CENTENE CORP (CNC) Stock Fundamental Analysis
USA - NYSE:CNC - US15135B1017 - Common Stock
32.75 USD
+0.05 (+0.15%)
32.71 USD
-0.04 (-0.12%)
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.
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.
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 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
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 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 16.27 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.41
WACC7.44%
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 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%.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.35 | ||
| Fwd PE | 9.8 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.89 | ||
| EV/EBITDA | 4.2 |
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%
5. Dividend
5.1 Amount
CNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.75
+0.05 (+0.15%)
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-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 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)-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 Rank | Sector 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 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 | 2.62 |
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%