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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Cigna Turns in a Strong Q1 and Ticks Up 2021 Outlook; No FVE Change

Julie Utterback, CFA Senior Equity Analyst

Analyst Note

| Julie Utterback, CFA |

Narrow-moat Cigna turned in first-quarter results that were above FactSet consensus on most key metrics, and the company mildly increased its outlook for 2021. We do not anticipate this slight increase in 2021 assumptions to materially affect our fair value estimate, which is based on much longer-term expectations and was just raised in March.

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Company Profile

Business Description

Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM services were greatly expanded by its 2018 merger with Express Scripts and are mostly sold to health insurance plans and employers. Its largest PBM contract is the Department of Defense. In health insurance and other benefits, Cigna mostly serves employers through self-funding arrangements, but it also operates in government programs, such as Medicare Advantage. The company operates mostly in the U.S. with 15 million medical members covered at the end of 2020, but its services extend internationally, covering another 2 million people.

Contact
900 Cottage Grove Road
Bloomfield, CT, 06002
T +1 860 226-6000
Sector Healthcare
Industry Healthcare Plans
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Aggressive Growth
Employees 73,700

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