CENTENE CORP (CNC)
US15135B1017 - Common Stock
CNC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 117 industry peers in the Health Care Providers & Services industry. CNC has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on CNC. This makes CNC very considerable for value investing!
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.
CNC had positive earnings in each of the past 5 years.
Each year in the past 5 years CNC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.19%, CNC is doing good in the industry, outperforming 71.55% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.46%, CNC is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
CNC has a better Return On Invested Capital (5.13%) than 64.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNC is below the industry average of 8.62%.
The last Return On Invested Capital (5.13%) for CNC is above the 3 year average (5.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 10.46% | ||
| ROIC | 5.13% |
ROA(3y)2.16%
ROA(5y)2.47%
ROE(3y)6.83%
ROE(5y)7.6%
ROIC(3y)5.02%
ROIC(5y)4.53%
1.3 Margins
Looking at the Profit Margin, with a value of 1.75%, CNC is in the better half of the industry, outperforming 66.38% of the companies in the same industry.
In the last couple of years the Profit Margin of CNC has grown nicely.
CNC has a Operating Margin of 2.34%. This is comparable to the rest of the industry: CNC outperforms 56.03% of its industry peers.
In the last couple of years the Operating Margin of CNC has declined.
CNC has a Gross Margin of 11.24%. This is in the lower half of the industry: CNC underperforms 77.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.34% | ||
| PM (TTM) | 1.75% | ||
| GM | 11.24% |
OM growth 3Y-11.34%
OM growth 5Y-5.61%
PM growth 3Y2.54%
PM growth 5Y3.22%
GM growth 3YN/A
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.
CNC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CNC has more shares outstanding
Compared to 1 year ago, CNC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.63 indicates that CNC is not a great score, but indicates only limited risk for bankruptcy at the moment.
CNC has a better Altman-Z score (2.63) than 68.97% of its industry peers.
CNC has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as CNC would need 2.47 years to pay back of all of its debts.
CNC has a Debt to FCF ratio of 2.47. This is amongst the best in the industry. CNC outperforms 82.76% of its industry peers.
CNC has a Debt/Equity ratio of 0.69. This is a neutral value indicating CNC is somewhat dependend on debt financing.
CNC's Debt to Equity ratio of 0.69 is in line compared to the rest of the industry. CNC outperforms 50.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for CNC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.71
WACC7.22%
2.3 Liquidity
A Current Ratio of 1.11 indicates that CNC should not have too much problems paying its short term obligations.
The Current ratio of CNC (1.11) is worse than 69.83% of its industry peers.
A Quick Ratio of 1.11 indicates that CNC should not have too much problems paying its short term obligations.
The Quick ratio of CNC (1.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.63% over the past year.
Measured over the past years, CNC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.28% on average per year.
The Revenue has been growing slightly by 6.54% in the past year.
CNC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.70% yearly.
EPS 1Y (TTM)15.63%
EPS 3Y10.17%
EPS 5Y13.28%
EPS growth Q2Q-47.67%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.49%
Revenue growth 5Y20.7%
Revenue growth Q2Q10.96%
3.2 Future
The Earnings Per Share is expected to grow by 9.92% on average over the next years. This is quite good.
CNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.51% yearly.
EPS Next Y2.77%
EPS Next 2Y7.23%
EPS Next 3Y8.97%
EPS Next 5Y9.92%
Revenue Next Year-2.68%
Revenue Next 2Y0.89%
Revenue Next 3Y2.49%
Revenue Next 5Y4.51%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CNC is valuated reasonably with a Price/Earnings ratio of 11.35.
CNC's Price/Earnings ratio is rather cheap when compared to the industry. CNC is cheaper than 92.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.95. CNC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.04, the valuation of CNC can be described as reasonable.
Based on the Price/Forward Earnings ratio, CNC is valued cheaply inside the industry as 92.24% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CNC to the average of the S&P500 Index (21.40), we can say CNC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 11.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNC indicates a rather cheap valuation: CNC is cheaper than 90.52% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CNC is valued cheaper than 94.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.61 | ||
| EV/EBITDA | 7.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CNC may justify a higher PE ratio.
PEG (NY)4.1
PEG (5Y)0.85
EPS Next 2Y7.23%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
CNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CENTENE CORP
NYSE:CNC (4/22/2024, 7:04:00 PM)
After market: 75.58 0 (0%)75.58
+0.43 (+0.57%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 11.04 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.1
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 10.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.34% | ||
| PM (TTM) | 1.75% | ||
| GM | 11.24% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.63%
EPS 3Y10.17%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.49%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y