EPS Next 2Y11.51%
EPS Next 3Y11.73%
EPS Next 5Y11.65%
Revenue Next Year9.29%
Revenue Next 2Y6.77%
Revenue Next 3Y6.45%
Revenue Next 5Y5.7%
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
Based on the Price/Earnings ratio of 10.46, 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 89.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of CI to the average of the S&P500 Index (27.41), we can say CI is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.64, the valuation of CI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 90.10% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CI to the average of the S&P500 Index (22.88), we can say CI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 8.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CI indicates a somewhat cheap valuation: CI is cheaper than 79.21% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CI indicates a somewhat cheap valuation: CI is cheaper than 62.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.88 | ||
| EV/EBITDA | 8.33 |
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.
PEG (NY)0.9
PEG (5Y)1.04
EPS Next 2Y11.51%
EPS Next 3Y11.73%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 1.97%.
CI's Dividend Yield is rather good when compared to the industry average which is at 2.43. CI pays more dividend than 90.10% of the companies in the same industry.
CI's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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 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 31.63% of its income as dividend. This is a sustainable payout ratio.
The dividend of CI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.63%
EPS Next 2Y11.51%
EPS Next 3Y11.73%
293.76
-2.83 (-0.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.82%
Inst Owner Change-1.57%
Ins Owners0.34%
Ins Owner Change0.44%
Market Cap78.41B
Analysts81.18
Price Target368.72 (25.52%)
Short Float %1.16%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend5.53
Dividend Growth(5Y)169.26%
DP31.63%
Div Incr Years4
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.38%
Min EPS beat(2)-2.29%
Max EPS beat(2)3.05%
EPS beat(4)2
Avg EPS beat(4)-3.91%
Min EPS beat(4)-17.61%
Max EPS beat(4)3.05%
EPS beat(8)5
Avg EPS beat(8)-1.68%
EPS beat(12)7
Avg EPS beat(12)-1.03%
EPS beat(16)10
Avg EPS beat(16)0.95%
Revenue beat(2)2
Avg Revenue beat(2)4.87%
Min Revenue beat(2)4.42%
Max Revenue beat(2)5.31%
Revenue beat(4)4
Avg Revenue beat(4)3.63%
Min Revenue beat(4)0.59%
Max Revenue beat(4)5.31%
Revenue beat(8)6
Avg Revenue beat(8)1.75%
Revenue beat(12)6
Avg Revenue beat(12)0.69%
Revenue beat(16)8
Avg Revenue beat(16)0.42%
PT rev (1m)-0.22%
PT rev (3m)-3.69%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-4.57%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)4.19%
Revenue NY rev (1m)3.7%
Revenue NY rev (3m)3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 8.64 | ||
| P/S | 0.3 | ||
| P/FCF | 19.88 | ||
| P/OCF | 14.82 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.33 |
EPS(TTM)28.09
EY9.56%
EPS(NY)33.99
Fwd EY11.57%
FCF(TTM)14.78
FCFY5.03%
OCF(TTM)19.83
OCFY6.75%
SpS981.62
BVpS150.65
TBVpS-123
PEG (NY)0.9
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 12.48% | ||
| ROCE | 10.37% | ||
| ROIC | 8.77% | ||
| ROICexc | 9.27% | ||
| ROICexgc | 49.85% | ||
| OM | 3.75% | ||
| PM (TTM) | 1.92% | ||
| GM | 9.86% | ||
| FCFM | 1.51% |
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-Score7
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 7.8 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 50.83% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 7.13 | ||
| Cash Conversion | 42.38% | ||
| Profit Quality | 78.6% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 2.69 |
F-Score7
WACC8.31%
ROIC/WACC1.06
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)5.01%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%7.14%
EPS Next Y11.67%
EPS Next 2Y11.51%
EPS Next 3Y11.73%
EPS Next 5Y11.65%
Revenue 1Y (TTM)20.23%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%11%
Revenue Next Year9.29%
Revenue Next 2Y6.77%
Revenue Next 3Y6.45%
Revenue Next 5Y5.7%
EBIT growth 1Y3.03%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year19.89%
EBIT Next 3Y10.19%
EBIT Next 5Y6.54%
FCF growth 1Y-65.45%
FCF growth 3Y14.05%
FCF growth 5Y1.21%
OCF growth 1Y-58.98%
OCF growth 3Y12.95%
OCF growth 5Y1.79%