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 an average financial health and profitability rating. CI has a correct valuation and a medium growth rate.
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.
In the past 5 years CI always reported a positive cash flow from operatings.
1.2 Ratios
CI's Return On Assets of 3.34% is fine compared to the rest of the industry. CI outperforms 66.99% of its industry peers.
Looking at the Return On Equity, with a value of 12.51%, CI is in the better half of the industry, outperforming 79.61% of the companies in the same industry.
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 9.71%.
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.
CI's Profit Margin has declined in the last couple of years.
CI has a Operating Margin (3.75%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CI has declined.
With a Gross Margin value of 10.25%, CI is not doing good in the industry: 75.73% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CI has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CI is creating some value.
CI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CI has less shares outstanding
The debt/assets ratio for CI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.70 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 2.70. This is in the better half of the industry: CI outperforms 60.19% of its industry peers.
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's Debt to FCF ratio of 5.07 is fine compared to the rest of the industry. CI outperforms 65.05% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that 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 | 2.7 |
ROIC/WACC1.06
WACC8.03%
2.3 Liquidity
A Current Ratio of 0.78 indicates that CI may have some problems paying its short term obligations.
CI has a worse Current ratio (0.78) than 82.52% of its industry peers.
A Quick Ratio of 0.69 indicates that CI may have some problems paying its short term obligations.
The Quick ratio of CI (0.69) is worse than 80.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
CI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.54%.
CI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.05% yearly.
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
Based on estimates for the next years, CI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.32% on average per year.
CI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.63% yearly.
EPS Next Y11.83%
EPS Next 2Y11.61%
EPS Next 3Y11.58%
EPS Next 5Y11.32%
Revenue Next Year5.37%
Revenue Next 2Y4.81%
Revenue Next 3Y5.08%
Revenue Next 5Y5.63%
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
Based on the Price/Earnings ratio of 12.18, the valuation of CI can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 85.44% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, CI is valued rather cheaply.
A Price/Forward Earnings ratio of 9.87 indicates a reasonable valuation of CI.
90.29% 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 (21.60), we can say CI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CI is valued a bit cheaper than the industry average as 73.79% of the companies are valued more expensively.
CI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CI is cheaper than 79.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.95 | ||
| EV/EBITDA | 8.86 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.03
PEG (5Y)1.21
EPS Next 2Y11.61%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, CI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.37, CI pays a better dividend. On top of this CI pays more dividend than 90.29% of the companies listed in the same industry.
CI's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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 31.35% of its income as dividend. This is a sustainable payout ratio.
The dividend of CI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.35%
EPS Next 2Y11.61%
EPS Next 3Y11.58%
NYSE:CI (7/1/2025, 12:42:28 PM)
336.245
+5.67 (+1.71%)
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 Change0.08%
Ins Owners0.34%
Ins Owner Change3.45%
Market Cap89.82B
Analysts81.18
Price Target383 (13.91%)
Short Float %1.12%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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)1.06%
PT rev (3m)4.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 9.87 | ||
| P/S | 0.35 | ||
| P/FCF | 14.95 | ||
| P/OCF | 12.07 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.86 |
EPS(TTM)27.61
EY8.21%
EPS(NY)34.05
Fwd EY10.13%
FCF(TTM)22.5
FCFY6.69%
OCF(TTM)27.86
OCFY8.29%
SpS955.93
BVpS150.58
TBVpS-124.25
PEG (NY)1.03
PEG (5Y)1.21
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 | 2.7 |
F-Score7
WACC8.03%
ROIC/WACC1.06
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 2Y11.61%
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 2Y4.81%
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%