(CNC) Centene - NYSE
Sector: Healthcare | Industry: Healthcare Plans | Exchange: NYSE (USA) | Market Cap: 30.131m USD | Total Return: 21% in 12m
Avg Turnover: 334M
EPS Trend: -76.2%
Qual. Beats: 1
Rev. Trend: 97.5%
Qual. Beats: 13
Warnings
Interest Coverage Ratio -8.5 is critical
Altman Z'' 0.73 < 1.0 - financial distress zone
Tailwinds
Rs Leader, Idiosyncratic Leader, Tailwind
Centene Corporation is a U.S. managed care company that delivers healthcare programs and services primarily to under-insured and low-income families, as well as to commercial clients. The company was founded in 1984 and is headquartered in St. Louis, Missouri. As a managed care organization, Centene contracts with government agencies and employers to arrange healthcare coverage for members, acting as an intermediary between payors and a network of providers in exchange for premiums and capitation payments.
Centene reports its business across four operating segments: Medicaid, Medicare, Commercial, and Other. The Medicaid segment, which is the largest contributor, includes Temporary Assistance for Needy Families (TANF), Medicaid expansion, aged/blind/disabled plans, the Childrens Health Insurance Program (CHIP), long-term services and supports, foster care, and dual Medicare-Medicaid plans.
The Medicare segment offers Special Needs Plans (SNPs), Medicare Supplement (Medigap) policies, and standalone prescription drug plans (Part D). The Commercial segment focuses on the ACA Health Insurance Marketplace, serving both individual purchasers and employer-sponsored group coverage.
The Other segment encompasses Centenes clinical, pharmacy, vision, dental, behavioral health, and centralized administrative services. Across all segments, the company delivers care through contracted networks of primary and specialty care physicians, hospitals, behavioral health practitioners, and ancillary providers.
- Medicaid redeterminations pressure membership and revenue growth
- Medicare star ratings downgrade cuts quality bonus payments
- Marketplace pricing actions restore segment profitability
| Net Income: -6.44b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 6.10 > 1.0 |
| NWC/Revenue: 2.50% < 20% (prev 2.45%; Δ 0.05% < -1%) |
| CFO/TA 0.09 > 3% & CFO 7.18b > Net Income -6.44b |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 1.12 > 1.5 & < 3 |
| Outstanding Shares: last quarter (495.6m) vs 12m ago -0.52% < -2% |
| Gross Margin: 14.93% > 18% (prev 10.27%; Δ 4.66% > 0.5%) |
| Asset Turnover: 235.5% > 50% (prev 194.5%; Δ 41.05% > 0%) |
| Interest Coverage Ratio: -8.49 > 6 (EBIT TTM -5.70b / Interest Expense TTM 672.0m) |
| A: 0.06 (Total Current Assets 45.0b - Total Current Liabilities 40.0b) / Total Assets 81.2b |
| B: 0.13 (Retained Earnings 10.2b / Total Assets 81.2b) |
| C: -0.07 (EBIT TTM -5.70b / Avg Total Assets 84.1b) |
| D: 0.36 (Book Value of Equity 21.4b / Total Liabilities 59.6b) |
| Altman-Z'' = 0.73 = B |
| DSRI: 0.74 (Receivables 19.4b/22.4b, Revenue 198b/169b) |
| GMI: 0.69 (GM 10.27% / 14.93%) |
| AQI: 0.84 (AQ_t 0.42 / AQ_t-1 0.50) |
| SGI: 1.17 (Revenue 198b / 169b) |
| TATA: -0.17 (NI -6.44b - CFO 7.18b) / TA 81.2b) |
| Beneish M = -3.52 (Cap -4..+1) = AAA |
As of June 26, 2026, the stock is trading at USD 64.77 with a total of 2,989,547 shares traded. Over the past week, the price has changed by +6.81%, over one month by +13.21%, over three months by +97.89% and over the past year by +21.04%.
Current recommended Stop Loss: 62.20 (which is 4% or 1.1 ATR below the current price).
Centene has received a consensus analysts rating of 3.89. Therefore, it is recommended to buy CNC.
