Cigna Group (CI) stock analysis

P/E below its 5-year median

Cigna's P/E of 13.3 is below its own 5-year median of 15.6.

P/E below the industry

Cigna's P/E of 13.3 is below the Accident and Health Insurance and Medical median of 21.3.

P/S below the industry

Cigna's price-to-sales of 0.28 is below the Accident and Health Insurance and Medical median of 0.80.

P/B below the industry

Cigna's price-to-book of 1.84 is below the Accident and Health Insurance and Medical median of 2.31.

Trading below fair value

The share price of $301.45 is below our fair value estimate of $383.88.

Margin of safety over 20%

The price is 21.5% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 15.0% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 1.2% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 6.8% over the last twelve months; the Accident and Health Insurance and Medical median is 6.8%.

Guidance raised

Cigna raised its Full Year Ending December 31, 2026 Cigna Healthcare Medical Care Ratio outlook on Jul 30, 2026.

Gross margin slipping

Gross margin was 20.7% over the last twelve months, against 23.1% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on assets over 1%

Return on assets was 3.8%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Cigna's return on equity of 14.1% is above the Accident and Health Insurance and Medical median of 11.9%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin above the industry

Cigna's net margin of 2.1% is above the Accident and Health Insurance and Medical median of 2.0%.

High debt

Debt is 71.8% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 65.4% five years ago to 71.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 30.3% of total debt.

Interest well covered

Operating income covers interest expense 7.1 times.

Short-term assets don't cover short-term debts

Current assets are 0.84 times current liabilities.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

Cigna paid dividends worth 2.1% of the share price over the last twelve months.

Yield below Treasuries

The 2.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Cigna yields 2.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 9 fiscal years.

Covered by earnings

Dividends take 27.2% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.