Cigna (CI) AI Stock Analysis

• Market Cap: $89.52B
• Dividend Yield: 1.7%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.27
• Revenue Growth: 25.21%
• EPS Growth: -29.37%
• Country: US
• Employees: 71,295
• Sector: Healthcare
• Sector Strength: 69
• Industry: Medical - Healthcare Plans
• EPS (TTM): 6.64
• Shares Outstanding: 271,108,100
• 10 Day Avg. Volume: 2,272,650
• 30 Day Avg. Volume: 1,850,121
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.35
• Price to Cash Flow (P/CF): 4.20
• P/FCF Ratio: 4.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $368.19
• Price Target Upside: 9.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

Cigna's overall stock score is driven by strong financial performance and positive earnings call, despite pressures from medical costs in the stop loss segment. Technical indicators show a positive short-term trend, but valuation remains a concern due to a relatively high P/E ratio. Corporate events further bolster confidence in future growth.

Positive Factors

Business Strategy

The recent completed sale of its Medicare/Part D business to HCSC should help shift focus to CI's Evernorth segment and the opportunity to benefit from specialty growth and biosimilars adoption.

Regulatory Environment

Passing of any PBM reform legislation is viewed as providing certainty and removing the overhang on CI.

Negative Factors

Earnings Estimates

Analysts are revising their adjusted EPS estimates downward across all years.

Financial Performance

CI exited 2024 with disappointing results, driven by higher-than-anticipated costs in its Stop Loss business and little/no offset in the Evernorth segment.

Cigna Business Overview & Revenue Model

Company Description

Cigna Corporation provides insurance and related products and services in the United States. Its Evernorth segment provides a range of coordinated and point solution health services, including pharmacy, benefits management, care delivery and management, and intelligence solutions to health plans, employers, government organizations, and health care providers. The company's Cigna Healthcare segment offers medical, pharmacy, behavioral health, dental, vision, health advocacy programs, and other products and services for insured and self-insured customers; Medicare Advantage, Medicare Supplement, and Medicare Part D plans for seniors, as well as individual health insurance plans to on and off the public exchanges; and health care coverage in its international markets, as well as health care benefits for mobile individuals and employees of multinational organizations. The company also offers permanent insurance contracts sold to corporations to provide coverage on the lives of certain employees for financing employer-paid future benefit obligations. It distributes its products and services through insurance brokers and consultants; directly to employers, unions and other groups, or individuals; and private and public exchanges. The company was founded in 1792 and is headquartered in Bloomfield, Connecticut.

How the Company Makes Money

Cigna makes money primarily through the sale of insurance products and health services. Its key revenue streams include premiums collected from policyholders for medical, dental, disability, life, and accident insurance coverage. Additional revenue is generated through fees for various health services, such as pharmacy benefit management services, and administrative fees for managing medical plans. Cigna also earns income from its international operations, offering health coverage and services in various countries. Significant partnerships with healthcare providers, employers, and government programs contribute to its earnings by expanding its customer base and enhancing service offerings. Investment income from its portfolio of financial assets provides an additional source of revenue.

Cigna Financial Statement Overview

Summary

Cigna shows strong revenue growth and operational performance with stable margins. However, profitability is impacted by low net profit margins and return on equity, suggesting areas for improvement.

Income Statement

Cigna has shown consistent revenue growth over the years, with a notable increase from $195.2 billion in 2023 to $247.1 billion in 2024. However, net profit margin is low at 0.14% for 2024, impacted by a significant drop in net income. EBIT margin remains stable at 3.81% in 2024, with EBITDA margin at 3.81% as well, indicating consistent operational performance despite the challenges.

Balance Sheet

The company's debt-to-equity ratio is around 0.78, showing a moderate level of leverage. The equity ratio stands at 26.32%, reflecting a stable financial position. Return on equity is low at 0.84% for 2024, suggesting limited returns for shareholders. The balance sheet reflects a stable asset base with manageable debt levels.

