Hide

FocusBar

FeedbackFeedback
Subscribe to Premium Member
67.92 (1y: +54%)
Market Cap 19.28 B P/E(ttm) 14.80
Enterprise Value 24.68 B P/B 2.00
CI- NYSE (USA)
Cigna Corp
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$67.92
Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry		 vs
history
Cash to Debt 0.574
CI's Cash to Debt is ranked lower than
76% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 1.88 vs. CI: 0.574 )
CI' s 10-Year Cash to Debt Range
Min: 0.36   Max: 1.75
Current: 0.57
0.36
1.75
Equity to Asset 0.026
CI's Equity to Asset is ranked lower than
71% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.20 vs. CI: 0.026 )
CI' s 10-Year Equity to Asset Range
Min: -0.02   Max: 0.08
Current: 0.03
-0.02
0.08
Interest Coverage 9.2
CI's Interest Coverage is ranked higher than
65% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 265.90 vs. CI: 9.2 )
CI' s 10-Year Interest Coverage Range
Min: 9   Max: 10
Current: 9.2
9
10
F-Score: 5
Z-Score: 1.23
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry		 vs
history
Operating margin (%) 8.50
CI's Operating margin (%) is ranked higher than
88% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 4.00 vs. CI: 8.50 )
CI' s 10-Year Operating margin (%) Range
Min: -2.9   Max: 13.1
Current: 8.5
-2.9
13.1
Net-margin (%) 5.6
CI's Net-margin (%) is ranked higher than
88% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 2.10 vs. CI: 5.6 )
CI' s 10-Year Net-margin (%) Range
Min: -2.1   Max: 9.7
Current: 5.6
-2.1
9.7
ROE (%) 16.6
CI's ROE (%) is ranked higher than
76% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 9.20 vs. CI: 16.6 )
CI' s 10-Year ROE (%) Range
Min: -10.3   Max: 30.3
Current: 16.6
-10.3
30.3
ROA (%) 3
CI's ROA (%) is ranked higher than
53% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 2.80 vs. CI: 3 )
CI' s 10-Year ROA (%) Range
Min: -0.4   Max: 3.6
Current: 3
-0.4
3.6
Revenue Growth (%) 11.2
CI's Revenue Growth (%) is ranked lower than
53% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 7.35 vs. CI: 11.2 )
CI' s 10-Year Revenue Growth (%) Range
Min: -1.7   Max: 12.9
Current: 11.2
-1.7
12.9
EBITDA Growth (%) 7.9
CI's EBITDA Growth (%) is ranked higher than
94% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 14.00 vs. CI: 7.9 )
CI' s 10-Year EBITDA Growth (%) Range
Min: -18.7   Max: 39
Current: 7.9
-18.7
39
EPS Growth (%) 4.4
CI's EPS Growth (%) is ranked higher than
94% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 13.10 vs. CI: 4.4 )
CI' s 10-Year EPS Growth (%) Range
Min: -29.2   Max: 46.5
Current: 4.4
-29.2
46.5
» CI's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

CI Guru Trades in Q2 2012

Daniel Loeb 1,700,000 sh (New)
Paul Tudor Jones 13,800 sh (New)
David Einhorn 6,435,000 sh (New)
Lee Ainslie 7,121,086 sh (+9.01%)
Pioneer Investments 1,004,961 sh (+1.97%)
David Dreman 65,263 sh (+0.95%)
John Hussman 1,250,000 sh (unchged)
Vanguard Health Care Fund 7,610,600 sh (unchged)
Jeremy Grantham Sold Out
Jim Simons Sold Out
Ray Dalio Sold Out
Bill Frels Sold Out
James Barrow 2,195,655 sh (-3.84%)
Larry Robbins 4,926,006 sh (-4.3%)
Dodge & Cox 45,184 sh (-5.06%)
Steven Cohen 44,569 sh (-12.31%)
» More
Q3 2012

