Cigna Group (NYSE:CI)

Price to earnings (P/E) ratio

Over the observed periods, the P/E ratio exhibited notable fluctuations with a general upward trend from 2021 through early 2024. Initially, the ratio decreased from 10.62 in March 2021 to a low of 8.43 by September 2021, before rising sharply to 13.43 at the end of 2021. It continued climbing in 2022, peaking around 15.72 in March 2022, then experienced a slight decline toward the end of that year, reaching 13.13 in December 2022. In 2023, the P/E ratio began to increase again, reaching a notable high of 19.03 in December 2023. The upward trajectory was most pronounced in 2024, with the ratio peaking at 28.81 in September 2024 before a reduction to 24.14 in December 2024. This pattern suggests growing investor expectations or earnings volatility, particularly throughout 2023 and 2024.

Price to operating profit (P/OP) ratio

The P/OP ratio showed a general decline over the full time frame, despite some interim volatility. Starting at 11.13 in March 2021, it fell to 9.08 by December 2021. In 2022, the ratio exhibited some variability, rising again to a peak of 12.05 in September before gradually falling back to 10.4 at year-end. Throughout 2023, the ratio fluctuated modestly between 9.34 and 11.51, with a slight upward tendency in the latter half of the year. However, in 2024, a consistent downward trend was evident, moving from 11.15 in March to 8.8 in December. This decline may indicate improved operating profitability relative to price or a decrease in market valuation relative to operating profits.

Price to sales (P/S) ratio

The P/S ratio remained relatively stable with minor fluctuations and a slight downward trend over the period. Early in 2021, the ratio started at 0.55 but decreased to 0.42 by June 2021 and held steady around this level through late 2021. During 2022, the ratio showed some recovery, rising to 0.55 in September before declining back to 0.49 by December. Throughout 2023, the ratio hovered between 0.42 and 0.51, showing slight increases but without clear directional momentum. In 2024, a gradual decline resumed, with the ratio decreasing steadily from 0.48 to 0.34 by the end of the year. This suggests that the company's stock price relative to its sales was becoming more conservative or that sales growth may have outpaced price increases.

Price to book value (P/BV) ratio

The P/BV ratio generally trended upward from early 2021 through 2023, followed by some stabilization and minor decreases in 2024. Starting at 1.86 in March 2021, the ratio declined to a low of 1.44 by June 2021 but then rebounded steadily, reaching 2.2 by September 2022. During 2023, the ratio showed moderate growth, peaking at 2.13 in December. In 2024, the ratio initially increased to its highest point at 2.38 in March, but subsequently declined to 2.02 by December. This pattern reflects periods of increasing investor valuation relative to book value, with some retrenchment observed later in the timeline.

Share Price

The share price exhibited significant fluctuations over the observed periods. Initially, it declined from $261.18 at the end of March 2021 to a low of $206.21 in June 2021, followed by a gradual recovery to $224.43 by December 2021. During 2022, the share price showed a strong upward trend, peaking at $324.24 in September before a retreat to $294.65 at year-end. In 2023, the price dipped again to $260.74 in March but then advanced to a new high of $336.14 by December. Early 2024 saw a moderate decline, with the price falling to $302.92 by December 2024, still maintaining levels notably higher than those at the start of the period.

Earnings per Share (EPS)

EPS experienced notable volatility throughout the periods. Starting high at $24.59 in March 2021, it slightly decreased to $16.72 by December 2021. The year 2022 indicated an improvement, with EPS rising to $22.45 in the final quarter. The year 2023 observed some decline, especially in the latter half, with EPS dropping to $17.66 by December. In 2024, EPS continued to decrease, reaching a low of $10.93 in September before a modest recovery to $12.55 at year-end. Overall, EPS trends depict a peak in early 2021 and 2022 with a subsequent downward trajectory in the latest periods.

Price-to-Earnings (P/E) Ratio

The P/E ratio generally trended upward, reflecting changes in share price relative to earnings. Initial values were low, around 8.43 to 10.62 in 2021, indicating a relatively lower valuation compared to earnings. The ratio increased markedly in 2022, peaking at 15.72 mid-year and then declining to 13.13 by December. The ratio surged sharply throughout 2023, reaching notably high levels of 27.03 in the first quarter and peaking at 28.81 in the third quarter, suggesting elevated valuation relative to earnings. In the final quarter of 2024, the P/E ratio decreased somewhat to 24.14 but remained historically high within the observed timeframe.

Summary Insights

The data reveal a dynamic interaction between share price, earnings, and valuation multiples. The share price demonstrated significant recovery and growth phases, particularly in 2022 and 2023, despite fluctuations in EPS performance. EPS showed a downward trend in the most recent periods, signaling potential challenges in earnings generation. The elevated P/E ratios in 2023 and 2024 may indicate that market valuations have outpaced earnings growth, potentially reflecting investor optimism or expectations for future performance improvements. The divergence between declining EPS and rising P/E ratios warrants further analysis to assess sustainability and risk.

