THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CI - US1255231003 - Common Stock
279.12 USD
+3.89 (+1.41%)
279.01 USD
-0.11 (-0.04%)
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. 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
In the past year CI was profitable.
In the past year CI had a positive cash flow from operations.
CI had positive earnings in each of the past 5 years.
CI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CI (3.89%) is better than 68.32% of its industry peers.
Looking at the Return On Equity, with a value of 14.70%, CI is in the better half of the industry, outperforming 79.21% of the companies in the same industry.
CI's Return On Invested Capital of 8.31% is fine compared to the rest of the industry. CI outperforms 74.26% of its industry peers.
CI had an Average Return On Invested Capital over the past 3 years of 7.53%. This is below the industry average of 9.58%.
The last Return On Invested Capital (8.31%) for CI is above the 3 year average (7.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 14.7% | ||
| ROIC | 8.31% |
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
CI has a better Profit Margin (2.29%) than 61.39% of its industry peers.
CI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.72%, CI is in line with its industry, outperforming 57.43% of the companies in the same industry.
In the last couple of years the Operating Margin of CI has declined.
Looking at the Gross Margin, with a value of 9.55%, CI is doing worse than 75.25% of the companies in the same industry.
In the last couple of years the Gross Margin of CI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.72% | ||
| PM (TTM) | 2.29% | ||
| GM | 9.55% |
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
CI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CI has less shares outstanding than it did 1 year ago.
CI has less shares outstanding than it did 5 years ago.
CI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.63 indicates that CI is not a great score, but indicates only limited risk for bankruptcy at the moment.
CI has a Altman-Z score of 2.63. This is comparable to the rest of the industry: CI outperforms 55.45% of its industry peers.
The Debt to FCF ratio of CI is 4.58, which is a neutral value as it means it would take CI, 4.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CI (4.58) is better than 68.32% of its industry peers.
CI has a Debt/Equity ratio of 0.74. This is a neutral value indicating CI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, CI perfoms like the industry average, outperforming 49.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.96
WACC8.67%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CI may have some problems paying its short term obligations.
With a Current ratio value of 0.83, CI is not doing good in the industry: 83.17% of the companies in the same industry are doing better.
A Quick Ratio of 0.73 indicates that CI may have some problems paying its short term obligations.
CI's Quick ratio of 0.73 is on the low side compared to the rest of the industry. CI is outperformed by 80.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
CI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.35%.
CI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.05% yearly.
Looking at the last year, CI shows a quite strong growth in Revenue. The Revenue has grown by 15.26% in the last year.
Measured over the past years, CI shows a quite strong growth in Revenue. The Revenue has been growing by 9.98% on average per year.
EPS 1Y (TTM)3.35%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%4.26%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%9.5%
3.2 Future
The Earnings Per Share is expected to grow by 9.72% 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 6.32% yearly.
EPS Next Y11.68%
EPS Next 2Y7.07%
EPS Next 3Y7.99%
EPS Next 5Y9.72%
Revenue Next Year10.96%
Revenue Next 2Y7.74%
Revenue Next 3Y7.17%
Revenue Next 5Y6.32%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.82, the valuation of CI can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 91.09% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. CI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.91, the valuation of CI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CI is valued cheaper than 94.06% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CI to the average of the S&P500 Index (23.23), we can say CI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 8.91 |
4.2 Price Multiples
CI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CI is cheaper than 79.21% 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 86.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.03 | ||
| EV/EBITDA | 7.87 |
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)0.84
PEG (5Y)0.98
EPS Next 2Y7.07%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.20%, CI has a reasonable but not impressive dividend return.
CI's Dividend Yield is rather good when compared to the industry average which is at 0.60. CI pays more dividend than 93.07% of the companies in the same industry.
CI's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 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 26.01% 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.
