# Cigna (CI.US)

Canonical: https://gigainvestors.com/s/CI

Analysis as of: 2026-10-16T07:27:25.883Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $298.81 per share; close as of 2026-10-15.

Estimated value: low $396.36 per share, central $451.01 per share, high $523.77 per share. Buy at or below the central value $451.01 per share. Valuation as of 2026-10-16T07:27:25.883Z; scenarios are not confidence intervals.

Expected annual return: 13.7% at the stated quote. About 13.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.38×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.09×

- FY2018: 0.09×

- FY2019: 0.05×

- FY2020: 0.05×

- FY2021: 0.05×

- FY2022: 0.05×

- FY2023: 0.04×

- FY2024: 0.04×

- FY2025: 0.03×

- LTM to Jun 2026: 0.03×

### moat: fail

- Recent gross margin fell 4.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 24.5%

- ROIC, second-lowest year: 18.9%

- Typical minus recent gross margin: 4.7 pp

- Typical gross margin (annual median): 14.1%

- Recent gross margin (lower of latest and 3-year median): 9.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.7%

- ROIC including acquisitions, ten-year median: 10.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 22.6%

- FY2017: 26.1%

- FY2018: 9.3%

- FY2019: 18.9%

- FY2020: 23.0%

- FY2021: 21.4%

- FY2022: 28.9%

- FY2023: 34.4%

- FY2024: 33.1%

- FY2025: 36.5%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.29×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $34B

- Net income, five-year total: $27B

- Return on incremental invested capital: -3.7%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 2.6 pp

- Working capital / revenue, final three-year average: 1.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.33×

- FY2022: 1.24×

- FY2023: 1.28×

- FY2024: 1.40×

- FY2025: 1.26×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 22.6% vs 34.4%

- Per-share earnings: 8.18 to 17.39 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.5%

- Ordinary dilution, 5-year annual growth: -6.1%

- Market cap gain: $38B

- Cumulative retained earnings: $34B

- Diluted shares, 10-year annual growth: 0.5%

- Diluted shares, 5-year annual growth: -6.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 9.9%

- Per-share value change: $9.22

- Per-share value, starting three-year median: $8.18

- Per-share value, ending three-year median: $17.39

- Buybacks concentrated in cheaper years (correlation): 0.39

- Average buyback yield: 4.9%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $77B

- Cumulative net income, 10 years: $47B

- ROIC, first three-year median: 22.6%

- ROIC, last three-year median: 34.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $7.19

- FY2017: $8.77

- FY2018: $10.54

- FY2019: $13.44

- FY2020: $22.96

- FY2021: $15.75

- FY2022: $21.41

- FY2023: $17.39

- FY2024: $12.12

- FY2025: $22.18

### accounting: pass

- Sloan accruals: -2.3%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.61×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.76×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.6%

- FY2017: -3.0%

- FY2018: -0.7%

- FY2019: -2.8%

- FY2020: -1.2%

- FY2021: -1.2%

- FY2022: -1.4%

- FY2023: -4.4%

- FY2024: -4.4%

- FY2025: -2.3%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Einhorn](https://gigainvestors.com/GLRE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [William Browne](https://gigainvestors.com/TB): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Arnold Van Den Berg](https://gigainvestors.com/VAN): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Leon Cooperman](https://gigainvestors.com/oa): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 3% since Oct 2023 · "Cigna sinks 10% after warning of margin squeeze in pharmacy benefit unit; Q3 beats" (finance.yahoo.com, Oct 2025) · sales +2.7%

Story as of 2026-10-16T09:58:30.338Z; price observation 2026-10-15.

Price needs cash profits to shrink 4.3% a year for ten years

- 2025-05-06: CFRA: Cigna Group ’faces industry-wide cost pressures’ ([finance.yahoo.com](https://finance.yahoo.com/news/cfra-cigna-group-faces-industry-143357520.html))

- 2025-08-01: Cigna beats investor expectations on Evernorth growth ([finance.yahoo.com](https://finance.yahoo.com/news/cigna-beats-investor-expectations-evernorth-094950705.html))

- 2025-10-30: Cigna sinks 10% after warning of margin squeeze in pharmacy benefit unit; Q3 beats ([finance.yahoo.com](https://finance.yahoo.com/news/cigna-group-beats-q3-estimates-104407746.html))

- 2026-02-05: Cigna Q4 Earnings Beat Estimates on Higher Specialty Volumes ([finance.yahoo.com](https://finance.yahoo.com/news/cigna-q4-earnings-beat-estimates-175600949.html))

- 2026-04-30: The Cigna Group Reports Strong First Quarter 2026 Results, Raises 2026 Outlook ([finance.yahoo.com](https://finance.yahoo.com/sectors/healthcare/articles/cigna-group-reports-strong-first-100000328.html))

- 2026-07-30: Cigna Stock Slips as Earnings Beat Estimates but Guidance Boost Fails to Impress ([finance.yahoo.com](https://finance.yahoo.com/m/5d8b8f5b-b291-3414-aacb-857a415bceef/cigna-stock-slips-as-earnings.html))

### Sales · FY2025–2026

sales +2.7%; source https://www.sec.gov/Archives/edgar/data/1739940/000173994026000006/ci-20251231.htm; observed 2026-02-26.

