THE CIGNA GROUP (CI) Stock Fundamental Analysis
USA - NYSE:CI - US1255231003 - Common Stock
302.76 USD
-3.11 (-1.02%)
302.8 USD
+0.04 (+0.01%)
Overall CI gets a fundamental rating of 5 out of 10. We evaluated CI against 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. 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.
In the past year CI had a positive cash flow from operations.
CI had positive earnings in each of the past 5 years.
Each year in the past 5 years CI had a positive operating cash flow.
1.2 Ratios
CI has a better Return On Assets (3.31%) than 67.33% of its industry peers.
The Return On Equity of CI (12.48%) is better than 78.22% of its industry peers.
The Return On Invested Capital of CI (8.77%) is better than 77.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CI is in line with the industry average of 9.19%.
The last Return On Invested Capital (8.77%) for CI is above the 3 year average (7.53%), which is a sign of increasing profitability.
| 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
The Profit Margin of CI (1.92%) is better than 61.39% of its industry peers.
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.
CI has a Gross Margin of 9.86%. This is in the lower half of the industry: CI underperforms 73.27% 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) | 1.92% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CI is still creating some value.
The number of shares outstanding for CI has been reduced compared to 1 year ago.
CI has less shares outstanding than it did 5 years ago.
CI has a worse debt/assets ratio than last year.
2.2 Solvency
CI has an Altman-Z score of 2.71. 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 better Altman-Z score (2.71) than 60.40% of its industry peers.
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.
CI has a Debt to FCF ratio of 7.80. This is comparable to the rest of the industry: CI outperforms 59.41% of its industry peers.
CI has a Debt/Equity ratio of 0.66. This is a neutral value indicating CI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, CI is in line with its industry, outperforming 53.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 7.8 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.06
WACC8.28%
2.3 Liquidity
A Current Ratio of 0.79 indicates that CI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.79, CI is doing worse than 84.16% 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.
Looking at the Quick ratio, with a value of 0.68, CI is doing worse than 82.18% of the companies in the same industry.
| 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.
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 20.23% in the past year. This is a very strong growth!
The Revenue has been growing by 9.98% on average over the past years. This is quite good.
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
CI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.65% yearly.
Based on estimates for the next years, CI will show a small growth in Revenue. The Revenue will grow by 5.70% on average per year.
EPS Next Y11.67%
EPS Next 2Y11.51%
EPS Next 3Y11.73%
EPS Next 5Y11.65%
Revenue Next Year9.21%
Revenue Next 2Y6.73%
Revenue Next 3Y6.45%
Revenue Next 5Y5.7%
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.
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 10.78, the valuation of CI can be described as reasonable.
Based on the Price/Earnings ratio, CI is valued cheaply inside the industry as 89.11% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CI to the average of the S&P500 Index (27.30), we can say CI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.91, the valuation of CI can be described as reasonable.
CI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CI is cheaper than 90.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CI to the average of the S&P500 Index (22.73), we can say CI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 8.91 |
4.2 Price Multiples
78.22% of the companies in the same industry are more expensive than CI, based on the Enterprise Value to EBITDA ratio.
62.38% 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 | 20.49 | ||
| EV/EBITDA | 8.53 |
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)0.92
PEG (5Y)1.07
EPS Next 2Y11.51%
EPS Next 3Y11.73%
5. Dividend
5.1 Amount
CI has a Yearly Dividend Yield of 1.99%.
Compared to an average industry Dividend Yield of 2.48, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of CI is nicely growing with an annual growth rate of 169.26%!
CI has paid a dividend for at least 10 years, which is a reliable track record.
CI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)169.26%
Div Incr Years4
Div Non Decr Years19
5.3 Sustainability
CI pays out 31.63% of its income as dividend. This is a sustainable payout ratio.
CI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.63%
EPS Next 2Y11.51%
EPS Next 3Y11.73%
302.76
-3.11 (-1.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.82%
Inst Owner Change-1.57%
Ins Owners0.34%
Ins Owner Change0.44%
Market Cap80.82B
Analysts81.18
Price Target367.43 (21.36%)
Short Float %1.26%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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)-0.56%
PT rev (3m)-3.04%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)-4.59%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)3.94%
Revenue NQ rev (3m)4.19%
Revenue NY rev (1m)3.63%
Revenue NY rev (3m)3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 8.91 | ||
| P/S | 0.31 | ||
| P/FCF | 20.49 | ||
| P/OCF | 15.27 | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.53 |
EPS(TTM)28.09
EY9.28%
EPS(NY)33.99
Fwd EY11.23%
FCF(TTM)14.78
FCFY4.88%
OCF(TTM)19.83
OCFY6.55%
SpS981.62
BVpS150.65
TBVpS-123
PEG (NY)0.92
PEG (5Y)1.07
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 | 2.71 |
F-Score7
WACC8.28%
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)5.01%
EPS 3Y10.13%
EPS 5Y10.05%
EPS Q2Q%7.14%
EPS Next Y11.67%
EPS Next 2Y11.51%
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 Year9.21%
Revenue Next 2Y6.73%
Revenue Next 3Y6.45%
Revenue Next 5Y5.7%
EBIT growth 1Y3.03%
EBIT growth 3Y5.54%
EBIT growth 5Y1.75%
EBIT Next Year19.89%
EBIT Next 3Y10.19%
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%