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

Last update: Jan 10, 2024

Our stock screener has singled out CENTENE CORP (NYSE:CNC) as a stellar value proposition. NYSE:CNC not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Assessing Valuation Metrics for NYSE:CNC

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:CNC has achieved a 8 out of 10:

Based on the Price/Earnings ratio of 11.03, the valuation of CNC can be described as reasonable.
Based on the Price/Earnings ratio, CNC is valued cheaply inside the industry as 92.11% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.84, CNC is valued rather cheaply.
The Price/Forward Earnings ratio is 11.41, which indicates a very decent valuation of CNC.
91.23% of the companies in the same industry are more expensive than CNC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.76, CNC is valued a bit cheaper.
Based on the Enterprise Value to EBITDA ratio, CNC is valued cheaply inside the industry as 90.35% of the companies are valued more expensively.
CNC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CNC is cheaper than 87.72% of the companies in the same industry.
CNC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

Assessing Profitability for NYSE:CNC

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CNC has achieved a 5:

With a decent Return On Assets value of 2.90%, CNC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of CNC (9.66%) is better than 73.68% 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 65.79% of its industry peers.
The last Return On Invested Capital (5.72%) for CNC is above the 3 year average (4.79%), which is a sign of increasing profitability.
CNC's Profit Margin of 1.63% is fine compared to the rest of the industry. CNC outperforms 62.28% of its industry peers.

What does the Health looks like for NYSE:CNC

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:CNC scores a 5 out of 10:

With a decent Altman-Z score value of 2.62, CNC is doing good in the industry, outperforming 64.04% 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 72.81% of its industry peers.

Growth Assessment of NYSE:CNC

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:CNC scores a 6 out of 10:

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.
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.
CNC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.47% yearly.
CNC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.59% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of CNC contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.