CENTENE CORP (CNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNC - US15135B1017 - Common Stock
41.15 USD
-0.06 (-0.15%)
41.2001 USD
+0.05 (+0.12%)
Taking everything into account, CNC scores 4 out of 10 in our fundamental rating. CNC was compared to 101 industry peers in the Health Care Providers & Services industry. CNC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CNC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CNC was profitable.
CNC had a positive operating cash flow in the past year.
Each year in the past 5 years CNC has been profitable.
Each year in the past 5 years CNC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -6.44%, CNC is not doing good in the industry: 69.31% of the companies in the same industry are doing better.
With a Return On Equity value of -25.25%, CNC is not doing good in the industry: 68.32% of the companies in the same industry are doing better.
The Return On Invested Capital of CNC (2.05%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNC is below the industry average of 9.58%.
| 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 CNC has grown nicely.
The Operating Margin of CNC (0.60%) is comparable to the rest of the industry.
CNC's Operating Margin has declined in the last couple of years.
CNC has a Gross Margin of 8.14%. This is in the lower half of the industry: CNC underperforms 76.24% of its industry peers.
CNC'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
CNC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CNC has less shares outstanding
The number of shares outstanding for CNC has been increased compared to 5 years ago.
Compared to 1 year ago, CNC has a worse debt to assets ratio.
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 line with its industry, outperforming 59.41% of the companies in the same industry.
The Debt to FCF ratio of CNC is 5.24, which is a neutral value as it means it would take CNC, 5.24 years of fcf income to pay off all of its debts.
CNC has a better Debt to FCF ratio (5.24) than 65.35% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that CNC is somewhat dependend on debt financing.
CNC 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 | 2.72 |
ROIC/WACC0.26
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.08 indicates that CNC should not have too much problems paying its short term obligations.
CNC has a worse Current ratio (1.08) than 65.35% of its industry peers.
CNC has a Quick Ratio of 1.08. This is a normal value and indicates that CNC is financially healthy and should not expect problems in meeting its short term obligations.
CNC has a Quick ratio (1.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
CNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.15%.
CNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.19% yearly.
CNC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.92%.
CNC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.92% yearly.
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, CNC will show a small growth in Earnings Per Share. The EPS will grow by 3.99% on average per year.
Based on estimates for the next years, CNC will show a small growth in Revenue. The Revenue will grow by 4.00% on average per year.
EPS Next Y-71.06%
EPS Next 2Y-36.55%
EPS Next 3Y-16.56%
EPS Next 5Y3.99%
Revenue Next Year19.7%
Revenue Next 2Y9.52%
Revenue Next 3Y6.63%
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 10.19 indicates a reasonable valuation of CNC.
90.10% of the companies in the same industry are more expensive than CNC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, CNC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 14.40, the valuation of CNC can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNC indicates a somewhat cheap valuation: CNC is cheaper than 78.22% of the companies listed in the same industry.
CNC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 14.4 |
4.2 Price Multiples
CNC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNC is cheaper than 84.16% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNC indicates a rather cheap valuation: CNC is cheaper than 95.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.03 | ||
| EV/EBITDA | 6.91 |
4.3 Compensation for Growth
A cheap valuation may be justified as CNC's earnings are expected to decrease with -16.56% in the coming years.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-36.55%
EPS Next 3Y-16.56%
5. Dividend
5.1 Amount
No dividends for CNC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
41.15
-0.06 (-0.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.48%
Inst Owner Change1.6%
Ins Owners0.33%
Ins Owner Change-0.26%
Market Cap20.23B
Revenue(TTM)185.86B
Net Income(TTM)-5.29B
Analysts66.15
Price Target43.17 (4.91%)
Short Float %2.57%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)168.16%
Min EPS beat(2)-118.47%
Max EPS beat(2)454.8%
EPS beat(4)3
Avg EPS beat(4)102.37%
Min EPS beat(4)-118.47%
Max EPS beat(4)454.8%
EPS beat(8)7
Avg EPS beat(8)56.97%
EPS beat(12)10
Avg EPS beat(12)40.4%
EPS beat(16)14
Avg EPS beat(16)31.73%
Revenue beat(2)2
Avg Revenue beat(2)5.96%
Min Revenue beat(2)3.03%
Max Revenue beat(2)8.88%
Revenue beat(4)4
Avg Revenue beat(4)5.41%
Min Revenue beat(4)3.03%
Max Revenue beat(4)8.88%
Revenue beat(8)8
Avg Revenue beat(8)7.26%
Revenue beat(12)11
Avg Revenue beat(12)5.88%
Revenue beat(16)14
Avg Revenue beat(16)4.79%
PT rev (1m)2.16%
PT rev (3m)17.87%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-25.65%
EPS NY rev (1m)12.6%
EPS NY rev (3m)22.99%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 14.4 | ||
| P/S | 0.11 | ||
| P/FCF | 6.03 | ||
| P/OCF | 4.98 | ||
| P/B | 0.97 | ||
| P/tB | 3.84 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)4.04
EY9.82%
EPS(NY)2.86
Fwd EY6.95%
FCF(TTM)6.83
FCFY16.59%
OCF(TTM)8.27
OCFY20.09%
SpS378.13
BVpS42.62
TBVpS10.73
PEG (NY)N/A
PEG (5Y)1
Graham Number62.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.44% | ||
| ROE | -25.25% | ||
| ROCE | 2.69% | ||
| ROIC | 2.05% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 12.97% | ||
| OM | 0.6% | ||
| PM (TTM) | N/A | ||
| GM | 8.14% | ||
| FCFM | 1.81% |
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%
ROICexgc growth 3Y4.55%
ROICexgc 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-Score4
Asset Turnover2.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.24 | ||
| Debt/EBITDA | 7.39 | ||
| Cap/Depr | 56.19% | ||
| Cap/Sales | 0.38% | ||
| Interest Coverage | 1.71 | ||
| Cash Conversion | 171.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.72 |
F-Score4
WACC7.9%
ROIC/WACC0.26
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)-40.15%
EPS 3Y11.3%
EPS 5Y10.19%
EPS Q2Q%-69.14%
EPS Next Y-71.06%
EPS Next 2Y-36.55%
EPS Next 3Y-16.56%
EPS Next 5Y3.99%
Revenue 1Y (TTM)14.92%
Revenue growth 3Y8.98%
Revenue growth 5Y16.92%
Sales Q2Q%18.24%
Revenue Next Year19.7%
Revenue Next 2Y9.52%
Revenue Next 3Y6.63%
Revenue Next 5Y4%
EBIT growth 1Y-63.26%
EBIT growth 3Y-2%
EBIT growth 5Y8.97%
EBIT Next Year-72.12%
EBIT Next 3Y-10.53%
EBIT Next 5Y13.69%
FCF growth 1Y-38.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.91%
OCF growth 3Y-66.79%
OCF growth 5Y-36.43%
CENTENE CORP / CNC FAQ
Can you provide the ChartMill fundamental rating for CENTENE CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CNC.
Can you provide the valuation status for CENTENE CORP?
ChartMill assigns a valuation rating of 6 / 10 to CENTENE CORP (CNC). This can be considered as Fairly Valued.
Can you provide the profitability details for CENTENE CORP?
CENTENE CORP (CNC) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for CNC stock?
The Earnings per Share (EPS) of CENTENE CORP (CNC) is expected to decline by -71.06% in the next year.