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CENTENE CORP (CNC) Stock Fundamental Analysis

NYSE:CNC - New York Stock Exchange, Inc. - US15135B1017 - Common Stock

63.66  +1.41 (+2.27%)

After market: 63.66 0 (0%)

Fundamental Rating

4

Taking everything into account, CNC scores 4 out of 10 in our fundamental rating. CNC was compared to 108 industry peers in the Health Care Providers & Services industry. CNC has an average financial health and profitability rating. CNC has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

CNC had positive earnings in the past year.
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.
CNC Yearly Net Income VS EBIT VS OCF VS FCFCNC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

1.2 Ratios

CNC's Return On Assets of 3.72% is fine compared to the rest of the industry. CNC outperforms 73.83% of its industry peers.
With a decent Return On Equity value of 11.23%, CNC is doing good in the industry, outperforming 78.50% of the companies in the same industry.
CNC has a Return On Invested Capital (4.28%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNC is below the industry average of 8.27%.
Industry RankSector 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%
CNC Yearly ROA, ROE, ROICCNC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

CNC has a better Profit Margin (1.90%) than 65.42% of its industry peers.
In the last couple of years the Profit Margin of CNC has grown nicely.
CNC's Operating Margin of 1.87% is in line compared to the rest of the industry. CNC outperforms 50.47% of its industry peers.
In the last couple of years the Operating Margin of CNC has declined.
CNC's Gross Margin of 10.37% is on the low side compared to the rest of the industry. CNC is outperformed by 77.57% of its industry peers.
Industry RankSector 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
CNC Yearly Profit, Operating, Gross MarginsCNC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNC is destroying value.
The number of shares outstanding for CNC has been reduced compared to 1 year ago.
CNC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNC has an improved debt to assets ratio.
CNC Yearly Shares OutstandingCNC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M
CNC Yearly Total Debt VS Total AssetsCNC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B 80B

2.2 Solvency

CNC has an Altman-Z score of 2.73. This is not the best score and indicates that CNC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CNC (2.73) is better than 63.55% 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.
The Debt to FCF ratio of CNC (90.28) 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 51.40% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 90.28
Altman-Z 2.73
ROIC/WACC0.62
WACC6.88%
CNC Yearly LT Debt VS Equity VS FCFCNC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

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.
With a Current ratio value of 1.10, CNC is not doing good in the industry: 72.90% of the companies in the same industry are doing better.
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.
The Quick ratio of CNC (1.10) is worse than 65.42% of its industry peers.
Industry RankSector Rank
Current Ratio 1.1
Quick Ratio 1.1
CNC Yearly Current Assets VS Current LiabilitesCNC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

4

3. Growth

3.1 Past

The earnings per share for CNC have decreased by -4.53% in the last year.
The Earnings Per Share has been growing by 13.28% on average over the past years. This is quite good.
CNC shows a small growth in Revenue. In the last year, the Revenue has grown by 7.75%.
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.
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

The Earnings Per Share is expected to grow by 7.07% on average over the next years.
The Revenue is expected to grow by 4.98% on average over the next years.
EPS Next Y1.82%
EPS Next 2Y3.44%
EPS Next 3Y6.77%
EPS Next 5Y7.07%
Revenue Next Year7.32%
Revenue Next 2Y5.87%
Revenue Next 3Y4.66%
Revenue Next 5Y4.98%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
CNC Yearly Revenue VS EstimatesCNC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 50B 100B 150B 200B
CNC Yearly EPS VS EstimatesCNC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2 4 6 8 10

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.43, the valuation of CNC can be described as very reasonable.
Based on the Price/Earnings ratio, CNC is valued cheaper than 93.46% of the companies in the same industry.
CNC is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.93, the valuation of CNC can be described as reasonable.
Based on the Price/Forward Earnings ratio, CNC is valued cheaply inside the industry as 91.59% of the companies are valued more expensively.
CNC is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.43
Fwd PE 8.93
CNC Price Earnings VS Forward Price EarningsCNC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

91.59% of the companies in the same industry are more expensive than CNC, based on the Enterprise Value to EBITDA ratio.
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 RankSector Rank
P/FCF 164.82
EV/EBITDA 6.66
CNC Per share dataCNC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

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)5.17
PEG (5Y)0.71
EPS Next 2Y3.44%
EPS Next 3Y6.77%

0

5. Dividend

5.1 Amount

CNC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

CENTENE CORP

NYSE:CNC (1/21/2025, 8:04:00 PM)

