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NYSE:CNC appears to be flying under the radar despite its strong fundamentals.

By Mill Chart

Last update: Nov 28, 2023

CENTENE CORP (NYSE:CNC) was identified as a decent value stock by our stock screener. NYSE:CNC scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Exploring NYSE:CNC's Valuation

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 8 out of 10:

  • Based on the Price/Earnings ratio of 10.48, the valuation of CNC can be described as reasonable.
  • Based on the Price/Earnings ratio, CNC is valued cheaper than 92.11% of the companies in the same industry.
  • CNC is valuated cheaply when we compare the Price/Earnings ratio to 24.49, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 10.94, the valuation of CNC can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CNC indicates a rather cheap valuation: CNC is cheaper than 87.72% of the companies listed in the same industry.
  • CNC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 19.61, which is the current average of the S&P500 Index.
  • Based on the Enterprise Value to EBITDA ratio, CNC is valued cheaply inside the industry as 92.11% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, CNC is valued cheaper than 90.35% of the companies in the same industry.
  • CNC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

Profitability Assessment of NYSE:CNC

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CNC has earned a 5 out of 10:

  • With a decent Return On Assets value of 2.90%, CNC is doing good in the industry, outperforming 67.54% of the companies in the same industry.
  • CNC has a Return On Equity of 9.66%. This is in the better half of the industry: CNC outperforms 74.56% of its industry peers.
  • CNC has a Return On Invested Capital of 5.72%. This is in the better half of the industry: CNC outperforms 65.79% of its industry peers.
  • The 3 year average ROIC (4.79%) for CNC is below the current ROIC(5.72%), indicating increased profibility in the last year.
  • CNC has a Profit Margin of 1.63%. This is in the better half of the industry: CNC outperforms 63.16% of its industry peers.

How do we evaluate the Health for NYSE:CNC?

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:CNC has earned a 5 out of 10:

  • CNC has a better Altman-Z score (2.60) than 64.91% of its industry peers.
  • CNC has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as CNC would need 3.31 years to pay back of all of its debts.
  • CNC's Debt to FCF ratio of 3.31 is fine compared to the rest of the industry. CNC outperforms 73.68% of its industry peers.

Deciphering NYSE:CNC's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CNC has earned a 6 for growth:

  • The Earnings Per Share has grown by an nice 19.63% over the past year.
  • Measured over the past years, CNC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.03% on average per year.
  • CNC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.47% yearly.
  • The Earnings Per Share is expected to grow by 11.42% on average over the next years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of CNC contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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CENTENE CORP

NYSE:CNC (2/22/2024, 12:13:06 PM)

79.36

+0.19 (+0.24%)

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