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. CNC has a medium profitability rating, but doesn't score so well on its financial health evaluation. CNC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
In the past 5 years CNC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.97%, CNC is doing good in the industry, outperforming 72.82% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.37%, CNC is in the better half of the industry, outperforming 78.64% of the companies in the same industry.
CNC's Return On Invested Capital of 5.54% is in line compared to the rest of the industry. CNC outperforms 59.22% of its industry peers.
CNC had an Average Return On Invested Capital over the past 3 years of 5.66%. This is below the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 12.37% | ||
| ROIC | 5.54% |
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 of 2.04% is fine compared to the rest of the industry. CNC outperforms 62.14% of its industry peers.
In the last couple of years the Profit Margin of CNC has grown nicely.
Looking at the Operating Margin, with a value of 2.14%, CNC is in line with its industry, outperforming 47.57% of the companies in the same industry.
CNC's Operating Margin has declined in the last couple of years.
CNC has a Gross Margin of 10.27%. This is in the lower half of the industry: CNC underperforms 74.76% of its industry peers.
In the last couple of years the Gross Margin of CNC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.14% | ||
| PM (TTM) | 2.04% | ||
| GM | 10.27% |
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.
CNC has less shares outstanding than it did 1 year ago.
CNC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNC has a worse debt to assets ratio.
2.2 Solvency
CNC has an Altman-Z score of 2.58. 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 (2.58) which is comparable to the rest of the industry.
CNC has a debt to FCF ratio of 12.28. This is a negative value and a sign of low solvency as CNC would need 12.28 years to pay back of all of its debts.
CNC has a Debt to FCF ratio (12.28) which is comparable to the rest of the industry.
CNC has a Debt/Equity ratio of 0.66. This is a neutral value indicating CNC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, CNC perfoms like the industry average, outperforming 56.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 12.28 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.75
WACC7.41%
2.3 Liquidity
CNC has a Current Ratio of 1.11. This is a normal value and indicates that CNC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.11, CNC is doing worse than 67.96% of the companies in the same industry.
CNC has a Quick Ratio of 1.11. This is a normal value and indicates that CNC is financially healthy and should not expect problems in meeting its short term obligations.
CNC has a worse Quick ratio (1.11) than 61.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
CNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.66%, which is quite good.
The Earnings Per Share has been growing by 10.19% on average over the past years. This is quite good.
Looking at the last year, CNC shows a quite strong growth in Revenue. The Revenue has grown by 8.85% in the last year.
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)13.66%
EPS 3Y11.3%
EPS 5Y10.19%
EPS Q2Q%28.32%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y8.98%
Revenue growth 5Y16.92%
Sales Q2Q%15.38%
3.2 Future
CNC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.21% yearly.
The Revenue is expected to grow by 5.52% on average over the next years.
EPS Next Y2.27%
EPS Next 2Y5.89%
EPS Next 3Y8.71%
EPS Next 5Y11.21%
Revenue Next Year11.56%
Revenue Next 2Y5.94%
Revenue Next 3Y5.29%
Revenue Next 5Y5.52%
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 stable.
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 cheaply with a Price/Earnings ratio of 4.30.
Based on the Price/Earnings ratio, CNC is valued cheaply inside the industry as 99.03% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CNC to the average of the S&P500 Index (27.45), we can say CNC is valued rather cheaply.
The Price/Forward Earnings ratio is 4.18, which indicates a rather cheap valuation of CNC.
Based on the Price/Forward Earnings ratio, CNC is valued cheaper than 99.03% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CNC to the average of the S&P500 Index (21.90), we can say CNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.3 | ||
| Fwd PE | 4.18 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNC indicates a rather cheap valuation: CNC is cheaper than 85.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.11 | ||
| EV/EBITDA | 3.1 |
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.
PEG (NY)1.9
PEG (5Y)0.42
EPS Next 2Y5.89%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
No dividends for CNC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.31
-0.47 (-1.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.81%
Inst Owner Change1.07%
Ins Owners0.32%
Ins Owner Change3.63%
Market Cap16.58B
Analysts72.5
Price Target77.31 (132.09%)
Short Float %1.88%
Short Ratio1.84
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)2
Avg EPS beat(2)36.58%
Min EPS beat(2)12.89%
Max EPS beat(2)60.26%
EPS beat(4)4
Avg EPS beat(4)27.42%
Min EPS beat(4)12.89%
Max EPS beat(4)60.26%
EPS beat(8)8
Avg EPS beat(8)18.52%
EPS beat(12)11
Avg EPS beat(12)13.53%
EPS beat(16)13
Avg EPS beat(16)10%
Revenue beat(2)2
Avg Revenue beat(2)4.86%
Min Revenue beat(2)3.26%
Max Revenue beat(2)6.45%
Revenue beat(4)4
Avg Revenue beat(4)7.13%
Min Revenue beat(4)3.26%
Max Revenue beat(4)10.65%
Revenue beat(8)8
Avg Revenue beat(8)6.54%
Revenue beat(12)11
Avg Revenue beat(12)4.9%
Revenue beat(16)14
Avg Revenue beat(16)4.26%
PT rev (1m)-1.69%
PT rev (3m)-3.02%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)-7.69%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.62%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.3 | ||
| Fwd PE | 4.18 | ||
| P/S | 0.1 | ||
| P/FCF | 11.11 | ||
| P/OCF | 7.82 | ||
| P/B | 0.59 | ||
| P/tB | 3.24 | ||
| EV/EBITDA | 3.1 |
EPS(TTM)7.74
EY23.24%
EPS(NY)7.96
Fwd EY23.9%
FCF(TTM)3
FCFY9%
OCF(TTM)4.26
OCFY12.79%
SpS340.2
BVpS56.1
TBVpS10.29
PEG (NY)1.9
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 12.37% | ||
| ROCE | 7.27% | ||
| ROIC | 5.54% | ||
| ROICexc | 8.48% | ||
| ROICexgc | 28.15% | ||
| OM | 2.14% | ||
| PM (TTM) | 2.04% | ||
| GM | 10.27% | ||
| FCFM | 0.88% |
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-Score6
Asset Turnover1.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 12.28 | ||
| Debt/EBITDA | 3.76 | ||
| Cap/Depr | 50.36% | ||
| Cap/Sales | 0.37% | ||
| Interest Coverage | 5.48 | ||
| Cash Conversion | 43.49% | ||
| Profit Quality | 43.21% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.58 |
F-Score6
WACC7.41%
ROIC/WACC0.75
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)13.66%
EPS 3Y11.3%
EPS 5Y10.19%
EPS Q2Q%28.32%
EPS Next Y2.27%
EPS Next 2Y5.89%
EPS Next 3Y8.71%
EPS Next 5Y11.21%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y8.98%
Revenue growth 5Y16.92%
Sales Q2Q%15.38%
Revenue Next Year11.56%
Revenue Next 2Y5.94%
Revenue Next 3Y5.29%
Revenue Next 5Y5.52%
EBIT growth 1Y2.63%
EBIT growth 3Y-2%
EBIT growth 5Y8.97%
EBIT Next Year32.98%
EBIT Next 3Y14.55%
EBIT Next 5Y13.69%
FCF growth 1Y-82.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-77.36%
OCF growth 3Y-66.79%
OCF growth 5Y-36.43%