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CENTENE CORP (CNC) Stock Fundamental Analysis

NYSE:CNC - US15135B1017 - Common Stock

29.795 USD
+0.18 (+0.59%)
Last: 9/3/2025, 11:19:08 AM
Fundamental Rating

4

Taking everything into account, CNC scores 4 out of 10 in our fundamental rating. CNC was compared to 102 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

CNC had positive earnings in the past year.
In the past year CNC had a positive cash flow from operations.
CNC had positive earnings in each of the past 5 years.
CNC had a positive operating cash flow in each of the past 5 years.
CNC Yearly Net Income VS EBIT VS OCF VS FCFCNC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

1.2 Ratios

CNC has a Return On Assets of 2.38%. This is in the better half of the industry: CNC outperforms 61.76% of its industry peers.
CNC has a better Return On Equity (7.49%) than 67.65% 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 9.04%.
Industry RankSector 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%
CNC Yearly ROA, ROE, ROICCNC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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.
CNC has a Operating Margin (1.12%) which is in line with its industry peers.
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 75.49% of its industry peers.
CNC's Gross Margin has declined in the last couple of years.
Industry RankSector 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
CNC Yearly Profit, Operating, Gross MarginsCNC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

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3

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.
The number of shares outstanding for CNC has been increased compared to 5 years ago.
Compared to 1 year ago, CNC has a worse debt to assets ratio.
CNC Yearly Shares OutstandingCNC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
CNC Yearly Total Debt VS Total AssetsCNC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.2 Solvency

An Altman-Z score of 2.60 indicates that CNC is not a great score, but indicates only limited risk for bankruptcy at the moment.
CNC's Altman-Z score of 2.60 is in line compared to the rest of the industry. CNC outperforms 57.84% 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's Debt to FCF ratio of 16.27 is in line compared to the rest of the industry. CNC outperforms 43.14% of its industry peers.
CNC has a Debt/Equity ratio of 0.64. This is a neutral value indicating CNC is somewhat dependend on debt financing.
CNC has a Debt to Equity ratio (0.64) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 16.27
Altman-Z 2.6
ROIC/WACC0.41
WACC7.41%
CNC Yearly LT Debt VS Equity VS FCFCNC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B 25B

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 65.69% of its industry peers.
CNC has a Quick 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.
Looking at the Quick ratio, with a value of 1.10, CNC is doing worse than 60.78% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.1
Quick Ratio 1.1
CNC Yearly Current Assets VS Current LiabilitesCNC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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4

3. Growth

3.1 Past

The earnings per share for CNC have decreased strongly by -27.63% in the last year.
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.
The Revenue has grown by 12.96% in the past year. This is quite good.
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 6.64% 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 4.02% on average per year.
EPS Next Y-75.76%
EPS Next 2Y-31.41%
EPS Next 3Y-11.09%
EPS Next 5Y6.64%
Revenue Next Year17.63%
Revenue Next 2Y8.43%
Revenue Next 3Y6.36%
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.
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.
CNC Yearly Revenue VS EstimatesCNC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 50B 100B 150B 200B
CNC Yearly EPS VS EstimatesCNC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

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7

4. Valuation

4.1 Price/Earnings Ratio

CNC is valuated cheaply with a Price/Earnings ratio of 5.77.
Compared to the rest of the industry, the Price/Earnings ratio of CNC indicates a rather cheap valuation: CNC is cheaper than 99.02% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.90. CNC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.92, the valuation of CNC can be described as reasonable.
Based on the Price/Forward Earnings ratio, CNC is valued cheaper than 90.20% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CNC to the average of the S&P500 Index (22.52), we can say CNC is valued rather cheaply.
Industry RankSector Rank
PE 5.77
Fwd PE 8.92
CNC Price Earnings VS Forward Price EarningsCNC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 96.08% of the companies listed in the same industry.
80.39% of the companies in the same industry are more expensive than CNC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.55
EV/EBITDA 3.72
CNC Per share dataCNC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

4.3 Compensation for Growth

A cheap valuation may be justified as CNC's earnings are expected to decrease with -11.09% in the coming years.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y-31.41%
EPS Next 3Y-11.09%

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0

5. Dividend

5.1 Amount

CNC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CENTENE CORP

NYSE:CNC (9/3/2025, 11:19:08 AM)

29.795

+0.18 (+0.59%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)07-25 2025-07-25/bmo
Earnings (Next)10-23 2025-10-23/amc
Inst Owners100.91%
Inst Owner Change-2.11%
Ins Owners0.33%
Ins Owner Change4.6%
Market Cap14.63B
Analysts67.2
Price Target37.01 (24.22%)
Short Float %4.84%
Short Ratio1.32
Dividend
Industry RankSector 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)-37.68%
PT rev (3m)-52.94%
EPS NQ rev (1m)-129.29%
EPS NQ rev (3m)-107.31%
EPS NY rev (1m)-68.69%
EPS NY rev (3m)-76.33%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)9.99%
Revenue NY rev (1m)2.89%
Revenue NY rev (3m)5.39%
Valuation
Industry RankSector Rank
PE 5.77
Fwd PE 8.92
P/S 0.08
P/FCF 13.55
P/OCF 8.46
P/B 0.53
P/tB 3.02
EV/EBITDA 3.72
EPS(TTM)5.16
EY17.32%
EPS(NY)3.34
Fwd EY11.21%
FCF(TTM)2.2
FCFY7.38%
OCF(TTM)3.52
OCFY11.82%
SpS362.82
BVpS55.8
TBVpS9.85
PEG (NY)N/A
PEG (5Y)0.57
Profitability
Industry RankSector 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 RankSector 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 2.6
F-Score5
WACC7.41%
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 Year17.63%
Revenue Next 2Y8.43%
Revenue Next 3Y6.36%
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%