Narrow-moat Cigna turned in strong first-quarter results and raised its 2024 outlook a bit. At first glance, we do not anticipate changing our $366 fair value estimate, though, and we consider shares about fairly valued.
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.
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.
|
Metric
|
CI
|
CVS
|
HUM
|
|---|---|---|---|
Price/Earnings (Normalized) | 13.24 | 7.13 | 14.45 |
Price/Book Value | 2.39 | 0.95 | 2.57 |
Price/Sales | 0.50 | 0.20 | 0.39 |
Price/Cash Flow | 11.83 | 5.90 | 12.36 |
|
Metric
|
CI
|
CVS
|
HUM
|
|---|---|---|---|
Quick Ratio | — | 0.54 | — |
Current Ratio | — | 0.81 | — |
Interest Coverage | 4.81 | 4.55 | 7.86 |
|
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% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
UNH
| UnitedHealth Group Inc | Ltxrpshph | Jkxxllw | $471.0 Bil | |
ELV
| Elevance Health Inc | Jrydfxxd | Yyjkbxz | $124.3 Bil | |
CVS
| CVS Health Corp | Hvtltttn | Bynbgp | $70.3 Bil | |
CNC
| Centene Corp | Zkgxmyxhf | Rwfsyx | $41.0 Bil | |
HUM
| Humana Inc | Hfnycczf | Lswnkd | $40.9 Bil | |
MOH
| Molina Healthcare Inc | — | Dzszkct | $20.5 Bil | |
OSCR
| Oscar Health Inc Class A | — | Jlwzp | $5.4 Bil | |
ALHC
| Alignment Healthcare Inc | — | Dblt | $1.3 Bil | |
CLOV
| Clover Health Investments Corp Ordinary Shares - Class A | — | Cnws | $506.4 Mil |
:quality(80)/s3.amazonaws.com/arc-authors/morningstar/27df33e4-c5eb-4dc8-805e-babc7c688b65.jpg)