CI

Cigna Corp.

Healthcare, Finance/Real Estate


Presented:12/19/2023
Price:$294.32
Cap:$86.12B
Current Price:$348.84
Cap:$97.52B

Presented

Date12/19/2023
Price$294.32
Market Cap$86.12B
Ent Value$116.22B
P/E Ratio16.61x
Book Value$155.78
Div Yield1.67%
Shares O/S292.62M
Ave Daily Vol1,953,158
Short Int0.91%

Current

Price$348.84
Market Cap$97.52B
The Cigna Group 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: Centene Corp (CNC), Cigna Group/The (CI), Humana Inc (HUM)

Highlights

The presenter is long shares of The Cigna Group (CI), which has been an underperformer in 2023 and currently trades at 10x consensus 2024 earnings and 9x consensus 2025 earnings. The company had been in the news regarding its potential Humana acquisition, a deal he was opposed to, and was encouraged that CI abandoned. The stock is now positioned to outperform the market based on the biosimilars wave, the Centene contract inflecting from implementation investment to revenue generation, and an attractive stock buyback opportunity. He ultimately expects the company to grow 13% – 15% per year for the rest of the decade without any need for M&A while offering a modest dividend. 

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Idea Discussion

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