After market: 63.66 0 (0%)

63.66

+1.41 (+2.27%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)10-25 2024-10-25/bmo
Earnings (Next)02-04 2025-02-04/amc
Inst Owners102.98%
Inst Owner Change0.16%
Ins Owners0.16%
Ins Owner Change0.09%
Market Cap32.14B
Analysts74.17
Price Target79.48 (24.85%)
Short Float %1.6%
Short Ratio1.34
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.27%
Min EPS beat(2)15.51%
Max EPS beat(2)21.04%
EPS beat(4)4
Avg EPS beat(4)11.58%
Min EPS beat(4)2.42%
Max EPS beat(4)21.04%
EPS beat(8)7
Avg EPS beat(8)9.42%
EPS beat(12)11
Avg EPS beat(12)8.18%
EPS beat(16)12
Avg EPS beat(16)5.33%
Revenue beat(2)2
Avg Revenue beat(2)9.41%
Min Revenue beat(2)8.18%
Max Revenue beat(2)10.65%
Revenue beat(4)4
Avg Revenue beat(4)9.11%
Min Revenue beat(4)8.1%
Max Revenue beat(4)10.65%
Revenue beat(8)7
Avg Revenue beat(8)6.12%
Revenue beat(12)10
Avg Revenue beat(12)4.59%
Revenue beat(16)13
Avg Revenue beat(16)3.62%
PT rev (1m)-4.24%
PT rev (3m)-9.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-41.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)3.82%
Valuation
Industry RankSector Rank
PE 9.43
Fwd PE 8.93
P/S 0.2
P/FCF 164.82
P/OCF 35.4
P/B 1.18
P/tB 7.71
EV/EBITDA 6.66
EPS(TTM)6.75
EY10.6%
EPS(NY)7.13
Fwd EY11.19%
FCF(TTM)0.39
FCFY0.61%
OCF(TTM)1.8
OCFY2.83%
SpS320.33
BVpS54.09
TBVpS8.25
PEG (NY)5.17
PEG (5Y)0.71
Profitability
Industry RankSector Rank
ROA 3.72%
ROE 11.23%
ROCE 6.28%
ROIC 4.28%
ROICexc 6.72%
ROICexgc 27.25%
OM 1.87%
PM (TTM) 1.9%
GM 10.37%
FCFM 0.12%
ROA(3y)2.16%
ROA(5y)2.47%
ROE(3y)6.83%
ROE(5y)7.6%
ROIC(3y)5.02%
ROIC(5y)4.53%
ROICexc(3y)7.55%
ROICexc(5y)6.53%
ROICexgc(3y)35.94%
ROICexgc(5y)25.26%
ROCE(3y)7.37%
ROCE(5y)6.65%
ROICexcg growth 3Y76.32%
ROICexcg growth 5Y42.84%
ROICexc growth 3Y23.27%
ROICexc growth 5Y11.03%
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
F-Score5
Asset Turnover1.96
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 90.28
Debt/EBITDA 4.09
Cap/Depr 57.41%
Cap/Sales 0.44%
Interest Coverage 4.41
Cash Conversion 21.24%
Profit Quality 6.36%
Current Ratio 1.1
Quick Ratio 1.1
Altman-Z 2.73
F-Score5
WACC6.88%
ROIC/WACC0.62
Cap/Depr(3y)62.7%
Cap/Depr(5y)74.13%
Cap/Sales(3y)0.65%
Cap/Sales(5y)0.74%
Profit Quality(3y)315.75%
Profit Quality(5y)252.11%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.53%
EPS 3Y10.17%
EPS 5Y13.28%
EPS Q2Q%-19%
EPS Next Y1.82%
EPS Next 2Y3.44%
EPS Next 3Y6.77%
EPS Next 5Y7.07%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y11.49%
Revenue growth 5Y20.7%
Sales Q2Q%10.46%
Revenue Next Year7.32%
Revenue Next 2Y5.87%
Revenue Next 3Y4.66%
Revenue Next 5Y4.98%
EBIT growth 1Y-24.71%
EBIT growth 3Y-1.15%
EBIT growth 5Y13.93%
EBIT Next Year13.53%
EBIT Next 3Y5.85%
EBIT Next 5Y4.82%
FCF growth 1Y-97.4%
FCF growth 3Y15.84%
FCF growth 5Y66.74%
OCF growth 1Y-89.33%
OCF growth 3Y13.3%
OCF growth 5Y45.34%