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CENTENE CORP (CNC) Stock Fundamental Analysis

NYSE:CNC - New York Stock Exchange, Inc. - US15135B1017 - Common Stock - Currency: USD

60.74  -1.22 (-1.97%)

After market: 60.74 0 (0%)

Fundamental Rating

4

CNC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. While CNC is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on CNC.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

CNC had positive earnings in the past year.
In the past year CNC had a positive cash flow from operations.
In the past 5 years CNC has always been profitable.
In the past 5 years CNC always reported a positive cash flow from operatings.
CNC Yearly Net Income VS EBIT VS OCF VS FCFCNC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

1.2 Ratios

Looking at the Return On Assets, with a value of 3.97%, CNC is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.37%, CNC is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
CNC has a Return On Invested Capital of 5.54%. This is in the better half of the industry: CNC outperforms 60.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNC is below the industry average of 9.53%.
Industry RankSector Rank
ROA 3.97%
ROE 12.37%
ROIC 5.54%
ROA(3y)2.92%
ROA(5y)2.62%
ROE(3y)9.32%
ROE(5y)8%
ROIC(3y)5.66%
ROIC(5y)5.27%
CNC Yearly ROA, ROE, ROICCNC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

CNC has a Profit Margin of 2.04%. This is in the better half of the industry: CNC outperforms 60.78% of its industry peers.
In the last couple of years the Profit Margin of CNC has grown nicely.
With a Operating Margin value of 2.14%, CNC perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
CNC's Operating Margin has declined in the last couple of years.
The Gross Margin of CNC (10.27%) is worse than 74.51% of its industry peers.
In the last couple of years the Gross Margin of CNC has declined.
Industry RankSector Rank
OM 2.14%
PM (TTM) 2.04%
GM 10.27%
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
CNC Yearly Profit, Operating, Gross MarginsCNC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNC is destroying value.
The number of shares outstanding for CNC has been reduced compared to 1 year ago.
Compared to 5 years ago, CNC has more shares outstanding
Compared to 1 year ago, CNC has a worse debt to assets ratio.
CNC Yearly Shares OutstandingCNC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
CNC Yearly Total Debt VS Total AssetsCNC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

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.
Looking at the Altman-Z score, with a value of 2.72, CNC is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
The Debt to FCF ratio of CNC is 12.28, which is on the high side as it means it would take CNC, 12.28 years of fcf income to pay off all of its debts.
CNC's Debt to FCF ratio of 12.28 is in line compared to the rest of the industry. CNC outperforms 45.10% of its industry peers.
CNC has a Debt/Equity ratio of 0.66. This is a neutral value indicating CNC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, CNC is in line with its industry, outperforming 56.86% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 12.28
Altman-Z 2.72
ROIC/WACC0.76
WACC7.31%
CNC Yearly LT Debt VS Equity VS FCFCNC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B 25B

2.3 Liquidity

CNC has a Current Ratio of 1.11. This is a normal value and indicates that CNC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CNC (1.11) is worse than 68.63% of its industry peers.
A Quick Ratio of 1.11 indicates that CNC should not have too much problems paying its short term obligations.
CNC has a Quick ratio of 1.11. This is in the lower half of the industry: CNC underperforms 62.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 1.11
CNC Yearly Current Assets VS Current LiabilitesCNC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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5

3. Growth

3.1 Past

CNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.66%, which is quite good.
Measured over the past years, CNC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.19% on average per year.
The Revenue has grown by 8.85% in the past year. This is quite good.
The Revenue has been growing by 16.92% on average over the past years. This is quite good.
EPS 1Y (TTM)13.66%
EPS 3Y11.3%
EPS 5Y10.19%
EPS Q2Q%28.32%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y8.98%
Revenue growth 5Y16.92%
Sales Q2Q%15.38%

3.2 Future

The Earnings Per Share is expected to grow by 10.19% on average over the next years. This is quite good.
Based on estimates for the next years, CNC will show a small growth in Revenue. The Revenue will grow by 5.71% on average per year.
EPS Next Y2.39%
EPS Next 2Y6.3%
EPS Next 3Y8.61%
EPS Next 5Y10.19%
Revenue Next Year11.61%
Revenue Next 2Y5.97%
Revenue Next 3Y5.29%
Revenue Next 5Y5.71%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CNC Yearly Revenue VS EstimatesCNC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 50B 100B 150B 200B
CNC Yearly EPS VS EstimatesCNC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 7.85, which indicates a rather cheap valuation of CNC.
CNC's Price/Earnings ratio is rather cheap when compared to the industry. CNC is cheaper than 98.04% 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 26.03.
Based on the Price/Forward Earnings ratio of 7.57, the valuation of CNC can be described as very cheap.
CNC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNC is cheaper than 96.08% of the companies in the same industry.
CNC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.85
Fwd PE 7.57
CNC Price Earnings VS Forward Price EarningsCNC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CNC is valued cheaper than 91.18% of the companies in the same industry.
CNC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CNC is cheaper than 64.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.26
EV/EBITDA 6.03
CNC Per share dataCNC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.28
PEG (5Y)0.77
EPS Next 2Y6.3%
EPS Next 3Y8.61%

