Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Cigna has an F-score of 5 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for Cigna's Piotroski F-Score or its related term are showing as below:
LIM:CI'
s Piotroski F-Score Range Over the Past 10 Years
Min: 5 Med: 7 Max: 9
Current: 5
During the past 13 years, the highest Piotroski F-Score of Cigna was 9. The lowest was 5. And the median was 7.
Cigna Piotroski F-Score Historical Data
The historical data trend for Cigna's Piotroski F-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Cigna's Piotroski F-Score
For the Healthcare Plans subindustry, Cigna's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cigna's Piotroski F-Score Distribution in the Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Cigna's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Cigna's Piotroski F-Score falls into.
How is the Piotroski F-Score calculated?
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Net Income was 1197 + 1557 + 2757 + 1193 = $6,704 Mil.
Revenue was 43684 + 45413 + 45214 + 45720 = $180,031 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(154889 + 152610 + 152630 + 144209 + 143885) / 5 = $149644.6 Mil. Total Assets at the begining of last year (Dec21) was $154,889 Mil. Long-Term Debt & Capital Lease Obligation was $28,100 Mil. Total Assets was $143,885 Mil. Total Liabilities was $99,131 Mil.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Cigna's current Net Income (TTM) was 5,164.
==> Positive ==> Score 1.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
Cigna's gearing of this year was 0.18913211. Cigna's gearing of last year was 0.18777824.
==> Last year is lower than this year ==> Score 0.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.
Cigna's current ratio of this year was 1.43558876. Cigna's current ratio of last year was 1.45146322.
==> Last year's current ratio is higher ==> Score 0.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
Cigna's number of shares in issue this year was 0. Cigna's number of shares in issue last year was 0.
==> There is smaller number of shares in issue this year, or the same. ==> Score 1.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.
Cigna's net margin of this year was 0.02645668. Cigna's net margin of last year was 0.03723803.
==> Last year's net margin is higher ==> Score 0.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
Cigna's asset turnover of this year was 1.35654863. Cigna's asset turnover of last year was 1.1623227.
==> This year's asset turnover is higher. ==> Score 1.
Evaluation
Piotroski F-Score
=
Que. 1
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Que. 2
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Que. 3
+
Que. 4
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Que. 5
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Que. 6
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Que. 7
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Que. 9
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1
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1
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0
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1
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0
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0
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1
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0
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1
=
5
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Cigna has an F-score of 5 indicating the company's financial situation is typical for a stable company.
Cigna (LIM:CI) Piotroski F-Score Explanation
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
Cigna Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of Cigna's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM services, which were greatly expanded by its 2018 merger with Express Scripts, are mostly sold to health insurance plans and employers. Its largest PBM contract is the Department of Defense and it recently won a deal with top-tier insurer Centene. In health insurance and other benefits, Cigna mostly serves employers through self-funding arrangements, but it also operates in government programs, such as Medicare Advantage. The company operates mostly in the U.S. with 18 million U.S. medical members covered as of the end of June 2023.
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