Cigna (CI) AI Stock Analysis

• Market Cap: $78.52B
• Dividend Yield: 1.96%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.20
• Revenue Growth: 24.65%
• EPS Growth: 48.38%
• Country: US
• Employees: 71,295
• Sector: Healthcare
• Sector Strength: 37
• Industry: Insurance - Brokers
• EPS (TTM): 6.74
• Shares Outstanding: 267,142,600
• 10 Day Avg. Volume: 1,467,101
• 30 Day Avg. Volume: 1,740,432
• PEG Ratio: 0.36
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.40
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $381.06
• Price Target Upside: 28.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 68 Neutral
• 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 Business Overview & Revenue Model

Company Description

Cigna 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 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, 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	244.38B	195.19B	180.03B	174.27B	160.55B
Gross Profit	25.96B	195.19B	148.31B	140.52B	127.69B
EBITDA	9.48B	9.99B	12.56B	10.92B	15.11B
Net Income	3.43B	5.16B	6.70B	5.37B	8.46B
Balance Sheet
Total Assets	155.88B	152.76B	143.93B	154.89B	155.45B
Cash, Cash Equivalents and Short-Term Investments	8.21B	8.75B	6.83B	6.00B	11.51B
Total Debt	31.97B	30.93B	31.09B	33.67B	32.92B
Total Liabilities	114.64B	106.41B	98.98B	107.70B	105.06B
Stockholders Equity	41.03B	46.22B	44.87B	47.11B	50.32B
Cash Flow
Free Cash Flow	8.96B	10.24B	7.36B	6.04B	9.26B
Operating Cash Flow	10.36B	11.81B	8.66B	7.19B	10.35B
Investing Cash Flow	-2.10B	-5.17B	3.10B	-3.61B	2.98B
Financing Cash Flow	-7.65B	-4.29B	-11.24B	-8.21B	-8.53B

Cigna Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 296.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUM	75 Outperform	$27.66B	16.21	10.09%	1.49%	10.09%	-12.18%
UNH	73 Outperform	$252.71B	12.23	24.33%	3.05%	8.34%	45.24%
CNC	72 Outperform	$13.32B	7.02	7.50%	―	12.96%	-23.25%
CVS	72 Outperform	$78.24B	14.77	7.00%	4.38%	4.84%	-26.54%
CI	68 Neutral	$78.52B	16.86	12.37%	1.96%	24.65%	48.38%
ELV	67 Neutral	$63.15B	12.62	12.48%	2.31%	10.21%	-17.79%
Sector *	55 Neutral	€4.79B	16.43	-48.29%	2.18%	15.31%	-8.27%

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.