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The Cigna Group CI

Morningstar Rating
$339.98 +2.10 (0.62%)
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Company Report

Cigna Focusing on Specialty Pharmacy and Commercial Insurance Offerings for Future Growth

With its roots in health insurance and the late 2018 merger with top-tier pharmacy benefit manager Express Scripts (renamed Evernorth), Cigna provides healthcare-related services through customizable programs paid for primarily by US employers and government agencies. We think its strategy of reducing medical cost growth should resonate well with existing and potential clients. Its position as a leading provider of specialty pharmacy offerings, which is one of the fastest-growing areas of healthcare, puts it at the unique position of being able to both control and benefit from the rise of that end market.

Price vs Fair Value

CI is trading at a 357% premium.
Price
$339.98
Fair Value
$491.00
Uncertainty
Medium
1-Star Price
$165.40
5-Star Price
$785.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Combining with Express Scripts gave Cigna more tools to help clients control their healthcare costs, and we see significant cross-selling opportunities across their respective books of business.

Bears

Healthcare reform may remain a recurring political topic until universal, affordable coverage is achieved in the US, and Cigna's stock may experience volatility if scenarios that threaten its prospects gain traction.

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News

Trading Information

Previous Close Price
$337.88
Day Range
$334.61340.00
52-Week Range
$253.95365.71
Bid/Ask
$330.03 / $353.78
Market Cap
$96.58 Bil
Volume/Avg
4.1 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
13.00
Price/Sales
0.49
Dividend Yield (Trailing)
1.55%
Dividend Yield (Forward)
1.65%
Total Yield
6.73%

Company Profile

Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM and specialty pharmacy services, which were greatly expanded by its 2018 merger with Express Scripts, are mostly sold to health insurance plans and employers. Its largest PBM contract is the Department of Defense, and it recently won a deal with top-tier insurer Centene. In health insurance and other benefits, Cigna mostly serves employers through self-funding arrangements, and the company operates mostly in the US with 18 million US medical members covered as of December 2023.
Sector
Healthcare
Industry
Healthcare Plans
Stock Style Box
Large Value
Total Number of Employees
72,500

Competitors

Valuation

Metric
CI
CVS
HUM
Price/Earnings (Normalized)
13.007.8214.91
Price/Book Value
2.341.042.66
Price/Sales
0.490.220.40
Price/Cash Flow
11.616.4612.76
Price/Earnings
CI
CVS
HUM

Financial Strength

Metric
CI
CVS
HUM
Quick Ratio
0.54
Current Ratio
0.81
Interest Coverage
3.834.556.16
Quick Ratio
CI
CVS
HUM

Profitability

Metric
CI
CVS
HUM
Return on Assets (Normalized)
5.11%4.07%5.46%
Return on Equity (Normalized)
17.27%13.68%17.15%
Return on Invested Capital (Normalized)
10.86%7.90%11.21%
Return on Assets
CI
CVS
HUM
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Healthcare Plans Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
UnitedHealth Group Inc
UNH
MpfhvxjqhTrxphp$444.2 Bil
Elevance Health Inc
ELV
LkxccjbhYgdkz$124.2 Bil
CVS Health Corp
CVS
CpwmpslcJhlntk$77.0 Bil
Humana Inc
HUM
QnzxpghSzkpnd$42.8 Bil
Centene Corp
CNC
DfhhhknSmslm$36.3 Bil
Molina Healthcare Inc
MOH
Gvbrk$18.0 Bil
Oscar Health Inc Class A
OSCR
Lyddq$4.3 Bil
Alignment Healthcare Inc
ALHC
Nlh$1.4 Bil
Clover Health Investments Corp Ordinary Shares - Class A
CLOV
Vyw$620.5 Mil

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