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CENTENE CORP (CNC) Stock Fundamental Analysis

USA - NYSE:CNC - US15135B1017 - Common Stock

32.75 USD
+0.05 (+0.15%)
Last: 9/23/2025, 8:04:00 PM
32.71 USD
-0.04 (-0.12%)
Pre-Market: 9/24/2025, 5:43:29 AM
Fundamental Rating

4

Overall CNC gets a fundamental rating of 4 out of 10. We evaluated CNC against 101 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. CNC has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

CNC had positive earnings in the past year.
CNC had a positive operating cash flow in the past year.
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 2.38%, CNC is in the better half of the industry, outperforming 61.39% of the companies in the same industry.
CNC's Return On Equity of 7.49% is fine compared to the rest of the industry. CNC outperforms 67.33% of its industry peers.
The Return On Invested Capital of CNC (3.05%) is comparable to the rest of the industry.
CNC had an Average Return On Invested Capital over the past 3 years of 5.66%. This is below the industry average of 9.19%.
Industry RankSector Rank
ROA 2.38%
ROE 7.49%
ROIC 3.05%
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 (1.15%) which is in line with its industry peers.
CNC's Profit Margin has improved in the last couple of years.
The Operating Margin of CNC (1.12%) is comparable to the rest of the industry.
CNC's Operating Margin has declined in the last couple of years.
CNC's Gross Margin of 8.93% is on the low side compared to the rest of the industry. CNC is outperformed by 75.25% of its industry peers.
In the last couple of years the Gross Margin of CNC has declined.
Industry RankSector Rank
OM 1.12%
PM (TTM) 1.15%
GM 8.93%
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

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.
CNC has less shares outstanding than it did 1 year ago.
CNC has more shares outstanding than it did 5 years ago.
CNC has a worse debt/assets ratio than last year.
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 2.62 indicates that CNC is not a great score, but indicates only limited risk for bankruptcy at the moment.
CNC has a Altman-Z score of 2.62. This is comparable to the rest of the industry: CNC outperforms 56.44% of its industry peers.
CNC has a debt to FCF ratio of 16.27. This is a negative value and a sign of low solvency as CNC would need 16.27 years to pay back of all of its debts.
CNC has a Debt to FCF ratio (16.27) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.64 indicates that CNC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, CNC is in line with its industry, outperforming 56.44% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 16.27
Altman-Z 2.62
ROIC/WACC0.41
WACC7.44%
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 1.10. 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 (1.10) is worse than 66.34% of its industry peers.
A Quick Ratio of 1.10 indicates that CNC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.10, CNC is doing worse than 61.39% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.1
Quick Ratio 1.1
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

4

3. Growth

3.1 Past

CNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.63%.
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.
Looking at the last year, CNC shows a quite strong growth in Revenue. The Revenue has grown by 12.96% in the last year.
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)-27.63%
EPS 3Y11.3%
EPS 5Y10.19%
EPS Q2Q%-106.61%
Revenue 1Y (TTM)12.96%
Revenue growth 3Y8.98%
Revenue growth 5Y16.92%
Sales Q2Q%22.36%

3.2 Future

The Earnings Per Share is expected to grow by 6.64% on average over the next years.
CNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.02% yearly.
EPS Next Y-75.76%
EPS Next 2Y-31.41%
EPS Next 3Y-11.09%
EPS Next 5Y6.64%
Revenue Next Year17.91%
Revenue Next 2Y8.62%
Revenue Next 3Y6.71%
Revenue Next 5Y4.02%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 2 4 6 8 10

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 6.35 indicates a rather cheap valuation of CNC.
Based on the Price/Earnings ratio, CNC is valued cheaply inside the industry as 99.01% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.41, CNC is valued rather cheaply.
A Price/Forward Earnings ratio of 9.80 indicates a reasonable valuation of CNC.
CNC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNC is cheaper than 88.12% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CNC to the average of the S&P500 Index (22.87), we can say CNC is valued rather cheaply.
Industry RankSector Rank
PE 6.35
Fwd PE 9.8
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

CNC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNC is cheaper than 96.04% of the companies in the same industry.
77.23% of the companies in the same industry are more expensive than CNC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 14.89
EV/EBITDA 4.2
CNC Per share dataCNC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

