Cigna: Valuation Discount To Historical And Sector Averages Persists

Narek Hovhannisyan
58 Followers
(15min)

Summary

  • Cigna has transformed into a diversified healthcare platform, focusing on high-margin corporate insurance and pharmacy services while divesting non-core assets.
  • Despite margin pressures, Cigna's service-driven model delivers strong revenue growth, stable cash flows, and resilient EPS, supported by robust buybacks and dividend increases.
  • My DCF analysis shows Cigna is undervalued, trading at a deep discount to sector peers, with an 11%+ upside and limited downside risk even in conservative scenarios.
  • Given stable operations, attractive valuation, and strong shareholder returns, I confidently assign Cigna a 'Buy' rating for long-term investors.

Cigna Healthcare office in Wilmington, Delaware, USA

The Cigna Group (NYSE:CI) has gone from a classic insurer to a diversified healthcare player with a stable, two-platform model. Previously, Cigna was known for its insurance business, but after buying Express Scripts in 2018 for $67 billion, the company

This article was written by

58 Followers
Hi there! I’m Narek, and I’ve been in the investment world for over six years. I started out as an equity analyst at European banks, digging into reports and learning how to spot value in the markets. I’ve worked across sectors — from telecom to industry — and found that behind every financial statement is a real story. I studied in Belgium — did my bachelor’s in Antwerp, master’s at KU Leuven, and later completed an MBA in Finance at Vlerick. That journey gave me both theory and hands-on skills. Now I’m building my own investment project focused on the CIS region. I’m passionate about applying Western analytical tools to uncover hidden value in emerging markets. If you enjoy deep, fundamentals-driven research and digging beneath the surface of a company — glad to have you on board!

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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