CENTENE CORP (1CNC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CNC - US15135B1017 - Common Stock
38.45 EUR
-1.96 (-4.85%)
Taking everything into account, 1CNC scores 4 out of 10 in our fundamental rating. 1CNC was compared to 26 industry peers in the Health Care Providers & Services industry. 1CNC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 1CNC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1CNC was profitable.
- 1CNC had a positive operating cash flow in the past year.
- 1CNC had positive earnings in each of the past 5 years.
- Each year in the past 5 years 1CNC had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of -6.44%, 1CNC is doing worse than 88.46% of the companies in the same industry.
- 1CNC's Return On Equity of -25.25% is on the low side compared to the rest of the industry. 1CNC is outperformed by 88.46% of its industry peers.
- The Return On Invested Capital of 1CNC (2.05%) is worse than 80.77% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1CNC is in line with the industry average of 6.45%.
| 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 1CNC has grown nicely.
- Looking at the Operating Margin, with a value of 0.60%, 1CNC is doing worse than 88.46% of the companies in the same industry.
- 1CNC's Operating Margin has declined in the last couple of years.
- 1CNC's Gross Margin of 8.14% is on the low side compared to the rest of the industry. 1CNC is outperformed by 73.08% of its industry peers.
- 1CNC'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
- 1CNC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- 1CNC has less shares outstanding than it did 1 year ago.
- 1CNC has more shares outstanding than it did 5 years ago.
- 1CNC has a worse debt/assets ratio than last year.
2.2 Solvency
- 1CNC has an Altman-Z score of 2.75. This is not the best score and indicates that 1CNC is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of 1CNC (2.75) is better than 69.23% of its industry peers.
- 1CNC has a debt to FCF ratio of 5.24. This is a neutral value as 1CNC would need 5.24 years to pay back of all of its debts.
- The Debt to FCF ratio of 1CNC (5.24) is better than 73.08% of its industry peers.
- 1CNC has a Debt/Equity ratio of 0.84. This is a neutral value indicating 1CNC is somewhat dependend on debt financing.
- 1CNC has a Debt to Equity ratio (0.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.27
WACC7.69%
2.3 Liquidity
- 1CNC has a Current Ratio of 1.08. This is a normal value and indicates that 1CNC is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.08, 1CNC is doing good in the industry, outperforming 61.54% of the companies in the same industry.
- A Quick Ratio of 1.08 indicates that 1CNC should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.08, 1CNC is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
- The earnings per share for 1CNC 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.
- 1CNC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.92%.
- The Revenue has been growing by 16.92% on average over the past years. This is quite good.
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
- Based on estimates for the next years, 1CNC will show a small growth in Earnings Per Share. The EPS will grow by 3.58% on average per year.
- 1CNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y-71.03%
EPS Next 2Y-35.17%
EPS Next 3Y-16.55%
EPS Next 5Y3.58%
Revenue Next Year19.67%
Revenue Next 2Y9.53%
Revenue Next 3Y6.65%
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.
- 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 11.28 indicates a reasonable valuation of 1CNC.
- 88.46% of the companies in the same industry are more expensive than 1CNC, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of 1CNC to the average of the S&P500 Index (27.25), we can say 1CNC is valued rather cheaply.
- With a Price/Forward Earnings ratio of 15.25, 1CNC is valued correctly.
- 1CNC's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1CNC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 15.25 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1CNC is valued a bit cheaper than 76.92% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1CNC is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.67 | ||
| EV/EBITDA | 7.81 |
4.3 Compensation for Growth
- 1CNC's earnings are expected to decrease with -16.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y-35.17%
EPS Next 3Y-16.55%
5. Dividend
5.1 Amount
- 1CNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CENTENE CORP / 1CNC.MI FAQ
Can you provide the ChartMill fundamental rating for CENTENE CORP?
ChartMill assigns a fundamental rating of 4 / 10 to 1CNC.MI.
Can you provide the valuation status for CENTENE CORP?
ChartMill assigns a valuation rating of 5 / 10 to CENTENE CORP (1CNC.MI). This can be considered as Fairly Valued.
How profitable is CENTENE CORP (1CNC.MI) stock?
CENTENE CORP (1CNC.MI) has a profitability rating of 3 / 10.
What is the expected EPS growth for CENTENE CORP (1CNC.MI) stock?
The Earnings per Share (EPS) of CENTENE CORP (1CNC.MI) is expected to decline by -71.03% in the next year.