NYSE:CI

Stock Analysis Report

Executive Summary

Cigna Corporation, a health service organization, provides insurance and related products and services in the United States and internationally.

Rewards

Trading at 68% below its fair value

Earnings are forecast to grow 6.24% per year

Earnings grew by 93.6% over the past year

Risk Analysis

Shareholders have been substantially diluted in the past year

Has a high level of debt

Highly volatile share price over past 3 months

Profit margins (3.3%) are lower than last year (5.4%)



Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

How has Cigna's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

21.1%

CI

14.3%

US Healthcare

7.2%

US Market


1 Year Return

12.4%

CI

1.9%

US Healthcare

-10.4%

US Market

Return vs Industry: CI exceeded the US Healthcare industry which returned -3.8% over the past year.

Return vs Market: CI exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

CIIndustryMarket
7 Day21.1%14.3%7.2%
30 Day-2.6%-4.7%-12.6%
90 Day-12.8%-15.0%-19.4%
1 Year12.4%12.4%3.3%1.9%-8.5%-10.4%
3 Year18.5%18.4%23.8%18.2%15.8%8.3%
5 Year37.4%37.3%28.2%19.5%35.8%21.0%

Price Volatility Vs. Market

How volatile is Cigna's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cigna undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CI ($161.29) is trading below our estimate of fair value ($504.11)

Significantly Below Fair Value: CI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CI is good value based on its PE Ratio (11.9x) compared to the Healthcare industry average (19.4x).

PE vs Market: CI is good value based on its PE Ratio (11.9x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CI is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: CI is good value based on its PB Ratio (1.3x) compared to the US Healthcare industry average (2.4x).


Next Steps

Future Growth

How is Cigna forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CI's forecast earnings growth (6.2% per year) is above the savings rate (1.7%).

Earnings vs Market: CI's earnings (6.2% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: CI's earnings are forecast to grow, but not significantly.

Revenue vs Market: CI's revenue (3.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CI's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CI's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has Cigna performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CI has high quality earnings.

Growing Profit Margin: CI's current net profit margins (3.3%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: CI's earnings have grown by 16.3% per year over the past 5 years.

Accelerating Growth: CI's earnings growth over the past year (93.6%) exceeds its 5-year average (16.3% per year).

Earnings vs Industry: CI earnings growth over the past year (93.6%) exceeded the Healthcare industry 14.1%.


Return on Equity

High ROE: CI's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is Cigna's financial position?


Financial Position Analysis

Short Term Liabilities: CI's short term assets ($29.8B) do not cover its short term liabilities ($40.1B).

Long Term Liabilities: CI's short term assets ($29.8B) do not cover its long term liabilities ($70.3B).


Debt to Equity History and Analysis

Debt Level: CI's debt to equity ratio (82.2%) is considered high.

Reducing Debt: CI's debt to equity ratio has increased from 47.2% to 82.2% over the past 5 years.

Debt Coverage: CI's debt is well covered by operating cash flow (25.4%).

Interest Coverage: CI's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: CI has a low level of unsold assets or inventory.

Debt Coverage by Assets: CI's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Cigna's current dividend yield, its reliability and sustainability?

0.023%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CI's dividend (0.023%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: CI's dividend (0.023%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: CI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.8yrs

Average management tenure


CEO

David Cordani (54yo)

