Cigna

Methodology

Cigna's health services spanning pharmacy benefits management (Evernorth) and health insurance create diversified healthcare earnings with some volatility from medical cost trends. The company's PBM business provides more stable, fee-based revenue while insurance faces utilization variability. This calculation works reasonably given the PBM earnings stability, though medical loss ratio fluctuations in insurance and drug pricing policy impacts on PBM require careful consideration.

Methodology

Cigna often shows attractive PEG ratios for a healthcare services company, reflecting concerns about PBM margin pressure and insurance underwriting volatility. The company's diversification and Evernorth growth provide some upside potential, but regulatory scrutiny of PBMs tempers valuations. Compare to other managed care and PBM companies to assess whether Cigna's integrated model justifies its positioning.

Methodology

Cigna's modest dividend yield plays a secondary role as the company prioritizes growth investments and share buybacks over high dividend payouts. The healthcare services company's strong cash generation supports capital returns alongside strategic acquisitions. PEGY provides some context for total return assessment, though PBM contract retention, medical cost trends, and regulatory developments matter more than dividend-adjusted metrics.