NYSE:CNC is an undervalued gem with solid fundamentals.

Uncover the hidden value in CENTENE CORP (NYSE:CNC) as our stock screening tool recommends it as an undervalued choice. NYSE:CNC maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Analysis for NYSE:CNC

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 7 out of 10:

• With a Price/Earnings ratio of 11.11, the valuation of CNC can be described as very reasonable.
• Based on the Price/Earnings ratio, CNC is valued cheaply inside the industry as 92.24% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Earnings ratio of 24.84, CNC is valued rather cheaply.
• With a Price/Forward Earnings ratio of 10.81, the valuation of CNC can be described as very reasonable.
• CNC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNC is cheaper than 92.24% of the companies in the same industry.
• CNC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNC indicates a rather cheap valuation: CNC is cheaper than 91.38% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, CNC is valued cheaply inside the industry as 95.69% of the companies are valued more expensively.
• The decent profitability rating of CNC may justify a higher PE ratio.

What does the Profitability looks like for NYSE:CNC

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:CNC has achieved a 6:

• With a decent Return On Assets value of 3.19%, CNC is doing good in the industry, outperforming 71.55% of the companies in the same industry.
• CNC's Return On Equity of 10.46% is fine compared to the rest of the industry. CNC outperforms 75.86% of its industry peers.
• CNC has a Return On Invested Capital of 5.13%. This is in the better half of the industry: CNC outperforms 64.66% of its industry peers.
• The 3 year average ROIC (5.02%) for CNC is below the current ROIC(5.13%), indicating increased profibility in the last year.
• CNC's Profit Margin of 1.75% is fine compared to the rest of the industry. CNC outperforms 66.38% of its industry peers.
• CNC's Profit Margin has improved in the last couple of years.

How We Gauge Health for NYSE:CNC

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:CNC scores a 6 out of 10:

• CNC has a Altman-Z score of 2.62. This is in the better half of the industry: CNC outperforms 68.97% 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 better Debt to FCF ratio (2.47) than 83.62% 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.

Looking at the Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:CNC, the assigned 5 reflects its growth potential:

• The Earnings Per Share has grown by an nice 15.63% over the past year.
• CNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.28% yearly.
• 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.
• Based on estimates for the next years, CNC will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.92% on average per year.

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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.