In a market where value is scarce, NYSE:CNC offers a refreshing opportunity with its solid fundamentals.

Last update: Dec 19, 2023

Uncover the potential of CENTENE CORP (NYSE:CNC) as our stock screener's choice for an undervalued stock. NYSE:CNC maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Assessing Valuation for NYSE:CNC

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:CNC scores a 8 out of 10:

A Price/Earnings ratio of 10.58 indicates a reasonable valuation of CNC.
Based on the Price/Earnings ratio, CNC is valued cheaply inside the industry as 92.24% of the companies are valued more expensively.
CNC is valuated cheaply when we compare the Price/Earnings ratio to 25.52, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.94, the valuation of CNC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNC indicates a rather cheap valuation: CNC is cheaper than 91.38% of the companies listed in the same industry.
CNC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.10, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, CNC is valued cheaply inside the industry as 91.38% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CNC is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
CNC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

Exploring NYSE:CNC's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:CNC, the assigned 5 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 2.90%, CNC is in the better half of the industry, outperforming 67.24% of the companies in the same industry.
CNC's Return On Equity of 9.66% is fine compared to the rest of the industry. CNC outperforms 74.14% of its industry peers.
CNC has a Return On Invested Capital of 5.72%. This is in the better half of the industry: CNC outperforms 66.38% 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 62.93% of the companies in the same industry.

Health Examination for 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:

Looking at the Altman-Z score, with a value of 2.61, CNC is in the better half of the industry, outperforming 63.79% of the companies in the same industry.
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.
The Debt to FCF ratio of CNC (3.31) is better than 74.14% of its industry peers.

How We Gauge Growth for NYSE:CNC

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:CNC has achieved a 6 out of 10:

The Earnings Per Share has grown by an nice 19.63% over the past year.
Measured over the past years, CNC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.03% on average per year.
Measured over the past years, CNC shows a very strong growth in Revenue. The Revenue has been growing by 24.47% on average per year.
Based on estimates for the next years, CNC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.59% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of CNC

Keep in mind

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.