- FY2017: $42B 

- FY2018: $49B 

- FY2019: $154B 

- FY2020: $160B 

- FY2021: $174B 

- FY2022: $181B 

- FY2023: $195B 

- FY2024: $247B 

- FY2025: $275B 

- FY2026: $282B 

### Gross margin · FY2025

gross margin 9.5%; source https://www.sec.gov/Archives/edgar/data/1739940/000173994026000006/ci-20251231.htm; observed 2026-02-26.

- FY2016: 32.7% 

- FY2017: 33.7% 

- FY2018: 33.6% 

- FY2019: 16.3% 

- FY2020: 15.1% 

- FY2021: 13.2% 

- FY2022: 13.0% 

- FY2023: 12.9% 

- FY2024: 10.5% 

- FY2025: 9.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in healthcare plans; annual sales are USD 275 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1739940/000173994026000006/ci-20251231.htm (filed 2026-02-26); FY2025: revenue 274952000000; grossProfit 25986000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CI.US: The Cigna Group, together with its subsidiaries, provides insurance and related products and services in the United States. It operates through two segments: Evernorth Health Services and Cigna Healthcare. The Evernorth Health Services segment includes Pharmacy Benefit Services and Specialty and Care Services, offering pharmacy benefit management, drug claim adjudication, retail pharmacy network administration, benefit design consultation, drug utilization review, drug formulary management, pharmacy benefits, home delivery pharmacy, specialty pharmacy, specialty pharmaceutical distribution, and clinical programs for whole-person health outcomes. The Cigna Healthcare segment comprises U.S. Healthcare and International Health, delivering comprehensive medical and coordinated solutions such as employer medical plans, individual and family plans, behavioral health, consumer health engagement, dental, pharmacy management, stop-loss insurance, global health care, and local health care solutions, as well as health care benefits for mobile individuals and employees of multinational organizations. The company offers other operations, including corporate-owned life insurance, reinsurance, and certain run-off and non-strategic businesses. The company distributes its products and services through brokers and consultants; directly to employers, unions and other groups, or individuals; and private and public exchanges. The company was formerly known as Cigna Corporation and changed its name to The Cigna Group in February 2023. The company was founded in 1792 and is headquartered in Bloomfield, Connecticut.

### Why customers stay

Margins ranged from 9.5% to 12.9% during 2023–25; it earns 24.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 12.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 10.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1739940/000173994026000006/ci-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 9.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,0.22555343296999664],[2017,0.26105960264900663],[2018,0.09286193633068453],[2019,0.18948777381612525],[2020,0.22972051803466337],[2021,0.2144010090345354],[2022,0.2893338340895467],[2023,0.3444603478523237],[2024,0.3306667962909848],[2025,0.3650815425274036]]; median 0.245390060341835. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 13% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1739940/000173994026000006/ci-20251231.htm (filed 2026-02-26); Gross margin observations: [[2021,0.13185001350039352],[2022,0.13018092378599364],[2023,0.1289375976237421]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 9 of 10 years; bought back USD 3.6 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2016: growth capex 0; upkeep 461000000; owner earnings 2016000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 0; upkeep 471000000; owner earnings 2332000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 0; upkeep 528000000; owner earnings 2804000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 1050000000; owner earnings 7705000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 1094000000; owner earnings 10166000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 0; upkeep 1154000000; owner earnings 7139000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 1295000000; owner earnings 8346000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 0; upkeep 1573000000; owner earnings 6626000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 1406000000; owner earnings 4803000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1739940/000173994026000006/ci-20251231.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 1212000000; owner earnings 7520000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,0],[2017,1661000000],[2018,24343000000],[2019,15000000],[2020,15000000],[2021,1341000000],[2022,1384000000],[2023,1450000000],[2024,1567000000],[2025,1611000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1739940/000173994026000006/ci-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 3621000000 USD.

### Are managers owners

Insiders own 1.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CI.US SharesStats.PercentInsiders = 1.443 percentage points; cache date 2026-10-16.

### What could break it

"We face risks related to litigation, regulatory audits and investigations." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1739940/000173994026000006/ci-20251231.htm (filed 2026-02-26); We face risks related to litigation, regulatory audits and investigations.