- StrongBuy: 7
- Buy: 3
- Hold: 9
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 61.4 | -5.3% |
P/E Forward = 17.5439
P/S = 0.169
P/B = 1.4062
P/EG = 1.169
Revenue TTM = 198b USD
EBIT TTM = -5.70b USD
EBITDA TTM = -4.44b USD
Long Term Debt = 16.3b USD (from longTermDebt, last quarter)
Short Term Debt = 63.0m USD (from shortTermDebt, last quarter)
Debt = 17.1b USD (from shortLongTermDebtTotal, last quarter) + Leases 761.0m
Net Debt = -6.61b USD (calculated: Debt 17.1b - CCE 23.7b)
Enterprise Value = 23.5b USD (30.1b + Debt 17.1b - CCE 23.7b)
Interest Coverage Ratio = -8.49 (Ebit TTM -5.70b / Interest Expense TTM 672.0m)
EV/FCF = 3.71x (Enterprise Value 23.5b / FCF TTM 6.35b)
FCF Yield = 26.98% (FCF TTM 6.35b / Enterprise Value 23.5b)
FCF Margin = 3.20% (FCF TTM 6.35b / Revenue TTM 198b)
Net Margin = -3.25% (Net Income TTM -6.44b / Revenue TTM 198b)
Gross Margin = 14.93% ((Revenue TTM 198b - Cost of Revenue TTM 169b) / Revenue TTM)
Gross Margin QoQ = 21.90% (prev 15.18%)
Tobins Q-Ratio = 0.29 (Enterprise Value 23.5b / Total Assets 81.2b)
Interest Expense / Debt = 3.92% (Interest Expense 672.0m / Debt 17.1b)
Taxrate = 26.68% (560.0m / 2.10b)
NOPAT = -4.18b (EBIT -5.70b * (1 - 26.68%)) [loss with tax shield]
Current Ratio = 1.12 (Total Current Assets 45.0b / Total Current Liabilities 40.0b)
Debt / Equity = 0.80 (Debt 17.1b / totalStockholderEquity, last quarter 21.4b)
Debt / EBITDA = 1.49 (negative EBITDA) (Net Debt -6.61b / EBITDA -4.44b)
Debt / FCF = -1.04 (Net Debt -6.61b / FCF TTM 6.35b)
Total Stockholder Equity = 22.4b (last 4 quarters mean from totalStockholderEquity)
RoA = -7.66% (Net Income -6.44b / Total Assets 81.2b)
RoE = -28.72% (Net Income TTM -6.44b / Total Stockholder Equity 22.4b)
RoCE = -14.72% (EBIT -5.70b / Capital Employed (Equity 22.4b + L.T.Debt 16.3b))
RoIC = -13.36% (negative operating profit) (NOPAT -4.18b / Invested Capital 31.3b)
WACC = 5.02% (E(30.1b)/V(47.3b) * Re(6.24%) + D(17.1b)/V(47.3b) * Rd(3.92%) * (1-Tc(0.27)))
Discount Rate = 6.24% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -82.22 | Cagr: -3.55%
[DCF] Terminal Value 77.97% ; FCFF base≈4.40b ; Y1≈5.05b ; Y5≈7.43b
[DCF] Fair Price = 239.8 (EV 112b - Net Debt -6.61b = Equity 118b / Shares 493.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -76.23 | EPS CAGR: -30.77% | SUE: 4.0 | # QB: 1
Revenue Correlation: 97.47 | Revenue CAGR: 11.49% | SUE: 2.15 | # QB: 13
EPS current Quarter (2026-06-30): EPS=1.05 | Chg30d=-0.05% | Revisions=-14% | Analysts=17
EPS next Quarter (2026-09-30): EPS=0.05 | Chg30d=-1.26% | Revisions=-68% | Analysts=17
EPS current Year (2026-12-31): EPS=3.52 | Chg30d=-0.03% | Revisions=+83% | GrowthEPS=+69.1% | GrowthRev=-2.3%
EPS next Year (2027-12-31): EPS=4.46 | Chg30d=-0.13% | Revisions=+83% | GrowthEPS=+26.7% | GrowthRev=+0.2%
[Analyst] Revisions Ratio: +83%