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. CI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CI was profitable.
CI had a positive operating cash flow in the past year.
In the past 5 years CI has always 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.
With an excellent Return On Equity value of 12.51%, CI belongs to the best of the industry, outperforming 80.58% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.54%, CI is in the better half of the industry, outperforming 76.70% 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 below the industry average of 9.72%.
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
Looking at the Profit Margin, with a value of 1.97%, CI is in the better half of the industry, outperforming 60.19% of the companies in the same industry.
CI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.75%, CI is in line with its industry, outperforming 56.31% of the companies in the same industry.
In the last couple of years the Operating Margin of CI has declined.
The Gross Margin of CI (10.25%) is worse than 75.73% of its industry peers.
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) below the Cost of Capital (WACC), CI is destroying 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.
The debt/assets ratio for CI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.64 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 2.64, CI perfoms like the industry average, outperforming 59.22% of the companies in the same industry.
CI has a debt to FCF ratio of 5.07. This is a neutral value as CI would need 5.07 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.07, CI is doing good in the industry, outperforming 65.05% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that CI is somewhat dependend on debt financing.
CI has a Debt to Equity ratio of 0.66. This is comparable to the rest of the industry: CI outperforms 53.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 5.07 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.97
WACC8.78%
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.
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
CI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.54%.
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.
The Revenue has grown by 23.96% in the past year. This is a very strong growth!
Measured over the past years, CI shows a quite strong growth in Revenue. The Revenue has been growing by 9.98% on average per year.
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.
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 2Y11.63%
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.
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
A Price/Earnings ratio of 10.72 indicates a reasonable valuation of CI.
85.44% of the companies in the same industry are more expensive than CI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CI to the average of the S&P500 Index (27.91), we can say CI is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.69, the valuation of CI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CI is valued cheaper than 86.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CI to the average of the S&P500 Index (37.11), 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 76.70% of the companies are valued more expensively.
75.73% of the companies in the same industry are more expensive than CI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.16 | ||
| EV/EBITDA | 8.03 |
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
CI has a Yearly Dividend Yield of 1.98%.
CI's Dividend Yield is rather good when compared to the industry average which is at 2.61. CI pays more dividend than 90.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, CI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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 (7/30/2025, 3:25:10 PM)
296.04
+3.87 (+1.32%)
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 Change0.6%
Ins Owners0.34%
Ins Owner Change3.45%
Market Cap79.08B
Analysts81.18
Price Target383.04 (29.39%)
Short Float %1.1%
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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)0.01%
PT rev (3m)4.36%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)0%
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%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 8.69 | ||
| P/S | 0.31 | ||
| P/FCF | 13.16 | ||
| P/OCF | 10.63 | ||
| P/B | 1.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.03 |
EPS(TTM)27.61
EY9.33%
EPS(NY)34.07
Fwd EY11.51%
FCF(TTM)22.5
FCFY7.6%
OCF(TTM)27.86
OCFY9.41%
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 | 2.64 |
F-Score7
WACC8.78%
ROIC/WACC0.97
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%