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Cigna Corp (CI)
NYSE:CI

Cigna (CI) AI Stock Analysis

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CI

Cigna

(NYSE:CI)

Rating:71Outperform
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 (CI) vs. SPDR S&P 500 ETF (SPY)

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 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 Key Performance Indicators (KPIs)

Any
Any
External Customers Revenue by Type
External Customers Revenue by Type
Shows revenue generated from different types of external customers, highlighting which customer segments are most lucrative and where there may be opportunities for growth or diversification.
Chart InsightsCigna's Pharmacy revenue has surged significantly, with a notable acceleration in 2024, reflecting strong growth in pharmacy benefit services as highlighted in the earnings call. This aligns with EverNorth's double-digit growth, driven by demand for specialty drugs and biosimilars. Total Premiums and Fees are also on an upward trajectory, supported by strategic initiatives and customer growth. Despite challenges like special item charges and regulatory issues, Cigna's raised EPS guidance and focus on innovation in healthcare access and affordability underscore its robust strategic positioning.
Data provided by:Main Street Data

Cigna Earnings Call Summary

Earnings Call Date:May 02, 2025
(Q1-2025)
|
% Change Since: -6.65%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Cigna Corporation has demonstrated strong revenue and earnings growth, driven by successful innovations and strong performance in key business segments. Despite facing challenges such as special item charges and regulatory issues, the company has shown resilience and strategic planning to address these issues.
Q1-2025 Updates
Positive Updates
Strong Revenue and Earnings Growth
Cigna Corporation delivered $65.5 billion in total revenue and grew adjusted earnings per share to $6.74 in the first quarter of 2025. The company also raised its full-year EPS guidance estimate to at least $29.60.
Growth in EverNorth and Cigna Healthcare
EverNorth revenues grew to $53.7 billion with a 5% increase in pretax adjusted earnings. Cigna Healthcare saw a 9% revenue growth, driven by strong rate execution and growth in select segment customers.
Success in Specialty and Care Services
EverNorth's Specialty and Care Services showed strong growth with revenue up 19% to $23.9 billion, driven by demand for specialty drugs and increased adoption of biosimilars.
Innovations in GLP-1 Programs
Cigna introduced EncircleRx, inReachRx, and InGuide to address access, affordability, clinical safety, and lifestyle changes for GLP-1 drug users, with 9 million members enrolled in EncircleRx.
Positive Client Retention and New Business Wins
Express Scripts is tracking towards mid-nineties or better retention levels, and Cigna Healthcare observed 9% customer growth year over year in the under 500 select segment.
Negative Updates
Special Item Charges
The company recorded net after-tax special item charges of $229 million, or 84¢ per share, including $163 million related to a strategic optimization program.
Challenges with Arkansas Bill
The Arkansas bill poses potential challenges by picking winners and losers, which could decrease access, reduce choice, and erode quality and continuity of care.
Elevated Medical Cost Trends
Medical cost trends are expected to remain elevated in 2025, particularly in specialty and behavioral categories.
Stop-Loss Margin Pressure
The stop-loss business is expected to have a higher MCR for 2025, with plans to improve margins over a two-year horizon.
Company Guidance
During The Sector Group's First Quarter 2025 Results Review call, Cigna Corporation reported strong financial performance, with total revenue reaching $65.5 billion and adjusted earnings per share (EPS) growing to $6.74. The company also raised its full-year EPS guidance estimate to at least $29.60. Cigna recorded net after-tax special item charges of $229 million, or 84¢ per share, primarily driven by a strategic optimization program. The EverNorth segment saw double-digit revenue growth, particularly in pharmacy benefit services, which grew by 14%. Meanwhile, Cigna Healthcare reported a 9% revenue increase, driven by strong rate execution and customer growth in the under 500 select segment. The company emphasized its commitment to improving access, support, value, accountability, and transparency in healthcare, while also highlighting the strategic importance of its growth platforms, EverNorth and Cigna Healthcare.

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
75
Positive
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
70
Positive
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
68
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
254.47B244.38B195.19B180.03B174.27B160.55B
Gross Profit
254.47B244.38B195.19B180.03B174.27B160.55B
EBIT
6.84B5.27B5.51B8.40B6.79B10.87B
EBITDA
11.02B9.48B9.99B12.56B10.92B15.11B
Net Income Common Stockholders
5.03B3.43B5.16B6.70B5.37B8.46B
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.56B7.55B8.75B6.83B6.00B11.51B
Total Assets
155.77B155.88B152.76B143.93B154.89B155.45B
Total Debt
37.41B31.97B30.93B31.09B33.67B32.92B
Net Debt
32.79B24.42B23.11B25.17B28.59B22.74B
Total Liabilities
110.39B114.64B106.41B98.98B107.70B105.06B
Stockholders Equity
45.34B41.03B46.22B44.87B47.11B50.32B
Cash FlowFree Cash Flow
6.01B8.96B10.24B7.36B6.04B9.26B
Operating Cash Flow
7.44B10.36B11.81B8.66B7.19B10.35B
Investing Cash Flow
-410.00M-2.10B-5.17B3.10B-3.61B2.98B
Financing Cash Flow
-8.80B-7.65B-4.29B-11.24B-8.21B-8.53B

Cigna Technical Analysis

Technical Analysis Sentiment
Negative
Last Price311.40
Price Trends
50DMA
322.42
Negative
100DMA
311.82
Negative
200DMA
316.77
Negative
Market Momentum
MACD
-3.15
Negative
RSI
44.07
Neutral
STOCH
27.19
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 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 (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CNCNC
77
Outperform
$27.45B8.3012.59%8.85%33.30%
HUHUM
72
Outperform
$27.84B16.3110.09%1.53%10.09%-12.18%
ELELV
71
Outperform
$88.87B15.3514.24%1.68%6.63%-3.26%
CICI
71
Outperform
$83.40B17.3012.37%1.83%24.65%48.38%
UNUNH
69
Neutral
$275.06B12.6824.33%2.77%8.68%45.24%
CVCVS
69
Neutral
$80.43B15.197.00%4.18%4.84%-26.54%
54
Neutral
$5.31B3.26-45.10%2.79%16.76%0.02%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CI
Cigna
311.40
-20.60
-6.20%
CNC
Centene
55.76
-13.50
-19.49%
CVS
CVS Health
63.86
6.51
11.35%
HUM
Humana
233.07
-114.51
-32.94%
UNH
UnitedHealth
303.19
-185.22
-37.92%
ELV
Elevance Health
389.61
-141.30
-26.61%

Cigna Corporate Events

Executive/Board Changes
Cigna Appoints Michael J. Hennigan to Board
Positive
Jun 2, 2025

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.

Business Operations and StrategyFinancial Disclosures
Cigna Reaffirms 2025 Earnings Projection Amid Investor Meetings
Positive
May 20, 2025

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.

Executive/Board ChangesPrivate Placements and FinancingShareholder Meetings
Cigna Enters New $6.5 Billion Credit Agreement
Neutral
Apr 28, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Cigna Announces Termination of Executive Eric P. Palmer
Neutral
Apr 18, 2025

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.

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.

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.