Centene
Market Cap
US$20.2b
Last Updated
2019/10/22 23:50 UTC
Data Sources
Company Financials +
Executive Summary
Centene Corporation operates as a diversified and multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States.
Snowflake
Fundamentals
Very undervalued with adequate balance sheet.
Similar Companies
Share Price & News
How has Centene's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
7.8%
CNC
3.9%
US Healthcare
0.07%
US Market
1 Year Return
-27.4%
CNC
-6.7%
US Healthcare
8.9%
US Market
Return vs Industry: CNC underperformed the US Healthcare industry which returned -6.7% over the past year.
Return vs Market: CNC underperformed the US Market which returned 8.9% over the past year.
Shareholder returns
| CNC | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.8% | 3.9% | 0.07% |
| 30 Day | 5.1% | 3.5% | -0.3% |
| 90 Day | -9.3% | -0.05% | -1.6% |
| 1 Year | -27.4%-27.4% | -5.1%-6.7% | 11.3%8.9% |
| 3 Year | 49.2%49.2% | 37.0%30.6% | 46.3%36.8% |
| 5 Year | 120.0%120.0% | 61.3%50.4% | 62.1%44.3% |
Price Volatility Vs. Market
How volatile is Centene's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
The Centene (NYSE:CNC) Share Price Is Up 129% And Shareholders Are Boasting About It2 weeks ago | Simply Wall St
Centene (NYSE:CNC) Seems To Use Debt Rather Sparingly4 weeks ago | Simply Wall St
Centene Corporation (NYSE:CNC): Has Recent Earnings Growth Beaten Long-Term Trend?Valuation
Is Centene undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CNC ($48.75) is trading below our estimate of fair value ($110.36)
Significantly Below Fair Value: CNC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CNC is good value based on its PE Ratio (15.7x) compared to the Healthcare industry average (21x).
PE vs Market: CNC is good value based on its PE Ratio (15.7x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: CNC is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: CNC is good value based on its PB Ratio (1.7x) compared to the US Healthcare industry average (2.5x).
Next Steps
Future Growth
How is Centene forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
16.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CNC's forecast earnings growth (16% per year) is above the savings rate (2.7%).
Earnings vs Market: CNC's earnings (16% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: CNC's earnings are forecast to grow, but not significantly.
Revenue vs Market: CNC's revenue (7% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: CNC's revenue (7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CNC's Return on Equity is forecast to be low in 3 years time (14.3%).
Next Steps
Past Performance
How has Centene performed over the past 5 years?
33.9%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: CNC's earnings have grown significantly by 33.9% per year over the past 5 years.
Accelerating Growth: CNC's earnings growth over the past year (18.8%) is below its 5-year average (33.9% per year).
Earnings vs Industry: CNC earnings growth over the past year (18.8%) exceeded the Healthcare industry 5.6%.
Return on Equity
High ROE: CNC's Return on Equity (10.3%) is considered low.
Return on Assets
ROA vs Industry: CNC's Return on Assets is below or equal to the Healthcare industry average last year.
Return on Capital Employed
ROCE Improving: CNC has improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Centene's financial position?
Financial Position Analysis
Short Term Liabilities: CNC's short term assets ($13.6B) exceeds its short term liabilities ($12.7B)
Long Term Liabilities: CNC's short term assets (13.6B) exceeds its long term liabilities (9.4B)
Debt to Equity History and Analysis
Debt Level: CNC's debt to equity ratio (58.3%) is considered high
Reducing Debt: CNC's debt to equity ratio has increased from 55.5% to 58.3% over the past 5 years.
Debt Coverage: CNC's debt is well covered by operating cash flow (30%).
Interest Coverage: CNC's interest payments on its debt are well covered by EBIT (6.4x coverage).
Balance Sheet
Inventory Level: CNC has a low level of unsold assets or inventory.
Debt Coverage by Assets: CNC's debt is covered by short term assets (assets are 1.900200x debt).
