Cigna (CI) AI Stock Analysis

• Market Cap: $74.87B
• Dividend Yield: 2.03%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.28
• Revenue Growth: 20.93%
• EPS Growth: 43.98%
• Country: US
• Employees: 71,295
• Sector: Healthcare
• Sector Strength: 41
• Industry: Insurance - Brokers
• EPS (TTM): 7.20
• Shares Outstanding: 266,928,070
• 10 Day Avg. Volume: 2,623,413
• 30 Day Avg. Volume: 1,850,679
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: 9.70
• 1Y Price Target: $365.32
• Price Target Upside: 27.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 73 Outperform
• Price Target: $320.00 ▲(11.46% Upside)

Cigna's overall stock score is driven by strong earnings performance and strategic initiatives, particularly in the Evernorth segment. While financial performance is solid, challenges in cash flow and elevated medical costs present risks. The valuation is fair, and recent corporate events support a positive outlook.

Positive Factors

Business Growth

Curascript, its specialty distribution business to 12,000 providers, is delivering significant growth with double-digit top-line growth to now be a $25 billion business.

Earnings

Evernorth had a solid quarter, with revenues up nearly 17% year over year and earnings up nearly 5% year over year.

Strategic Outlook

Management indicated that the first half performance reinforced the view in the 2025 outlook, reaffirming 10-14% long-term adjusted EPS growth.

Negative Factors

Financial Concerns

Concerns arose on containment of stop-loss headwinds and the extent to which cost trends in the stop-loss business will remain in line with company expectations.

Market Risks

There is a risk of HIX trends accelerating further, which could impact the company's performance.

Stock Performance

The negative price reaction to the company's earnings report is viewed as exaggerated.

Cigna Business Overview & Revenue Model

Company Description

Cigna Corporation (CI) is a global health service company focused on improving the health, well-being, and peace of mind of those it serves. Operating in the health insurance sector, Cigna provides a wide range of products and services, including medical, dental, behavioral health, pharmacy, vision, and supplemental health insurance. The company serves individuals, families, and businesses, offering both individual and group health plans, and operates in various international markets, enhancing its footprint in the global health insurance landscape.

How the Company Makes Money

Cigna generates revenue primarily through premiums collected from its health insurance policies, which cover a variety of services including medical, dental, and pharmacy care. The company also earns revenue from providing managed care services to employers and government programs. Key revenue streams include individual and group health insurance premiums, administrative services for self-funded employer plans, and sales of ancillary products like dental and vision insurance. Additionally, Cigna has strategic partnerships and collaborations with healthcare providers, which enable them to optimize costs and improve care delivery. The company also benefits from the increasing demand for healthcare services and the expansion of health insurance coverage, particularly in the context of regulatory changes and market dynamics.

Cigna Financial Statement Overview

Summary

Cigna exhibits strong revenue growth with a TTM revenue of $254.47 billion and consistent operational efficiency. However, the decline in free cash flow growth rate and modest profitability margins, such as the net profit margin of 1.49%, indicate areas for improvement. The company's leverage and equity position suggest stability.

Income Statement

Cigna's revenue has shown a consistent upward trend, with a notable TTM revenue of $254.47 billion, representing a 4.12% growth from the previous year. Despite this growth, the gross profit margin stands at 76.74%, and the net profit margin at 1.49%, indicating operational efficiency but modest profitability. The EBIT margin of 2.88% and EBITDA margin of 4.02% suggest moderate earnings capabilities.

Balance Sheet

The debt-to-equity ratio is approximately 0.76, indicating a balanced financial leverage. Return on equity stands at 9.44%, reflecting a reasonable return on shareholder investment, though slightly declining over the years. The equity ratio of 26.71% suggests a solid equity base, supporting financial stability.

Cash Flow

Operating cash flow to net income ratio is 1.96, denoting strong cash generation relative to net income. However, the free cash flow decreased by 32.89% from the previous year. Despite this, the free cash flow to net income ratio remains robust at 1.58, indicating good cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	262.07B	244.38B	195.19B	180.03B	174.27B	160.55B
Gross Profit	27.43B	25.96B	195.19B	148.31B	140.52B	127.69B
EBITDA	12.33B	9.48B	9.99B	12.56B	10.92B	15.11B
Net Income	5.02B	3.43B	5.16B	6.70B	5.37B	8.46B
Balance Sheet
Total Assets	151.65B	155.88B	152.76B	143.88B	154.89B	155.45B
Cash, Cash Equivalents and Short-Term Investments	5.14B	8.21B	8.75B	6.83B	6.00B	11.51B
Total Debt	30.77B	31.97B	30.93B	31.55B	34.27B	33.56B
Total Liabilities	111.22B	114.64B	106.41B	98.98B	107.70B	105.06B
Stockholders Equity	40.21B	41.03B	46.22B	44.87B	47.11B	50.32B
Cash Flow
Free Cash Flow	3.94B	8.96B	10.24B	7.36B	6.04B	9.26B
Operating Cash Flow	5.29B	10.36B	11.81B	8.66B	7.19B	10.35B
Investing Cash Flow	-567.00M	-2.10B	-5.17B	3.10B	-3.61B	2.98B
Financing Cash Flow	-7.82B	-7.65B	-4.29B	-11.24B	-8.21B	-8.53B

Cigna Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 287.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 287.1 is above the 20-day moving average (MA) of 284.67, below the 50-day MA of 302.64, and below the 200-day MA of 306.96, indicating a neutral trend. The MACD of -7.98 indicates Negative momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 68.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CI.

Cigna Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUM	75 Outperform	$33.07B	21.10	9.03%	1.26%	9.88%	-7.25%
CVS	73 Outperform	$83.09B	18.28	5.95%	4.04%	6.27%	-36.28%
CI	73 Outperform	$74.87B	15.32	12.31%	2.03%	20.93%	43.98%
ELV	71 Outperform	$65.86B	12.45	12.48%	2.27%	10.21%	-17.79%
UNH	68 Neutral	$236.90B	11.33	23.14%	3.13%	9.98%	52.31%
CNC	58 Neutral	$12.85B	6.47	7.50%	―	12.96%	-23.25%
Sector *	51 Neutral	$7.43B	-0.36	-45.45%	2.27%	22.98%	-2.34%

Cigna Corporate Events

Cigna Appoints Michael J. Hennigan to Board

On June 2, 2025, The Cigna Group announced the appointment of Michael J. Hennigan to its Board of Directors. Hennigan, who has a robust background in the energy sector, is expected to bring valuable strategic insights and leadership to Cigna, aiding in its mission to improve healthcare experiences and drive growth.

The most recent analyst rating on (CI) stock is a Buy with a $376.00 price target. To see the full list of analyst forecasts on Cigna stock, see the CI Stock Forecast page.

Cigna Reaffirms 2025 Earnings Projection Amid Investor Meetings

The Cigna Group has announced its intention to reaffirm its projected consolidated adjusted income from operations for the full year 2025, expecting at least $29.60 per share. This announcement, made during meetings with investors and analysts, highlights the company’s confidence in its financial performance and strategic direction despite the inherent uncertainties and risks in the healthcare sector.

The most recent analyst rating on (CI) stock is a Buy with a $376.00 price target. To see the full list of analyst forecasts on Cigna stock, see the CI Stock Forecast page.