(CNC) Centene - Overview
Sector: Healthcare | Industry: Healthcare Plans | Exchange: NYSE (USA) | Market Cap: 29.203m USD | Total Return: -0.8% in 12m
Avg Turnover: 305M
EPS Trend: -76.2%
Qual. Beats: 1
Rev. Trend: 97.5%
Qual. Beats: 13
Warnings
Interest Coverage Ratio -10.9 is critical
Altman Z'' 0.40 < 1.0 - financial distress zone
Tailwinds
Rs Leader, Idiosyncratic Leader
Centene Corporation (CNC) is a St. Louis-based managed care enterprise specializing in government-sponsored and commercial healthcare programs. The company operates through four primary segments: Medicaid, Medicare, Commercial, and Other, providing coverage to under-insured populations, seniors, and individual marketplace consumers.
The business model relies on a diversified network of primary care physicians, hospitals, and specialty providers to deliver clinical services. As a major player in the Managed Health Care sub-industry, Centenes revenue is heavily influenced by state and federal reimbursement rates for Medicaid and Medicare Advantage programs. This sector typically experiences high regulatory oversight and sensitivity to shifts in government healthcare policy.
Investors can further analyze these regulatory impacts and valuation metrics on ValueRay. Centene also integrates ancillary services such as vision, dental, and behavioral health to manage total cost of care for its members.
- Medicaid redeterminations and eligibility shifts impact total membership levels and revenue
- Managed care margins depend on medical loss ratio management and utilization rates
- Government contract wins and renewals determine long-term Medicaid and Medicare scale
- Federal regulatory changes to Medicare Advantage reimbursement rates affect profitability
- Marketplace expansion success drives growth in the commercial individual insurance segment
| 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 0.10%; Δ 1.48k% > 0.5%) |
| Asset Turnover: 235.5% > 50% (prev 194.5%; Δ 41.05% > 0%) |
| Interest Coverage Ratio: -10.85 > 6 (EBITDA TTM -6.03b / 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: -0.09 (EBIT TTM -7.29b / Avg Total Assets 84.1b) |
| D: 0.17 (Book Value of Equity 10.0b / Total Liabilities 59.6b) |
| Altman-Z'' = 0.40 = B |
| DSRI: 0.74 (Receivables 19.4b/22.4b, Revenue 198b/169b) |
| GMI: 0.69 (GM 14.93% / 10.27%) |
| 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 = -3.67 (Cap -4..+1) = AAA |
As of May 27, 2026, the stock is trading at USD 57.21 with a total of 4,238,492 shares traded.
Over the past week, the price has changed by -1.75%,
over one month by +31.52%,
over three months by +33.26% and
over the past year by -0.76%.
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 | 58.1 | 1.5% |
P/E Forward = 17.0068
P/S = 0.1638
P/B = 1.3629
P/EG = 1.133
Revenue TTM = 198b USD
EBIT TTM = -7.29b USD
EBITDA TTM = -6.03b 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 = 22.6b USD (29.2b + Debt 17.1b - CCE 23.7b)
Interest Coverage Ratio = -10.85 (Ebit TTM -7.29b / Interest Expense TTM 672.0m)
EV/FCF = 3.56x (Enterprise Value 22.6b / FCF TTM 6.35b)
FCF Yield = 28.09% (FCF TTM 6.35b / Enterprise Value 22.6b)
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 = 0.28 (Enterprise Value 22.6b / Total Assets 81.2b)
Interest Expense / Debt = 3.92% (Interest Expense 672.0m / Debt 17.1b)
Taxrate = 26.68% (560.0m / 2.10b)
NOPAT = -5.35b (EBIT -7.29b * (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 = 1.10 (negative EBITDA) (Net Debt -6.61b / EBITDA -6.03b)
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 = -18.82% (EBIT -7.29b / Capital Employed (Equity 22.4b + L.T.Debt 16.3b))
RoIC = -13.22% (negative operating profit) (NOPAT -5.35b / Invested Capital 40.5b)
WACC = 5.29% (E(29.2b)/V(46.3b) * Re(6.71%) + D(17.1b)/V(46.3b) * Rd(3.92%) * (1-Tc(0.27)))
Discount Rate = 6.71% (= 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=-5.98% | Revisions=-14% | Analysts=17
EPS next Quarter (2026-09-30): EPS=0.05 | Chg30d=-76.06% | Revisions=-68% | Analysts=17
EPS current Year (2026-12-31): EPS=3.52 | Chg30d=+16.50% | Revisions=+83% | GrowthEPS=+69.1% | GrowthRev=-2.3%
EPS next Year (2027-12-31): EPS=4.46 | Chg30d=+11.97% | Revisions=+83% | GrowthEPS=+26.7% | GrowthRev=+0.2%
[Analyst] Revisions Ratio: +83%