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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 68.2GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
13.9%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Cigna Group (CI) receives a "Hold" rating with a composite score of 52.6/100, ranked #1091 out of 4446 stocks. Key factor scores: Quality 68/100, Value 75/100, Momentum 34/100. This is quantitative analysis only — not investment advice.
Cigna Group (CI) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Cigna Group Do?
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. Cigna Group (CI) is classified as a large-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO David M. Cordani and employs approximately 71,300 people. With a market capitalization of $70.5B, CI is one of the prominent companies in the Financials sector.
Cigna Group (CI) Stock Rating — Hold (April 2026)
As of April 2026, Cigna Group receives a Hold rating with a composite score of 52.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CI ranks #1,091 out of 4,446 stocks in our coverage universe. Within the Financials sector, Cigna Group ranks #336 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CI Stock Price and 52-Week Range
Cigna Group (CI) currently trades at $271.25. The stock lost $7.20 (2.6%) in the most recent trading session. The 52-week high for CI is $350.00, which means the stock is currently trading -22.5% from its annual peak. The 52-week low is $239.51, putting the stock 13.3% above its annual trough. Recent trading volume was 907K shares, suggesting relatively thin trading activity.
Is CI Overvalued or Undervalued? — Valuation Analysis
Cigna Group (CI) carries a value factor score of 75/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 12.38x, compared to the Financials sector average of 14.88x — a discount of 17%. The price-to-book ratio stands at 1.73x, versus the sector average of 1.22x. The price-to-sales ratio is 0.27x, compared to 0.90x for the average Financials stock. On an enterprise value basis, CI trades at 7.67x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, Cigna Group appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Cigna Group Profitability — ROE, Margins, and Quality Score
Cigna Group (CI) earns a quality factor score of 68/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 13.9%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 3.7% versus the sector average of 1.2%.
On a margin basis, Cigna Group reports gross margins of 23.1%. The operating margin is 3.5% (sector: 21.8%). Net profit margin stands at 2.2%, versus 17.7% for the average Financials stock. Revenue growth is running at 15.2% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CI Debt, Balance Sheet, and Financial Health
Cigna Group has a debt-to-equity ratio of 277.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.85x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $43.39B. Cash and equivalents stand at $6.03B.
CI has a beta of 0.25, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Cigna Group is 78/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Cigna Group Revenue and Earnings History — Quarterly Trend
In TTM 2026, Cigna Group reported revenue of $266.12B and earnings per share (EPS) of $22.33. Net income for the quarter was $5.84B. Gross margin was 23.1%. Operating income came in at $9.43B.
In FY 2025, Cigna Group reported revenue of $274.90B and earnings per share (EPS) of $22.33. Net income for the quarter was $6.29B. Gross margin was 21.8%. Revenue grew 12.5% year-over-year compared to FY 2024. Operating income came in at $9.20B.
In Q3 2025, Cigna Group reported revenue of $69.75B and earnings per share (EPS) of $7.02. Net income for the quarter was $1.97B. Gross margin was 20.4%. Revenue grew 9.5% year-over-year compared to Q3 2024. Operating income came in at $2.58B.
In Q2 2025, Cigna Group reported revenue of $67.18B and earnings per share (EPS) of $5.76. Net income for the quarter was $1.63B. Gross margin was 20.7%. Revenue grew 11.0% year-over-year compared to Q2 2024. Operating income came in at $2.31B.
Over the past 8 quarters, Cigna Group has demonstrated a growth trajectory, with revenue expanding from $60.52B to $266.12B. Investors analyzing CI stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CI Dividend Yield and Income Analysis
Cigna Group (CI) does not currently pay a dividend. This is common among growth-oriented companies in the Insurance industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
CI Momentum and Technical Analysis Profile
Cigna Group (CI) has a momentum factor score of 34/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 19/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CI vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing CI against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CI vs S&P 500 (SPY) comparison to assess how Cigna Group stacks up against the broader market across all factor dimensions.
CI Next Earnings Date
No upcoming earnings date has been announced for Cigna Group (CI) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CI? — Investment Thesis Summary
Cigna Group presents a balanced picture with arguments on both sides. The quality score of 68/100 indicates above-average profitability and business fundamentals. The value score of 75/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 34/100, a headwind for near-term performance. Low volatility (stability score 78/100) reduces downside risk.
In summary, Cigna Group (CI) earns a Hold rating with a composite score of 52.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CI stock.
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Institutional Research Dossier
Cigna Group (CI) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Cigna Group (CI), driven by a balanced view of its strong market position and financial performance against potential headwinds in the evolving healthcare landscape. Cigna's diversified business model, encompassing both pharmacy benefits management (PBM) through Evernorth and traditional healthcare insurance, provides a degree of stability and growth opportunities. However, regulatory scrutiny and increasing competition in the PBM space, coupled with the inherent complexities of the healthcare industry, warrant a cautious approach.