CI Guru Trades in Q3 2012

Andreas Halvorsen 1,060,800 sh (New)
Jim Simons 423,100 sh (New)
Jeremy Grantham 14,200 sh (New)
Ray Dalio 34,459 sh (New)
Bill Frels 4,500 sh (New)
James Barrow 2,749,185 sh (+25.21%)
Larry Robbins 5,831,059 sh (+18.37%)
David Einhorn 7,101,800 sh (+10.36%)
David Dreman 70,048 sh (+7.33%)
Paul Tudor Jones 14,200 sh (+2.9%)
Vanguard Health Care Fund 7,710,600 sh (+1.31%)
Pioneer Investments 917,290 sh (-8.72%)
Dodge & Cox 39,884 sh (-11.73%)
Lee Ainslie 6,143,558 sh (-13.73%)
Daniel Loeb 794,000 sh (-53.29%)
Steven Cohen 10,847 sh (-75.66%)
John Hussman 132,000 sh (-89.44%)
» More
Q4 2012

CI Guru Trades in Q4 2012

John Keeley 4,150 sh (New)
Dodge & Cox 1,330,534 sh (+3236.01%)
David Einhorn 8,186,000 sh (+15.27%)
James Barrow 2,894,255 sh (+5.28%)
Vanguard Health Care Fund 7,710,600 sh (unchged)
Jeremy Grantham 35,800 sh (unchged)
Bill Frels 4,500 sh (unchged)
Andreas Halvorsen Sold Out
Daniel Loeb Sold Out
David Dreman 68,708 sh (-1.91%)
Pioneer Investments 897,147 sh (-2.2%)
Steven Cohen 10,463 sh (-3.54%)
Paul Tudor Jones 11,400 sh (-19.72%)
Larry Robbins 4,171,059 sh (-28.47%)
Lee Ainslie 3,720,446 sh (-39.44%)
Ray Dalio 20,359 sh (-40.92%)
Jim Simons 222,300 sh (-47.46%)
» More
Q1 2013

CI Guru Trades in Q1 2013

Dodge & Cox 5,513,237 sh (+314.36%)
Steven Cohen 28,038 sh (+167.97%)
Jeremy Grantham 83,500 sh (+133.24%)
John Keeley 6,150 sh (+48.19%)
James Barrow 2,942,585 sh (+1.67%)
Bill Frels 4,500 sh (unchged)
David Einhorn 8,186,000 sh (unchged)
Ray Dalio Sold Out
Vanguard Health Care Fund 7,536,000 sh (-2.26%)
Larry Robbins 3,871,884 sh (-7.17%)
Paul Tudor Jones 10,000 sh (-12.28%)
David Dreman 56,831 sh (-17.29%)
Pioneer Investments 454,072 sh (-49.39%)
Lee Ainslie 1,407,478 sh (-62.17%)
Jim Simons 11,800 sh (-94.69%)
» More
» Details

Insider Trades

Latest Guru Trades with CI

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Lee Ainslie 2013-03-31 Reduce -62.17%1.8%$53.46 - $62.63 $ 67.9215%1407478
Dodge & Cox 2013-03-31 Add 314.36%0.32%$53.46 - $62.63 $ 67.9215%5513237
Ray Dalio 2013-03-31 Sold Out 0.01%$53.46 - $62.63 $ 67.9215%0
John Keeley 2013-03-31 Add 48.19%$53.46 - $62.63 $ 67.9215%6150
Lee Ainslie 2012-12-31 Reduce -39.44%1.5%$48.63 - $54.49 $ 67.9232%3720446
Daniel Loeb 2012-12-31 Sold Out 0.74%$48.63 - $54.49 $ 67.9232%0
Dodge & Cox 2012-12-31 Add 3236.01%0.09%$48.63 - $54.49 $ 67.9232%1330534
Ray Dalio 2012-12-31 Reduce -40.92%0.01%$48.63 - $54.49 $ 67.9232%20359
John Keeley 2012-12-31 New Buy0.01%$48.63 - $54.49 $ 67.9232%4150
Daniel Loeb 2012-09-30 Reduce -53.29%1.23%$39.66 - $47.79 $ 67.9254%794000
John Hussman 2012-09-30 Reduce -89.44%0.89%$39.66 - $47.79 $ 67.9254%132000
James Barrow 2012-09-30 Add 25.21%0.05%$39.66 - $47.79 $ 67.9254%2749185
Ray Dalio 2012-09-30 New Buy0.02%$39.66 - $47.79 $ 67.9254%34459
Daniel Loeb 2012-06-30 New Buy2.3%$42.47 - $49.3 $ 67.9249%1700000
Lee Ainslie 2012-06-30 Add 9.01%0.38%$42.47 - $49.3 $ 67.9249%7121086
Ray Dalio 2012-06-30 Sold Out 0.07%$42.47 - $49.3 $ 67.9249%0
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Cigna Corp

