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

Last update: Aug 19, 2024

CENTENE CORP (NYSE:CNC) has caught the attention of our stock screener as a great value stock. NYSE:CNC excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Analysis 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 6 out of 10:

With a Price/Earnings ratio of 10.96, the valuation of CNC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CNC indicates a rather cheap valuation: CNC is cheaper than 92.17% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CNC to the average of the S&P500 Index (29.43), we can say CNC is valued rather cheaply.
CNC is valuated reasonably with a Price/Forward Earnings ratio of 10.36.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNC indicates a rather cheap valuation: CNC is cheaper than 92.17% of the companies listed in the same industry.
CNC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.82.
89.57% 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 a bit cheaper than 80.00% of the companies in the same industry.

Assessing Profitability for NYSE:CNC

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:CNC was assigned a score of 5 for profitability:

CNC has a better Return On Assets (3.40%) than 73.04% of its industry peers.
Looking at the Return On Equity, with a value of 10.32%, CNC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
CNC's Return On Invested Capital of 4.83% is fine compared to the rest of the industry. CNC outperforms 61.74% of its industry peers.
The Profit Margin of CNC (1.79%) is better than 66.96% of its industry peers.
CNC's Profit Margin has improved in the last couple of years.

Assessing Health for NYSE:CNC

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:CNC, the assigned 5 reflects its health status:

CNC has a better Altman-Z score (2.81) than 68.70% of its industry peers.
The Debt to FCF ratio of CNC (7.97) is better than 69.57% of its industry peers.

Assessing Growth for NYSE:CNC

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:CNC has received a 6 out of 10:

The Earnings Per Share has grown by an nice 11.93% over the past year.
CNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.28% yearly.
Measured over the past years, CNC shows a very strong growth in Revenue. The Revenue has been growing by 20.70% on average per year.
CNC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.92% yearly.

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

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

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.