Operating Margin - Cigna Group (XMUN:CGN)

Watchlist Manager

Watchlist

Price: 226.6 EUR -0.33%

Market Cap: 66.3B EUR

3.7%

Current

Average

3.9%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

3.7%

Operating Profit

10B

Revenue

268.1B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US	C	Cigna Group XMUN:CGN	60.4B EUR	4%
US		CVS Health Corp NYSE:CVS	101.7B USD	3%
US		Cigna Corp NYSE:CI	72.4B USD	4%
DE		Fresenius SE & Co KGaA XETRA:FRE	27.1B EUR	10%
DE		Fresenius Medical Care AG XMUN:FME	23.2B EUR	7%
US		Laboratory Corporation of America Holdings NYSE:LH	22B USD	10%
US		Quest Diagnostics Inc NYSE:DGX	20.1B USD	15%
DE	F	Fresenius Medical Care AG & Co KGaA XETRA:FME	11.6B EUR	7%
US		Guardant Health Inc NASDAQ:GH	12.8B USD	-48%
US		DaVita Inc NYSE:DVA	8.7B USD	15%
US		Hims & Hers Health Inc NYSE:HIMS	8.4B USD	6%

Cigna Group
Glance View

Economic Moat

None

Market Cap

60.4B EUR

Industry

Health Care

Cigna Group, a recognized titan in the health services landscape, traces its origins to 1792 when it began as the Insurance Company of North America (INA). This rich history speaks volumes about its deep-rooted expertise and robust resilience in an ever-evolving industry. Today, Cigna operates as a global health services powerhouse, deriving its core revenues from an intricate blend of health insurance products and services targeted towards employers, individuals, and government entities. The company's ability to seamlessly fuse traditional insurance models with innovative health solutions highlights its commitment to improving patient outcomes. Cigna's operational model is anchored on its extensive provider network, supplemented by a suite of digital health tools aimed at enhancing customer engagement. This hybrid approach not only simplifies access to medical care but also reinforces its strategic focus on affordability and personalized health journeys for its clients. Financially, Cigna's success is a byproduct of its diversified revenue streams, encompassing global health care, international markets, and supplemental health benefits. At its core, Cigna makes money through premium collections, investment income, and administrative fees from managing prescription drug plans and health services. With the acquisition of Express Scripts in 2018, Cigna prominently positioned itself in the pharmacy benefits management sector, adding another lucrative revenue channel. This strategic maneuver has fostered vertical integration within the company, aligning its pharmacy services with its insurance offerings to manage costs more effectively. Through a relentless pursuit of operational efficiency and strategic expansion, Cigna continues to leverage its scale and diversified offerings, remaining a key player in delivering accessible and cost-effective health care solutions worldwide.

View CGN Analysis

CGN Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Johnson & Johnson NYSE:JNJ	US
	Berkshire Hathaway Inc NYSE:BRK.A	US
	Bank of America Corp NYSE:BAC	US
	Mastercard Inc NYSE:MA	US
	UnitedHealth Group Inc NYSE:UNH	US
	Exxon Mobil Corp NYSE:XOM	US
	Pfizer Inc NYSE:PFE	US
	Palantir Technologies Inc NYSE:PLTR	US
	Nike Inc NYSE:NKE	US
	Visa Inc NYSE:V	US
	Alibaba Group Holding Ltd NYSE:BABA	CN
	JPMorgan Chase & Co NYSE:JPM	US
	Coca-Cola Co NYSE:KO	US
	Walmart Inc NYSE:WMT	US
	Verizon Communications Inc NYSE:VZ	US
	Chevron Corp NYSE:CVX	US

	Johnson & Johnson NYSE:JNJ	210.58 USD 1.96%
	Berkshire Hathaway Inc NYSE:BRK.A	743 005 USD 0.99%
	Bank of America Corp NYSE:BAC	54.23 USD 0.28%
	Mastercard Inc NYSE:MA	558.64 USD 3.67%
	UnitedHealth Group Inc NYSE:UNH	336.37 USD 2.44%
	Exxon Mobil Corp NYSE:XOM	119.46 USD -0.07%

	Franklin Covey Co NYSE:FC	16.43 USD 1.67%
	Mohawk Industries Inc NYSE:MHK	112.77 USD 0.96%
	Ardmore Shipping Corp NYSE:ASC	11.31 USD -0.88%
	ASGN Inc NYSE:ASGN	46.48 USD 2.67%
	Skyworks Solutions Inc NASDAQ:SWKS	67.65 USD -1.69%
	Weatherford International PLC NASDAQ:WFRD	81.31 USD 1.51%

	Johnson & Johnson NYSE:JNJ	210.58 USD 1.96%
	Bank of America Corp NYSE:BAC	54.23 USD 0.28%
	Mastercard Inc NYSE:MA	558.64 USD 3.67%
	Salesforce Inc NYSE:CRM	261.84 USD -0.89%
	Abbvie Inc NYSE:ABBV	223.74 USD -0.64%
	Home Depot Inc NYSE:HD	361.9 USD 3.07%

Cigna Group
XMUN:CGN