Cigna (CI) AI Stock Analysis

• Market Cap: $83.40B
• Dividend Yield: 1.83%
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.20
• Revenue Growth: 24.65%
• EPS Growth: 48.38%
• Country: US
• Employees: 71,295
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Healthcare Plans
• EPS (TTM): 6.74
• Shares Outstanding: 267,142,600
• 10 Day Avg. Volume: 1,450,060
• 30 Day Avg. Volume: 1,693,428
• PEG Ratio: 0.38
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.84
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.41
• Enterprise Value/Ebitda: 2.86
• 1Y Price Target: $380.79
• Price Target Upside: 22.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 71 Outperform
• Price Target: $345.00 ▲(10.79%Upside)

Cigna's strong financial performance and positive earnings call sentiment are the primary drivers of the stock score. The company's strategic growth initiatives and raised EPS guidance position it well for future success. However, technical analysis indicates a neutral to bearish trend, and valuation metrics suggest moderate market expectations. Overall, Cigna remains a stable investment with potential for growth, supported by strategic innovations and operational resilience.

Positive Factors

Financial Performance

Earnings guidance was increased primarily due to the later-than-anticipated Medicare divestiture.

Product Development

CI announced it will launch its Quallent Stelara biosimilar, which is expected to contribute meaningfully in the future.

Revenue Growth

Evernorth showing strong momentum, with revenues up 16% and earnings up 5.4% year-over-year.

Negative Factors

Earnings

Implied Q2 EPS guidance was 1% below consensus.

Guidance

The potential for economic pressure to the commercial book of business led to a conservative guidance increase.

Regulatory Challenges

CI management opposed Arkansas' PBM legislation, citing likely increased patient costs and reduced access.

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 through a multi-faceted revenue model centered around insurance premiums, service fees, and pharmacy benefit management. The company's primary revenue stream comes from selling health insurance plans to individuals and employer groups, where it collects premiums in exchange for coverage. Additionally, Cigna generates income through its pharmacy benefit management services, which include negotiating drug prices and providing related health services. The company also earns revenue from administrative fees for managing self-insured plans for employers. Partnerships with healthcare providers, government contracts, and strategic acquisitions further bolster Cigna's earnings, ensuring a diversified income base.

Cigna Financial Statement Overview

Summary

Cigna exhibits strong revenue growth and maintains a stable financial position with moderate profitability. The company's solid cash flow management is offset by a decline in free cash flow growth, indicating room for improvement in profitability. The moderate leverage and steady equity base support financial 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
254.47B	244.38B	195.19B	180.03B	174.27B	160.55B
	Gross Profit
254.47B	244.38B	195.19B	180.03B	174.27B	160.55B
	EBIT
6.84B	5.27B	5.51B	8.40B	6.79B	10.87B
	EBITDA
11.02B	9.48B	9.99B	12.56B	10.92B	15.11B
	Net Income Common Stockholders
5.03B	3.43B	5.16B	6.70B	5.37B	8.46B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.56B	7.55B	8.75B	6.83B	6.00B	11.51B
	Total Assets
155.77B	155.88B	152.76B	143.93B	154.89B	155.45B
	Total Debt
37.41B	31.97B	30.93B	31.09B	33.67B	32.92B
	Net Debt
32.79B	24.42B	23.11B	25.17B	28.59B	22.74B
	Total Liabilities
110.39B	114.64B	106.41B	98.98B	107.70B	105.06B
	Stockholders Equity
45.34B	41.03B	46.22B	44.87B	47.11B	50.32B
Cash Flow		Free Cash Flow
6.01B	8.96B	10.24B	7.36B	6.04B	9.26B
	Operating Cash Flow
7.44B	10.36B	11.81B	8.66B	7.19B	10.35B
	Investing Cash Flow
-410.00M	-2.10B	-5.17B	3.10B	-3.61B	2.98B
	Financing Cash Flow
-8.80B	-7.65B	-4.29B	-11.24B	-8.21B	-8.53B

Cigna Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 311.40
• 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 Negative. The current price of 311.4 is below the 20-day moving average (MA) of 312.36, below the 50-day MA of 322.42, and below the 200-day MA of 316.77, indicating a bearish trend. The MACD of -3.15 indicates Negative momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 27.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CI.

Cigna Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNC	77 Outperform	$27.45B	8.30	12.59%	―	8.85%	33.30%
HUM	72 Outperform	$27.84B	16.31	10.09%	1.53%	10.09%	-12.18%
ELV	71 Outperform	$88.87B	15.35	14.24%	1.68%	6.63%	-3.26%
CI	71 Outperform	$83.40B	17.30	12.37%	1.83%	24.65%	48.38%
UNH	69 Neutral	$275.06B	12.68	24.33%	2.77%	8.68%	45.24%
CVS	69 Neutral	$80.43B	15.19	7.00%	4.18%	4.84%	-26.54%
Sector *	54 Neutral	$5.31B	3.26	-45.10%	2.79%	16.76%	0.02%

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.

Cigna Enters New $6.5 Billion Credit Agreement

On April 24, 2025, The Cigna Group entered into a new $6.5 billion Revolving Credit and Letter of Credit Agreement with several banks, replacing its existing credit facilities. This agreement, which can be increased to $8 billion, is intended for general corporate purposes and includes various interest rate options and covenants, such as maintaining a leverage ratio not exceeding 0.60 to 1.00. Additionally, on April 22, 2025, Noelle Eder, the Executive Vice President and Global Chief Information Officer, resigned, effective May 16, 2025, for personal reasons. The company’s Annual Meeting of Shareholders on April 23, 2025, saw the election of eleven directors and the approval of executive compensation, among other proposals.

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.

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.