Cigna Corporation Stock Fair Value Calculation – Cigna Group Stock Rises, But Underperforms Market
December 22, 2023
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On Thursday, Cigna Group stock experienced an increase in value, yet it still failed to keep up with the broader market. Cigna Corporation ($NYSE:CI) is a global health service company offering an expansive portfolio of health insurance products and services. Cigna Group is the holding company for all Cigna-related businesses, including Cigna Health, Cigna Behavioral Health, and Cigna Life Insurance. The group’s stock rose on Thursday, but failed to match the gains of the broader market. Analysts attribute the underperformance to the changing landscape of the health insurance industry. Consolidation across the sector has led to a decrease in stock prices, which has been further compounded by external factors such as rising healthcare costs and increased competition. Investors had hoped that Cigna Group’s current restructuring efforts would have a positive effect on the stock, yet those gains have yet to materialize.
Despite this underperformance, Cigna Group has been a strong performer in recent years. The company has seen strong growth in its customer base in recent quarters and has been successful in expanding its international presence. Thursday’s trading showed that investors remain optimistic about the company’s long-term prospects. With the stock still trading at a significant discount, many investors believe that now is the time to buy into Cigna Group.
Share Price
The stock has seen a gradual increase in recent weeks, though this was offset by a sharp decline in late June and early July. Analysts have been generally cautious on CIGNA CORPORATION‘s stock in recent weeks, with mixed expectations for financial performance in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cigna Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 189.82k | 5.29k | 2.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cigna Corporation. More…
| Operations | Investing | Financing |
| 12.45k | -5.35k | -5.68k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cigna Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 149.65k | 103.88k | 156.14 |
Key Ratios Snapshot
Some of the financial key ratios for Cigna Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.5% | – | 4.2% |
| FCF Margin | ROE | ROA |
| 5.7% | 11.0% | 3.4% |
Analysis – Cigna Corporation Stock Fair Value Calculation
GoodWhale has conducted an analysis of CIGNA CORPORATION‘s fundamentals. Our proprietary Valuation Line indicates that the fair value of CIGNA CORPORATION shares is approximately $333.6. However, CIGNA CORPORATION shares are currently being traded at $297.2, making it a good opportunity for investors as it is undervalued by 10.9%. More…
Peers
Cigna Corp is a large health insurance company that provides a variety of health insurance products and services to its customers. The company competes with other health insurance companies, such as Oscar Health Inc, Humana Inc, and Molina Healthcare Inc.
– Oscar Health Inc ($NYSE:OSCR)
Oscar Health Inc is a health insurance company that offers individual and family plans on and off the health insurance exchanges. The company was founded in 2012 and is headquartered in New York City. As of 2022, Oscar Health Inc has a market cap of 787.25M and a Return on Equity of -28.44%. The company offers a wide variety of health insurance plans, including HMOs, PPOs, and EPOs. Oscar also offers a wide range of ancillary products, such as dental, vision, and life insurance.
– Humana Inc ($NYSE:HUM)
Humana Inc has a market cap of 63.12B as of 2022, a Return on Equity of 17.4%. The company operates in the healthcare sector and is one of the largest healthcare insurance companies in the United States. Humana offers a wide range of health insurance products and services to individuals, families, and businesses. The company has a strong focus on providing quality healthcare and improving the health and well-being of its members. Humana’s mission is to help people achieve their best health and to make healthcare more affordable and accessible. The company’s competitive advantages include its size, scale, geographic reach, and diversified product portfolio. Humana is well-positioned to continue its growth and to help its members live healthier lives.
– Molina Healthcare Inc ($NYSE:MOH)
Molina Healthcare Inc is a healthcare company that provides Medicaid-related solutions for low-income families and individuals. As of 2022, it has a market capitalization of 20.48 billion dollars and a return on equity of 24.89%. The company has a long history of providing quality healthcare services to its customers and is dedicated to improving the lives of its clients. It is headquartered in Long Beach, California.
Summary
CIGNA Corporation is a healthcare benefits provider whose stock rose on Thursday, although it still lagged behind the broader market. Investing analysis of CIGNA Corporation indicates that the company has been able to leverage its strong brand in order to remain competitive in the healthcare benefits space. The stock has had a volatile history, with its share prices fluctuating between highs and lows.
Analysts suggest that investors should keep a close eye on the company’s development efforts and financial position in order to gain a better understanding of its future performance. Long term investment potential may be found in CIGNA’s ability to remain a leader in the healthcare benefits industry.
