Cigna Group Intrinsic Value Calculation – Cigna Group Nearing Multi-Billion Dollar Deal to Sell Medicare Business
January 5, 2024
🌥️Trending News
According to news sources, the company is close to reaching an agreement to offload its Medicare business for a sale price of between $3 billion and $4 billion. CIGNA ($NYSE:CI) Group stocks have surged in recent weeks as investors anticipate the potential sale. In addition to offering plans directly to consumers, it also provides managed care products and services, such as employer-sponsored and government-sponsored health care plans. It also offers wellness and disease management programs, as well as dental and vision coverage options.
The potential sale of CIGNA Group’s Medicare business is seen as a significant move for the company. The deal is expected to be finalized soon and will likely have a significant impact on the company’s stock prices. Investors are eagerly awaiting the outcome of the negotiations and are optimistic about the potential for a lucrative deal.
Price History
On Wednesday, CIGNA GROUP stock opened at $313.3 and closed at $303.7, down by 2.1% from prior closing price of 310.1. The details of this deal are not yet known, but it is expected to be completed in the coming weeks. This deal would be a major move for Cigna and could significantly impact its profitability in the future. It remains to be seen how this sale will affect the company’s bottom line and its stock price in the long-term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cigna Group. 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 Group. 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 Group. 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 Group 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 Group Intrinsic Value Calculation
GoodWhale has conducted a fundamental analysis of CIGNA GROUP. Through our proprietary Valuation Line, we have determined that the intrinsic value of CIGNA GROUP’s share is around $333.2. Currently, CIGNA GROUP’s stock is traded at $303.7, which is a fair price, but undervalued by 8.9%. This discrepancy in value provides an opportunity for investors who are looking to gain a return from the stock market. More…
Peers
Cigna Corp is a large health insurance company that provides a variety of health insurance products and services to its customers. The company competes with other health insurance companies, such as Oscar Health Inc, Humana Inc, and Molina Healthcare Inc.
– Oscar Health Inc ($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 Group is reportedly nearing a deal to sell its Medicare business for $3-4 billion. This could provide investors with a lucrative return on their investments, as the company stands to benefit from the increased capital injection. Additionally, the divestiture could improve CIGNA’s financial strength and allow them to focus on their core businesses, potentially driving higher profits in the future. The transaction is expected to be completed soon, and investors should monitor the outcome in order to benefit from the potential gains.
