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Cigna Corp (CI)
NYSE:CI
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Cigna (CI) AI Stock Analysis

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CI

Cigna

(NYSE:CI)

Rating:68Neutral
Price Target:
$342.00
▲(15.40%Upside)
Cigna's overall score reflects strong financial stability and strategic resilience, driven by robust earnings growth and effective corporate strategies. However, modest profitability and technical indicators limit the score, suggesting potential for improvement.
Positive Factors
Financial Performance
Earnings guidance was increased primarily due to the later-than-anticipated Medicare divestiture.
Growth and Expansion
Specialty and care services showed strong growth with revenues and earnings up 19% and 11% year-over-year, respectively.
Market Position
Cigna is seen as insulated from broader Medicaid/Medicare pressures and headlines.
Negative Factors
Financial Guidance
Implied Q2 EPS guidance was 1% below consensus.
Regulatory Environment
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 (CI) is a global health service company dedicated to improving the health, well-being, and peace of mind of those it serves. Operating primarily in the health services sector, Cigna offers a wide range of insurance products and services, including medical, dental, disability, life, and accident insurance. The company is also involved in the pharmacy benefit management sector and provides related healthcare services through its extensive network of healthcare providers.
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: -11.15%|
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 shows strong revenue growth with a TTM revenue of $254.47 billion, but profitability is modest with a net profit margin of 1.49%. The balance sheet reflects financial stability with a debt-to-equity ratio of 0.76. Cash flow is strong, though a decline in free cash flow growth is noted.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue244.38B195.19B180.03B174.27B160.55B
Gross Profit25.96B195.19B148.31B140.52B127.69B
EBITDA9.48B9.99B12.56B10.92B15.11B
Net Income3.43B5.16B6.70B5.37B8.46B
Balance Sheet
Total Assets155.88B152.76B143.93B154.89B155.45B
Cash, Cash Equivalents and Short-Term Investments8.21B8.75B6.83B6.00B11.51B
Total Debt31.97B30.93B31.09B33.67B32.92B
Total Liabilities114.64B106.41B98.98B107.70B105.06B
Stockholders Equity41.03B46.22B44.87B47.11B50.32B
Cash Flow
Free Cash Flow8.96B10.24B7.36B6.04B9.26B
Operating Cash Flow10.36B11.81B8.66B7.19B10.35B
Investing Cash Flow-2.10B-5.17B3.10B-3.61B2.98B
Financing Cash Flow-7.65B-4.29B-11.24B-8.21B-8.53B

Cigna Technical Analysis

Technical Analysis Sentiment
Negative
Last Price296.37
Price Trends
50DMA
311.96
Negative
100DMA
317.75
Negative
200DMA
310.78
Negative
Market Momentum
MACD
-5.44
Positive
RSI
39.25
Neutral
STOCH
36.91
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 296.37 is below the 20-day moving average (MA) of 308.68, below the 50-day MA of 311.96, and below the 200-day MA of 310.78, indicating a bearish trend. The MACD of -5.44 indicates Positive momentum. The RSI at 39.25 is Neutral, neither overbought nor oversold. The STOCH value of 36.91 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 (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$27.66B16.2110.09%1.49%10.09%-12.18%
73
Outperform
$252.71B12.2324.33%3.05%8.34%45.24%
72
Outperform
$13.32B7.027.50%12.96%-23.25%
72
Outperform
$78.24B14.777.00%4.38%4.84%-26.54%
68
Neutral
$78.52B16.8612.37%1.96%24.65%48.38%
67
Neutral
$63.15B12.6212.48%2.31%10.21%-17.79%
55
Neutral
€4.79B16.43-48.29%2.18%15.31%-8.27%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CI
Cigna
296.37
-41.23
-12.21%
CNC
Centene
28.39
-44.71
-61.16%
CVS
CVS Health
60.70
2.37
4.06%
HUM
Humana
237.98
-149.49
-38.58%
UNH
UnitedHealth
281.06
-278.10
-49.74%
ELV
Elevance Health
289.10
-230.20
-44.33%

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 08, 2025