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.

Snowflake

Fundamentals

Undervalued with acceptable 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


Market Performance


7 Day Return

5.5%

CI

3.9%

US Healthcare

0.07%

US Market


1 Year Return

-15.6%

CI

-6.7%

US Healthcare

8.9%

US Market

Return vs Industry: CI underperformed the US Healthcare industry which returned -6.7% over the past year.

Return vs Market: CI underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

CIIndustryMarket
7 Day5.5%3.9%0.07%
30 Day6.4%3.5%-0.3%
90 Day2.3%-0.05%-1.6%
1 Year-15.6%-15.6%-5.1%-6.7%11.3%8.9%
3 Year37.7%37.6%37.0%30.6%46.3%36.8%
5 Year81.5%81.3%61.3%50.4%62.1%44.3%

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 ($170.38) is trading below our estimate of fair value ($394.52)

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 (14.5x) compared to the Healthcare industry average (21x).

PE vs Market: CI is good value based on its PE Ratio (14.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CI is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: CI is good value based on its PB Ratio (1.5x) compared to the US Healthcare industry average (2.5x).


Next Steps

Future Growth

How is Cigna forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CI's forecast earnings growth (5% per year) is above the savings rate (2.7%).

Earnings vs Market: CI's earnings (5% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: CI's revenue (6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CI's revenue (6% 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 (14.9%).


Next Steps

Past Performance

How has Cigna performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CI's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: CI's earnings growth over the past year (45%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: CI earnings growth over the past year (45%) exceeded the Healthcare industry 5.6%.


Return on Equity

High ROE: CI's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: CI's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: CI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Cigna's financial position?


Financial Position Analysis

Short Term Liabilities: CI's short term assets ($20.7B) do not cover its short term liabilities ($31.9B)

Long Term Liabilities: CI's short term assets (20.7B) do not cover its long term liabilities (78.7B)


Debt to Equity History and Analysis

Debt Level: CI's debt to equity ratio (89.2%) is considered high

Reducing Debt: CI's debt to equity ratio has increased from 46.6% to 89.2% over the past 5 years.

Debt Coverage: CI's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: CI's interest payments on its debt are well covered by EBIT (8x 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 0.5x debt).


Next Steps

Dividend

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

0.024%

Current Dividend Yield


Dividend Yield vs Market

company0.02%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0.04%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CI's dividend (0.024%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CI's dividend (0.024%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

What is the CEO of Cigna's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average management tenure


CEO

David Cordani (54yo)

9.8yrs

Tenure

US$18,944,045

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 ($USD18.94M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

8.3yrs

Average Tenure

54yo

Average Age

Experienced Management: CI's management team is seasoned and experienced (8.3 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

67yo

Average Age

Experienced Board: CI's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: CI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$5,044,42209 Sep 19
David Cordani
EntityIndividual
Role
Chief Executive Officer
President
Shares32,509
Max PriceUS$155.17
SellUS$45,81215 Mar 19
William Zollars
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares272
Max PriceUS$168.43
BuyUS$326,80013 Mar 19
Brian Evanko
EntityIndividual
Shares2,000
Max PriceUS$163.40
SellUS$1,655,88913 Feb 19
Michael Triplett
EntityIndividual
Shares9,148
Max PriceUS$181.01
SellUS$184,42711 Feb 19
John Partridge
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$184.43

Ownership Breakdown


Management Team

  • David Cordani (54yo)

    President

    • Tenure: 9.8yrs
    • Compensation: US$18.94m
  • Alan Muney (65yo)

    Executive VP of Total Health & Network and Chief Medical Officer

    • Tenure: 9.8yrs
    • Compensation: US$5.86m
  • Mark Boxer (59yo)

    Executive VP & Global Chief Information Officer

    • Tenure: 8.5yrs
  • Tim Wentworth (59yo)

    President of Express Scripts & Cigna Services

    • Tenure: 0.8yrs
    • Compensation: US$8.88m
  • Mary Terese Hoeltzel

    Senior VP of Tax & Chief Accounting Officer

    • Tenure: 10.3yrs
  • Jason Sadler (50yo)

    President of International Markets

    • Tenure: 5.3yrs
    • Compensation: US$3.53m
  • Nicole Jones (48yo)

    Executive VP & General Counsel

    • Tenure: 8.3yrs
    • Compensation: US$4.01m
  • Lisa Bacus (54yo)

    Executive VP

    • Tenure: 6.4yrs
  • Eric Palmer (43yo)

    Executive VP & CFO

    • Tenure: 2.3yrs
    • Compensation: US$4.77m
  • William McDowell

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Ed Hanway (67yo)

    Chairman Emeritus

    • Tenure: 0yrs
    • Compensation: US$18.82m
  • David Cordani (54yo)

    President

    • Tenure: 9.8yrs
    • Compensation: US$18.94m
  • Bill Zollars (71yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: US$301.28k
  • Donna Zarcone (61yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: US$305.37k
  • Eric Foss (61yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$295.63k
  • William Roper (70yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$65.21k
  • Roman Martinez (71yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$301.68k
  • Eric Wiseman (63yo)

    Independent Director

    • Tenure: 12.5yrs
    • Compensation: US$296.12k
  • Ike Harris (67yo)

    Chairman of the Board

    • Tenure: 9.8yrs
    • Compensation: US$501.18k
  • John Partridge (70yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$300.63k

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$64.337b
  • Shares outstanding: 377.61m
  • 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
CIGNWBAG (Wiener Boerse AG)YesCommon StockATEURApr 1982

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, Int ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:35
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.