Cigna Corp Profitability Analysis

CI Stock  USD 348.78  2.70  0.78%   
Considering Cigna Corp's profitability and operating efficiency indicators, Cigna Corp's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Cigna Corp's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1985-09-30
Previous Quarter
41 M
Current Value
B
Quarterly Volatility
549.9 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of now, Cigna Corp's Price Sales Ratio is decreasing as compared to previous years. As of now, Cigna Corp's Non Operating Income Net Other is increasing as compared to previous years. The Cigna Corp's current Net Income Per Share is estimated to increase to 18.45, while Accumulated Other Comprehensive Income is forecasted to increase to (1.8 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.60.8141
Way Down
Slightly volatile
Net Profit Margin0.03740.0265
Significantly Up
Slightly volatile
Pretax Profit Margin0.02680.0282
Notably Down
Slightly volatile
For Cigna Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cigna Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cigna Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cigna Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cigna Corp over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Cigna Stock please use our How to Invest in Cigna Corp guide.
Is Cigna Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cigna Corp. If investors know Cigna will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cigna Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.10)
Dividend Share
4.92
Earnings Share
17.38
Revenue Per Share
664.145
Quarterly Revenue Growth
0.116
The market value of Cigna Corp is measured differently than its book value, which is the value of Cigna that is recorded on the company's balance sheet. Investors also form their own opinion of Cigna Corp's value that differs from its market value or its book value, called intrinsic value, which is Cigna Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cigna Corp's market value can be influenced by many factors that don't directly affect Cigna Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cigna Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cigna Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cigna Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Cigna Corp Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cigna Corp's current stock value. Our valuation model uses many indicators to compare Cigna Corp value to that of its competitors to determine the firm's financial worth.
Cigna Corp is rated second in return on equity category among related companies. It is rated third in return on asset category among related companies reporting about  0.32  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Cigna Corp is roughly  3.14 . As of now, Cigna Corp's Return On Equity is increasing as compared to previous years.Comparative valuation analysis is a catch-all model that can be used if you cannot value Cigna Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Cigna Corp's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cigna Corp's earnings, one of the primary drivers of an investment's value.

Cigna Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Cigna Corp

Return On Equity

 = 

Net Income

Total Equity

 = 
0.12
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Cigna Corp

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0375
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Cigna Return On Asset Comparison

Cigna Corp is currently under evaluation in return on asset category among related companies.

Cigna Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cigna Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cigna Corp will eventually generate negative long term returns. The profitability progress is the general direction of Cigna Corp's change in net profit over the period of time. It can combine multiple indicators of Cigna Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.9 B-1.8 B
Operating Income5.2 B5.4 B
Net Income5.2 B5.4 B
Income Tax Expense141 M133.9 M
Income Before Tax5.5 B3.1 B
Total Other Income Expense Net5.5 B5.2 B
Net Income Applicable To Common Shares7.7 B8.1 B
Net Income From Continuing Ops5.5 B4.6 B
Net Interest Income-1.4 B-1.5 B
Interest Income1.4 B1.1 B
Non Operating Income Net Other499.1 M524.1 M
Change To Netincome-1.5 B-1.4 B
Net Income Per Share 17.57  18.45 
Income Quality 2.29  1.84 
Net Income Per E B T 0.94  0.81 

Cigna Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Cigna Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cigna Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cigna Corp's important profitability drivers and their relationship over time.

Cigna Corp Profitability Trends

Cigna Corp profitability trend refers to the progression of profit or loss within a business. An upward trend means that Cigna Corp's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Cigna Corp's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Cigna Corp Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Cigna Corp different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Cigna Corp in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Cigna Corp's future profitability.

Use Cigna Corp in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cigna Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cigna Corp will appreciate offsetting losses from the drop in the long position's value.

Cigna Corp Pair Trading

Cigna Corp Pair Trading Analysis

The ability to find closely correlated positions to Cigna Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cigna Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cigna Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cigna Corp to buy it.
The correlation of Cigna Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cigna Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cigna Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cigna Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Cigna Corp position

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When determining whether Cigna Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cigna Corp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cigna Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cigna Corp Stock:
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For more detail on how to invest in Cigna Stock please use our How to Invest in Cigna Corp guide.
You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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When running Cigna Corp's price analysis, check to measure Cigna Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cigna Corp is operating at the current time. Most of Cigna Corp's value examination focuses on studying past and present price action to predict the probability of Cigna Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cigna Corp's price. Additionally, you may evaluate how the addition of Cigna Corp to your portfolios can decrease your overall portfolio volatility.
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To fully project Cigna Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cigna Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cigna Corp's income statement, its balance sheet, and the statement of cash flows.
Potential Cigna Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Cigna Corp investors may work on each financial statement separately, they are all related. The changes in Cigna Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cigna Corp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.