CENTENE CORP (CNC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNC - US15135B1017 - Common Stock
38.535 USD
-0.32 (-0.81%)
CNC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
In the past 5 years CNC has always been profitable.
Each year in the past 5 years CNC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -6.44%, CNC is doing worse than 70.30% of the companies in the same industry.
Looking at the Return On Equity, with a value of -25.25%, CNC is doing worse than 67.33% of the companies in the same industry.
CNC's Return On Invested Capital of 2.05% is in line compared to the rest of the industry. CNC outperforms 44.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNC is below the industry average of 9.22%.
| 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
CNC's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 0.60%, CNC perfoms like the industry average, outperforming 41.58% of the companies in the same industry.
In the last couple of years the Operating Margin of CNC has declined.
CNC has a worse Gross Margin (8.14%) than 77.23% 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
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.
The number of shares outstanding for CNC has been increased compared to 5 years ago.
CNC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.71 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 2.71. This is comparable to the rest of the industry: CNC outperforms 58.42% of its industry peers.
CNC has a debt to FCF ratio of 5.24. This is a neutral value as CNC would need 5.24 years to pay back of all of its debts.
CNC's Debt to FCF ratio of 5.24 is fine compared to the rest of the industry. CNC outperforms 65.35% of its industry peers.
CNC has a Debt/Equity ratio of 0.84. This is a neutral value indicating CNC is somewhat dependend on debt financing.
The Debt to Equity ratio of CNC (0.84) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.27
WACC7.57%
2.3 Liquidity
A Current Ratio of 1.08 indicates that CNC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, CNC is doing worse than 64.36% of the companies in the same industry.
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.
With a Quick ratio value of 1.08, CNC perfoms like the industry average, outperforming 41.58% 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 CNC 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.
The Revenue has grown by 14.92% 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)-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
CNC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.99% yearly.
The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y-74.3%
EPS Next 2Y-36.02%
EPS Next 3Y-15.37%
EPS Next 5Y3.99%
Revenue Next Year18.44%
Revenue Next 2Y9.34%
Revenue Next 3Y6.88%
Revenue Next 5Y4%
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 decreasing.
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
CNC is valuated reasonably with a Price/Earnings ratio of 9.54.
Based on the Price/Earnings ratio, CNC is valued cheaper than 92.08% 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 26.41.
With a Price/Forward Earnings ratio of 13.26, CNC is valued correctly.
Based on the Price/Forward Earnings ratio, CNC is valued cheaper than 82.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CNC to the average of the S&P500 Index (35.40), we can say CNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 13.26 |
4.2 Price Multiples
CNC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNC is cheaper than 87.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CNC is valued cheaply inside the industry as 95.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.64 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
A cheap valuation may be justified as CNC's earnings are expected to decrease with -15.37% in the coming years.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y-36.02%
EPS Next 3Y-15.37%
5. Dividend
5.1 Amount
CNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:CNC (12/5/2025, 9:51:57 AM)
38.535
-0.32 (-0.81%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.21%
Inst Owner Change1.58%
Ins Owners0.33%
Ins Owner Change0.12%
Market Cap18.94B
Revenue(TTM)185.86B
Net Income(TTM)-5.29B
Analysts66.15
Price Target42.26 (9.67%)
Short Float %3.11%
Short Ratio1.47
Dividend
| Industry Rank | Sector 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)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)13.57%
PT rev (3m)14.18%
EPS NQ rev (1m)-28.78%
EPS NQ rev (3m)-25.21%
EPS NY rev (1m)7.61%
EPS NY rev (3m)6.04%
Revenue NQ rev (1m)2.13%
Revenue NQ rev (3m)2.52%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.54 | ||
| Fwd PE | 13.26 | ||
| P/S | 0.1 | ||
| P/FCF | 5.64 | ||
| P/OCF | 4.66 | ||
| P/B | 0.9 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | 6.43 |
EPS(TTM)4.04
EY10.48%
EPS(NY)2.91
Fwd EY7.54%
FCF(TTM)6.83
FCFY17.72%
OCF(TTM)8.27
OCFY21.46%
SpS378.13
BVpS42.62
TBVpS10.73
PEG (NY)N/A
PEG (5Y)0.94
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 | 2.71 |
F-Score4
WACC7.57%
ROIC/WACC0.27
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-74.3%
EPS Next 2Y-36.02%
EPS Next 3Y-15.37%
EPS Next 5Y3.99%
Revenue 1Y (TTM)14.92%
Revenue growth 3Y8.98%
Revenue growth 5Y16.92%
Sales Q2Q%18.24%
Revenue Next Year18.44%
Revenue Next 2Y9.34%
Revenue Next 3Y6.88%
Revenue Next 5Y4%
EBIT growth 1Y-63.26%
EBIT growth 3Y-2%
EBIT growth 5Y8.97%
EBIT Next Year-75.57%
EBIT Next 3Y-9.64%
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.
What is the valuation status of CENTENE CORP (CNC) stock?
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 PE and PB ratios for CNC stock?
The Price/Earnings (PE) ratio for CENTENE CORP (CNC) is 9.54 and the Price/Book (PB) ratio is 0.9.
What is the earnings growth outlook for CENTENE CORP?
The Earnings per Share (EPS) of CENTENE CORP (CNC) is expected to decline by -74.3% in the next year.