Cigna (CI) AI Stock Analysis

• Market Cap: $85.42B
• Dividend Yield: 1.89%
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.21
• Revenue Growth: 24.65%
• EPS Growth: 48.38%
• Country: US
• Employees: 71,295
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Plans
• EPS (TTM): 6.74
• Shares Outstanding: 267,142,600
• 10 Day Avg. Volume: 2,421,780
• 30 Day Avg. Volume: 1,870,108
• PEG Ratio: 0.38
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.97
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.42
• Enterprise Value/Ebitda: 2.88
• 1Y Price Target: $381.67
• Price Target Upside: 19.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 71 Outperform
• Price Target: $350.00 ▲(9.46%Upside)

Cigna's overall performance is bolstered by strong earnings growth and strategic initiatives, despite modest profitability and recent cash flow challenges. The technical analysis indicates stability without clear bullish or bearish momentum. Corporate confidence, as shown in recent events, supports the outlook.

Positive Factors

Earnings

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

Market Performance

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

Strategic Initiatives

Management highlighted two new GLP-1 initiatives, ReachRx and EnGuide, to assist in the pharmacy sector.

Negative Factors

Guidance

Implied Q2 EPS guidance was 1% below consensus.

Legislation Impact

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

Obesity Coverage

The level of obesity coverage in Cigna Healthcare is lower at 15-20% due to the employer mix largely being on the smaller side.

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 shows strong revenue growth with a TTM revenue of $254.47 billion. While the gross profit margin is high at 76.74%, net profit margin is modest at 1.49%. The debt-to-equity ratio of 0.76 indicates balanced leverage. However, a 32.89% decrease in free cash flow is a concern, though cash flow to net income ratios are robust.

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	25.96B	195.19B	148.31B	140.52B	127.69B
EBITDA	11.02B	9.48B	9.99B	12.56B	10.92B	15.11B
Net Income	5.03B	3.43B	5.16B	6.70B	5.37B	8.46B
Balance Sheet
Total Assets	150.66B	155.88B	152.76B	143.93B	154.89B	155.45B
Cash, Cash Equivalents and Short-Term Investments	8.33B	8.21B	8.75B	6.83B	6.00B	11.51B
Total Debt	30.45B	31.97B	30.93B	31.09B	33.67B	32.92B
Total Liabilities	110.24B	114.64B	106.41B	98.98B	107.70B	105.06B
Stockholders Equity	40.23B	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: Neutral
• Last Price: 319.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 319.75 is above the 20-day moving average (MA) of 317.91, below the 50-day MA of 320.15, and above the 200-day MA of 314.00, indicating a neutral trend. The MACD of 2.37 indicates Negative momentum. The RSI at 50.31 is Neutral, neither overbought nor oversold. The STOCH value of 49.96 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
CVS	79 Outperform	$84.25B	15.91	7.00%	3.99%	4.84%	-26.54%
HUM	77 Outperform	$28.93B	16.95	10.09%	1.45%	10.09%	-12.18%
UNH	73 Outperform	$279.90B	12.90	24.33%	2.87%	8.34%	45.24%
CI	71 Outperform	$85.42B	17.72	12.37%	1.89%	24.65%	48.38%
CNC	71 Outperform	$16.58B	4.96	12.59%	―	8.85%	33.30%
ELV	71 Outperform	$78.59B	13.57	14.24%	1.95%	6.63%	-3.26%
Sector *	52 Neutral	$7.50B	0.31	-61.87%	2.27%	17.10%	1.59%

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.