CENTENE CORP (CNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNC - US15135B1017 - Common Stock
38.87 USD
-0.1 (-0.26%)
39 USD
+0.13 (+0.33%)
CNC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 100 industry peers in the Health Care Providers & Services industry. While CNC seems to be doing ok healthwise, there are quite some concerns on its profitability. CNC has a decent growth rate and is not valued too expensively.
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.
CNC had positive earnings in each of the past 5 years.
In the past 5 years CNC always reported a positive cash flow from operatings.
1.2 Ratios
CNC has a worse Return On Assets (-6.44%) than 70.00% of its industry peers.
CNC's Return On Equity of -25.25% is on the low side compared to the rest of the industry. CNC is outperformed by 68.00% of its industry peers.
The Return On Invested Capital of CNC (2.05%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CNC is below the industry average of 9.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.44% | ||
| ROE | -25.25% | ||
| ROIC | 2.05% |
ROA(3y)2.92%
ROA(5y)2.62%
ROE(3y)9.32%
ROE(5y)8%
ROIC(3y)5.66%
ROIC(5y)5.27%
1.3 Margins
In the last couple of years the Profit Margin of CNC has grown nicely.
With a Operating Margin value of 0.60%, CNC perfoms like the industry average, outperforming 42.00% of the companies in the same industry.
CNC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 8.14%, CNC is doing worse than 77.00% of the companies in the same industry.
CNC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.6% | ||
| PM (TTM) | N/A | ||
| GM | 8.14% |
OM growth 3Y-10.08%
OM growth 5Y-6.8%
PM growth 3Y23.76%
PM growth 5Y2.75%
GM growth 3Y-2.89%
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.
CNC has more shares outstanding than it did 5 years ago.
CNC has a worse debt/assets ratio than last year.
2.2 Solvency
CNC has an Altman-Z score of 2.71. 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.
CNC's Altman-Z score of 2.71 is in line compared to the rest of the industry. CNC outperforms 59.00% of its industry peers.
CNC has a debt to FCF ratio of 5.24. This is a neutral value as CNC would need 5.24 years to pay back of all of its debts.
The Debt to FCF ratio of CNC (5.24) is better than 66.00% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that CNC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.84, CNC perfoms like the industry average, outperforming 46.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.27
WACC7.58%
2.3 Liquidity
A Current Ratio of 1.08 indicates that CNC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, CNC is doing worse than 65.00% of the companies in the same industry.
CNC has a Quick Ratio of 1.08. 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 Quick ratio of 1.08. This is comparable to the rest of the industry: CNC outperforms 41.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for CNC have decreased strongly by -40.15% in the last year.
The Earnings Per Share has been growing by 10.19% on average over the past years. This is quite good.
The Revenue has grown by 14.92% in the past year. This is quite good.
Measured over the past years, CNC shows a quite strong growth in Revenue. The Revenue has been growing by 16.92% on average per year.
EPS 1Y (TTM)-40.15%
EPS 3Y11.3%
EPS 5Y10.19%
EPS Q2Q%-69.14%
Revenue 1Y (TTM)14.92%
Revenue growth 3Y8.98%
Revenue growth 5Y16.92%
Sales Q2Q%18.24%
3.2 Future
CNC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.99% yearly.
CNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y-71.43%
EPS Next 2Y-36.19%
EPS Next 3Y-16.56%
EPS Next 5Y3.99%
Revenue Next Year19.69%
Revenue Next 2Y9.51%
Revenue Next 3Y6.64%
Revenue Next 5Y4%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 9.62, the valuation of CNC can be described as reasonable.
Based on the Price/Earnings ratio, CNC is valued cheaply inside the industry as 92.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.22. CNC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 13.44 indicates a correct valuation of CNC.
CNC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNC is cheaper than 81.00% of the companies in the same industry.
