Observational Notes on Cigna Corp.

Journal entry: 16 Sept. 2013

Cigna Corp. Capitalization Rate

in millions except shares outstanding

Closing price: $83.65

Shares Outstanding: 282,839,284
Market value of equity: $23,659 M
Debt: $5,183 M
Cash & Equivalents: $5,419 M
Enterprise Value: $23,423 M

EBITDA less CapEx: $2,358 M

Pre-tax Cap Rate: 10.07%


From 2009 to 2012

• able to generate 24% revenue CAGR in leading existing markets
• repurchased about 15.9m shares
• 90% retention rate in customers w/ 17% increase in eps per customer
• +20% increase in policies w/ global footprint bring about huge economies of scale in key strategic markets
• important growth strategy is focusing on core markets in Korea and China & improving value for clients; sharing risk & reward

2013 2Q

•  per share op. earnings growth of 19% over second quarter 2012
• CEO David M Cordani commented, "We are creating value for our customers and clients in each of our business segments through sustained investments in capabilities and innovation to deliver on our ongoing commitment to quality, service and affordability"
• long-term outlook with 10% to 13% 3 to 5-year EPS growth

I have no positions in the above company mentioned, but may initiate a long position over the next 72 hours.

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Herman Miller Inc. (MLHR) Capitalization Rate

(in millions except PPS)
Price - $21.44
Shares Outstanding - 58.23
market value of equity - $1,248.38
Long-term debt - $250.00
Cash & Equivalents - $192.50
Enterprise Value - $1,305.88
TTM EBIT - $144
Pre-tax Cap Rate - 11.03%

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.

ITT Educational Services Inc. (ESI) Capitalization Rate

(in millions except PPS)
Price - $59.15
Shares Outstanding - 26.66
market value of equity - $1,577.12
Contractual debt obligations which includes Operating lease obligations - $338.05
Cash & Equivalents to inlcudes short-term investments - $319.38
Enterprise Value - $1,595.80
TTM EBIT - $503.64.
Pre-tax Cap Rate - 31.56%

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.

Deluxe Corp. (DLX) Capitalization Rate

(in millions except PPS)

Price - $23.58
Shares Outstanding - 50.88
market value of equity - $1199.96
long-term debt - $775.59
Cash & Equivalents to inlcude 50% discount of long-term investment - $45.02
Enterprise Value - $1930.53
TTM EBIT - $314.68.
Pre-tax Cap Rate - 16.30%

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.