CI

Cigna Corp.

Finance/Real Estate


Presented:08/22/2022
Price:$291.50
Cap:$88.94B
Current Price:$348.84
Cap:$97.52B

Presented

Date08/22/2022
Price$291.50
Market Cap$88.94B
Ent Value$117.88B
P/E Ratio17.39x
Book Value$145.37
Div Yield1.45%
Shares O/S305.12M
Ave Daily Vol1,963,418
Short Int2.26%

Current

Price$348.84
Market Cap$97.52B
Cigna Corp. is engaged in the provision of global health services. It operates through the following segments: Evernorth, U.S. Medical, International Markets, and Group Disability and Other. The Evernorth segment includes a broad range of coordinated and point solution health services, including pharmacy solutions, benefits management solutions, care solutions and intelligence solutions. The U.S. Medical segment includes Cigna's U.S. Commercial and U.S. Government businesses that provide comprehensive medical and coordinated solutions to clients and customers. The International Markets segment includes supplemental health, life and accident insurance products and health care coverage in international markets, as well as health care benefits to globally mobile employees of multinational organizations. The Group Disability and Other segment represents group disability and life, corporate-owned life insurance, and run-off business consisting of reinsurance, settlement authority, and individual life insurance and annuity and retirement benefits business. The company was founded in 1792 and is headquartered in Bloomfield, CT.

Publicly traded companies mentioned herein: AbbVie Inc (ABBV), Cigna Corp (CI)

Highlights

The presenter is long shares of Cigna Corp (CI), viewing it as a great business with a strong earnings growth runway. As currently constituted, CI hasn’t had a down year in EPS in the last 20 years; while it looks like there were EPS decreases in 2008 and 2016, the presenter clarifies that CI no longer owns the businesses that drove those decreases. The Street is forecasting EPS of $22.99 this year, $25.31 next year, and $28.14 in 2024. He expects the company to beat those expectations, partially due to aggressive stock buybacks and the benefit from the biosimilars wave starting in 2023. CI currently trades at $290 per share, and based on his analysis, investors can make 25% – 30% annual returns over the next few years from earnings growth and multiple expansion. 

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Idea Discussion

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