David Einhorn Comments on Cigna - Oct 24, 2012

At the recent Value Investing Congress, David updated our view of Green Mountain Coffee Roasters (GMCR), elaborated on our General Motors (GM) and Cigna (CI) theses, and disclosed our short position in Chipotle Mexican Grill (CMG).

Regarding CI, we discussed that it trades at a discount to the HMOs, which as a group trade at low multiples. We then illustrated that CI is a higher-quality business that generates superior and more stable returns on equity than its peer group. With a substantial emphasis on Administrative Services Only business, CI deserves a higher multiple closer to the business process outsourcing companies (such as ADP) than to the HMOs. CI also has a significant and growing Medicare Advantage business and a fast growing international business. Finally, we noted that since the vast majority of its customers are large and mid-sized enterprises, CI has much less exposure to the known risks of Obamacare including health care exchanges. In fact, Obamacare may provide a growth opportunity for the company because it may finally afford CI the opportunity to compete meaningfully in the in the individual segment of the market.
From Greenlight Capital's third quarter letter.


Check out David Einhorn latest stock trades

David Einhorn on Cigna (CI) - Jul 24, 2012

CI is a managed care company with three primary divisions: Cigna HealthCare, Cigna Group Disability and Life, and Cigna International. Cigna HealthCare, which comprises about 70% of CI's profits, offers medium and large companies traditional risk-based insurance, in addition to administering plans for those that prefer to self-insure. Cigna HealthCare recently bought HealthSpring to enter the fast-growing Medicare Advantage market. Cigna Group Disability and Life is a low-growth, stable business. Cigna International, which provides insurance policies for individuals, as well as insurance and administrative services for multinational companies and governments, is growing at more than 20% per year. We believe that CI deserves a higher multiple because the plan administration business is a service business that doesn't take risk, and the other divisions do not warrant discounted values. Our purchase price of $45.42 per share valued CI at less than 8x estimated 2012 EPS and approximately 6x our forecast of post Obamacare 2014 EPS. CI shares closed the quarter at $44.00 each.
Check out David Einhorn latest stock trades

