CENTENE CORP (CNC) Stock Fundamental Analysis
USA - NYSE:CNC - US15135B1017 - Common Stock
37.56 USD
+0.46 (+1.24%)
37.52 USD
-0.04 (-0.11%)
Taking everything into account, CNC scores 4 out of 10 in our fundamental rating. CNC was compared to 100 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.
In the past 5 years CNC always reported a positive cash flow from operatings.
1.2 Ratios
CNC's Return On Assets of -6.44% is on the low side compared to the rest of the industry. CNC is outperformed by 70.00% of its industry peers.
Looking at the Return On Equity, with a value of -25.25%, CNC is doing worse than 69.00% of the companies in the same industry.
The Return On Invested Capital of CNC (2.05%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CNC is below the industry average of 9.41%.
| 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.
CNC's Operating Margin of 0.60% is on the low side compared to the rest of the industry. CNC is outperformed by 60.00% of its industry peers.
CNC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 8.14%, CNC is doing worse than 77.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CNC has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNC 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.
The debt/assets ratio for CNC is higher compared to a year ago.
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's Altman-Z score of 2.71 is in line compared to the rest of the industry. CNC outperforms 59.00% 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 has a better Debt to FCF ratio (5.24) than 66.00% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that CNC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.84, CNC perfoms like the industry average, outperforming 46.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.26
WACC7.88%
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 67.00% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that CNC should not have too much problems paying its short term obligations.
The Quick ratio of CNC (1.08) is worse than 63.00% of its industry peers.
| 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.
CNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.19% yearly.
The Revenue has grown by 14.92% in the past year. This is quite good.
Measured over the past years, CNC shows a quite strong growth in Revenue. The Revenue has been growing by 16.92% on average per year.
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
The Earnings Per Share is expected to grow by 3.34% on average over the next years.
Based on estimates for the next years, CNC will show a small growth in Revenue. The Revenue will grow by 3.77% on average per year.
EPS Next Y-74.3%
EPS Next 2Y-36.02%
EPS Next 3Y-15.37%
EPS Next 5Y3.34%
Revenue Next Year18.44%
Revenue Next 2Y9.34%
Revenue Next 3Y6.88%
Revenue Next 5Y3.77%
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
CNC is valuated reasonably with a Price/Earnings ratio of 9.30.
94.00% of the companies in the same industry are more expensive than CNC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CNC to the average of the S&P500 Index (26.06), we can say CNC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.92, the valuation of CNC can be described as correct.
CNC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CNC is cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.73. CNC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 12.92 |
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 89.00% of the companies listed 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 96.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.5 | ||
| EV/EBITDA | 6.16 |
4.3 Compensation for Growth
CNC's earnings are expected to decrease with -15.37% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.91
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 |
37.56
+0.46 (+1.24%)
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 Change-1.28%
Ins Owners0.33%
Ins Owner Change0.38%
Market Cap18.45B
Revenue(TTM)185.86B
Net Income(TTM)-5.29B
Analysts66.15
Price Target37.21 (-0.93%)
Short Float %2.8%
Short Ratio1.11
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)2.3%
PT rev (3m)-3.77%
EPS NQ rev (1m)-23.56%
EPS NQ rev (3m)-119.27%
EPS NY rev (1m)9.22%
EPS NY rev (3m)-66.8%
Revenue NQ rev (1m)2.15%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 12.92 | ||
| P/S | 0.1 | ||
| P/FCF | 5.5 | ||
| P/OCF | 4.54 | ||
| P/B | 0.88 | ||
| P/tB | 3.5 | ||
| EV/EBITDA | 6.16 |
EPS(TTM)4.04
EY10.76%
EPS(NY)2.91
Fwd EY7.74%
FCF(TTM)6.83
FCFY18.19%
OCF(TTM)8.27
OCFY22.03%
SpS378.43
BVpS42.65
TBVpS10.74
PEG (NY)N/A
PEG (5Y)0.91
Graham Number62.27
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
WACC7.88%
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-74.3%
EPS Next 2Y-36.02%
EPS Next 3Y-15.37%
EPS Next 5Y3.34%
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 5Y3.77%
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 9.3 and the Price/Book (PB) ratio is 0.88.
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.