CNC Stock Analysis: Centene | NYSE
Healthcare Plans | NYSE, USA | Market Cap: 32.120m USD | 12M Return: 125.8% | US15135B1017 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 288M
EPS Trend: -69.5%
Qual. Beats: 2
Rev. Trend: 97.5%
Qual. Beats: -1
Warnings
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
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: -5.10b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 9.55 > 1.0 |
| NWC/Revenue: 3.06% < 20% (prev 2.02%; Δ 1.04% < -1%) |
| CFO/TA 0.12 > 3% & CFO 9.77b > Net Income -5.10b |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 1.15 > 1.5 & < 3 |
| Outstanding Shares: last quarter (497.6m) vs 12m ago 0.83% < -2% |
| Gross Margin: 16.13% > 18% (prev 8.93%; Δ 7.20% > 0.5%) |
| Asset Turnover: 228.7% > 50% (prev 206.3%; Δ 22.47% > 0%) |
| Interest Coverage Ratio: -6.07 > 6 (EBIT TTM -3.98b / Interest Expense TTM 655.0m) |
| A: 0.07 (Total Current Assets 46.7b - Total Current Liabilities 40.8b) / Total Assets 83.0b |
| B: 0.14 (Retained Earnings 11.3b / Total Assets 83.0b) |
| C: -0.05 (EBIT TTM -3.98b / Avg Total Assets 84.7b) |
| D: 0.37 (Book Value of Equity 22.6b / Total Liabilities 60.4b) |
| Altman-Z'' = 0.99 = BB |
| DSRI: 0.77 (Receivables 18.1b/21.6b, Revenue 194b/178b) |
| GMI: 0.55 (GM 8.93% / 16.13%) |
| AQI: 0.81 (AQ_t 0.41 / AQ_t-1 0.51) |
| SGI: 1.09 (Revenue 194b / 178b) |
| TATA: -0.18 (NI -5.10b - CFO 9.77b) / TA 83.0b) |
| Beneish M = -3.69 (Cap -4..+1) = AAA |
As of August 25, 2026, the stock is trading at USD 65.65 with a total of 3,490,745 shares traded. Over the past week, the price has changed by +1.93%, over one month by +3.53%, over three months by +14.75% and over the past year by +125.76%.
Current recommended Stop Loss: 62.70 (which is 4.5% or 1.2 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 | 71.7 | 9.2% |
P/E Forward = 13.089
P/S = 0.1781
P/B = 1.4043
P/EG = 0.8727
Revenue TTM = 194b USD
EBIT TTM = -3.98b USD
EBITDA TTM = -2.89b USD
Long Term Debt = 16.0b USD (from longTermDebt, last quarter)
Short Term Debt = 75.0m USD (from shortTermDebt, last quarter)
Debt = 16.9b USD (from shortLongTermDebtTotal, last quarter) + Leases 761.0m
Net Debt = -10.2b USD (calculated: Debt 16.9b - CCE 27.1b)
Enterprise Value = 21.9b USD (32.1b + Debt 16.9b - CCE 27.1b)
Interest Coverage Ratio = -6.07 (Ebit TTM -3.98b / Interest Expense TTM 655.0m)
EV/FCF = 2.45x (Enterprise Value 21.9b / FCF TTM 8.97b)
FCF Yield = 40.90% (FCF TTM 8.97b / Enterprise Value 21.9b)
FCF Margin = 4.63% (FCF TTM 8.97b / Revenue TTM 194b)
Net Margin = -2.63% (Net Income TTM -5.10b / Revenue TTM 194b)
Gross Margin = 16.13% ((Revenue TTM 194b - Cost of Revenue TTM 162b) / Revenue TTM)
Gross Margin QoQ = 10.40% (prev 21.90%)
Tobins Q-Ratio = 0.26 (Enterprise Value 21.9b / Total Assets 83.0b)
Interest Expense / Debt = 3.88% (Interest Expense 655.0m / Debt 16.9b)
Taxrate = 26.85% (399.0m / 1.49b)
NOPAT = -2.91b (EBIT -3.98b * (1 - 26.85%)) [loss with tax shield]
Current Ratio = 1.15 (Total Current Assets 46.7b / Total Current Liabilities 40.8b)
Debt / Equity = 0.75 (Debt 16.9b / totalStockholderEquity, last quarter 22.6b)
Debt / EBITDA = 3.52 (negative EBITDA) (Net Debt -10.2b / EBITDA -2.89b)
Debt / FCF = -1.14 (Net Debt -10.2b / FCF TTM 8.97b)
Total Stockholder Equity = 21.2b (last 4 quarters mean from totalStockholderEquity)
RoA = -6.02% (Net Income -5.10b / Total Assets 83.0b)
RoE = -24.03% (Net Income TTM -5.10b / Total Stockholder Equity 21.2b)
RoCE = -10.68% (EBIT -3.98b / Capital Employed (Equity 21.2b + L.T.Debt 16.0b))
RoIC = -8.91% (negative operating profit) (NOPAT -2.91b / Invested Capital 32.6b)
WACC = 5.16% (E(32.1b)/V(49.0b) * Re(6.38%) + D(16.9b)/V(49.0b) * Rd(3.88%) * (1-Tc(0.27)))
Discount Rate = 6.38% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -84.17 | Cagr: -3.41%
[DCF] Terminal Value 77.97% ; FCFF base≈5.81b ; Y1≈6.66b ; Y5≈9.81b
[DCF] Fair Price = 319.4 (EV 148b - Net Debt -10.2b = Equity 158b / Shares 494.0m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -69.52 | EPS CAGR: -28.62% | SUE: 3.46 | # QB: 2
Revenue Correlation: 97.53 | Revenue CAGR: 11.52% | SUE: -2.79 | # QB: -1
EPS current Quarter (2026-09-30): EPS=0.10 | Chg30d=+86.81% | Revisions=+42% | Analysts=19
EPS current Year (2026-12-31): EPS=4.89 | Chg30d=+38.74% | Revisions=+86% | GrowthEPS=+134.9% | GrowthRev=+0.6%
EPS next Year (2027-12-31): EPS=5.31 | Chg30d=+18.71% | Revisions=+86% | GrowthEPS=+8.7% | GrowthRev=-1.2%
[Analyst] Revisions Ratio: +81% (up=50, down=4)