THE CIGNA GROUP (CI)
US1255231003 - Common Stock
Taking everything into account, CI scores 6 out of 10 in our fundamental rating. CI was compared to 116 industry peers in the Health Care Providers & Services industry. CI has an average financial health and profitability rating. CI is evaluated to be cheap and growing strongly. This does not happen too often! This makes CI very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
CI had positive earnings in the past year.
In the past year CI had a positive cash flow from operations.
In the past 5 years CI has always been profitable.
In the past 5 years CI always reported a positive cash flow from operatings.
1.2 Ratios
CI has a better Return On Assets (3.38%) than 73.28% of its industry peers.
Looking at the Return On Equity, with a value of 11.17%, CI is in the better half of the industry, outperforming 77.59% of the companies in the same industry.
CI's Return On Invested Capital of 7.65% is fine compared to the rest of the industry. CI outperforms 78.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CI is in line with the industry average of 8.64%.
The 3 year average ROIC (7.18%) for CI is below the current ROIC(7.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 11.17% | ||
| ROIC | 7.65% |
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's Profit Margin of 2.64% is fine compared to the rest of the industry. CI outperforms 70.69% of its industry peers.
CI's Profit Margin has declined in the last couple of years.
CI has a Operating Margin of 4.63%. This is in the better half of the industry: CI outperforms 63.79% of its industry peers.
CI's Operating Margin has declined in the last couple of years.
CI's Gross Margin of 12.89% is on the low side compared to the rest of the industry. CI is outperformed by 75.86% of its industry peers.
In the last couple of years the Gross Margin of CI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.63% | ||
| PM (TTM) | 2.64% | ||
| GM | 12.89% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CI is destroying value.
CI has less shares outstanding than it did 1 year ago.
CI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CI has an improved debt to assets ratio.
2.2 Solvency
CI has an Altman-Z score of 2.34. 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 decent Altman-Z score value of 2.34, CI is doing good in the industry, outperforming 61.21% of the companies in the same industry.
The Debt to FCF ratio of CI is 3.02, which is a good value as it means it would take CI, 3.02 years of fcf income to pay off all of its debts.
CI has a Debt to FCF ratio of 3.02. This is amongst the best in the industry. CI outperforms 80.17% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that CI is somewhat dependend on debt financing.
CI has a Debt to Equity ratio of 0.64. This is comparable to the rest of the industry: CI outperforms 52.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.96
WACC7.97%
2.3 Liquidity
A Current Ratio of 0.77 indicates that CI may have some problems paying its short term obligations.
CI has a worse Current ratio (0.77) than 82.76% of its industry peers.
A Quick Ratio of 0.65 indicates that CI may have some problems paying its short term obligations.
With a Quick ratio value of 0.65, CI is not doing good in the industry: 81.03% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
CI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.05%, which is quite good.
The Earnings Per Share has been growing by 11.91% on average over the past years. This is quite good.
The Revenue has grown by 8.42% in the past year. This is quite good.
Measured over the past years, CI shows a very strong growth in Revenue. The Revenue has been growing by 32.15% on average per year.
EPS 1Y (TTM)8.05%
EPS 3Y10.87%
EPS 5Y11.91%
EPS growth Q2Q36.9%
Revenue 1Y (TTM)8.42%
Revenue growth 3Y6.82%
Revenue growth 5Y32.15%
Revenue growth Q2Q11.72%
3.2 Future
The Earnings Per Share is expected to grow by 11.43% on average over the next years. This is quite good.
CI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.51% yearly.
EPS Next Y16.66%
EPS Next 2Y14.69%
EPS Next 3Y13.57%
EPS Next 5Y11.43%
Revenue Next Year22.03%
Revenue Next 2Y12.86%
Revenue Next 3Y11.93%
Revenue Next 5Y9.51%
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
A Price/Earnings ratio of 13.90 indicates a correct valuation of CI.
Compared to the rest of the industry, the Price/Earnings ratio of CI indicates a rather cheap valuation: CI is cheaper than 87.93% of the companies listed in the same industry.
CI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.80.
With a Price/Forward Earnings ratio of 11.91, the valuation of CI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CI is valued cheaper than 89.66% of the companies in the same industry.
CI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CI is valued a bit cheaper than 78.45% 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 85.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.96 | ||
| EV/EBITDA | 10.11 |
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.
CI has a very decent profitability rating, which may justify a higher PE ratio.
CI's earnings are expected to grow with 13.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)1.17
EPS Next 2Y14.69%
EPS Next 3Y13.57%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
CI's Dividend Yield is rather good when compared to the industry average which is at 2.69. CI pays more dividend than 88.79% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, CI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
On average, the dividend of CI grows each year by 163.63%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)163.63%
Div Incr Years3
Div Non Decr Years15
5.3 Sustainability
28.08% 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.
DP28.08%
EPS Next 2Y14.69%
EPS Next 3Y13.57%
THE CIGNA GROUP
NYSE:CI (4/18/2024, 7:04:00 PM)
After market: 348.78 0 (0%)348.78
+2.7 (+0.78%)
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 Cap101.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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 | 13.9 | ||
| Fwd PE | 11.91 | ||
| 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)0.83
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 11.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.63% | ||
| PM (TTM) | 2.64% | ||
| GM | 12.89% | ||
| 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 Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.65 | ||
| 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)
Growth
EPS 1Y (TTM)8.05%
EPS 3Y10.87%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.42%
Revenue growth 3Y6.82%
Revenue growth 5Y
Revenue growth 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