ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The Cigna Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.40%.
As of today (2026-06-26), The Cigna Group's WACC % is 5.13%. The Cigna Group's ROIC % is 6.15% (calculated using TTM income statement data).
The Cigna Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
The Cigna Group (WBO:CIGN) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, The Cigna Group's WACC % is 5.13%. The Cigna Group's ROIC % is 6.15% (calculated using TTM income statement data).
The Cigna Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
The Cigna Group ROIC % Related Terms
The Cigna Group ROIC % Historical Data
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The historical data trend for The Cigna Group's ROIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Healthcare Plans subindustry, The Cigna Group's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Cigna Group ROIC % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, The Cigna Group's ROIC % distribution charts can be found below:
* The bar in red indicates where The Cigna Group's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Cigna Group (WBO:CIGN) has a ROIC % of 6.40% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on The Cigna Group and its competitors.
Is The Cigna Group's ROIC % too high?
The Cigna Group's current ROIC % is 6.40%. The Healthcare Plans industry median ROIC % is 6.46. The Cigna Group's value of 6.40% is 0.9% below this industry median. Overall, The Cigna Group has a GF Score™ of 60/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Cigna Group's ROIC % compare to ELV and HUM?
The Cigna Group's ROIC % of 6.40% can be compared against companies in the Healthcare Plans industry. The industry median ROIC % is 6.46. The Cigna Group's value of 6.40% is 0.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Healthcare Plans company?
The median ROIC % among Healthcare Plans companies is 6.46, based on 17 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Cigna Group's current ROIC % of 6.40% is 0.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on The Cigna Group and its competitors. For the Healthcare Plans industry, the median ROIC % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cigna Group's current ROIC % is 6.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Cigna Group stock overvalued right now?
Based on GuruFocus' analysis, The Cigna Group (WBO:CIGN) is currently considered Significantly Undervalued. The stock's GF Value™ is €368.84, compared to a current price of €249.60 — trading 32.3% below its estimated fair value. The current ROIC % is 6.40% and 0.9% below the Healthcare Plans industry median of 6.46. The Cigna Group's overall GF Score™ is 60/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For The Cigna Group (WBO:CIGN), the current ROIC % is 6.40% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Cigna Group (WBO:CIGN) Overvalued in 2026?
Based on GuruFocus' analysis, The Cigna Group stock appears to be undervalued.
The current stock price of €249.60 is trading 32.3% below its estimated GF Value™ of €368.84.
GuruFocus considers The Cigna Group to be Significantly Undervalued.
Key valuation signals for WBO:CIGN:
ROIC %: 6.40%
GF Value™: €368.84 vs. price of €249.60 (32.3% below fair value)
Industry Position: 0.9% below the Healthcare Plans median
No single metric tells the full story. See the WBO:CIGN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM and specialty pharmacy services, which were greatly expanded by its 2018 merger with Express Scripts, are mostly sold to health insurance plans and employers. Its largest PBM contract is with the Department of Defense, and it recently won a multiyear deal with top-tier insurer Centene. In health insurance and other benefits, Cigna primarily serves employers through self-funding arrangements, and the company operates mostly in the US with 16 million US and 2 million international medical members covered as of December 2025.
60GF Score
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