NYSE:CNC: good value for what you're paying.

Last update: Nov 7, 2023

Our stock screening tool has pinpointed CENTENE CORP (NYSE:CNC) as an undervalued stock option. NYSE:CNC retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Assessing Valuation Metrics for NYSE:CNC

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:CNC has received a 8 out of 10:

CNC is valuated reasonably with a Price/Earnings ratio of 10.16.
CNC's Price/Earnings ratio is rather cheap when compared to the industry. CNC is cheaper than 89.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNC to the average of the S&P500 Index (23.48), we can say CNC is valued rather cheaply.
CNC is valuated reasonably with a Price/Forward Earnings ratio of 10.61.
Based on the Price/Forward Earnings ratio, CNC is valued cheaply inside the industry as 86.84% of the companies are valued more expensively.
CNC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 18.84, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, CNC is valued cheaper than 92.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CNC is valued cheaper than 88.60% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

Profitability Insights: NYSE:CNC

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:CNC scores a 5 out of 10:

Looking at the Return On Assets, with a value of 2.90%, CNC is in the better half of the industry, outperforming 69.30% of the companies in the same industry.
With a decent Return On Equity value of 9.66%, CNC is doing good in the industry, outperforming 73.68% of the companies in the same industry.
CNC's Return On Invested Capital of 5.72% is fine compared to the rest of the industry. CNC outperforms 66.67% of its industry peers.
The 3 year average ROIC (4.79%) for CNC is below the current ROIC(5.72%), indicating increased profibility in the last year.
With a decent Profit Margin value of 1.63%, CNC is doing good in the industry, outperforming 62.28% of the companies in the same industry.

Health Insights: NYSE:CNC

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CNC has achieved a 5 out of 10:

CNC's Altman-Z score of 2.58 is fine compared to the rest of the industry. CNC outperforms 65.79% of its industry peers.
The Debt to FCF ratio of CNC is 3.31, which is a good value as it means it would take CNC, 3.31 years of fcf income to pay off all of its debts.
CNC's Debt to FCF ratio of 3.31 is fine compared to the rest of the industry. CNC outperforms 72.81% of its industry peers.

How do we evaluate the Growth for NYSE:CNC?

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CNC has earned a 6 for growth:

CNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.63%, which is quite good.
The Earnings Per Share has been growing by 18.03% on average over the past years. This is quite good.
The Revenue has been growing by 24.47% on average over the past years. This is a very strong growth!
CNC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.42% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of CNC for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.