Top Ranked Articles about Cigna Corp

David Einhorn Comments on Cigna
October 24, 2012
At the recent Value Investing Congress, David updated our view of Green Mountain Coffee Roasters (GMCR), elaborated on our General Motors (GM) and Cigna (CI) theses, and disclosed our short position in Chipotle Mexican Grill (CMG). Read more...
David Einhorn's Top Picks from Health Care Sector
August 14, 2012
David Einhorn - David Einhorn's Top Picks From Health Care Sector
David Einhorn is the head of Greenlight Capital, a hedge fund. He has positioned his portfolio to benefit from a repeal of Obamacare by buying mostly health care stocks. “While the stocks are already cheap, there is the additional unpriced upside in the possibility that the election changes the political landscape, resulting in a possible modification or repeal of Obamacare,” he said in his second quarter letter. Read more...
David Einhorn on Cigna (CI)
July 24, 2012
CI is a managed care company with three primary divisions: Cigna HealthCare, Cigna Group Disability and Life, and Cigna International. Cigna HealthCare, which comprises about 70% of CI's profits, offers medium and large companies traditional risk-based insurance, in addition to administering plans for those that prefer to self-insure. Cigna HealthCare recently bought HealthSpring to enter the fast-growing Medicare Advantage market. Cigna Group Disability and Life is a low-growth, stable business. Cigna International, which provides insurance policies for individuals, as well as insurance and administrative services for multinational companies and governments, is growing at more than 20% per year. We believe that CI deserves a higher multiple because the plan administration business is a service business that doesn't take risk, and the other divisions do not warrant discounted values. Our purchase price of $45.42 per share valued CI at less than 8x estimated 2012 EPS and approximately 6x our forecast of post Obamacare 2014 EPS. CI shares closed the quarter at $44.00 each. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 14.80
CI's P/E(ttm) is ranked higher than
53% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 10.80 vs. CI: 14.80 )
CI' s 10-Year P/E(ttm) Range
Min: 3.23   Max: 21.77
Current: 14.8
3.23
21.77
P/B 2.00
CI's P/B is ranked lower than
65% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 1.50 vs. CI: 2.00 )
CI' s 10-Year P/B Range
Min: 0.52   Max: 4.08
Current: 2
0.52
4.08
P/S 0.60
CI's P/S is ranked lower than
94% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.40 vs. CI: 0.60 )
CI' s 10-Year P/S Range
Min: 0.13   Max: 1.09
Current: 0.6
0.13
1.09
PFCF 97.10
CI's PFCF is ranked higher than
65% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 13.43 vs. CI: 97.10 )
CI' s 10-Year PFCF Range
Min: 1.79   Max: 98.31
Current: 97.1
1.79
98.31
EV-to-EBIT 12.3
CI's EV-to-EBIT is ranked lower than
59% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 7.65 vs. CI: 12.3 )
CI' s 10-Year EV-to-EBIT Range
Min: 3.2   Max: 32.7
Current: 12.3
3.2
32.7
PEG 0.4
CI's PEG is ranked higher than
94% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.80 vs. CI: 0.4 )
CI' s 10-Year PEG Range
Min: 0.39   Max: 21.32
Current: 0.4
0.39
21.32
Shiller P/E 15.8
CI's Shiller P/E is ranked higher than
100% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 12.40 vs. CI: 15.8 )
CI' s 10-Year Shiller P/E Range
Min: 2.62   Max: 22.05
Current: 15.8
2.62
22.05

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 0.10
CI's Dividend Yield is ranked higher than
59% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 1.40 vs. CI: 0.10 )
CI' s 10-Year Dividend Yield Range
Min: 0.06   Max: 3.61
Current: 0.1
0.06
3.61
Yield on cost (5-Year) 0.10
CI's Yield on cost (5-Year) is ranked lower than
53% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 1.55 vs. CI: 0.10 )
CI' s 10-Year Yield on cost (5-Year) Range
Min: 0.06   Max: 3.61
Current: 0.1
0.06
3.61
Share Buyback Rate -0.8
CI's Share Buyback Rate is ranked lower than
5882347% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.70 vs. CI: -0.8 )
CI' s 10-Year Share Buyback Rate Range
Min: 8.6   Max: -0.8
Current: -0.8

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 16.4
CI's Price/Net Current Asset Value is ranked higher than
71% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 10.10 vs. CI: 16.4 )
CI' s 10-Year Price/Net Current Asset Value Range
Min: 0.8   Max: 13.1
Current: 16.4
0.8
13.1
Price/Tangible Book 13.7
CI's Price/Tangible Book is ranked higher than
76% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 2.75 vs. CI: 13.7 )
CI' s 10-Year Price/Tangible Book Range
Min: 2.6   Max: 10.8
Current: 13.7
2.6
10.8
Price/DCF (Projected) 1
CI's Price/DCF (Projected) is ranked higher than
76% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.60 vs. CI: 1 )
CI' s 10-Year Price/DCF (Projected) Range
Min: 0.3   Max: 1.1
Current: 1
0.3
1.1
Price/Median PS Value 1.1
CI's Price/Median PS Value is ranked higher than
71% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.70 vs. CI: 1.1 )
CI' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 1.8
Current: 1.1
0.4
1.8
Price/Peter Lynch Fair Value 0.6
CI's Price/Peter Lynch Fair Value is ranked lower than
82% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 0.80 vs. CI: 0.6 )
CI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.4   Max: 1.4
Current: 0.6
0.4
1.4
Price/Graham Number 2.7
CI's Price/Graham Number is ranked higher than
71% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 1.50 vs. CI: 2.7 )
CI' s 10-Year Price/Graham Number Range
Min: 1   Max: 2.4
Current: 2.7
1
2.4
Earnings Yield (Greenblatt) 8.10
CI's Earnings Yield (Greenblatt) is ranked higher than
53% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 13.60 vs. CI: 8.10 )
CI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.1   Max: 31
Current: 8.1
3.1
31
Forward Rate of Return (Yacktman) 30.54
CI's Forward Rate of Return (Yacktman) is ranked lower than
53% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 20.32 vs. CI: 30.54 )
CI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -1.6   Max: 41.1
Current: 30.54
-1.6
41.1

