Rankings Health insurance & services Cigna

Cigna

Health insurance & services · United StatesRank 164 of 829Prices 2 Nov 2026Model 1.4

A strong score: the model found few serious problems, but analysts see limited upside from here.

Biggest deductions

  • Customer concentration−6
  • PBM reform−6
  • Margin−5

Strengths

  • Estimates+2
  • Buybacks and dividend from FCF+2
  • Selling season+2

How the score is built

From 100 to 77, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start
77Score

Hover or select a step to see what drove it. Steps with findings open them below.

Key numbers

As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.

Price
295.19 USD
Median analyst target
345.00 USD
Upside to median
+16.9%
Analysts
24
Target range
288.00 – 400.00 USD
52-week change
+21%
P/E (trailing)
12.2
Forward P/E
9.3
PEG
0.88

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 2 findings
−7 of −30
  • Margin
    Bigger, not stronger: revenue has risen 62% since 2021 ($174bn to 282bn), but gross profit only 12%. The gross margin has fallen from 13.2% to 9.1% and the operating margin from 4.75% (2022) to 3.90% TTM.
    −5
  • Quality of growth
    Earnings growth in Q2 came from Specialty & Care (+22%, driven by biosimilars), while Pharmacy Benefit Services fell to $609m after large client renewals, investment in Signature and slowing GLP-1 growth.
    −2

Price

Today's multiples against the company's own history and its peers. · 1 finding
−2 of −35
  • Multiples vs own history and peers
    Forward P/E 8.6 vs 9.0–13.9 in 2021–25; EV/EBITDA 7.6 vs 8.4–12.0; P/FCF 7.9 vs 8.6–13.8; FCF yield 12.7%. Below the bottom of its own range, but the low multiple reflects a real PBM reform risk.
    −2

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 6 findings
−23 of −35
  • Customer concentration
    Centene accounted for about 19% of revenue in 2025 (annual report).
    −6
  • Customers are shifting
    PBM earnings fell in Q2 because large clients renegotiated better terms. The rebate-free Signature model only targets a margin of about 4%.
    −3
  • FTC settlement
    The FTC settlement in the insulin case (February 2026) requires Express Scripts to stop favouring drugs with high list prices and to decouple its pay from the rebates it negotiates: a change to the business model.
    −3
  • Insider trading
    CEO David Cordani sold 201,878 shares for $59.1m on 12/5; five insiders have sold $68.5m in total over 12 months vs one $1.0m purchase (Cordani, November 2025). EVP Nicole Jones sold $6.1m in August.
    −4
  • PBM reform
    The PBM reform law (February 2026) forces a move away from the rebate model. Evercore ISI sees the PBM margin falling from 2.7% to 1.6% in 2028.
    −6
  • State regulation
    Express Scripts has sued Tennessee over a new state PBM law (June 2026); pressure from the states comes on top of the federal pressure.
    −1

Plus

Only documented strengths. · 3 findings
+6 of +15
  • Estimates
    2026 EPS guidance raised to at least $30.45 after Q2 (adjusted EPS $7.78 in Q2).
    +2
  • Buybacks and dividend from FCF
    Buybacks ($1.3bn) and dividends ($1.6bn) on a TTM basis are far below FCF of $9.1bn; the share count has fallen 3.6% in a year.
    +2
  • Selling season
    New client wins for 2027 already exceed the previous two years combined, and management reports strong interest in Signature.
    +2

Caveats

What the score does not capture, or where the data is weak.
The investor day on 30/9 (the day after this analysis) may change long-term targets and show what the Signature model without rebates costs. PBM reform and the FTC settlement only take full effect in 2027–28. The Centene contract is about 19% of revenue. Q3 results 29/10.

Also in Health insurance & services

The highest scores in the same industry.

Whole industry