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 102 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years CNC has always been profitable.
CNC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CNC has a Return On Assets of 3.97%. This is in the better half of the industry: CNC outperforms 69.61% of its industry peers.
Looking at the Return On Equity, with a value of 12.37%, CNC is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
With a Return On Invested Capital value of 5.54%, CNC perfoms like the industry average, outperforming 59.80% 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 9.13%.
| 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 has a Profit Margin of 2.04%. This is comparable to the rest of the industry: CNC outperforms 59.80% of its industry peers.
CNC's Profit Margin has improved in the last couple of years.
CNC has a Operating Margin (2.14%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CNC has declined.
CNC has a worse Gross Margin (10.27%) than 75.49% 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
CNC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CNC has less shares outstanding
Compared to 5 years ago, CNC has more shares outstanding
Compared to 1 year ago, CNC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.71 indicates that CNC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.71, CNC perfoms like the industry average, outperforming 59.80% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 12.28, CNC is in line with its industry, outperforming 48.04% of the companies in the same industry.
CNC has a Debt/Equity ratio of 0.66. This is a neutral value indicating CNC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, CNC is in line with its industry, outperforming 55.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 12.28 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.79
WACC7.04%
2.3 Liquidity
A Current Ratio of 1.11 indicates that CNC should not have too much problems paying its short term obligations.
CNC's Current ratio of 1.11 is on the low side compared to the rest of the industry. CNC is outperformed by 69.61% of its industry peers.
A Quick Ratio of 1.11 indicates that CNC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, CNC is doing worse than 62.75% of the companies in the same industry.
| 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.
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 8.85% 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)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
The Earnings Per Share is expected to grow by 10.19% on average over the next years. This is quite good.
CNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.71% yearly.
EPS Next Y2.9%
EPS Next 2Y6.49%
EPS Next 3Y8.64%
EPS Next 5Y10.19%
Revenue Next Year7%
Revenue Next 2Y4.63%
Revenue Next 3Y4.41%
Revenue Next 5Y5.71%
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.
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
The Price/Earnings ratio is 7.73, which indicates a rather cheap valuation of CNC.
Based on the Price/Earnings ratio, CNC is valued cheaper than 95.10% of the companies in the same industry.
CNC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.88.
The Price/Forward Earnings ratio is 7.43, which indicates a rather cheap valuation of CNC.
Based on the Price/Forward Earnings ratio, CNC is valued cheaper than 95.10% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, CNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 7.43 |
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 89.22% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNC indicates a somewhat cheap valuation: CNC is cheaper than 64.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.9 | ||
| EV/EBITDA | 5.79 |
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)2.67
PEG (5Y)0.76
EPS Next 2Y6.49%
EPS Next 3Y8.64%
5. Dividend
5.1 Amount
No dividends for CNC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
59.85
+0.59 (+1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners100.19%
Inst Owner Change0.73%
Ins Owners0.16%
Ins Owner Change3.78%
Market Cap29.69B
Analysts71.67
Price Target80.58 (34.64%)
Short Float %2.14%
Short Ratio2.18
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)1.08%
PT rev (3m)1.39%
EPS NQ rev (1m)8.36%
EPS NQ rev (3m)7.47%
EPS NY rev (1m)0.42%
EPS NY rev (3m)2.52%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)3.2%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.73 | ||
| Fwd PE | 7.43 | ||
| P/S | 0.18 | ||
| P/FCF | 19.9 | ||
| P/OCF | 14 | ||
| P/B | 1.06 | ||
| P/tB | 5.8 | ||
| EV/EBITDA | 5.79 |
EPS(TTM)7.74
EY12.93%
EPS(NY)8.05
Fwd EY13.45%
FCF(TTM)3.01
FCFY5.03%
OCF(TTM)4.27
OCFY7.14%
SpS341.26
BVpS56.28
TBVpS10.33
PEG (NY)2.67
PEG (5Y)0.76
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 | 2.71 |
F-Score6
WACC7.04%
ROIC/WACC0.79
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 Y2.9%
EPS Next 2Y6.49%
EPS Next 3Y8.64%
EPS Next 5Y10.19%
Revenue 1Y (TTM)8.85%
Revenue growth 3Y8.98%
Revenue growth 5Y16.92%
Sales Q2Q%15.38%
Revenue Next Year7%
Revenue Next 2Y4.63%
Revenue Next 3Y4.41%
Revenue Next 5Y5.71%
EBIT growth 1Y2.63%
EBIT growth 3Y-2%
EBIT growth 5Y8.97%
EBIT Next Year27.79%
EBIT Next 3Y13.54%
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%