| 2009 | 2010 | 2018 | 2019 (projected) | Cost of Revenue | 32,321,000,000 | 12,498,000,000 | 14,372,700,000 | 19,568,736,842 | Consolidated Income | 2,646,000,000 | 294,000,000 | 338,100,000 | 1,132,526,316 |
Will Cigna automatically scale down?
 | By Vlad Skutelnik | Macroaxis Story |
Cigna chance of financial distress is now about 31.0 percent. Cigna shows prevailing Real Value of $218.97 per share. The current price of the firm is $201.85. At this time the firm appears to be undervalued. This module approximates value of Cigna from analyzing the firm fundamentals such as Return On Equity of 14.20 , Profit Margin of 3.29 and Current Valuation of 108.66 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.
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Reviewed by Michael Smolkin
The firm has beta of 0.72. As returns on market increase, Cigna returns are expected to increase less than the market. However during bear market, the loss on holding Cigna will be expected to be smaller as well. The company dividends can provide a clue to current valuation of the stock. This firm one year expected dividend income is about $0.03 per share. The company has Net Profit Margin (PM) of 3.29 % which may suggest that it has a good control over its expenditures, executes well on its competitive polices, or have a solid pricing strategies. This is typical in the industry. Likewise, it shows Net Operating Margin (NOM) of 8.1 % which signify that for every $100 of sales it has a net operating income of 0.08.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cigna Corp. Your research has to be compared to or analyzed against Cigna Corp's peers to derive any actionable benefits. When done correctly, Cigna Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Cigna Corp.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Cigna Corp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Cigna Corp
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cigna Corp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Cigna Corp's Liquidity
Cigna Corp financial leverage refers to using borrowed capital as a funding source to finance Cigna Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cigna Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cigna Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cigna Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Cigna Corp's total debt and its cash.
Cigna Corp Gross Profit
Cigna Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cigna Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Cigna Corp Gross Profit growth over the last 10 years. Please check Cigna Corp's gross profit and other fundamental indicators for more details.
Breaking down the case for Cigna Corp
The entity generated yearly revenue of 129.66 B. Reported Net Income was 4.27 B with gross profit of 16.25 B. The latest price spikes of Cigna could raise concerns from investors as the firm closed today at a share price of 200.32 on 1369265.000 in volume. The company directors and management were quite successful positioning the firm components to exploit market volatility in December 2019. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.0154. The current volatility is consistent with the ongoing market swings in October 2019 as well as with Cigna unsystematic, company specific events. Cigna preserves 8.35 b of retained earnings. Cigna is selling at 201.85. That is 0.32% increase. Day high is 202.88. Cigna Consolidated Income is decreasing over the last 4 years. The prevalent value of Cigna Consolidated Income is 1,132,526,316. Also, Cigna Asset Turnover is increasing over the last 4 years.
To conclude, our research shows that Cigna is very steady with below average odds of financial distress in the next two years. Our concluding 'Buy/Hold/Sell' recommendation on the entity is Strong Buy.
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