The financial analysis reveals several noteworthy patterns and trends in the performance metrics over the observed periods.

Share Price

The share price exhibits fluctuations with a general upward tendency from the beginning of 2021 through mid-2022, reaching a peak at the third quarter of 2022. Following this peak, the price declines towards early 2023 but then resumes growth, achieving the highest observed value in the first quarter of 2024. Subsequently, the share price experiences a gradual decrease toward the end of 2024. This trajectory indicates periods of strong market confidence alternating with corrections.

Operating Profit Per Share (OPPS)

The operating profit per share shows a consistent upward trend across all quarters. The increase is steady and uninterrupted, suggesting improving operational efficiency or profitability. This continuous growth from approximately 22.22 US$ in mid-2021 to over 34 US$ in late 2024 reflects positive earnings performance.

Price-to-Operating Profit (P/OP) Ratio

The P/OP ratio demonstrates notable volatility. Early on, it declines from 11.13 to just over 9, indicating a relative increase in operating profits compared to share price or a market undervaluation phase. It then rises sharply toward late 2022, peaking during the period when share prices were also at their highest. From 2023 onward, the ratio steadily decreases, suggesting that the growth in operating profits outpaces share price appreciation, potentially indicating improving valuation attractiveness or a market adjustment aligning price to earnings more closely.

Overall, the data indicates strong profit growth per share while the share price and valuation multiples undergo more pronounced fluctuations. The declining P/OP ratio in recent periods implies a market perception of increasing value based on operating profits, despite some share price softness at the end of the timeline. The financial trends reflect a company strengthening its operational results with some volatility in market valuation.

Share Price Trend

The share price experienced notable fluctuations over the analyzed period. Initially, there was a decline from 261.18 US$ at the end of March 2021 to a low of 206.21 US$ in June 2021. Following this, the price recovered and peaked at 324.24 US$ in September 2022. After this peak, a gradual decrease occurred, with the price falling to 302.92 US$ by December 2024. Overall, the share price showed volatility with peaks in late 2022 and a moderating downward trend toward the end of the period.

Sales Per Share Growth

Sales per share demonstrated consistent growth throughout the period. Starting at 471 US$ in March 2021, there was a steady upward trajectory each quarter, reaching 899.41 US$ by December 2024. This represents almost a doubling over four years, indicative of sustained revenue growth on a per-share basis.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio showed variability, reflecting changing investor valuation relative to sales. Initially at 0.55 in March 2021, the ratio declined to a low of 0.42 by mid-2021 and remained relatively stable around this value through early 2022. There was a rise to 0.55 again in September 2022, coinciding with the peak share price. Post this peak, the P/S ratio steadily decreased to 0.34 by December 2024, despite continued sales growth. This decline suggests that the share price appreciation did not keep pace with the accelerating sales per share, potentially indicating a relative undervaluation or shifts in market sentiment.

The analysis of the financial indicators over the observed periods reveals notable fluctuations and trends in the share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio.

Share Price

The share price demonstrates a volatile pattern with periods of both increases and decreases. Initially, it declined from $261.18 at the end of Q1 2021 to $206.21 in Q2 2021, followed by modest recovery and steady growth through late 2021 and into mid-2022, peaking at $324.24 in Q3 2022. Subsequently, a decline occurred toward the end of 2022, with a partial rebound starting from early 2023, reaching $336.14 in Q4 2023. Post this peak, the share price again experienced a downward trend through 2024, ending at $302.92 in Q4 2024. This overall pattern indicates cyclical investor sentiment and market response to underlying factors across the quarters.

Book Value Per Share (BVPS)

The BVPS showed a relatively stable and gradual increase throughout the period under review. From $140.32 at the end of Q1 2021, the value gently rose to a peak of $158.11 by the end of Q4 2023. Thereafter, a slight decrease was observed in 2024, ending at $149.93 in Q4 2024. The stability in BVPS suggests consistent retained earnings and asset growth, despite some minor fluctuations in equity or asset values in the later quarters.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio reflected both market valuation changes and BVPS variation. It started relatively high at 1.86 in Q1 2021 but dropped to a low of 1.44 in Q2 2021, correlating with the dip in share price. The ratio surged to a peak of 2.20 in Q3 2022, indicating elevated market valuation relative to book value at that time. Following some dips and recoveries, the P/BV ratio achieved its highest level of 2.38 in Q1 2024 before declining moderately to 2.02 by Q4 2024. These fluctuations imply changes in investor perceptions and confidence, with valuation premium over book value widening particularly in late 2023 and early 2024, before easing somewhat.

Overall, the data depict a dynamic market environment where share price volatility contrasts with relatively stable book value growth. The P/BV ratio variations highlight evolving valuation sentiments, with notable peaks indicating periods of increased investor optimism or expectations beyond fundamental book value trends.