THE CIGNA GROUP (CI)
US1255231003 - Common Stock
CI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 113 industry peers in the Health Care Providers & Services industry. CI has an average financial health and profitability rating. CI has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
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.
CI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.39%, CI is doing good in the industry, outperforming 66.37% of the companies in the same industry.
The Return On Equity of CI (8.97%) is better than 75.22% of its industry peers.
With an excellent Return On Invested Capital value of 8.45%, CI belongs to the best of the industry, outperforming 83.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CI is in line with the industry average of 7.88%.
The 3 year average ROIC (7.18%) for CI is below the current ROIC(8.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 8.97% | ||
| ROIC | 8.45% |
ROA(3y)3.83%
ROA(5y)4.04%
ROE(3y)12.5%
ROE(5y)13.11%
ROIC(3y)7.18%
ROIC(5y)6.91%
1.3 Margins
CI has a Profit Margin of 1.70%. This is in the better half of the industry: CI outperforms 67.26% of its industry peers.
In the last couple of years the Profit Margin of CI has declined.
CI has a better Operating Margin (4.39%) than 61.95% of its industry peers.
CI's Operating Margin has declined in the last couple of years.
The Gross Margin of CI (11.91%) is worse than 75.22% of its industry peers.
In the last couple of years the Gross Margin of CI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.39% | ||
| PM (TTM) | 1.7% | ||
| GM | 11.91% |
OM growth 3Y-4.2%
OM growth 5Y-13.87%
PM growth 3Y-20.58%
PM growth 5Y-13.44%
GM growth 3Y-4.88%
GM growth 5Y-17.28%
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.
CI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CI has been reduced compared to a year ago.
2.2 Solvency
CI has an Altman-Z score of 2.45. 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.
With a Altman-Z score value of 2.45, CI perfoms like the industry average, outperforming 59.29% of the companies in the same industry.
The Debt to FCF ratio of CI is 4.01, which is a neutral value as it means it would take CI, 4.01 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 4.01, CI belongs to the best of the industry, outperforming 81.42% of the companies in the same industry.
CI has a Debt/Equity ratio of 0.75. This is a neutral value indicating CI is somewhat dependend on debt financing.
CI has a Debt to Equity ratio of 0.75. This is comparable to the rest of the industry: CI outperforms 44.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 4.01 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.16
WACC7.27%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CI may have some problems paying its short term obligations.
The Current ratio of CI (0.83) is worse than 80.53% of its industry peers.
A Quick Ratio of 0.74 indicates that CI may have some problems paying its short term obligations.
The Quick ratio of CI (0.74) is worse than 77.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.68% over the past year.
CI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.91% yearly.
Looking at the last year, CI shows a quite strong growth in Revenue. The Revenue has grown by 17.09% in the last year.
The Revenue has been growing by 32.15% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)18.68%
EPS 3Y10.87%
EPS 5Y11.91%
EPS Q2Q%9.62%
Revenue 1Y (TTM)17.09%
Revenue growth 3Y6.82%
Revenue growth 5Y32.15%
Sales Q2Q%24.49%
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 12.60% on average per year.
CI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.87% yearly.
EPS Next Y16.98%
EPS Next 2Y14.44%
EPS Next 3Y13.72%
EPS Next 5Y12.6%
Revenue Next Year23.45%
Revenue Next 2Y13.34%
Revenue Next 3Y10.7%
Revenue Next 5Y9.87%
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.
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
The Price/Earnings ratio is 13.63, which indicates a correct valuation of CI.
Based on the Price/Earnings ratio, CI is valued cheaper than 89.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.52, CI is valued rather cheaply.
CI is valuated reasonably with a Price/Forward Earnings ratio of 11.10.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 91.15% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CI to the average of the S&P500 Index (21.99), we can say CI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CI is valued cheaper than 81.42% 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 85.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.81 | ||
| EV/EBITDA | 9.81 |
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.
CI has a very decent profitability rating, which may justify a higher PE ratio.
CI's earnings are expected to grow with 13.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)1.14
EPS Next 2Y14.44%
EPS Next 3Y13.72%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 1.58%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.54, CI pays a better dividend. On top of this CI pays more dividend than 89.38% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.26, CI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
The dividend of CI is nicely growing with an annual growth rate of 163.63%!
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)163.63%
Div Incr Years3
Div Non Decr Years18
5.3 Sustainability
40.80% of the earnings are spent on dividend by CI. This is a bit on the high side, but may be sustainable.
CI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.8%
EPS Next 2Y14.44%
EPS Next 3Y13.72%
THE CIGNA GROUP
NYSE:CI (9/13/2024, 8:06:16 PM)
After market: 364.72 0 (0%)364.72
+2.55 (+0.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap101.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 11.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.8
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 8.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.39% | ||
| PM (TTM) | 1.7% | ||
| GM | 11.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)18.68%
EPS 3Y10.87%
EPS 5Y
EPS Q2Q%
EPS Next Y16.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.09%
Revenue growth 3Y6.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y