### What the price says

The price assumes cash profits shrink 4.3% yearly over ten years; actual growth was 12.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate -0.07292398512412451. Price 298.81; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 8.470340141367595 → FY2025 28.00087875098208. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $118.83 per share

- 2016-11: $134.74 per share

- 2016-12: $133.39 per share

- 2017-01: $146.22 per share

- 2017-02: $148.90 per share

- 2017-03: $146.49 per share

- 2017-04: $156.37 per share

- 2017-05: $161.23 per share

- 2017-06: $167.39 per share

- 2017-07: $173.56 per share

- 2017-08: $182.06 per share

- 2017-09: $186.94 per share

- 2017-10: $197.22 per share

- 2017-11: $211.73 per share

- 2017-12: $203.09 per share

- 2018-01: $208.35 per share

- 2018-02: $195.89 per share

- 2018-03: $167.74 per share

- 2018-04: $171.82 per share

- 2018-05: $169.37 per share

- 2018-06: $169.95 per share

- 2018-07: $179.42 per share

- 2018-08: $188.34 per share

- 2018-09: $208.25 per share

- 2018-10: $213.81 per share

- 2018-11: $223.38 per share

- 2018-12: $189.92 per share

- 2019-01: $199.81 per share

- 2019-02: $174.44 per share

- 2019-03: $160.82 per share

- 2019-04: $158.84 per share

- 2019-05: $148.02 per share

- 2019-06: $157.55 per share

- 2019-07: $169.92 per share

- 2019-08: $153.97 per share

- 2019-09: $151.79 per share

- 2019-10: $178.46 per share

- 2019-11: $199.92 per share

- 2019-12: $204.49 per share

- 2020-01: $192.38 per share

- 2020-02: $182.94 per share

- 2020-03: $177.18 per share

- 2020-04: $195.78 per share

- 2020-05: $197.32 per share

- 2020-06: $187.65 per share

- 2020-07: $172.69 per share

- 2020-08: $177.37 per share

- 2020-09: $169.41 per share

- 2020-10: $166.97 per share

- 2020-11: $209.14 per share

- 2020-12: $208.18 per share

- 2021-01: $217.05 per share

- 2021-02: $209.90 per share

- 2021-03: $241.74 per share

- 2021-04: $249.01 per share

- 2021-05: $258.85 per share

- 2021-06: $237.07 per share

- 2021-07: $229.49 per share

- 2021-08: $211.65 per share

- 2021-09: $200.16 per share

- 2021-10: $213.61 per share

- 2021-11: $191.90 per share

- 2021-12: $229.63 per share

- 2022-01: $230.46 per share

- 2022-02: $237.78 per share

- 2022-03: $239.61 per share

- 2022-04: $246.78 per share

- 2022-05: $268.29 per share

- 2022-06: $263.52 per share

- 2022-07: $275.36 per share

- 2022-08: $283.45 per share

- 2022-09: $277.47 per share

- 2022-10: $323.06 per share

- 2022-11: $328.89 per share

- 2022-12: $331.34 per share

- 2023-01: $316.67 per share

- 2023-02: $292.10 per share

- 2023-03: $255.53 per share

- 2023-04: $253.29 per share

- 2023-05: $247.41 per share

- 2023-06: $280.60 per share

- 2023-07: $295.10 per share

- 2023-08: $276.26 per share

- 2023-09: $286.07 per share

- 2023-10: $309.20 per share

- 2023-11: $262.88 per share

- 2023-12: $299.45 per share

- 2024-01: $300.95 per share

- 2024-02: $336.14 per share

- 2024-03: $363.19 per share

- 2024-04: $357.04 per share

- 2024-05: $344.62 per share

- 2024-06: $330.57 per share

- 2024-07: $348.67 per share

- 2024-08: $361.81 per share

- 2024-09: $346.44 per share

- 2024-10: $314.81 per share

- 2024-11: $337.80 per share

- 2024-12: $276.14 per share

- 2025-01: $294.21 per share

- 2025-02: $308.85 per share

- 2025-03: $329.00 per share

- 2025-04: $340.04 per share

- 2025-05: $316.64 per share

- 2025-06: $330.58 per share

- 2025-07: $267.38 per share

- 2025-08: $300.87 per share

- 2025-09: $288.25 per share

- 2025-10: $244.41 per share

- 2025-11: $277.28 per share

- 2025-12: $275.23 per share

- 2026-01: $274.11 per share

- 2026-02: $289.82 per share

- 2026-03: $266.75 per share

- 2026-04: $290.58 per share

- 2026-05: $277.40 per share

- 2026-06: $275.68 per share

- 2026-07: $279.05 per share

- 2026-08: $276.08 per share

- 2026-09: $271.83 per share

- 2026-10: $282.53 per share

## Annual estimated value (USD per share)

- FY2016: low $96.04 per share, central $109.28 per share, high $126.91 per share

- FY2017: low $108.45 per share, central $134.49 per share, high $156.90 per share

- FY2018: low $131.76 per share, central $162.98 per share, high $190.12 per share

- FY2019: low $246.51 per share, central $280.50 per share, high $325.75 per share

- FY2020: low $265.47 per share, central $302.08 per share, high $350.80 per share

- FY2021: low $311.27 per share, central $354.18 per share, high $411.31 per share

- FY2022: low $316.22 per share, central $359.82 per share, high $417.86 per share

- FY2023: low $332.38 per share, central $378.20 per share, high $439.21 per share

- FY2024: low $391.14 per share, central $445.07 per share, high $516.86 per share

- FY2025: low $379.72 per share, central $432.08 per share, high $501.78 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:33:05.889Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1739940/000173994026000006/ci-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.