NYSE:CNC is probably undervalued for the fundamentals it is displaying.

Last update: Feb 1, 2024

Take a closer look at CENTENE CORP (NYSE:CNC), a remarkable value stock uncovered by our stock screener. NYSE:CNC excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

How do we evaluate the Valuation for NYSE:CNC?

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:CNC was assigned a score of 8 for valuation:

A Price/Earnings ratio of 10.65 indicates a reasonable valuation of CNC.
92.17% of the companies in the same industry are more expensive than CNC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.93. CNC is valued rather cheaply when compared to this.
CNC is valuated reasonably with a Price/Forward Earnings ratio of 10.95.
Based on the Price/Forward Earnings ratio, CNC is valued cheaply inside the industry as 92.17% of the companies are valued more expensively.
CNC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.16, which is the current average of the S&P500 Index.
90.43% of the companies in the same industry are more expensive than CNC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CNC is valued cheaply inside the industry as 89.57% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

Profitability Analysis for NYSE:CNC

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:

CNC has a Return On Assets of 2.90%. This is in the better half of the industry: CNC outperforms 66.96% of its industry peers.
CNC's Return On Equity of 9.66% is fine compared to the rest of the industry. CNC outperforms 73.91% of its industry peers.
The Return On Invested Capital of CNC (5.72%) is better than 66.09% 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.
The Profit Margin of CNC (1.63%) is better than 62.61% of its industry peers.

Looking at the Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:CNC has earned a 5 out of 10:

With a decent Altman-Z score value of 2.61, CNC is doing good in the industry, outperforming 66.09% of the companies in the same industry.
CNC has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as CNC would need 3.31 years to pay back of all of its debts.
CNC's Debt to FCF ratio of 3.31 is fine compared to the rest of the industry. CNC outperforms 74.78% of its industry peers.

Assessing Growth Metrics for NYSE:CNC

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:CNC, the assigned 6 reflects its growth potential:

The Earnings Per Share has grown by an nice 19.63% over the past year.
The Earnings Per Share has been growing by 18.03% on average over the past years. This is quite good.
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.

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.