Cigna (CI) AI Stock Analysis

• Market Cap: $73.76B
• Dividend Yield: 2.19%
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.26
• Revenue Growth: 16.75%
• EPS Growth: 113.48%
• Country: US
• Employees: 71,295
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 7.83
• Shares Outstanding: 267,125,820
• 10 Day Avg. Volume: 1,674,552
• 30 Day Avg. Volume: 2,011,617
• PEG Ratio: -0.74
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 8.64
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 4.14
• Enterprise Value/Ebitda: 9.00
• 1Y Price Target: $334.47
• Price Target Upside: 21.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 29.62
• Revenue Forecast (FY): $272.15B

• Rating: 72 Outperform
• Price Target: $300.00 ▲(8.65% Upside)

Cigna's overall stock score reflects its solid financial performance and attractive valuation, which are offset by technical indicators suggesting a neutral to slightly bearish trend. The earnings call provided a positive outlook with strong revenue and earnings performance, though challenges remain in certain segments. The company's strategic focus on innovation and client retention supports its growth trajectory.

Positive Factors

Revenue Growth

Steady revenue growth indicates a positive trajectory, suggesting Cigna's ability to expand its market presence and enhance service offerings over time.

Cash Flow Generation

Strong cash flow generation supports Cigna's capacity to fund operations, invest in growth opportunities, and maintain financial stability.

Leadership Change

The appointment of Dr. Amy Flaster as Chief Medical Officer may drive innovation and enhance clinical excellence, strengthening Cigna's competitive position.

Negative Factors

Margin Pressure

Margin pressure in the Pharmacy Benefit Services segment could impact profitability, challenging Cigna's ability to maintain operational efficiency.

Medical Care Ratio Increase

An increased medical care ratio suggests rising costs, which may affect Cigna's profitability and require strategic adjustments to manage expenses.

Challenges in Individual Exchange Business

Challenges in the individual exchange business could hinder growth and necessitate operational adjustments to improve performance and cost management.

Cigna Business Overview & Revenue Model

Company Description

The Cigna Group 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 generates revenue primarily through premiums collected from its health insurance policies, which include individual, employer-sponsored, and government health plans. The company also earns revenue from its pharmacy benefit management (PBM) services, where it manages prescription drug benefits for clients and receives fees for its services. Additional revenue streams include administrative fees from self-insured clients, provider payments, and specialty services such as dental and disability insurance. Strategic partnerships with healthcare providers, technology companies, and pharmaceutical manufacturers further support Cigna's revenue growth by enhancing their service offerings and expanding their market reach.

Cigna Financial Statement Overview

Summary

Cigna demonstrates solid financial performance with consistent revenue growth and strong cash flow generation. While profitability margins and leverage ratios present areas for improvement, the company's financial health remains stable. The balance between growth, profitability, and cash flow positions Cigna well in the competitive healthcare plans industry.

Income Statement

Cigna's income statement shows a steady revenue growth rate of 2.31% in the TTM period, indicating a positive growth trajectory. The gross profit margin is relatively low at 7.81%, but the net profit margin has improved to 1.64% from the previous year. The EBIT and EBITDA margins have slightly decreased, suggesting some pressure on operational efficiency. Overall, the company demonstrates stable revenue growth with room for improvement in profitability margins.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.81, indicating a balanced approach to leverage. The return on equity (ROE) is at 10.74%, showing a decent return on shareholders' investments. The equity ratio stands at 26.47%, suggesting a stable capital structure. While the company maintains a healthy balance sheet, the leverage could be optimized further to enhance financial stability.

Cash Flow

Cigna's cash flow statement highlights a significant free cash flow growth rate of 88.57% in the TTM period, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is 0.15, and the free cash flow to net income ratio is 0.86, indicating efficient cash conversion. The robust cash flow performance supports the company's ability to fund operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	268.13B	247.12B	195.26B	180.52B	174.07B	160.40B
Gross Profit	26.89B	25.96B	25.18B	23.50B	22.95B	24.21B
EBITDA	12.38B	11.45B	10.85B	10.44B	9.96B	10.37B
Net Income	6.15B	3.43B	5.16B	6.70B	5.37B	8.46B
Balance Sheet
Total Assets	157.92B	155.88B	152.76B	143.88B	154.89B	155.45B
Cash, Cash Equivalents and Short-Term Investments	6.03B	8.21B	8.75B	6.83B	6.00B	11.51B
Total Debt	34.04B	31.97B	30.93B	31.55B	34.27B	33.56B
Total Liabilities	115.91B	114.64B	106.41B	98.98B	107.70B	105.06B
Stockholders Equity	41.80B	41.03B	46.22B	44.87B	47.11B	50.32B
Cash Flow
Free Cash Flow	7.44B	8.96B	10.24B	7.36B	6.04B	9.26B
Operating Cash Flow	8.66B	10.36B	11.81B	8.66B	7.19B	10.35B
Investing Cash Flow	-4.18B	-2.10B	-5.17B	3.10B	-3.61B	2.98B
Financing Cash Flow	-5.60B	-7.65B	-4.29B	-11.24B	-8.21B	-8.53B

Cigna Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 276.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 276.11 is above the 20-day moving average (MA) of 271.22, below the 50-day MA of 277.91, and below the 200-day MA of 299.19, indicating a neutral trend. The MACD of -0.52 indicates Negative momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 88.34 is Negative, 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
ELV	76 Outperform	$78.21B	14.39	12.61%	1.94%	11.96%	-11.11%
CI	72 Outperform	$73.76B	12.18	14.65%	2.19%	16.75%	113.48%
UNH	72 Outperform	$302.73B	17.44	18.48%	2.63%	10.48%	24.25%
HUM	69 Neutral	$31.05B	24.20	7.15%	1.37%	9.87%	-5.58%
CVS	64 Neutral	$99.38B	204.57	0.63%	3.42%	6.71%	-90.11%
CNC	58 Neutral	$19.15B	-3.59	-21.93%	―	14.92%	-286.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Cigna Corporate Events

Cigna Restructures Board Committees for 2026

On October 22, 2025, Cigna‘s Board of Directors approved changes to its committee structure, effective January 1, 2026, to enhance corporate governance. The Compliance Committee’s responsibilities will be redistributed following the sale of certain business units in March 2025, leading to its dissolution. The Audit Committee will be renamed the Audit and Compliance Committee, and the Corporate Governance Committee will oversee ethics and clinical reporting. The Finance Committee will be renamed the Finance and Technology Committee, consolidating oversight of technology-related matters.

Cigna Board Member Announces Retirement

On October 15, 2025, Retired Major General Elder Granger, M.D. announced his retirement from Cigna‘s Board of Directors, effective December 31, 2025, in line with the Board’s retirement age policy. His retirement is not due to any disagreement with the company, indicating a smooth transition and stability in Cigna’s governance.