CENTENE CORP (CNC)
US15135B1017 - Common Stock
Overall CNC gets a fundamental rating of 5 out of 10. We evaluated CNC against 109 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of CNC get a neutral evaluation. Nothing too spectacular is happening here. CNC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CNC was profitable.
CNC had a positive operating cash flow in the past year.
In the past 5 years CNC has always been profitable.
In the past 5 years CNC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.72%, CNC is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
CNC has a Return On Equity of 11.23%. This is in the better half of the industry: CNC outperforms 78.70% of its industry peers.
CNC has a Return On Invested Capital (4.28%) which is in line with its industry peers.
CNC had an Average Return On Invested Capital over the past 3 years of 5.02%. This is below the industry average of 8.15%.
| 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
The Profit Margin of CNC (1.90%) is better than 65.74% of its industry peers.
CNC's Profit Margin has improved in the last couple of years.
CNC has a Operating Margin (1.87%) which 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 77.78% 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
CNC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
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.
With a decent Altman-Z score value of 2.72, CNC is doing good in the industry, outperforming 65.74% of the companies in the same industry.
The Debt to FCF ratio of CNC is 90.28, which is on the high side as it means it would take CNC, 90.28 years of fcf income to pay off 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.
CNC has a Debt to Equity ratio (0.64) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 90.28 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.63
WACC6.75%
2.3 Liquidity
A Current Ratio of 1.10 indicates that CNC should not have too much problems paying its short term obligations.
CNC has a Current ratio of 1.10. This is in the lower half of the industry: CNC underperforms 72.22% of its industry peers.
A Quick Ratio of 1.10 indicates that CNC should not have too much problems paying 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 64.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for CNC have decreased by -4.53% in the last year.
Measured over the past years, CNC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.28% on average per year.
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 8.18% on average over the next years. This is quite good.
CNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.28% yearly.
EPS Next Y1.82%
EPS Next 2Y3.44%
EPS Next 3Y6.77%
EPS Next 5Y8.18%
Revenue Next Year6.98%
Revenue Next 2Y5.7%
Revenue Next 3Y4.76%
Revenue Next 5Y5.28%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.83 indicates a reasonable valuation of CNC.
CNC's Price/Earnings ratio is rather cheap when compared to the industry. CNC is cheaper than 94.44% of the companies in the same industry.
CNC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 8.36 indicates a reasonable valuation of CNC.
Based on the Price/Forward Earnings ratio, CNC is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.83. CNC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.83 | ||
| Fwd PE | 8.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNC indicates a rather cheap valuation: CNC is cheaper than 92.59% of the companies listed 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 | 154.26 | ||
| EV/EBITDA | 6.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.84
PEG (5Y)0.66
EPS Next 2Y3.44%
EPS Next 3Y6.77%
5. Dividend
5.1 Amount
CNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CENTENE CORP
NYSE:CNC (12/20/2024, 8:04:00 PM)
After market: 59.58 0 (0%)59.58
-0.13 (-0.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners102.98%
Inst Owner Change-5.14%
Ins Owners0.16%
Ins Owner Change-0.03%
Market Cap30.08B
Analysts74.17
Price Target82.99 (39.29%)
Short Float %3.24%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-5.47%
PT rev (3m)-5.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-41.9%
EPS NY rev (1m)-1.55%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)3.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.83 | ||
| Fwd PE | 8.36 | ||
| P/S | 0.19 | ||
| P/FCF | 154.26 | ||
| P/OCF | 33.13 | ||
| P/B | 1.1 | ||
| P/tB | 7.22 | ||
| EV/EBITDA | 6.35 |
EPS(TTM)6.75
EY11.33%
EPS(NY)7.13
Fwd EY11.96%
FCF(TTM)0.39
FCFY0.65%
OCF(TTM)1.8
OCFY3.02%
SpS320.33
BVpS54.09
TBVpS8.25
PEG (NY)4.84
PEG (5Y)0.66
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.72 |
F-Score5
WACC6.75%
ROIC/WACC0.63
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 5Y8.18%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y11.49%
Revenue growth 5Y20.7%
Sales Q2Q%10.46%
Revenue Next Year6.98%
Revenue Next 2Y5.7%
Revenue Next 3Y4.76%
Revenue Next 5Y5.28%
EBIT growth 1Y-24.71%
EBIT growth 3Y-1.15%
EBIT growth 5Y13.93%
EBIT Next Year13.53%
EBIT Next 3Y6.41%
EBIT Next 5Y6.33%
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%