DP26.01%
EPS Next 2Y7.07%
EPS Next 3Y7.99%
279.12
+3.89 (+1.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.56%
Inst Owner Change-1.5%
Ins Owners0.33%
Ins Owner Change-0.04%
Market Cap74.56B
Revenue(TTM)268.08B
Net Income(TTM)6.15B
Analysts82.35
Price Target332.04 (18.96%)
Short Float %1.71%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend5.53
Dividend Growth(5Y)169.26%
DP26.01%
Div Incr Years4
Div Non Decr Years19
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.44%
Min EPS beat(2)-2.29%
Max EPS beat(2)-0.6%
EPS beat(4)1
Avg EPS beat(4)-4.36%
Min EPS beat(4)-17.61%
Max EPS beat(4)3.05%
EPS beat(8)5
Avg EPS beat(8)-1.57%
EPS beat(12)6
Avg EPS beat(12)-1.3%
EPS beat(16)9
Avg EPS beat(16)0.51%
Revenue beat(2)2
Avg Revenue beat(2)2.66%
Min Revenue beat(2)0.9%
Max Revenue beat(2)4.42%
Revenue beat(4)4
Avg Revenue beat(4)2.81%
Min Revenue beat(4)0.59%
Max Revenue beat(4)5.31%
Revenue beat(8)7
Avg Revenue beat(8)2%
Revenue beat(12)7
Avg Revenue beat(12)0.91%
Revenue beat(16)8
Avg Revenue beat(16)0.46%
PT rev (1m)-0.96%
PT rev (3m)-9.95%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)1.2%
Revenue NY rev (3m)1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 8.91 | ||
| P/S | 0.28 | ||
| P/FCF | 10.03 | ||
| P/OCF | 8.61 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.87 |
EPS(TTM)28.41
EY10.18%
EPS(NY)31.34
Fwd EY11.23%
FCF(TTM)27.84
FCFY9.97%
OCF(TTM)32.43
OCFY11.62%
SpS1003.55
BVpS156.5
TBVpS-120.14
PEG (NY)0.84
PEG (5Y)0.98
Graham Number316.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 14.7% | ||
| ROCE | 9.83% | ||
| ROIC | 8.31% | ||
| ROICexc | 8.92% | ||
| ROICexgc | 40.82% | ||
| OM | 3.72% | ||
| PM (TTM) | 2.29% | ||
| GM | 9.55% | ||
| FCFM | 2.77% |
ROA(3y)3.41%
ROA(5y)3.82%
ROE(3y)11.49%
ROE(5y)12.53%
ROIC(3y)7.53%
ROIC(5y)6.93%
ROICexc(3y)8.17%
ROICexc(5y)7.51%
ROICexgc(3y)41.92%
ROICexgc(5y)35.13%
ROCE(3y)8.97%
ROCE(5y)8.27%
ROICexgc growth 3Y24.32%
ROICexgc 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-Score6
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.58 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 45.46% | ||
| Cap/Sales | 0.46% | ||
| Interest Coverage | 7.4 | ||
| Cash Conversion | 68.38% | ||
| Profit Quality | 120.99% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.63 |
F-Score6
WACC8.67%
ROIC/WACC0.96
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)3.35%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%4.26%
EPS Next Y11.68%
EPS Next 2Y7.07%
EPS Next 3Y7.99%
EPS Next 5Y9.72%
Revenue 1Y (TTM)15.26%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%9.5%
Revenue Next Year10.96%
Revenue Next 2Y7.74%
Revenue Next 3Y7.17%
Revenue Next 5Y6.32%
EBIT growth 1Y0.13%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year22.59%
EBIT Next 3Y9.56%
EBIT Next 5Y5.28%
FCF growth 1Y-31.72%
FCF growth 3Y14.05%
FCF growth 5Y1.21%
OCF growth 1Y-30.38%
OCF growth 3Y12.95%
OCF growth 5Y1.79%
THE CIGNA GROUP / CI FAQ
What is the fundamental rating for CI stock?
ChartMill assigns a fundamental rating of 5 / 10 to CI.
What is the valuation status of THE CIGNA GROUP (CI) stock?
ChartMill assigns a valuation rating of 7 / 10 to THE CIGNA GROUP (CI). This can be considered as Undervalued.
How profitable is THE CIGNA GROUP (CI) stock?
THE CIGNA GROUP (CI) has a profitability rating of 5 / 10.
What is the financial health of THE CIGNA GROUP (CI) stock?
The financial health rating of THE CIGNA GROUP (CI) is 3 / 10.
Can you provide the expected EPS growth for CI stock?
The Earnings per Share (EPS) of THE CIGNA GROUP (CI) is expected to grow by 11.68% in the next year.