THE CIGNA GROUP (CI) Stock Fundamental Analysis
NYSE:CI - US1255231003 - Common Stock
304.35 USD
+3.4 (+1.13%)
304.35 USD
0 (0%)
Taking everything into account, CI scores 5 out of 10 in our fundamental rating. CI was compared to 104 industry peers in the Health Care Providers & Services industry. While CI is still in line with the averages on profitability rating, there are concerns on its financial health. CI is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
In the past 5 years CI has always been profitable.
Each year in the past 5 years CI had a positive operating cash flow.
1.2 Ratios
CI's Return On Assets of 3.31% is fine compared to the rest of the industry. CI outperforms 68.27% of its industry peers.
With a decent Return On Equity value of 12.48%, CI is doing good in the industry, outperforming 78.85% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.77%, CI is in the better half of the industry, outperforming 77.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CI is below the industry average of 9.61%.
The 3 year average ROIC (7.53%) for CI is below the current ROIC(8.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 12.48% | ||
| ROIC | 8.77% |
ROA(3y)3.41%
ROA(5y)3.82%
ROE(3y)11.49%
ROE(5y)12.53%
ROIC(3y)7.53%
ROIC(5y)6.93%
1.3 Margins
Looking at the Profit Margin, with a value of 1.92%, CI is in the better half of the industry, outperforming 60.58% of the companies in the same industry.
CI's Profit Margin has declined in the last couple of years.
CI's Operating Margin of 3.75% is in line compared to the rest of the industry. CI outperforms 56.73% of its industry peers.
In the last couple of years the Operating Margin of CI has declined.
Looking at the Gross Margin, with a value of 9.86%, CI is doing worse than 74.04% 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 | 3.75% | ||
| PM (TTM) | 1.92% | ||
| GM | 9.86% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CI is still creating some value.
The number of shares outstanding for CI has been reduced compared to 1 year ago.
The number of shares outstanding for CI has been reduced compared to 5 years ago.
CI has a worse debt/assets ratio than last year.
2.2 Solvency
CI has an Altman-Z score of 2.70. 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 2.70, CI is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
CI has a debt to FCF ratio of 7.80. This is a slightly negative value and a sign of low solvency as CI would need 7.80 years to pay back of all of its debts.
CI's Debt to FCF ratio of 7.80 is fine compared to the rest of the industry. CI outperforms 61.54% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that CI is somewhat dependend on debt financing.
The Debt to Equity ratio of CI (0.66) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 7.8 | ||
| Altman-Z | 2.7 |
ROIC/WACC1.12
WACC7.84%
2.3 Liquidity
A Current Ratio of 0.79 indicates that CI may have some problems paying its short term obligations.
The Current ratio of CI (0.79) is worse than 81.73% of its industry peers.
CI has a Quick Ratio of 0.79. 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 0.68 is on the low side compared to the rest of the industry. CI is outperformed by 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
CI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.01%.
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.
Looking at the last year, CI shows a very strong growth in Revenue. The Revenue has grown by 20.23%.
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)5.01%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%7.14%
Revenue 1Y (TTM)20.23%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%11%
3.2 Future
Based on estimates for the next years, CI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.65% on average per year.
CI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.70% yearly.
EPS Next Y11.83%
EPS Next 2Y11.63%
EPS Next 3Y11.58%
EPS Next 5Y11.65%
Revenue Next Year5.38%
Revenue Next 2Y4.92%
Revenue Next 3Y5.08%
Revenue Next 5Y5.7%
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 10.83, the valuation of CI can be described as very reasonable.
Based on the Price/Earnings ratio, CI is valued cheaper than 88.46% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. CI is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.93 indicates a reasonable valuation of CI.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 88.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, CI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 8.93 |
4.2 Price Multiples
CI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CI is cheaper than 76.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CI is valued a bit cheaper than the industry average as 66.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.6 | ||
| EV/EBITDA | 8.42 |
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)0.92
PEG (5Y)1.08
EPS Next 2Y11.63%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.08%, 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 2.91. CI pays more dividend than 89.42% of the companies in the same industry.
CI's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
The dividend of CI is nicely growing with an annual growth rate of 169.26%!
CI has been paying a dividend for at least 10 years, so it has 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 31.63% 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.
DP31.63%
EPS Next 2Y11.63%
EPS Next 3Y11.58%
304.35
+3.4 (+1.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.82%
Inst Owner Change-1.66%
Ins Owners0.34%
Ins Owner Change3.45%
Market Cap81.24B
Analysts81.18
Price Target369.51 (21.41%)
Short Float %0.93%
Short Ratio1.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend5.53
Dividend Growth(5Y)169.26%
DP31.63%
Div Incr Years4
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.38%
Min EPS beat(2)-2.29%
Max EPS beat(2)3.05%
EPS beat(4)2
Avg EPS beat(4)-3.91%
Min EPS beat(4)-17.61%
Max EPS beat(4)3.05%
EPS beat(8)5
Avg EPS beat(8)-1.68%
EPS beat(12)7
Avg EPS beat(12)-1.03%
EPS beat(16)10
Avg EPS beat(16)0.95%
Revenue beat(2)2
Avg Revenue beat(2)4.87%
Min Revenue beat(2)4.42%
Max Revenue beat(2)5.31%
Revenue beat(4)4
Avg Revenue beat(4)3.63%
Min Revenue beat(4)0.59%
Max Revenue beat(4)5.31%
Revenue beat(8)6
Avg Revenue beat(8)1.75%
Revenue beat(12)6
Avg Revenue beat(12)0.69%
Revenue beat(16)8
Avg Revenue beat(16)0.42%
PT rev (1m)-3.52%
PT rev (3m)-2.49%
EPS NQ rev (1m)-2.97%
EPS NQ rev (3m)-4.56%
EPS NY rev (1m)0%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)4.31%
Revenue NQ rev (3m)3.34%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 8.93 | ||
| P/S | 0.31 | ||
| P/FCF | 20.6 | ||
| P/OCF | 15.35 | ||
| P/B | 2.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.42 |
EPS(TTM)28.09
EY9.23%
EPS(NY)34.07
Fwd EY11.19%
FCF(TTM)14.78
FCFY4.85%
OCF(TTM)19.83
OCFY6.51%
SpS981.62
BVpS150.65
TBVpS-123
PEG (NY)0.92
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 12.48% | ||
| ROCE | 10.37% | ||
| ROIC | 8.77% | ||
| ROICexc | 9.27% | ||
| ROICexgc | 49.85% | ||
| OM | 3.75% | ||
| PM (TTM) | 1.92% | ||
| GM | 9.86% | ||
| FCFM | 1.51% |
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 Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 7.8 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 50.83% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 7.13 | ||
| Cash Conversion | 42.38% | ||
| Profit Quality | 78.6% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 2.7 |
F-Score7
WACC7.84%
ROIC/WACC1.12
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)5.01%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%7.14%
EPS Next Y11.83%
EPS Next 2Y11.63%
EPS Next 3Y11.58%
EPS Next 5Y11.65%
Revenue 1Y (TTM)20.23%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%11%
Revenue Next Year5.38%
Revenue Next 2Y4.92%
Revenue Next 3Y5.08%
Revenue Next 5Y5.7%
EBIT growth 1Y3.03%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year19.89%
EBIT Next 3Y10.19%
EBIT Next 5Y6.54%
FCF growth 1Y-65.45%
FCF growth 3Y14.05%
FCF growth 5Y1.21%
OCF growth 1Y-58.98%
OCF growth 3Y12.95%
OCF growth 5Y1.79%