10.25s

Tenure

US$19,303,032

Compensation

Mr. David Michael Cordani has been the Chief Executive Officer and President of Cigna Corporation since December 25, 2009 and June 2008 respectively and has been its Director since October 2009. Mr. Cordan ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD19.30M) is above average for companies of similar size in the US market ($USD11.74M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Cordani
President10.25yrsUS$19.30m0.10% $66.6m
Eric Palmer
Executive VP & CFO2.67yrsUS$6.14m0.0069% $4.6m
Nicole Jones
Executive VP & General Counsel8.67yrsUS$4.56m0.010% $6.6m
Matthew Manders
President of Strategy & Solutions1.25yrsUS$6.20m0.012% $8.2m
Timothy Wentworth
President of Health Services1.25yrsUS$23.54m0.027% $18.1m
Mary Terese Hoeltzel
Senior VP of Tax & Chief Accounting Officer10.67yrsno data0.0018% $1.2m
Mark Boxer
Executive VP & Global Chief Information Officer8.83yrsno data0.013% $8.9m
William McDowell
Vice President of Investor Relationsno datano datano data
Kristen Lauria
Global Chief Marketing Officerno datano datano data
John Murabito
Executive Vice President of Human Resources & Services16.58yrsUS$3.51m0.017% $11.5m

8.8yrs

Average Tenure

57yo

Average Age

Experienced Management: CI's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Cordani
President10.25yrsUS$19.30m0.10% $66.6m
H. Hanway
Chairman Emeritusno dataUS$18.82mno data
Donna Zarcone
Independent Director15yrsUS$341.39k0.0065% $4.3m
Eric Foss
Independent Director8.67yrsUS$310.37k0.0070% $4.6m
William Roper
Independent Director1.25yrsUS$335.37k0.0012% $775.7k
Roman Martinez
Independent Director14.67yrsUS$336.44k0.013% $8.6m
Eric Wiseman
Independent Director12.83yrsUS$317.15k0.0050% $3.3m
Isaiah Harris
Independent Chairman of the Board10.25yrsUS$575.35k0.0049% $3.2m
John Partridge
Independent Director11.17yrsUS$335.37k0.0084% $5.6m
Mark McClellan
Independent Director1.25yrsUS$310.37k0.00043% $285.1k

10.4yrs

Average Tenure

65yo

Average Age

Experienced Board: CI's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 52.4%.


Top Shareholders

Company Information

Cigna Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cigna Corporation
  • Ticker: CI
  • Exchange: NYSE
  • Founded: 1792
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$66.298b
  • Shares outstanding: 371.92m
  • Website: https://www.cigna.com

Number of Employees


Location

  • Cigna Corporation
  • 900 Cottage Grove Road
  • Bloomfield
  • Connecticut
  • 6002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CINYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1982
CGNDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1982
CI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 1982
CGNXTRA (XETRA Trading Platform)YesCommon StockDEEURApr 1982
CIGNWBAG (Wiener Boerse AG)YesCommon StockATEURApr 1982
CGNETLX (Eurotlx)YesCommon StockITEURApr 1982
C1IC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 24 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Cigna Corporation, a health service organization, provides insurance and related products and services in the United States and internationally. It operates through Integrated Medical, Health Services, International Markets, and Group Disability and Other segments. The Integrated Medical segment offers medical, pharmacy, dental, behavioral health and vision, health advocacy programs, and other products and services to insured and self-insured clients; Medicare Advantage, Medicare Supplement, and Medicare Part D plans to Medicare-eligible beneficiaries, as well as Medicaid plans; and health insurance coverage to individual customers on and off the public exchanges. The Health Services segment provides clinical solutions, specialized pharmacy care, home delivery pharmacy, retail network pharmacy administration, benefit design consultation, drug utilization review, drug formulary management drug claim adjudication, digital consumer health and drug information, provider, and medical benefit management services. The International Markets segment offers supplemental health, life, and accident insurance products; and health care coverage, as well as health care benefits to mobile employees of multinational organizations. This segment offers health coverage, hospitalization, dental, critical illness, personal accident, term life, and variable universal life products. The Group Disability and Other segment provides group long-term and short-term disability, group life, accident, and voluntary and specialty insurance products and related services; and permanent insurance contracts to corporations to provide coverage on the lives of certain employees for the purpose of financing employer-paid future benefit obligations. The company distributes its products and services through insurance brokers and insurance consultants; and directly to employers, unions and other groups, or individuals. Cigna Corporation was founded in 1792 and is headquartered in Bloomfield, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:32
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.