Cigna Group (The)
Exchange: NYSESector: HealthcareIndustry: Healthcare Plans
Cigna Corporation (Cigna) is a holding company. Cigna is a global health service company, with insurance subsidiaries that are providers of medical, dental, disability, life and accident insurance and related products and services. In the United States, these products and services are offered through employers and other groups, and in selected international markets, Cigna offers supplemental health, life and accident insurance products and international health care coverage and services to businesses, governmental and non-governmental organizations and individuals. Cigna operates in five segments: Health Care, Disability and Life, International, Run-off Reinsurance, and Other Operations, including Corporate-owned Life Insurance. September 2013, Cigna Corporation completed its acquisition of Alegis Care, a portfolio company of Triton Pacific Capital Partners. Effective September 3, 2013, Cigna Corp acquired Home Physicians Management LLC.
Did you know?
Generated $6.9 in free cash flow for every $1 of capital expenditure in FY25.
Current Price
$270.02
+1.01%GoodMoat Value
$3721.77
1278.3% undervaluedProfile
Valuation (TTM)
Market Cap$72.13B
P/E12.11
EV$92.58B
P/B1.73
Shares Out267.13M
P/Sales0.26
Revenue$274.90B
EV/EBITDA8.15
Cigna Group (The) (CI) Stock Analysis
GoodMoat Analysis
Cigna Group is a large, profitable health insurer trading at a significant discount to its estimated intrinsic value, with a strong free cash flow yield and a reasonable valuation. Its competitive advantages appear limited, with a low moat score, but its financial quality and price may warrant a deeper look. The analysis suggests proceeding with caution, focusing on the durability of its returns and the source of its valuation gap.
Read full analysis
Cigna Group operates in the competitive healthcare plans industry, providing insurance and health services. Applying the GoodMoat framework, the company's moat appears narrow. A preliminary assessment against the 14 criteria yields a low score, likely below the 5-point threshold required to proceed, suggesting limited durable competitive advantages in a highly regulated and contested market. However, its financial quality indicators are more compelling. The company demonstrates solid profitability with an ROE of 14.3%, a robust free cash flow yield of 11.6%, and manageable leverage with a Debt/Equity ratio of 0.75. Its P/E of 12.1x is low, especially against a 10.4% YoY revenue growth rate. The key point for a value investor is the substantial gap between the current price of $270.36 and the GoodMoat Target of $3721.77, implying a deep margin of safety. According to the Decision Framework, a low moat score would typically fail the initial gate. Yet, the extreme valuation disconnect and strong cash generation create an anomaly that merits investigation. The critical questions are whether the target price is based on sustainable fundamentals and if the company's returns on capital are protected from erosion. Further due diligence should focus on validating the intrinsic value calculation and assessing the sustainability of its cash flows and market position. Analysis based on data as of 2024-05-15.
Market Cap$72.13B
Current Price$270.02
P/E Ratio12.11
Forward P/E—
PEG Ratio-1.41
EPS$22.18
Book Value$156.15
P/B Ratio1.73
CI Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -0.1% FCF growth (CAGR)
Cash vs Debt
Net Debt: 23.8B
Revenue
153.6B
FY19
160.4B
FY20
174.1B
FY21
180.5B
FY22
195.3B
FY23
247.1B
FY24
274.9B
FY25
Net Income
5.1B
FY19
8.5B
FY20
5.4B
FY21
6.7B
FY22
5.2B
FY23
3.4B
FY24
6.0B
FY25
CI 52-Week Range
$241.70
$333.00
50-Day MA: $275.29200-Day MA: $283.08
Did you know?
Pays a 2.23% dividend yield.
Cigna Group (The) (CI) Financial Summary
Cigna Group (The) (CI) is a Healthcare company in the Healthcare Plans industry, listed on NYSE. The stock currently trades at $270.02 with a market capitalization of $72.13B.
Key valuation metrics include a P/E ratio of 12.11, price-to-book ratio of 1.73, and EPS of $22.18. The company reports a profit margin of 2.2% and return on equity of 14.3%.
CI Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $72.13B |
| P/E Ratio | 12.11 |
| EPS | $22.18 |
| P/B Ratio | 1.73 |
| P/S Ratio | 0.26 |
| EV/EBITDA | 8.15 |
| Dividend Yield | 2.23% |
| Profit Margin | 2.2% |
| Return on Equity | 14.3% |
| Debt/Equity | 0.75 |
CI Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $153.57B | $5.10B |
| FY20 | $160.40B | $8.46B |
| FY21 | $174.07B | $5.37B |
| FY22 | $180.52B | $6.70B |
| FY23 | $195.26B | $5.16B |
| FY24 | $247.12B | $3.43B |
| FY25 | $274.90B | $5.96B |
Cigna Group (The) (CI) Valuation
Based on GoodMoat's DCF model, Cigna Group (The) has a fair value estimate of $3721.77. At the current price of $270.02, the stock appears 92.7% undervalued relative to our intrinsic value estimate.
CI Quality Indicators
Cigna Group (The) maintains a profit margin of 2.2% and an operating margin of 3.3%. Return on equity stands at 14.3%. The current ratio is 0.85. Debt-to-equity ratio is 0.75.
About Cigna Group (The)
Cigna Corporation (Cigna) is a holding company. Cigna is a global health service company, with insurance subsidiaries that are providers of medical, dental, disability, life and accident insurance and related products and services. In the United States, these products and services are offered through employers and other groups, and in selected international markets, Cigna offers supplemental health, life and accident insurance products and international health care coverage and services to businesses, governmental and non-governmental organizations and individuals. Cigna operates in five segments: Health Care, Disability and Life, International, Run-off Reinsurance, and Other Operations, including Corporate-owned Life Insurance. September 2013, Cigna Corporation completed its acquisition of Alegis Care, a portfolio company of Triton Pacific Capital Partners. Effective September 3, 2013, Cigna Corp acquired Home Physicians Management LLC.
CI Free Cash Flow
Cigna Group (The) generated $8.39B in trailing twelve-month free cash flow, representing an FCF yield of 11.63%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
CI Shares Outstanding
Cigna Group (The) has 0.27 billion shares outstanding at a share price of $270.02, giving it a market capitalization of $72.13B.
CI Recent Insider Trades
Recent insider transactions at Cigna Group (The) include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Neville Everett (See Remarks) | SELL | 1,719 | $496636.29 |
| Jones Nicole S (See Remarks) | SELL | 2,307 | $666515.37 |