THE CIGNA GROUP (CI) Stock Fundamental Analysis
NYSE:CI - New York Stock Exchange, Inc. - US1255231003 - Common Stock - Currency: USD
Taking everything into account, CI scores 5 out of 10 in our fundamental rating. CI was compared to 103 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 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
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.
CI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.34%, CI is in the better half of the industry, outperforming 66.99% of the companies in the same industry.
CI has a Return On Equity of 12.51%. This is in the better half of the industry: CI outperforms 79.61% of its industry peers.
CI's Return On Invested Capital of 8.54% is fine compared to the rest of the industry. CI outperforms 76.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CI is below the industry average of 9.71%.
The last Return On Invested Capital (8.54%) for CI is above the 3 year average (7.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 12.51% | ||
| ROIC | 8.54% |
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
The Profit Margin of CI (1.97%) is better than 60.19% of its industry peers.
In the last couple of years the Profit Margin of CI has declined.
CI's Operating Margin of 3.75% is in line compared to the rest of the industry. CI outperforms 56.31% of its industry peers.
CI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 10.25%, CI is doing worse than 75.73% of the companies in the same industry.
CI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.75% | ||
| PM (TTM) | 1.97% | ||
| GM | 10.25% |
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) just above the Cost of Capital (WACC), CI is creating some 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
CI has an Altman-Z score of 2.66. 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.
Looking at the Altman-Z score, with a value of 2.66, CI is in line with its industry, outperforming 59.22% of the companies in the same industry.
CI has a debt to FCF ratio of 5.07. This is a neutral value as CI would need 5.07 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.07, CI is in the better half of the industry, outperforming 65.05% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that CI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, CI is in line with its industry, outperforming 55.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.66 |
ROIC/WACC1.06
WACC8.07%
2.3 Liquidity
A Current Ratio of 0.78 indicates that CI may have some problems paying its short term obligations.
With a Current ratio value of 0.78, CI is not doing good in the industry: 82.52% of the companies in the same industry are doing better.
CI has a Quick Ratio of 0.78. 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 Quick ratio of 0.69 is on the low side compared to the rest of the industry. CI is outperformed by 80.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
CI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.54%.
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.
CI shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.96%.
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)5.54%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%4.17%
Revenue 1Y (TTM)23.96%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%14.4%
3.2 Future
The Earnings Per Share is expected to grow by 11.32% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.63% on average over the next years.
EPS Next Y11.83%
EPS Next 2Y11.63%
EPS Next 3Y11.58%
EPS Next 5Y11.32%
Revenue Next Year5.37%
Revenue Next 2Y4.76%
Revenue Next 3Y5.08%
Revenue Next 5Y5.63%
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 10.95, which indicates a very decent valuation of CI.
Based on the Price/Earnings ratio, CI is valued cheaply inside the industry as 86.41% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.19. CI is valued rather cheaply when compared to this.
CI is valuated reasonably with a Price/Forward Earnings ratio of 8.88.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 87.38% of the companies in the same industry.
CI is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CI is valued a bit cheaper than 76.70% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CI indicates a rather cheap valuation: CI is cheaper than 80.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.44 | ||
| EV/EBITDA | 8.27 |
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)0.93
PEG (5Y)1.09
EPS Next 2Y11.63%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 1.96%.
CI's Dividend Yield is rather good when compared to the industry average which is at 2.52. CI pays more dividend than 90.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, CI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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 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
CI pays out 31.35% 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.
DP31.35%
EPS Next 2Y11.63%
EPS Next 3Y11.58%
302.44
-0.62 (-0.2%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.81%
Inst Owner Change0%
Ins Owners0.34%
Ins Owner Change3.45%
Market Cap80.79B
Analysts81.18
Price Target383 (26.64%)
Short Float %1.11%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend5.53
Dividend Growth(5Y)169.26%
DP31.35%
Div Incr Years4
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.28%
Min EPS beat(2)-17.61%
Max EPS beat(2)3.05%
EPS beat(4)3
Avg EPS beat(4)-2.88%
Min EPS beat(4)-17.61%
Max EPS beat(4)3.05%
EPS beat(8)5
Avg EPS beat(8)-1.54%
EPS beat(12)8
Avg EPS beat(12)0.01%
EPS beat(16)11
Avg EPS beat(16)1.25%
Revenue beat(2)2
Avg Revenue beat(2)2.95%
Min Revenue beat(2)0.59%
Max Revenue beat(2)5.31%
Revenue beat(4)4
Avg Revenue beat(4)2.71%
Min Revenue beat(4)0.59%
Max Revenue beat(4)5.31%
Revenue beat(8)5
Avg Revenue beat(8)1.17%
Revenue beat(12)5
Avg Revenue beat(12)0.25%
Revenue beat(16)8
Avg Revenue beat(16)0.25%
PT rev (1m)0.03%
PT rev (3m)4.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.3%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.56%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 8.88 | ||
| P/S | 0.32 | ||
| P/FCF | 13.44 | ||
| P/OCF | 10.86 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.27 |
EPS(TTM)27.61
EY9.13%
EPS(NY)34.07
Fwd EY11.26%
FCF(TTM)22.5
FCFY7.44%
OCF(TTM)27.86
OCFY9.21%
SpS955.93
BVpS150.58
TBVpS-124.25
PEG (NY)0.93
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 12.51% | ||
| ROCE | 10.1% | ||
| ROIC | 8.54% | ||
| ROICexc | 9.44% | ||
| ROICexgc | 65.2% | ||
| OM | 3.75% | ||
| PM (TTM) | 1.97% | ||
| GM | 10.25% | ||
| FCFM | 2.35% |
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 Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 5.07 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 52.92% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 6.92 | ||
| Cash Conversion | 60.54% | ||
| Profit Quality | 119.39% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.66 |
F-Score7
WACC8.07%
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)5.54%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%4.17%
EPS Next Y11.83%
EPS Next 2Y11.63%
EPS Next 3Y11.58%
EPS Next 5Y11.32%
Revenue 1Y (TTM)23.96%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%14.4%
Revenue Next Year5.37%
Revenue Next 2Y4.76%
Revenue Next 3Y5.08%
Revenue Next 5Y5.63%
EBIT growth 1Y3.16%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year20.66%
EBIT Next 3Y8.58%
EBIT Next 5Y8.65%
FCF growth 1Y-41.3%
FCF growth 3Y14.05%
FCF growth 5Y1.21%
OCF growth 1Y-36.13%
OCF growth 3Y12.95%
OCF growth 5Y1.79%