Business Description

Cigna Corp was incorporated in the State of Delaware in 1981. Cigna is a global health services organization with insurance subsidiaries that are providers of medical, dental, disability, life and accident insurance and related products and services. In the U.S., the majority of these products and services are offered through employers and other groups (e.g. unions and associations) and, in selected international markets, Cigna offers supplemental health, life and accident insurance products and international health care coverage and services to businesses, governmental and non-governmental organizations and individuals. The Company's segments are: Health Care, Disability and Life, International, Run-off Reinsurance and Other Operations. The Company's Health Care segment offers insured and self-funded medical, dental, behavioral health, vision, and prescription drug benefit plans, health advocacy programs and other products and services that might be integrated to provide individuals with complete health care benefit programs. The Company's Disability and Life segment provides the following insurance products and their related services: group life insurance, long-term and short-term disability insurance, workers' compensation and disability case management, and accident and specialty insurance. The International segment includes supplemental health, life and accident insurance products and international health care products and services, including those offered to individuals and globally mobile employees of multinational corporations and organizations. The Company's exposures stem mainly from its annuity reinsurance business, including its reinsurance of guaranteed minimum death benefits 'GMDB' and guaranteed minimum income benefits 'GMIB' contracts. Additional exposures arise from its reinsurance of workers' compensation and other personal accident and catastrophic risks. Other Operations of the Company consists of: non-leveraged and leveraged corporate-owned life insurance; deferred gains recognized from the 1998 sale of the individual life insurance and annuity business and the 2004 sale of the retirement benefits business and run-off settlement annuity business. The Company's International's life, accident and supplemental health insurance products are sold mainly through direct marketing channels, such as outbound telemarketing, in-branch bancassurance and direct response television. In the HealthCare business, it competes with: insurance companies that provide group health and life insurance products, Blue Cross and Blue Shield organizations; stand-alone HMOs and PPOs; third party administrators; HMOs affiliated with major insurance companies and hospitals and national managed pharmacy, behavioral health and utilization review services companies. The main competitors of CIGNA's group disability, life and accident businesses are other regional insurance companies that market and distribute these or similar types of products
Company Website
SEC Reports
Industry: Health Care Plans
Compare:UNH, ESRX, WLP, HUM, AET
Traded in other countries:CGN.Germany
» More Articles for CI

Headlines

Articles On GuruFocus.com
My 4 Favorites From The 20 Cheapest Healthcare Dividend Stock List May 02 2013 
Robbins’ HMA Stake Just Keeps Getting Bigger Jan 11 2013 
David Einhorn Comments on Cigna Oct 24 2012 
David Einhorn's Greenlight Capital Q3 Investor Letter Oct 24 2012 
8 Cheap Dividend Stocks That Crossed New 52-Week Highs Oct 13 2012 
David Einhorn Buys Top Picks from Health Care Sector Aug 14 2012 
David Einhorn on Cigna (CI) Jul 24 2012 
David Einhorn Second Quarter Letter: Jul 24 2012 
Strengthen Your Portfolio Now: 5 Insurance Stocks Feb 23 2012 
Andreas Halvorsen Likes These Low-P/E Stocks – Which One Is Best? Dec 30 2011 


Personalized Checklist





Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names
Free 7-day Trial