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0

5. Dividend

5.1 Amount

CNC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CENTENE CORP

NYSE:CNC (5/21/2025, 8:04:00 PM)

After market: 60.74 0 (0%)

60.74

-1.22 (-1.97%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)04-25 2025-04-25/bmo
Earnings (Next)07-24 2025-07-24/amc
Inst Owners100.19%
Inst Owner Change1.15%
Ins Owners0.16%
Ins Owner Change3.82%
Market Cap30.22B
Analysts73.33
Price Target78.64 (29.47%)
Short Float %1.73%
Short Ratio1.77
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/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)36.58%
Min EPS beat(2)12.89%
Max EPS beat(2)60.26%
EPS beat(4)4
Avg EPS beat(4)27.42%
Min EPS beat(4)12.89%
Max EPS beat(4)60.26%
EPS beat(8)8
Avg EPS beat(8)18.52%
EPS beat(12)11
Avg EPS beat(12)13.53%
EPS beat(16)13
Avg EPS beat(16)10%
Revenue beat(2)2
Avg Revenue beat(2)4.86%
Min Revenue beat(2)3.26%
Max Revenue beat(2)6.45%
Revenue beat(4)4
Avg Revenue beat(4)7.13%
Min Revenue beat(4)3.26%
Max Revenue beat(4)10.65%
Revenue beat(8)8
Avg Revenue beat(8)6.54%
Revenue beat(12)11
Avg Revenue beat(12)4.9%
Revenue beat(16)14
Avg Revenue beat(16)4.26%
PT rev (1m)-1.36%
PT rev (3m)-1.53%
EPS NQ rev (1m)-5.19%
EPS NQ rev (3m)-9.08%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)3.85%
Revenue NQ rev (3m)4.3%
Revenue NY rev (1m)4.29%
Revenue NY rev (3m)6.61%
Valuation
Industry RankSector Rank
PE 7.85
Fwd PE 7.57
P/S 0.18
P/FCF 20.26
P/OCF 14.26
P/B 1.08
P/tB 5.9
EV/EBITDA 6.03
EPS(TTM)7.74
EY12.74%
EPS(NY)8.02
Fwd EY13.21%
FCF(TTM)3
FCFY4.94%
OCF(TTM)4.26
OCFY7.01%
SpS340.2
BVpS56.1
TBVpS10.29
PEG (NY)3.28
PEG (5Y)0.77
Profitability
Industry RankSector Rank
ROA 3.97%
ROE 12.37%
ROCE 7.27%
ROIC 5.54%
ROICexc 8.48%
ROICexgc 28.15%
OM 2.14%
PM (TTM) 2.04%
GM 10.27%
FCFM 0.88%
ROA(3y)2.92%
ROA(5y)2.62%
ROE(3y)9.32%
ROE(5y)8%
ROIC(3y)5.66%
ROIC(5y)5.27%
ROICexc(3y)8.76%
ROICexc(5y)7.69%
ROICexgc(3y)41.41%
ROICexgc(5y)32.15%
ROCE(3y)7.43%
ROCE(5y)6.92%
ROICexcg growth 3Y4.55%
ROICexcg growth 5Y24.44%
ROICexc growth 3Y4.28%
ROICexc growth 5Y5.8%
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
F-Score6
Asset Turnover1.94
Health
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 12.28
Debt/EBITDA 3.76
Cap/Depr 50.36%
Cap/Sales 0.37%
Interest Coverage 5.48
Cash Conversion 43.49%
Profit Quality 43.21%
Current Ratio 1.11
Quick Ratio 1.11
Altman-Z 2.72
F-Score6
WACC7.31%
ROIC/WACC0.76
Cap/Depr(3y)59.45%
Cap/Depr(5y)61.8%
Cap/Sales(3y)0.54%
Cap/Sales(5y)0.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.66%
EPS 3Y11.3%
EPS 5Y10.19%
EPS Q2Q%28.32%
EPS Next Y2.39%
EPS Next 2Y6.3%
EPS Next 3Y8.61%
EPS Next 5Y10.19%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y8.98%
Revenue growth 5Y16.92%
Sales Q2Q%15.38%
Revenue Next Year11.61%
Revenue Next 2Y5.97%
Revenue Next 3Y5.29%
Revenue Next 5Y5.71%
EBIT growth 1Y2.63%
EBIT growth 3Y-2%
EBIT growth 5Y8.97%
EBIT Next Year27.79%
EBIT Next 3Y13.54%
EBIT Next 5Y13.69%
FCF growth 1Y-82.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-77.36%
OCF growth 3Y-66.79%
OCF growth 5Y-36.43%