The company's attractive valuation metrics, such as a lower P/E and EV/EBITDA compared to the sector, are offset by concerns regarding its higher debt-to-equity ratio and relatively lower operating and net margins. While Cigna's revenue growth has been impressive, sustained profitability improvements are crucial for a more bullish outlook. Therefore, we believe a Hold rating appropriately reflects the current risk-reward profile, pending further clarity on the company's ability to navigate industry challenges and capitalize on its strategic initiatives.
Business Strategy & Overview
Cigna Group operates through two primary segments: Evernorth and Cigna Healthcare. Evernorth focuses on providing pharmacy benefits management, care delivery, and other health services to a wide range of clients, including health plans, employers, and government organizations. This segment is a significant growth driver for Cigna, leveraging its scale and integrated solutions to capture market share in the increasingly complex pharmacy benefits landscape. Evernorth's strategy centers around offering comprehensive and cost-effective solutions that improve patient outcomes and reduce healthcare costs for its clients.
Cigna Healthcare provides medical, pharmacy, behavioral health, and other insurance products and services to individuals and employers. This segment includes Cigna's commercial insurance business, Medicare Advantage plans, and international healthcare operations. The company's strategy in this segment focuses on expanding its market presence, improving the quality of care, and enhancing the customer experience. Cigna is actively investing in technology and data analytics to personalize healthcare solutions and improve efficiency.
A key aspect of Cigna's overall strategy is its focus on integrated healthcare solutions. By combining its PBM capabilities with its insurance offerings, Cigna aims to create a more coordinated and efficient healthcare system. This integrated approach allows Cigna to better manage costs, improve patient outcomes, and differentiate itself from competitors. The company is also actively pursuing strategic acquisitions and partnerships to expand its capabilities and reach.
Cigna's distribution strategy involves a multi-channel approach, including insurance brokers and consultants, direct sales to employers and individuals, and partnerships with private and public exchanges. This diversified distribution network allows Cigna to reach a broad range of customers and adapt to changing market dynamics. The company is also investing in digital channels to enhance customer engagement and streamline the enrollment process.
The healthcare industry is undergoing significant transformation, driven by factors such as rising healthcare costs, increasing regulatory scrutiny, and changing consumer expectations. Cigna is actively adapting to these changes by investing in innovative solutions, expanding its service offerings, and strengthening its relationships with healthcare providers. The company's ability to navigate these challenges and capitalize on emerging opportunities will be crucial for its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
15.2%
Sector: 9.4%
+62% VS SCTR
Economic Moat Analysis
Cigna possesses a Narrow economic moat, primarily derived from switching costs and scale advantages within its Evernorth segment. The PBM industry exhibits moderate switching costs, as employers and health plans face administrative complexities and potential disruption when changing providers. Cigna's established relationships with clients and its integrated suite of services create a degree of stickiness, making it less likely for customers to switch to competitors, especially given the potential for errors and disruptions in prescription fulfillment.
Evernorth's scale provides a cost advantage in negotiating drug prices and managing pharmacy networks. The company's large purchasing volume allows it to secure favorable pricing from pharmaceutical manufacturers and pharmacies, which it can then pass on to its clients. This cost advantage is a key differentiator in the competitive PBM market, where price is a major consideration for customers.
However, the moat is not wide due to several factors. The PBM industry is highly competitive, with several large players vying for market share. The increasing scrutiny of PBM pricing practices and the potential for regulatory changes could erode Cigna's cost advantages. Furthermore, the rise of alternative pharmacy models, such as direct-to-consumer pharmacies and specialty pharmacies, could disrupt the traditional PBM model.
In the Cigna Healthcare segment, the moat is even narrower. The health insurance industry is characterized by intense competition and limited product differentiation. While Cigna has a strong brand and a large customer base, it faces significant competition from other large insurers, as well as regional and local players. The Affordable Care Act (ACA) has also increased price transparency and comparability, making it more difficult for insurers to differentiate themselves on price.
The company's ability to maintain and expand its narrow moat will depend on its ability to innovate, improve customer service, and adapt to changing market dynamics. Cigna's investments in technology and data analytics are aimed at enhancing its competitive position and strengthening its relationships with customers. However, the company faces significant challenges in a rapidly evolving healthcare landscape.
Financial Health & Profitability
Cigna's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with a 15.2% increase compared to the sector average of 9.3%. This growth is primarily driven by the expansion of its Evernorth segment and its ability to capture market share in the PBM industry. The quarterly financial history shows consistent revenue growth throughout FY2023, FY2024, and FY2025, indicating a positive trend.
However, Cigna's profitability metrics are less impressive. While its ROE of 13.9% is higher than the sector average of 8.5%, its operating margin of 3.5% and net margin of 2.2% are significantly lower than the sector averages of 22.0% and 17.8%, respectively. This suggests that Cigna is generating revenue efficiently, but its cost structure is less efficient than its peers. The quarterly financial history shows fluctuations in gross margin and operating margin, indicating potential challenges in managing costs.
Cigna's balance sheet is characterized by a high level of debt. Its debt-to-equity ratio of 277.00 is significantly higher than the sector average of 115.00. This high level of leverage increases the company's financial risk and could limit its ability to invest in growth opportunities. However, Cigna's strong free cash flow generation, with $34.76B TTM, provides some cushion and allows it to service its debt obligations.
The company's current ratio of 0.85 indicates that it may face some liquidity challenges in the short term. A current ratio below 1 suggests that Cigna has more current liabilities than current assets, which could make it difficult to meet its short-term obligations. However, the company's strong cash flow generation and access to capital markets mitigate this risk.
Overall, Cigna's financial health is characterized by strong revenue growth, but lower profitability and a high level of debt. The company's ability to improve its operating efficiency and reduce its leverage will be crucial for its long-term financial stability. The trend in operating margin will be a key indicator to watch in future quarters.
Valuation Assessment
Cigna's valuation appears attractive based on several key metrics. Its P/E ratio of 11.8x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 1.9x is substantially lower than the sector average of 3.5x, indicating that the company is undervalued relative to its operating cash flow. These metrics suggest that Cigna is trading at a discount to its peers.
However, it's important to consider Cigna's growth prospects and risk profile when assessing its valuation. While the company has demonstrated strong revenue growth, its profitability metrics are lower than the sector average, which could justify a lower valuation. Furthermore, Cigna's high level of debt increases its financial risk, which could also weigh on its valuation.
The company's free cash flow yield is difficult to assess given the lack of historical FCF data in the quarterly financials. However, the TTM FCF of $34.76B is substantial, suggesting that Cigna is generating significant cash flow. This cash flow could be used to reduce debt, invest in growth opportunities, or return capital to shareholders, which could improve the company's valuation.
Compared to its historical valuation, Cigna's current P/E ratio is in line with its historical average. However, its EV/EBITDA ratio is lower than its historical average, suggesting that the stock may be undervalued relative to its historical performance. The market may be discounting the stock due to concerns about regulatory scrutiny, competition, or the company's high level of debt.
Overall, Cigna's valuation appears attractive based on its P/E and EV/EBITDA ratios, but it's important to consider its growth prospects, risk profile, and historical valuation when making an investment decision. The market's perception of the company's ability to navigate industry challenges and improve its profitability will be a key driver of its future valuation.
Risk & Uncertainty
Cigna faces several significant risks and uncertainties that could impact its financial performance and stock price. One of the most significant risks is regulatory scrutiny of the PBM industry. PBMs have come under increasing pressure from regulators and lawmakers due to concerns about pricing transparency, drug rebates, and conflicts of interest. Changes in regulations could significantly impact Cigna's Evernorth segment and its profitability.
Another key risk is competition in the health insurance and PBM industries. Cigna faces intense competition from other large insurers and PBMs, as well as regional and local players. The increasing consolidation in the healthcare industry could further intensify competition and put pressure on Cigna's margins. The rise of new entrants and alternative pharmacy models could also disrupt the traditional PBM model.
Cigna's high level of debt is another significant risk. The company's debt-to-equity ratio of 277.00 is significantly higher than the sector average, which increases its financial risk. Rising interest rates could increase Cigna's borrowing costs and reduce its profitability. A significant economic downturn could also make it more difficult for Cigna to service its debt obligations.
The healthcare industry is subject to constant change and uncertainty. Changes in healthcare laws and regulations, such as the Affordable Care Act, could significantly impact Cigna's business model and financial performance. The company also faces risks related to cybersecurity, data privacy, and compliance with healthcare regulations.
Bulls Say / Bears Say
The Bull Case
BULL VIEWCigna's Evernorth segment is a growth engine, leveraging its scale and integrated solutions to capture market share in the expanding PBM industry, driving consistent revenue growth.
BULL VIEWThe company's attractive valuation metrics, such as a lower P/E and EV/EBITDA compared to the sector, present a compelling investment opportunity for value-oriented investors.
BULL VIEWCigna's strong free cash flow generation provides ample flexibility to reduce debt, invest in growth opportunities, and return capital to shareholders, enhancing shareholder value.
The Bear Case
BEAR VIEWRegulatory scrutiny of PBM pricing practices and potential changes in healthcare laws could significantly impact Cigna's profitability and business model, creating substantial uncertainty.
BEAR VIEWCigna's high debt-to-equity ratio increases its financial risk and could limit its ability to invest in growth opportunities or withstand economic downturns, weighing on its valuation.
BEAR VIEWThe company's operating and net margins are significantly lower than the sector average, indicating potential inefficiencies in its cost structure and limiting its ability to generate sustainable profits.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score CI and 4,400+ other equities.
Cigna Group exhibits a 23% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.7%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
23.1%
Sector: 0.0%
Operating Margin
Core business profitability
3.5%
Sector: 21.8%
Net Margin
Bottom-line profitability
2.2%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
