CENTENE CORP (CNC) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:CNC • US15135B1017

43.32 USD
-0.28 (-0.64%)
At close: Jan 30, 2026
43 USD
-0.32 (-0.74%)
After Hours: 1/30/2026, 5:44:18 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to CNC. CNC was compared to 103 industry peers in the Health Care Providers & Services industry. The financial health of CNC is average, but there are quite some concerns on its profitability. CNC has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

3

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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

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 67.96% of its industry peers.
  • CNC has a worse Return On Equity (-25.25%) than 66.99% of its industry peers.
  • With a Return On Invested Capital value of 2.05%, CNC perfoms like the industry average, outperforming 45.63% of the companies in the same industry.
  • CNC had an Average Return On Invested Capital over the past 3 years of 5.66%. This is below the industry average of 9.16%.
Industry RankSector 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%
CNC Yearly ROA, ROE, ROICCNC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

  • In the last couple of years the Profit Margin of CNC has grown nicely.
  • CNC has a Operating Margin (0.60%) which is in line with its industry peers.
  • In the last couple of years the Operating Margin of CNC has declined.
  • With a Gross Margin value of 8.14%, CNC is not doing good in the industry: 75.73% of the companies in the same industry are doing better.
  • CNC's Gross Margin has declined in the last couple of years.
Industry RankSector 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
CNC Yearly Profit, Operating, Gross MarginsCNC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

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4

2. Health

2.1 Basic Checks

  • CNC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for CNC has been reduced compared to 1 year ago.
  • 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.
CNC Yearly Shares OutstandingCNC Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.2 Solvency

  • An Altman-Z score of 2.74 indicates that CNC is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • CNC's Altman-Z score of 2.74 is fine compared to the rest of the industry. CNC outperforms 61.16% of its industry peers.
  • The Debt to FCF ratio of CNC is 5.24, which is a neutral value as it means it would take CNC, 5.24 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 5.24, CNC is in the better half of the industry, outperforming 65.05% of the companies in the same industry.
  • A Debt/Equity ratio of 0.84 indicates that CNC is somewhat dependend on debt financing.
  • CNC has a Debt to Equity ratio (0.84) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF 5.24
Altman-Z 2.74
ROIC/WACC0.27
WACC7.72%
CNC Yearly LT Debt VS Equity VS FCFCNC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B 25B

2.3 Liquidity

  • CNC has a Current Ratio of 1.08. This is a normal value and indicates that CNC is financially healthy and should not expect problems in meeting its short term obligations.
  • CNC's Current ratio of 1.08 is on the low side compared to the rest of the industry. CNC is outperformed by 64.08% of its industry peers.
  • CNC has a Quick Ratio of 1.08. 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 1.08, CNC is in line with its industry, outperforming 41.75% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 1.08
CNC Yearly Current Assets VS Current LiabilitesCNC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 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 -40.15% 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 14.92% 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)-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

  • Based on estimates for the next years, CNC will show a small growth in Earnings Per Share. The EPS will grow by 3.58% on average per year.
  • The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y-71.03%
EPS Next 2Y-35.17%
EPS Next 3Y-16.55%
EPS Next 5Y3.58%
Revenue Next Year19.67%
Revenue Next 2Y9.49%
Revenue Next 3Y6.47%
Revenue Next 5Y4%

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 decreasing.
  • 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 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 50B 100B 150B 200B
CNC Yearly EPS VS EstimatesCNC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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6

4. Valuation

4.1 Price/Earnings Ratio

  • CNC is valuated reasonably with a Price/Earnings ratio of 10.72.
  • Compared to the rest of the industry, the Price/Earnings ratio of CNC indicates a rather cheap valuation: CNC is cheaper than 87.38% of the companies listed in the same industry.
  • CNC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
  • A Price/Forward Earnings ratio of 14.52 indicates a correct valuation of CNC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CNC indicates a somewhat cheap valuation: CNC is cheaper than 79.61% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. CNC is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 10.72
Fwd PE 14.52
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

  • CNC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNC is cheaper than 81.55% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CNC is valued cheaply inside the industry as 91.26% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.34
EV/EBITDA 7.41
CNC Per share dataCNC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

4.3 Compensation for Growth

  • CNC's earnings are expected to decrease with -16.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-35.17%
EPS Next 3Y-16.55%

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0

5. Dividend

5.1 Amount

  • CNC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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CENTENE CORP / CNC FAQ

Can you provide the ChartMill fundamental rating for CENTENE CORP?

ChartMill assigns a fundamental rating of 4 / 10 to CNC.


Can you provide the valuation status for CENTENE CORP?

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 expected EPS growth for CNC stock?

The Earnings per Share (EPS) of CENTENE CORP (CNC) is expected to decline by -71.03% in the next year.