CENTENE CORP (CNC)
US15135B1017 - Common Stock
We assign a fundamental rating of 5 out of 10 to CNC. CNC was compared to 113 industry peers in the Health Care Providers & Services industry. CNC has only an average score on both its financial health and profitability. CNC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CNC was profitable.
In the past year CNC had a positive cash flow from operations.
Each year in the past 5 years CNC has been profitable.
Each year in the past 5 years CNC had a positive operating cash flow.
1.2 Ratios
CNC has a better Return On Assets (3.72%) than 76.11% of its industry peers.
With an excellent Return On Equity value of 11.23%, CNC belongs to the best of the industry, outperforming 80.53% of the companies in the same industry.
With a Return On Invested Capital value of 4.28%, CNC perfoms like the industry average, outperforming 57.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNC is below the industry average of 8.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 11.23% | ||
| ROIC | 4.28% |
ROA(3y)2.16%
ROA(5y)2.47%
ROE(3y)6.83%
ROE(5y)7.6%
ROIC(3y)5.02%
ROIC(5y)4.53%
1.3 Margins
Looking at the Profit Margin, with a value of 1.90%, CNC is in the better half of the industry, outperforming 67.26% of the companies in the same industry.
CNC's Profit Margin has improved in the last couple of years.
The Operating Margin of CNC (1.87%) is comparable to the rest of the industry.
CNC's Operating Margin has declined in the last couple of years.
CNC's Gross Margin of 10.37% is on the low side compared to the rest of the industry. CNC is outperformed by 77.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.87% | ||
| PM (TTM) | 1.9% | ||
| GM | 10.37% |
OM growth 3Y-11.34%
OM growth 5Y-5.61%
PM growth 3Y2.54%
PM growth 5Y3.22%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNC is destroying value.
CNC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CNC has been increased compared to 5 years ago.
CNC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.72 indicates that CNC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CNC (2.72) is better than 69.03% of its industry peers.
CNC has a debt to FCF ratio of 90.28. This is a negative value and a sign of low solvency as CNC would need 90.28 years to pay back of all of its debts.
CNC has a Debt to FCF ratio (90.28) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.64 indicates that CNC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, CNC perfoms like the industry average, outperforming 53.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 90.28 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.64
WACC6.67%
2.3 Liquidity
CNC has a Current Ratio of 1.10. This is a normal value and indicates that CNC is financially healthy and should not expect problems in meeting its short term obligations.
CNC has a Current ratio of 1.10. This is in the lower half of the industry: CNC underperforms 71.68% of its industry peers.
CNC has a Quick Ratio of 1.10. This is a normal value and indicates that CNC is financially healthy and should not expect problems in meeting its short term obligations.
CNC's Quick ratio of 1.10 is on the low side compared to the rest of the industry. CNC is outperformed by 64.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
CNC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.53%.
CNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.28% yearly.
The Revenue has been growing slightly by 7.75% in the past year.
The Revenue has been growing by 20.70% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-4.53%
EPS 3Y10.17%
EPS 5Y13.28%
EPS Q2Q%-19%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y11.49%
Revenue growth 5Y20.7%
Sales Q2Q%10.46%
3.2 Future
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.
Based on estimates for the next years, CNC will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
EPS Next Y3.43%
EPS Next 2Y4.17%
EPS Next 3Y6.94%
EPS Next 5Y10.92%
Revenue Next Year7.17%
Revenue Next 2Y4.9%
Revenue Next 3Y4.33%
Revenue Next 5Y3.81%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.94, the valuation of CNC can be described as reasonable.
Based on the Price/Earnings ratio, CNC is valued cheaply inside the industry as 96.46% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.96. CNC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.35, the valuation of CNC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CNC is valued cheaply inside the industry as 95.58% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CNC to the average of the S&P500 Index (23.82), we can say CNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 8.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNC is valued cheaper than 92.04% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 156.25 | ||
| EV/EBITDA | 6.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.61
PEG (5Y)0.67
EPS Next 2Y4.17%
EPS Next 3Y6.94%
5. Dividend
5.1 Amount
CNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CENTENE CORP
NYSE:CNC (11/21/2024, 8:20:18 PM)
After market: 60.32 -0.03 (-0.05%)60.35
+1.25 (+2.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap30.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 8.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.61
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 11.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.87% | ||
| PM (TTM) | 1.9% | ||
| GM | 10.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-4.53%
EPS 3Y10.17%
EPS 5Y
EPS Q2Q%
EPS Next Y3.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.75%
Revenue growth 3Y11.49%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y