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Despite its impressive fundamentals, NYSE:CNC remains undervalued.

By Mill Chart

Last update: Mar 18, 2024

CENTENE CORP (NYSE:CNC) has caught the attention of our stock screener as a great value stock. NYSE:CNC excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Assessment of NYSE:CNC

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:CNC boasts a 7 out of 10:

  • With a Price/Earnings ratio of 11.33, the valuation of CNC can be described as very reasonable.
  • Based on the Price/Earnings ratio, CNC is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
  • CNC is valuated cheaply when we compare the Price/Earnings ratio to 25.59, which is the current average of the S&P500 Index.
  • CNC is valuated reasonably with a Price/Forward Earnings ratio of 11.03.
  • Based on the Price/Forward Earnings ratio, CNC is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.07. CNC is valued rather cheaply when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, CNC is valued cheaply inside the industry as 85.34% of the companies are valued more expensively.
  • 93.10% of the companies in the same industry are more expensive than CNC, based on the Price/Free Cash Flow ratio.

Profitability Insights: 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:

  • CNC has a better Return On Assets (3.19%) than 70.69% of its industry peers.
  • CNC's Return On Equity of 10.46% is fine compared to the rest of the industry. CNC outperforms 75.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 5.02%, CNC is in the better half of the industry, outperforming 64.66% of the companies in the same industry.
  • Looking at the Profit Margin, with a value of 1.75%, CNC is in the better half of the industry, outperforming 66.38% of the companies in the same industry.
  • CNC's Profit Margin has improved in the last couple of years.

Deciphering NYSE:CNC's Health Rating

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 (2.51) than 68.10% of its industry peers.
  • CNC has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as CNC would need 2.47 years to pay back of all of its debts.
  • CNC has a Debt to FCF ratio of 2.47. This is amongst the best in the industry. CNC outperforms 81.90% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for CNC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Growth Assessment of NYSE:CNC

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:CNC has achieved a 5 out of 10:

  • CNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.63%, which is quite good.
  • CNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.28% yearly.
  • CNC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.70% yearly.
  • The Earnings Per Share is expected to grow by 9.92% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of CNC

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 (5/30/2024, 8:42:06 AM)

68.68

-1.82 (-2.58%)

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