4.3 Compensation for Growth

CNC's earnings are expected to decrease with -11.09% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y-31.41%
EPS Next 3Y-11.09%

0

5. Dividend

5.1 Amount

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

CENTENE CORP

NYSE:CNC (9/23/2025, 8:04:00 PM)

Premarket: 32.71 -0.04 (-0.12%)

32.75

+0.05 (+0.15%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)07-25 2025-07-25/bmo
Earnings (Next)10-23 2025-10-23/amc
Inst Owners100.91%
Inst Owner Change-2.11%
Ins Owners0.33%
Ins Owner Change0.29%
Market Cap16.08B
Analysts67.2
Price Target36.62 (11.82%)
Short Float %3.98%
Short Ratio1.08
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)1
Avg EPS beat(2)-52.79%
Min EPS beat(2)-118.47%
Max EPS beat(2)12.89%
EPS beat(4)3
Avg EPS beat(4)-6.07%
Min EPS beat(4)-118.47%
Max EPS beat(4)60.26%
EPS beat(8)7
Avg EPS beat(8)3.43%
EPS beat(12)10
Avg EPS beat(12)2.82%
EPS beat(16)13
Avg EPS beat(16)3.28%
Revenue beat(2)2
Avg Revenue beat(2)7.67%
Min Revenue beat(2)6.45%
Max Revenue beat(2)8.88%
Revenue beat(4)4
Avg Revenue beat(4)7.31%
Min Revenue beat(4)3.26%
Max Revenue beat(4)10.65%
Revenue beat(8)8
Avg Revenue beat(8)7.39%
Revenue beat(12)11
Avg Revenue beat(12)5.64%
Revenue beat(16)14
Avg Revenue beat(16)4.7%
PT rev (1m)-5.28%
PT rev (3m)-52.63%
EPS NQ rev (1m)-9.31%
EPS NQ rev (3m)-109.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-76.3%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)6.24%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)5.69%
Valuation
Industry RankSector Rank
PE 6.35
Fwd PE 9.8
P/S 0.09
P/FCF 14.89
P/OCF 9.3
P/B 0.59
P/tB 3.32
EV/EBITDA 4.2
EPS(TTM)5.16
EY15.76%
EPS(NY)3.34
Fwd EY10.2%
FCF(TTM)2.2
FCFY6.71%
OCF(TTM)3.52
OCFY10.76%
SpS362.82
BVpS55.8
TBVpS9.85
PEG (NY)N/A
PEG (5Y)0.62
Profitability
Industry RankSector Rank
ROA 2.38%
ROE 7.49%
ROCE 4.01%
ROIC 3.05%
ROICexc 4.68%
ROICexgc 15.51%
OM 1.12%
PM (TTM) 1.15%
GM 8.93%
FCFM 0.61%
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-Score5
Asset Turnover2.06
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 16.27
Debt/EBITDA 5.41
Cap/Depr 51.75%
Cap/Sales 0.36%
Interest Coverage 3.03
Cash Conversion 53.35%
Profit Quality 52.58%
Current Ratio 1.1
Quick Ratio 1.1
Altman-Z 2.62
F-Score5
WACC7.44%
ROIC/WACC0.41
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)-27.63%
EPS 3Y11.3%
EPS 5Y10.19%
EPS Q2Q%-106.61%
EPS Next Y-75.76%
EPS Next 2Y-31.41%
EPS Next 3Y-11.09%
EPS Next 5Y6.64%
Revenue 1Y (TTM)12.96%
Revenue growth 3Y8.98%
Revenue growth 5Y16.92%
Sales Q2Q%22.36%
Revenue Next Year17.91%
Revenue Next 2Y8.62%
Revenue Next 3Y6.71%
Revenue Next 5Y4.02%
EBIT growth 1Y-44.37%
EBIT growth 3Y-2%
EBIT growth 5Y8.97%
EBIT Next Year-40.86%
EBIT Next 3Y-1.9%
EBIT Next 5Y13.69%
FCF growth 1Y-85.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-79.78%
OCF growth 3Y-66.79%
OCF growth 5Y-36.43%