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When you look at NYSE:CI, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

By Mill Chart

Last update: Mar 18, 2024

Consider THE CIGNA GROUP (NYSE:CI) as a top value stock, identified by our stock screening tool. NYSE:CI shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Unpacking NYSE:CI's Valuation Rating

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:CI was assigned a score of 7 for valuation:

  • 88.79% of the companies in the same industry are more expensive than CI, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of CI to the average of the S&P500 Index (25.59), we can say CI is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio, CI is valued cheaply inside the industry as 92.24% of the companies are valued more expensively.
  • CI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.07.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CI indicates a somewhat cheap valuation: CI is cheaper than 75.00% 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 rather cheap valuation: CI is cheaper than 85.34% of the companies listed in the same industry.
  • 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 13.35% in the coming years.

Profitability Assessment of NYSE:CI

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CI has earned a 6 out of 10:

  • With a decent Return On Assets value of 3.38%, CI is doing good in the industry, outperforming 72.41% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 11.17%, CI is in the better half of the industry, outperforming 76.72% of the companies in the same industry.
  • CI has a Return On Invested Capital of 7.65%. This is in the better half of the industry: CI outperforms 77.59% of its industry peers.
  • The 3 year average ROIC (7.18%) for CI is below the current ROIC(7.65%), indicating increased profibility in the last year.
  • CI's Profit Margin of 2.64% is fine compared to the rest of the industry. CI outperforms 71.55% of its industry peers.
  • CI's Operating Margin of 4.63% is fine compared to the rest of the industry. CI outperforms 64.66% of its industry peers.

Deciphering NYSE:CI's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:CI, the assigned 5 reflects its health status:

  • CI has a better Altman-Z score (2.35) than 63.79% of its industry peers.
  • The Debt to FCF ratio of CI is 3.02, which is a good value as it means it would take CI, 3.02 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of CI (3.02) is better than 80.17% of its industry peers.

What does the Growth looks like for NYSE:CI

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CI has earned a 7 for growth:

  • The Earnings Per Share has grown by an nice 8.05% over the past year.
  • CI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.91% yearly.
  • Looking at the last year, CI shows a quite strong growth in Revenue. The Revenue has grown by 8.42% in the last year.
  • 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.
  • CI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.43% yearly.
  • Based on estimates for the next years, CI will show a quite strong growth in Revenue. The Revenue will grow by 9.51% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of CI for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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THE CIGNA GROUP

NYSE:CI (5/24/2024, 7:19:43 PM)

After market: 332.61 0 (0%)

332.61

-5.22 (-1.55%)

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