CI The Cigna Group - Fundamental Analysis
BULLISH
CI Stock | Fundamental Analysis & Investment Insights
NYSE
•
Healthcare
•
Healthcare Plans
Current Price
$269.66
Analyst Target
$328.35
+21.8% Upside
52W High
$350.0
52W Low
$239.51
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
88%
Analysis Accuracy
Cigna (CI) presents a compelling value opportunity within the healthcare plans sector, trading at a steep discount to peers despite superior earnings growth and consistent profitability. The stock is down 15.2% over the past year, underperforming both its 52-week high and broader sector momentum, yet fundamentals are strengthening with a forward P/E of just 8.61 and robust YoY earnings growth of 165.4%. Strong ROE of 15.54%, a disciplined capital allocation strategy reflected in a low 26.25% payout ratio, and a favorable analyst target of $328.35 suggest significant upside. While insider selling raises minor concerns, the broader financial and earnings trajectory supports a contrarian bullish stance.
Key Strengths
Attractive valuation with forward P/E of 8.61, significantly below sector average of 43.86
Exceptional earnings growth: 165.4% YoY and 152.8% Q/Q, indicating strong operational leverage
High return on equity (15.54%) compared to sector average (42.28%) but achieved with moderate leverage
Healthy dividend yield of 2.24% with a sustainable 26.25% payout ratio, leaving room for future increases
Analyst consensus target of $328.35 implies 21.8% upside from current levels, supported by 23 analysts
Key Risks
Insider selling activity: $10.17M in sales over last 6 months with no buys, signaling potential lack of confidence
Low liquidity ratios: current ratio of 0.83 and quick ratio of 0.69 suggest tight short-term liquidity
Profit margin of 2.29% lags far behind sector average of 15.98%, indicating pricing or cost pressures
Missing key financial data (EV, cash, debt, shares outstanding) limits full health assessment and raises transparency concerns
Price/Sales of 0.27 is extremely low, which may reflect structural margin concerns or market skepticism on revenue quality
AI Fair Value Estimate
Based on comprehensive analysis
$328.35
+21.8% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare CI against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations