The Cigna Group
CI
$291.88
-0.66%
The Cigna Group is a leading global health services company operating in the Healthcare sector, specifically within Medical - Healthcare Plans. It provides a dual-pronged business model of pharmacy benefit management (PBM) and specialty pharmacy services through its Evernorth segment, alongside its traditional health insurance and benefits offerings via Cigna Healthcare. The company is a dominant, integrated player in the managed care and PBM space, having solidified its scale through the transformative 2018 merger with Express Scripts. The current investor narrative is focused on strategic portfolio optimization, as evidenced by its recent announcement of a strategic review for its eviCore business and an exit from the individual exchange market, which signals a focus on core, profitable growth areas while raising its financial outlook.…
CI
The Cigna Group
$291.88
Related headlines
CI 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on The Cigna Group's 12-month outlook, with a consensus price target around $379.44 and implied upside of +30.0% versus the current price.
Average Target
$379.44
5 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
5
covering this stock
Price Range
$234 - $379
Analyst target range
Analyst coverage for Cigna is limited, with only 5 analysts providing estimates according to the provided data, which is low for a company of its size and suggests it may be under-followed relative to peers. The consensus sentiment, inferred from recent institutional ratings, is decidedly bullish, with firms like Bernstein upgrading to 'Outperform' and others such as Barclays, Truist Securities, and RBC Capital maintaining 'Overweight' or 'Outperform' ratings. The average revenue estimate for the period is $338.05 billion, with a range from $329.78B to $345.89B, indicating a relatively tight spread of about ±2.4% around the consensus, which points to moderate uncertainty in the top-line forecast. The limited number of analysts can lead to less efficient price discovery and higher volatility, making the stock more susceptible to large moves on company-specific news, as seen with its strategic announcements.
Bulls vs Bears: CI Investment Factors
Overall, CI has investment potential but also faces challenges. Here are key factors to weigh before investing.
Bullish
- Deep Value Valuation: CI trades at a forward P/E of 8.9x, a 28% discount to its trailing P/E of 12.3x, signaling anticipated earnings growth. This multiple is significantly below typical managed care peers, suggesting a substantial valuation discount if the company's strategic pivot succeeds.
- Strong Revenue Growth & Scale: Q4 2025 revenue grew 10.39% YoY to $72.47B, with sequential acceleration from $57.26B in Q1 2024. The massive Evernorth PBM segment ($64.74B in Q4) provides dominant scale and recurring revenue streams from major contracts like the Department of Defense.
- Robust Free Cash Flow Generation: The company generates substantial cash, with TTM free cash flow of $8.39 billion. This provides ample liquidity for strategic initiatives, debt management, and shareholder returns, supporting a strong financial foundation.
- Strategic Focus on Profitable Core: Management is actively optimizing the portfolio, exiting the individual exchange market and reviewing the eviCore business. This focus on core, profitable growth areas was accompanied by a raised financial outlook, signaling improved capital allocation.
Bearish
CI Technical Analysis
The stock is in a recovery phase within a broader downtrend, trading at 88% of its 52-week high of $338.89 but having declined 5.51% over the past year. This positioning near the upper end of its 52-week range suggests it has recaptured significant lost ground, yet remains below its peak, indicating a potential resistance zone ahead. The 3-month price change of +11.53% significantly outpaces the 1-month decline of -0.90%, demonstrating that recent short-term weakness is a pullback within a stronger intermediate-term uptrend that began in early March from a low near $258. The stock's beta of 0.302 indicates it has been far less volatile than the broader market, a defensive characteristic that has contributed to its significant 1-year relative strength underperformance of -28.37% against the SPY. Key technical support is established at the 52-week low of $239.51, while immediate resistance sits at the 52-week high of $338.89. A decisive breakout above this high would signal a full reversal of the prior downtrend, while a failure and breakdown below the March low near $258 would suggest the recovery has failed and a retest of the 52-week low is likely.
Beta
0.30
0.30x market volatility
Max Drawdown
-26.9%
Largest decline past year
52-Week Range
$240-$339
Price range past year
Annual Return
-7.2%
Cumulative gain past year
| Period | CI Return | S&P 500 |
|---|---|---|
| 1m | +2.3% | +1.5% |
| 3m | +10.3% | +13.4% |
| 6m | +6.5% | +10.9% |
| 1y | -7.2% | +24.5% |
| ytd | +4.6% | +10.0% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
CI Fundamental Analysis
Cigna's revenue trajectory is robust, with Q4 2025 revenue of $72.47 billion representing a 10.39% year-over-year growth rate. The quarterly income statement data shows revenue has grown sequentially from $57.26B in Q1 2024 to $72.47B in Q4 2025, indicating a strong multi-quarter acceleration, primarily driven by its massive Evernorth PBM segment, which contributed $64.74 billion in the latest period compared to $12.51 billion from Cigna Healthcare. The company is solidly profitable, reporting Q4 2025 net income of $1.23 billion, translating to a net margin of 1.70%. However, profitability metrics show some quarterly volatility, with gross margin compressing to 7.66% in Q4 2025 from 11.75% in Q2 2025, while the operating margin was 2.96% in the latest quarter. The balance sheet and cash flow position is strong, with a conservative debt-to-equity ratio of 0.75 and a current ratio of 0.85. The company generates substantial free cash flow, with TTM free cash flow of $8.39 billion, providing ample liquidity for shareholder returns and strategic initiatives, as evidenced by a return on equity of 14.28%.
Quarterly Revenue
$72.5B
2025-12
Revenue YoY Growth
+0.10%
YoY Comparison
Gross Margin
+0.07%
Latest Quarter
Free Cash Flow
$8.4B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is CI Overvalued?
Given a positive net income, the primary valuation metric is the Price-to-Earnings (PE) ratio. Cigna's trailing PE ratio is 12.29x, while its forward PE is 8.90x, indicating the market anticipates significant earnings growth, with the forward multiple implying a 28% discount to the trailing figure. Compared to sector averages, the stock trades at a significant discount; for instance, its forward PE of 8.9x is well below typical managed care peers which often trade in the mid-teens, suggesting the market is applying a penalty due to regulatory concerns or growth uncertainties. Historically, the stock's own trailing PE has ranged from negative figures in unprofitable quarters to over 30x; the current 12.29x is near the lower end of its recent historical spectrum (e.g., 14.83x in Q4 2025, 10.27x in Q3 2025), suggesting the stock is not priced for excessive optimism and may offer value if the company's strategic shifts succeed.
PE
12.3x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -94x~33x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
8.4x
Enterprise Value Multiple