Next Steps
Dividend
What is Centene's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate CNC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate CNC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stable Dividend: Insufficient data to determine if CNC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CNC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CNC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of Centene's salary, the management and board of directors tenure and is there insider trading?
5.2yrs
Average management tenure
CEO
Michael Neidorff (76yo)
23.4yrs
Tenure
US$26,122,414
Compensation
Mr. Michael Frederic Neidorff has been Chairman and Chief Executive Officer of Centene Corporation since May 2004 and its President since April 23, 2019. From May 1996 to May 2004, Mr. Neidorff served as P ...
CEO Compensation Analysis
Compensation vs. Market: Michael's total compensation ($USD26.12M) is about average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.
Management Age and Tenure
5.2yrs
Average Tenure
50.5yo
Average Age
Experienced Management: CNC's management team is seasoned and experienced (5.2 years average tenure).
Board Age and Tenure
14.5yrs
Average Tenure
71.5yo
Average Age
Experienced Board: CNC's board of directors are seasoned and experienced ( 14.5 years average tenure).
Insider Trading
Insider Buying: CNC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 2,850 |
| Max Price | US$52.99 |
Ownership Breakdown
Management Team
Michael Neidorff (76yo)
Chairman
- Tenure: 23.4yrs
- Compensation: US$26.12m
Keith Williamson (67yo)
Executive VP
- Tenure: 12.9yrs
- Compensation: US$3.43m
Jesse Hunter (43yo)
Executive VP & Chief Strategy Officer
- Tenure: 6.8yrs
- Compensation: US$6.16m
Ed Kroll (59yo)
Senior Vice President of Finance & Investor Relations
- Tenure: 12.4yrs
Jeff Schwaneke (43yo)
Executive VP
- Tenure: 3.6yrs
- Compensation: US$9.96m
Chris Isaak (52yo)
Senior VP
- Tenure: 3.5yrs
Brandy Burkhalter (46yo)
Executive VP of Operations
- Tenure: 0yrs
- Compensation: US$7.57m
Mark Brooks (49yo)
Executive VP & Chief Information Officer
- Tenure: 3.5yrs
- Compensation: US$4.04m
Shannon Bagley
Senior Vice President of Human Resources
- Tenure: 0yrs
Matthew Snyder
Senior Vice President of Internal Audit
- Tenure: 0.8yrs
Board Members
David Steward (67yo)
Independent Director
- Tenure: 16.4yrs
- Compensation: US$387.06k
Fred Eppinger (60yo)
Independent Director
- Tenure: 13.5yrs
- Compensation: US$359.56k
John Roberts (77yo)
Independent Director
- Tenure: 15.6yrs
- Compensation: US$402.06k
Robert Ditmore (84yo)
Presiding Director
- Tenure: 0yrs
- Compensation: US$402.06k
Michael Neidorff (76yo)
Chairman
- Tenure: 23.4yrs
- Compensation: US$26.12m
Orlando Ayala Lozano (62yo)
Director
- Tenure: 8.1yrs
- Compensation: US$337.06k
Alexander McLean (48yo)
Chairman of University Health Plans
- Tenure: 15yrs
Tommy Thompson (77yo)
Independent Director
- Tenure: 14.5yrs
- Compensation: US$387.06k
Dick Gephardt (78yo)
Independent Director
- Tenure: 12.8yrs
- Compensation: US$362.06k
Jessica Blume (64yo)
Director
- Tenure: 1.7yrs
Company Information
Centene Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Centene Corporation
- Ticker: CNC
- Exchange: NYSE
- Founded: 1984
- Industry: Managed Health Care
- Sector: Healthcare
- Market Cap: US$20.173b
- Shares outstanding: 413.80m
- Website: https://www.centene.com
Number of Employees
Location
- Centene Corporation
- Centene Plaza
- 7700 Forsyth Boulevard
- St. Louis
- Missouri
- 63105
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CNC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 2001 |
| QEN | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 2001 |
| 0HVB | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 2001 |
| CNC * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Dec 2001 |
Biography
Centene Corporation operates as a diversified and multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States. The company’s Man ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/22 23:50 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.