CNC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 13.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNC is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CNC is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.69 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
CNC's earnings are expected to decrease with -16.56% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y-36.19%
EPS Next 3Y-16.56%
5. Dividend
5.1 Amount
No dividends for CNC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
38.87
-0.1 (-0.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.48%
Inst Owner Change1.59%
Ins Owners0.33%
Ins Owner Change-0.31%
Market Cap19.11B
Revenue(TTM)185.86B
Net Income(TTM)-5.29B
Analysts66.15
Price Target42.74 (9.96%)
Short Float %2.76%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)168.16%
Min EPS beat(2)-118.47%
Max EPS beat(2)454.8%
EPS beat(4)3
Avg EPS beat(4)102.37%
Min EPS beat(4)-118.47%
Max EPS beat(4)454.8%
EPS beat(8)7
Avg EPS beat(8)56.97%
EPS beat(12)10
Avg EPS beat(12)40.4%
EPS beat(16)14
Avg EPS beat(16)31.73%
Revenue beat(2)2
Avg Revenue beat(2)5.96%
Min Revenue beat(2)3.03%
Max Revenue beat(2)8.88%
Revenue beat(4)4
Avg Revenue beat(4)5.41%
Min Revenue beat(4)3.03%
Max Revenue beat(4)8.88%
Revenue beat(8)8
Avg Revenue beat(8)7.26%
Revenue beat(12)11
Avg Revenue beat(12)5.88%
Revenue beat(16)14
Avg Revenue beat(16)4.79%
PT rev (1m)14.87%
PT rev (3m)16.69%
EPS NQ rev (1m)-2.13%
EPS NQ rev (3m)-24.95%
EPS NY rev (1m)11.15%
EPS NY rev (3m)17.86%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)2.52%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 13.44 | ||
| P/S | 0.1 | ||
| P/FCF | 5.69 | ||
| P/OCF | 4.7 | ||
| P/B | 0.91 | ||
| P/tB | 3.62 | ||
| EV/EBITDA | 6.43 |
EPS(TTM)4.04
EY10.39%
EPS(NY)2.89
Fwd EY7.44%
FCF(TTM)6.83
FCFY17.57%
OCF(TTM)8.27
OCFY21.27%
SpS378.13
BVpS42.62
TBVpS10.73
PEG (NY)N/A
PEG (5Y)0.94
Graham Number62.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.44% | ||
| ROE | -25.25% | ||
| ROCE | 2.69% | ||
| ROIC | 2.05% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 12.97% | ||
| OM | 0.6% | ||
| PM (TTM) | N/A | ||
| GM | 8.14% | ||
| FCFM | 1.81% |
ROA(3y)2.92%
ROA(5y)2.62%
ROE(3y)9.32%
ROE(5y)8%
ROIC(3y)5.66%
ROIC(5y)5.27%
ROICexc(3y)8.76%
ROICexc(5y)7.69%
ROICexgc(3y)41.41%
ROICexgc(5y)32.15%
ROCE(3y)7.43%
ROCE(5y)6.92%
ROICexgc growth 3Y4.55%
ROICexgc growth 5Y24.44%
ROICexc growth 3Y4.28%
ROICexc growth 5Y5.8%
OM growth 3Y-10.08%
OM growth 5Y-6.8%
PM growth 3Y23.76%
PM growth 5Y2.75%
GM growth 3Y-2.89%
GM growth 5YN/A
F-Score4
Asset Turnover2.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.24 | ||
| Debt/EBITDA | 7.39 | ||
| Cap/Depr | 56.19% | ||
| Cap/Sales | 0.38% | ||
| Interest Coverage | 1.71 | ||
| Cash Conversion | 171.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.71 |
F-Score4
WACC7.58%
ROIC/WACC0.27
Cap/Depr(3y)59.45%
Cap/Depr(5y)61.8%
Cap/Sales(3y)0.54%
Cap/Sales(5y)0.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.15%
EPS 3Y11.3%
EPS 5Y10.19%
EPS Q2Q%-69.14%
EPS Next Y-71.43%
EPS Next 2Y-36.19%
EPS Next 3Y-16.56%
EPS Next 5Y3.99%
Revenue 1Y (TTM)14.92%
Revenue growth 3Y8.98%
Revenue growth 5Y16.92%
Sales Q2Q%18.24%
Revenue Next Year19.69%
Revenue Next 2Y9.51%
Revenue Next 3Y6.64%
Revenue Next 5Y4%
EBIT growth 1Y-63.26%
EBIT growth 3Y-2%
EBIT growth 5Y8.97%
EBIT Next Year-72.12%
EBIT Next 3Y-10.53%
EBIT Next 5Y13.69%
FCF growth 1Y-38.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.91%
OCF growth 3Y-66.79%
OCF growth 5Y-36.43%
CENTENE CORP / CNC FAQ
Can you provide the ChartMill fundamental rating for CENTENE CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CNC.
What is the valuation status of CENTENE CORP (CNC) stock?
ChartMill assigns a valuation rating of 6 / 10 to CENTENE CORP (CNC). This can be considered as Fairly Valued.
Can you provide the profitability details for CENTENE CORP?
CENTENE CORP (CNC) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for CNC stock?
The Price/Earnings (PE) ratio for CENTENE CORP (CNC) is 9.62 and the Price/Book (PB) ratio is 0.91.
What is the earnings growth outlook for CENTENE CORP?
The Earnings per Share (EPS) of CENTENE CORP (CNC) is expected to decline by -71.43% in the next year.