CENTENE CORP (CNC) Stock Fundamental Analysis
NYSE:CNC - New York Stock Exchange, Inc. - US15135B1017 - Common Stock - Currency: USD
Overall CNC gets a fundamental rating of 4 out of 10. We evaluated CNC against 103 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of CNC while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on CNC.
1. Profitability
1.1 Basic Checks
In the past year CNC was profitable.
In the past year CNC had a positive cash flow from operations.
Each year in the past 5 years CNC has been profitable.
CNC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.38%, CNC is doing good in the industry, outperforming 60.19% of the companies in the same industry.
With a decent Return On Equity value of 7.49%, CNC is doing good in the industry, outperforming 67.96% of the companies in the same industry.
With a Return On Invested Capital value of 3.05%, CNC perfoms like the industry average, outperforming 46.60% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNC is below the industry average of 9.38%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of CNC (1.15%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CNC has grown nicely.
With a Operating Margin value of 1.12%, CNC perfoms like the industry average, outperforming 44.66% of the companies in the same 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 76.70% of its industry peers.
CNC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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
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.
CNC has a worse debt/assets ratio than last year.
2.2 Solvency
CNC has an Altman-Z score of 2.59. This is not the best score and indicates that CNC is in the grey zone with still only limited risk for bankruptcy at the moment.
CNC has a Altman-Z score (2.59) which is comparable to the rest of the industry.
The Debt to FCF ratio of CNC is 16.27, which is on the high side as it means it would take CNC, 16.27 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 16.27, CNC perfoms like the industry average, outperforming 41.75% of the companies in the same 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 56.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 16.27 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.45
WACC6.71%
2.3 Liquidity
A Current Ratio of 1.10 indicates that CNC should not have too much problems paying its short term obligations.
CNC's Current ratio of 1.10 is on the low side compared to the rest of the industry. CNC is outperformed by 66.02% of its industry peers.
A Quick Ratio of 1.10 indicates that CNC should not have too much problems paying its short term obligations.
CNC's Quick ratio of 1.10 is on the low side compared to the rest of the industry. CNC is outperformed by 60.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
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%.
CNC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.19% yearly.
Looking at the last year, CNC shows a quite strong growth in Revenue. The Revenue has grown by 12.96% in the last year.
The Revenue has been growing by 16.92% on average over the past years. This is quite good.
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 11.21% on average over the next years. This is quite good.
Based on estimates for the next years, CNC will show a small growth in Revenue. The Revenue will grow by 5.52% on average per year.
EPS Next Y-22.57%
EPS Next 2Y-3.12%
EPS Next 3Y1.62%
EPS Next 5Y11.21%
Revenue Next Year14.32%
Revenue Next 2Y7.1%
Revenue Next 3Y5.5%
Revenue Next 5Y5.52%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.22, the valuation of CNC can be described as very cheap.
Based on the Price/Earnings ratio, CNC is valued cheaply inside the industry as 98.06% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.73. CNC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 4.04, which indicates a rather cheap valuation of CNC.
Based on the Price/Forward Earnings ratio, CNC is valued cheaper than 98.06% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.61, CNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.22 | ||
| Fwd PE | 4.04 |
4.2 Price Multiples
99.03% of the companies in the same industry are more expensive than CNC, based on the Enterprise Value to EBITDA ratio.
83.50% of the companies in the same industry are more expensive than CNC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.25 | ||
| EV/EBITDA | 3.2 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y-3.12%
EPS Next 3Y1.62%
5. Dividend
5.1 Amount
CNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:CNC (8/13/2025, 3:34:09 PM)
26.935
+0.76 (+2.92%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.91%
Inst Owner Change-0.56%
Ins Owners0.33%
Ins Owner Change4.48%
Market Cap13.23B
Analysts67.2
Price Target38.66 (43.53%)
Short Float %2.71%
Short Ratio1.02
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)-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)-49.99%
PT rev (3m)-50.83%
EPS NQ rev (1m)-66.33%
EPS NQ rev (3m)-79.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-24.75%
Revenue NQ rev (1m)7.13%
Revenue NQ rev (3m)10.66%
Revenue NY rev (1m)2.4%
Revenue NY rev (3m)2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.22 | ||
| Fwd PE | 4.04 | ||
| P/S | 0.07 | ||
| P/FCF | 12.25 | ||
| P/OCF | 7.65 | ||
| P/B | 0.48 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 3.2 |
EPS(TTM)5.16
EY19.16%
EPS(NY)6.66
Fwd EY24.74%
FCF(TTM)2.2
FCFY8.16%
OCF(TTM)3.52
OCFY13.08%
SpS362.82
BVpS55.8
TBVpS9.85
PEG (NY)N/A
PEG (5Y)0.51
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.59 |
F-Score5
WACC6.71%
ROIC/WACC0.45
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-22.57%
EPS Next 2Y-3.12%
EPS Next 3Y1.62%
EPS Next 5Y11.21%
Revenue 1Y (TTM)12.96%
Revenue growth 3Y8.98%
Revenue growth 5Y16.92%
Sales Q2Q%22.36%
Revenue Next Year14.32%
Revenue Next 2Y7.1%
Revenue Next 3Y5.5%
Revenue Next 5Y5.52%
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%