NYSE:CI is showing decent growth, but is still valued reasonably.

Consider THE CIGNA GROUP (NYSE:CI) as an affordable growth stock, identified by our stock screening tool. NYSE:CI is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Understanding NYSE:CI's Growth

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:

• The Earnings Per Share has grown by an nice 18.68% over the past year.
• The Earnings Per Share has been growing by 11.91% on average over the past years. This is quite good.
• CI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.09%.
• CI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.15% yearly.
• Based on estimates for the next years, CI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.60% on average per year.
• Based on estimates for the next years, CI will show a quite strong growth in Revenue. The Revenue will grow by 9.87% on average per year.

Valuation Assessment of NYSE:CI

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:CI, the assigned 8 reflects its valuation:

• 89.66% of the companies in the same industry are more expensive than CI, based on the Price/Earnings ratio.
• CI is valuated cheaply when we compare the Price/Earnings ratio to 28.59, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio of 9.95, the valuation of CI can be described as reasonable.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 92.24% of the companies listed in the same industry.
• CI is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.27, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, CI is valued cheaper than 82.76% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, CI is valued cheaply inside the industry as 90.52% of the companies are valued more expensively.
• 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 13.84% in the coming years. This may justify a more expensive valuation.

Analyzing Health Metrics

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CI was assigned a score of 5 for health:

• CI has a better Altman-Z score (2.40) than 61.21% of its industry peers.
• The Debt to FCF ratio of CI (4.01) is better than 81.90% of its industry peers.

Profitability Examination for NYSE:CI

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CI has achieved a 6:

• The Return On Assets of CI (2.39%) is better than 65.52% of its industry peers.
• Looking at the Return On Equity, with a value of 8.97%, CI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
• CI's Return On Invested Capital of 8.45% is amongst the best of the industry. CI outperforms 82.76% of its industry peers.
• The last Return On Invested Capital (8.45%) for CI is above the 3 year average (7.18%), which is a sign of increasing profitability.
• With a decent Profit Margin value of 1.70%, CI is doing good in the industry, outperforming 66.38% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 4.39%, CI is in the better half of the industry, outperforming 62.93% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of CI contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice. 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.