THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - NYSE:CI - US1255231003 - Common Stock
311 USD
+14.02 (+4.72%)
311 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CI. CI was compared to 101 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 may be a bit undervalued, certainly considering the very reasonable score on growth CI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CI had positive earnings in the past year.
CI had a positive operating cash flow in the past year.
Each year in the past 5 years CI has been profitable.
Each year in the past 5 years CI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.31%, CI is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.48%, CI is in the better half of the industry, outperforming 78.22% 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 77.23% of the companies in the same industry.
CI had an Average Return On Invested Capital over the past 3 years of 7.53%. This is in line with the industry average of 9.19%.
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 61.39% of the companies in the same industry.
CI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.75%, CI perfoms like the industry average, outperforming 56.44% of the companies in the same industry.
CI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 9.86%, CI is doing worse than 73.27% of the companies in the same industry.
CI's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CI is creating some value.
Compared to 1 year ago, CI has less shares outstanding
The number of shares outstanding for CI has been reduced compared to 5 years ago.
The debt/assets ratio for CI is higher compared to a year ago.
2.2 Solvency
CI has an Altman-Z score of 2.69. 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.
CI has a Altman-Z score (2.69) which is comparable to the rest of the 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.
The Debt to FCF ratio of CI (7.80) is comparable to the rest of the industry.
CI has a Debt/Equity ratio of 0.66. This is a neutral value indicating CI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, CI perfoms like the industry average, outperforming 53.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 7.8 | ||
| Altman-Z | 2.69 |
ROIC/WACC1.05
WACC8.36%
2.3 Liquidity
CI has a Current 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.
Looking at the Current ratio, with a value of 0.79, CI is doing worse than 85.15% of the companies in the same industry.
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.
With a Quick ratio value of 0.68, CI is not doing good in the industry: 82.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.01% 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 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.
The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y11.69%
EPS Next 2Y11.52%
EPS Next 3Y11.73%
EPS Next 5Y11.65%
Revenue Next Year9.29%
Revenue Next 2Y6.77%
Revenue Next 3Y6.45%
Revenue Next 5Y5.7%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 11.07, the valuation of CI can be described as very reasonable.
90.10% of the companies in the same industry are more expensive than CI, based on the Price/Earnings ratio.
CI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
A Price/Forward Earnings ratio of 9.15 indicates a reasonable valuation of CI.
Based on the Price/Forward Earnings ratio, CI is valued cheaply inside the industry as 94.06% of the companies are valued more expensively.
CI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CI is valued a bit cheaper than 79.21% 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 65.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.05 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.95
PEG (5Y)1.1
EPS Next 2Y11.52%
EPS Next 3Y11.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, CI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.41, CI pays a better dividend. On top of this CI pays more dividend than 90.10% of the companies listed in the same industry.
CI's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
On average, the dividend of CI grows each year by 169.26%, which is quite nice.
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
31.63% of the earnings are spent on dividend by CI. This is a low number and sustainable payout ratio.
The dividend of CI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.63%
EPS Next 2Y11.52%
EPS Next 3Y11.73%
311
+14.02 (+4.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.02%
Inst Owner Change-1.58%
Ins Owners0.34%
Ins Owner Change0.44%
Market Cap83.02B
Analysts81.18
Price Target368.72 (18.56%)
Short Float %1.24%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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)0.35%
PT rev (3m)-3.73%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-2.98%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.16%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)3.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 9.15 | ||
| P/S | 0.32 | ||
| P/FCF | 21.05 | ||
| P/OCF | 15.69 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.34 |
EPS(TTM)28.09
EY9.03%
EPS(NY)34
Fwd EY10.93%
FCF(TTM)14.78
FCFY4.75%
OCF(TTM)19.83
OCFY6.37%
SpS981.62
BVpS150.65
TBVpS-123
PEG (NY)0.95
PEG (5Y)1.1
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 | 2.69 |
F-Score7
WACC8.36%
ROIC/WACC1.05
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 Y11.69%
EPS Next 2Y11.52%
EPS Next 3Y11.73%
EPS Next 5Y11.65%
Revenue 1Y (TTM)20.23%
Revenue growth 3Y12.39%
Revenue growth 5Y9.98%
Sales Q2Q%11%
Revenue Next Year9.29%
Revenue Next 2Y6.77%
Revenue Next 3Y6.45%
Revenue Next 5Y5.7%
EBIT growth 1Y3.03%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year21.27%
EBIT Next 3Y9.36%
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%