THE CIGNA GROUP (CI) Stock Fundamental Analysis
NYSE:CI - New York Stock Exchange, Inc. - US1255231003 - Common Stock - Currency: USD
CI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 103 industry peers in the Health Care Providers & Services industry. CI has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on CI. 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.
Each year in the past 5 years CI has been profitable.
CI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CI has a Return On Assets of 3.34%. This is in the better half of the industry: CI outperforms 66.99% of its industry peers.
CI has a Return On Equity of 12.51%. This is amongst the best in the industry. CI outperforms 80.58% of its industry peers.
The Return On Invested Capital of CI (8.54%) is better than 76.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CI is below the industry average of 9.70%.
The 3 year average ROIC (7.53%) for CI is below the current ROIC(8.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 12.51% | ||
| ROIC | 8.54% |
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 Profit Margin of 1.97%. This is in the better half of the industry: CI outperforms 60.19% of its industry peers.
In the last couple of years the Profit Margin of CI has declined.
CI has a Operating Margin of 3.75%. This is comparable to the rest of the industry: CI outperforms 56.31% of its industry peers.
In the last couple of years the Operating Margin of CI has declined.
CI has a worse Gross Margin (10.25%) than 75.73% of its industry peers.
CI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.75% | ||
| PM (TTM) | 1.97% | ||
| GM | 10.25% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CI has less shares outstanding
CI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.65 indicates that CI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.65, CI perfoms like the industry average, outperforming 59.22% of the companies in the same industry.
The Debt to FCF ratio of CI is 5.07, which is a neutral value as it means it would take CI, 5.07 years of fcf income to pay off all of its debts.
CI has a Debt to FCF ratio of 5.07. This is in the better half of the industry: CI outperforms 65.05% of its industry peers.
CI has a Debt/Equity ratio of 0.66. This is a neutral value indicating CI is somewhat dependend on debt financing.
CI has a Debt to Equity ratio (0.66) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.08
WACC7.92%
2.3 Liquidity
A Current Ratio of 0.78 indicates that CI may have some problems paying its short term obligations.
With a Current ratio value of 0.78, CI is not doing good in the industry: 82.52% of the companies in the same industry are doing better.
A Quick Ratio of 0.69 indicates that CI may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, CI is not doing good in the industry: 80.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.54% over the past year.
The Earnings Per Share has been growing by 10.05% on average over the past years. This is quite good.
CI shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.96%.
The Revenue has been growing by 9.98% on average over the past years. This is quite good.
EPS 1Y (TTM)5.54%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%4.17%
Revenue 1Y (TTM)23.96%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%14.4%
3.2 Future
CI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.32% yearly.
The Revenue is expected to grow by 5.63% on average over the next years.
EPS Next Y11.83%
EPS Next 2Y11.63%
EPS Next 3Y11.58%
EPS Next 5Y11.32%
Revenue Next Year5.37%
Revenue Next 2Y4.76%
Revenue Next 3Y5.08%
Revenue Next 5Y5.63%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.72 indicates a reasonable valuation of CI.
Based on the Price/Earnings ratio, CI is valued cheaper than 84.47% of the companies in the same industry.
CI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.35.
Based on the Price/Forward Earnings ratio of 8.69, the valuation of CI can be described as reasonable.
86.41% of the companies in the same industry are more expensive than CI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CI to the average of the S&P500 Index (37.54), we can say CI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CI is valued a bit cheaper than the industry average as 75.73% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CI is valued a bit cheaper than the industry average as 76.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.15 | ||
| EV/EBITDA | 8.07 |
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)0.91
PEG (5Y)1.07
EPS Next 2Y11.63%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.02%, CI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.59, CI pays a better dividend. On top of this CI pays more dividend than 90.29% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
On average, the dividend of CI grows each year by 169.26%, which is quite nice.
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
31.35% of the earnings are spent on dividend by CI. This is a low number and sustainable payout ratio.
CI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.35%
EPS Next 2Y11.63%
EPS Next 3Y11.58%
NYSE:CI (7/25/2025, 1:28:35 PM)
295.88
+1.95 (+0.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.81%
Inst Owner Change-0.88%
Ins Owners0.34%
Ins Owner Change3.45%
Market Cap79.04B
Analysts81.18
Price Target383.04 (29.46%)
Short Float %1.11%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend5.53
Dividend Growth(5Y)169.26%
DP31.35%
Div Incr Years4
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.28%
Min EPS beat(2)-17.61%
Max EPS beat(2)3.05%
EPS beat(4)3
Avg EPS beat(4)-2.88%
Min EPS beat(4)-17.61%
Max EPS beat(4)3.05%
EPS beat(8)5
Avg EPS beat(8)-1.54%
EPS beat(12)8
Avg EPS beat(12)0.01%
EPS beat(16)11
Avg EPS beat(16)1.25%
Revenue beat(2)2
Avg Revenue beat(2)2.95%
Min Revenue beat(2)0.59%
Max Revenue beat(2)5.31%
Revenue beat(4)4
Avg Revenue beat(4)2.71%
Min Revenue beat(4)0.59%
Max Revenue beat(4)5.31%
Revenue beat(8)5
Avg Revenue beat(8)1.17%
Revenue beat(12)5
Avg Revenue beat(12)0.25%
Revenue beat(16)8
Avg Revenue beat(16)0.25%
PT rev (1m)0.05%
PT rev (3m)4.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.3%
EPS NY rev (1m)0%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 8.69 | ||
| P/S | 0.31 | ||
| P/FCF | 13.15 | ||
| P/OCF | 10.62 | ||
| P/B | 1.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.07 |
EPS(TTM)27.61
EY9.33%
EPS(NY)34.07
Fwd EY11.51%
FCF(TTM)22.5
FCFY7.6%
OCF(TTM)27.86
OCFY9.42%
SpS955.93
BVpS150.58
TBVpS-124.25
PEG (NY)0.91
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.34% | ||
| ROE | 12.51% | ||
| ROCE | 10.1% | ||
| ROIC | 8.54% | ||
| ROICexc | 9.44% | ||
| ROICexgc | 65.2% | ||
| OM | 3.75% | ||
| PM (TTM) | 1.97% | ||
| GM | 10.25% | ||
| FCFM | 2.35% |
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 Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 5.07 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 52.92% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 6.92 | ||
| Cash Conversion | 60.54% | ||
| Profit Quality | 119.39% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.65 |
F-Score7
WACC7.92%
ROIC/WACC1.08
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)5.54%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%4.17%
EPS Next Y11.83%
EPS Next 2Y11.63%
EPS Next 3Y11.58%
EPS Next 5Y11.32%
Revenue 1Y (TTM)23.96%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%14.4%
Revenue Next Year5.37%
Revenue Next 2Y4.76%
Revenue Next 3Y5.08%
Revenue Next 5Y5.63%
EBIT growth 1Y3.16%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year20.66%
EBIT Next 3Y8.58%
EBIT Next 5Y8.65%
FCF growth 1Y-41.3%
FCF growth 3Y14.05%
FCF growth 5Y1.21%
OCF growth 1Y-36.13%
OCF growth 3Y12.95%
OCF growth 5Y1.79%