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Don't overlook NYSE:CI—it's a hidden gem with strong fundamentals and an attractive price tag.

By Mill Chart

Last update: Apr 8, 2024

THE CIGNA GROUP (NYSE:CI) has caught the attention of our stock screener as a great value stock. NYSE:CI excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Insights: NYSE:CI

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:

  • Based on the Price/Earnings ratio, CI is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of CI to the average of the S&P500 Index (26.07), we can say CI is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio, CI is valued cheaply inside the industry as 91.38% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.35. CI is valued slightly cheaper when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, CI is valued a bit cheaper than 77.59% of the companies in the same industry.
  • CI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CI is cheaper than 85.34% of the companies in the same industry.
  • The 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.
  • CI's earnings are expected to grow with 13.35% in the coming years. This may justify a more expensive valuation.

Analyzing Profitability Metrics

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:

  • CI's Return On Assets of 3.38% is fine compared to the rest of the industry. CI outperforms 73.28% of its industry peers.
  • The Return On Equity of CI (11.17%) is better than 77.59% of its industry peers.
  • The Return On Invested Capital of CI (7.65%) is better than 77.59% of its industry peers.
  • The last Return On Invested Capital (7.65%) for CI is above the 3 year average (7.18%), which is a sign of increasing profitability.
  • With a decent Profit Margin value of 2.64%, CI is doing good in the industry, outperforming 71.55% of the companies in the same industry.
  • CI has a better Operating Margin (4.63%) than 63.79% of its industry peers.

Looking at the Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CI has achieved a 5 out of 10:

  • With a decent Altman-Z score value of 2.36, CI is doing good in the industry, outperforming 60.34% of the companies in the same industry.
  • CI has a debt to FCF ratio of 3.02. This is a good value and a sign of high solvency as CI would need 3.02 years to pay back of all of its debts.
  • CI's Debt to FCF ratio of 3.02 is amongst the best of the industry. CI outperforms 80.17% of its industry peers.

How do we evaluate the Growth for NYSE:CI?

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:CI was assigned a score of 7 for growth:

  • CI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.05%, which is quite good.
  • Measured over the past years, CI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.91% on average per year.
  • The Revenue has grown by 8.42% in the past year. This is quite good.
  • The Revenue has been growing by 32.15% on average over the past years. This is a very strong growth!
  • The Earnings Per Share is expected to grow by 11.43% on average over the next years. This is quite good.
  • 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.

More Decent Value stocks can be found 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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