Cash Flow

Operating cash flow remains strong at $10.4 billion in 2024, although slightly down from the previous year. Free cash flow is robust at $8.96 billion, indicating strong cash generation capabilities. The free cash flow to net income ratio is high, showcasing effective cash management despite lower net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
244.38B	195.19B	180.03B	174.27B	160.55B
	Gross Profit
244.38B	0.00	0.00	0.00	0.00
	EBIT
5.27B	8.54B	8.45B	7.94B	8.15B
	EBITDA
9.48B	9.57B	12.91B	10.41B	14.48B
	Net Income Common Stockholders
3.43B	5.16B	6.70B	5.37B	8.46B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.55B	8.75B	6.83B	6.00B	11.51B
	Total Assets
155.88B	152.76B	143.93B	154.89B	155.45B
	Total Debt
31.97B	30.93B	31.09B	33.67B	32.92B
	Net Debt
24.42B	23.11B	25.17B	28.59B	22.74B
	Total Liabilities
114.64B	106.41B	98.98B	107.70B	105.06B
	Stockholders Equity
41.03B	46.22B	44.87B	47.11B	50.32B
Cash Flow		Free Cash Flow
8.96B	10.24B	7.36B	6.04B	9.26B
	Operating Cash Flow
10.36B	11.81B	8.66B	7.19B	10.35B
	Investing Cash Flow
-2.10B	-5.17B	3.10B	-3.61B	2.98B
	Financing Cash Flow
-7.65B	-4.29B	-11.24B	-8.21B	-8.53B

Cigna Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 335.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CI, the sentiment is Positive. The current price of 335.36 is above the 20-day moving average (MA) of 328.57, above the 50-day MA of 317.93, and above the 200-day MA of 320.12, indicating a bullish trend. The MACD of 4.78 indicates Negative momentum. The RSI at 59.95 is Neutral, neither overbought nor oversold. The STOCH value of 72.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CI.

Cigna Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCK	77 Outperform	$87.10B	31.55	51.23%	0.40%	14.29%	-1.20%
CVS	76 Outperform	$87.75B	19.01	6.07%	4.07%	4.02%	-43.51%
CNC	74 Outperform	$31.68B	10.22	12.59%	―	8.85%	33.30%
CI	73 Outperform	$89.52B	27.23	7.87%	1.70%	25.21%	-29.37%
HUM	69 Neutral	$35.61B	29.55	7.40%	1.34%	10.70%	-49.85%
UNH	69 Neutral	$548.34B	38.66	15.88%	2.01%	8.68%	―
Sector *	51 Neutral	$5.32B	3.39	-40.26%	2.89%	17.93%	2.48%

Cigna Corporate Events

Cigna Announces Termination of Executive Eric P. Palmer

On March 13, 2025, Cigna announced the termination of Eric P. Palmer, Executive Vice President for Enterprise Strategy and CEO of Evernorth Health Services, effective April 26, 2025. The agreement includes a severance package with cash payments and continued vesting of certain equity awards, reflecting the company’s strategic management decisions and impacting its leadership structure.

Spark’s Take on CI Stock

According to Spark, TipRanks’ AI Analyst, CI is a Outperform.

Cigna’s overall stock score is driven by strong financial performance and positive earnings call, despite pressures from medical costs in the stop loss segment. Technical indicators show a positive short-term trend, but valuation remains a concern due to a relatively high P/E ratio. Corporate events further bolster confidence in future growth.

To see Spark’s full report on CI stock, click here.

Cigna Announces Leadership Changes and Financial Outlook

On March 13, 2025, Cigna announced leadership changes effective March 31, 2025, with Brian C. Evanko becoming President and COO, and Ann M. Dennison stepping in as CFO. These changes come with new compensation arrangements reflecting their roles. Additionally, the company reaffirmed its projected 2025 financial outlook, including consolidated adjusted income from operations of at least $29.50 per share and significant pre-tax income from its Evernorth and Cigna Healthcare segments.

Cigna Reaffirms 2025 Income Projection Amid Challenges

The Cigna Group announced its intention to reaffirm its projected full-year 2025 consolidated adjusted income from operations of at least $29.50 per share during upcoming meetings with investors and analysts. This reaffirmation highlights the company’s confidence in its financial performance and strategic initiatives, despite the challenges and uncertainties in the healthcare sector.