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Cigna Corp (CI)
NYSE:CI
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Cigna
(NYSE:CI)
73Outperform
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.
Earnings Growth
Evernorth's capabilities in specialty pharmacy and biosimilars present growth potential for Cigna.
PBM Reform
The potential passing of PBM reform legislation could provide certainty and remove concerns for Cigna.
Negative Factors
Earnings Estimates
Analysts are revising their adjusted EPS estimates downward across all years.
Price Target
The price target is being lowered to $341, reflective of lower 2026 EPS estimates on an unchanged 10.0x multiple.
Stop Loss Segment
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 (CI) vs. S&P 500 (SPY)
Market Cap
$91.76B
Dividend Yield1.69%
Average Volume (3M)1.78M
Price to Earnings (P/E)27.9
Beta (1Y)0.25
Revenue Growth25.21%
EPS Growth-29.37%
CountryUS
Employees71,295
SectorHealthcare
Sector Strength79
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)12.23
Shares Outstanding271,108,100
10 Day Avg. Volume1,691,674
30 Day Avg. Volume1,783,364
Financial Highlights & Ratios
PEG RatioN/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 Ratio4.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$366.22Price Target Upside13.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
Cigna Business Overview & Revenue Model
Company DescriptionCigna 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 MoneyCigna 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.75
Positive
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.70
Positive
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.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 247.12B | 195.19B | 180.03B | 174.27B | 160.55B | Gross Profit |
| 247.12B | 0.00 | 0.00 | 0.00 | 0.00 | EBIT |
| 9.42B | 8.54B | 8.45B | 7.94B | 8.15B | EBITDA |
| 9.42B | 9.57B | 12.91B | 10.41B | 14.48B | Net Income Common Stockholders |
| 344.00M | 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
Positive
322.40
Price Trends
307.95
Positive
303.90
Positive
320.08
Positive
Market Momentum
6.23
Negative
66.05
Neutral
80.54
Negative
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 322.4 is above the 20-day moving average (MA) of 321.98, above the 50-day MA of 307.95, and above the 200-day MA of 320.08, indicating a bullish trend. The MACD of 6.23 indicates Negative momentum. The RSI at 66.05 is Neutral, neither overbought nor oversold. The STOCH value of 80.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CI.
Cigna Risk Analysis
Cigna disclosed 28 risk factors in its most recent earnings report. Cigna reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cigna Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $89.85B | 32.86 | 51.23% | 0.38% | 14.29% | -1.20% | |
76 Outperform | $85.12B | 18.47 | 6.07% | 3.94% | 4.02% | -43.51% | |
75 Outperform | $31.89B | 9.91 | 12.65% | ― | 5.89% | 27.09% | |
73 Outperform | $91.76B | 27.91 | 7.87% | 1.69% | 25.21% | -29.37% | |
67 Neutral | $32.04B | 26.59 | 7.40% | 1.33% | 10.70% | -49.85% | |
65 Neutral | $494.35B | 34.85 | 15.88% | 1.55% | 8.35% | -35.14% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% |
* Healthcare Sector Average
Performance Comparison
CI
Cigna
322.40
-29.53
-8.39%
CNC
Centene
61.93
-11.05
-15.14%
CVS
CVS Health
63.66
-7.54
-10.59%
HUM
Humana
253.77
-59.45
-18.98%
MCK
McKesson
683.11
153.33
28.94%
UNH
UnitedHealth
525.05
76.23
16.98%
Cigna Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: 6.82% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were significant achievements in terms of revenue growth, shareholder returns, and strong performance in Evernorth, there were notable challenges in the stop loss segment that impacted overall earnings. The company's proactive measures to address these issues and its strong financial position indicate a balanced outlook.Highlights
Full-Year Revenue Growth
Cigna delivered full-year revenue growth of 27% to approximately $247 billion.
Record Shareholder Returns
The company returned $8.6 billion to shareholders through dividends and share repurchase, with an 8% increase in the quarterly dividend to $1.51 per share.
Strong Performance in Evernorth
Evernorth's specialty and care services segment showed strong results, with adjusted revenues growing 33% to $53.7 billion and pre-tax adjusted earnings growing 14% to $2.1 billion.
Biosimilar Adoption Success
Biosimilar use for eligible Humira scripts reached nearly 50% by year-end 2024, and plans to offer an interchangeable Stelara Biosimilar with $0 cost to patients were announced.
Strong Cash Flow and Capital Deployment
Cigna delivered $10.4 billion of cash flow from operations in 2024 and expects to deliver approximately $10 billion in 2025.
Lowlights
Stop Loss Medical Costs Pressure
Higher than expected medical costs in stop loss products resulted in a full-year medical care ratio of 83.2%, which was above the guidance range.
Underperformance in Cigna Healthcare Segment
Cigna Healthcare's fourth quarter earnings were below expectations due to elevated medical costs in stop loss products, resulting in a medical care ratio of 87.9%.
Shortfall in Adjusted Earnings Per Share
Adjusted earnings per share for the full year were $27.33, representing an increase of 9% year-over-year but falling short of expectations.
Company Guidance
During the call, the Cigna Group provided detailed guidance on several financial metrics, reflecting their strategic direction and financial health. For the full-year 2024, Cigna reported a 27% growth in revenue, reaching approximately $247 billion, and adjusted earnings per share (EPS) of $27.33, which marked a 9% increase year-over-year but fell short of expectations. They returned $8.6 billion to shareholders through dividends and share repurchases, with an 8% increase in quarterly dividends to $1.51 per share. Looking ahead to 2025, Cigna anticipates EPS of at least $29.50, driven by revenue projections of $252 billion and adjusted income from operations of $7.9 billion. The company expects to maintain a strong capital position, projecting $10 billion in operating cash flow and planning significant share repurchases, supported by an increased authorization of $10.3 billion. Despite the short-term pressures, particularly in their stop loss products, they remain confident in achieving long-term growth targets of 10% to 14%, leveraging their differentiated capabilities and business portfolio.Cigna Corporate Events
Executive/Board ChangesFinancial Disclosures
Cigna Announces Leadership Changes and Financial Outlook
Neutral
Mar 13, 2025
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.
Business Operations and StrategyFinancial Disclosures
Cigna Reaffirms 2025 Income Projection Amid Challenges
Positive
Mar 3, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.