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CNC

CenteneNYSE:CNC Stock Report

Last Price

US$76.37

Market Cap

US$44.6b

7D

-2.9%

1Y

27.1%

Updated

26 Jan, 2022

Data

Company Financials +
CNC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance1/6
Financial Health6/6
Dividends0/6

CNC Stock Overview

Centene Corporation operates as a multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States.

Centene Competitors

UnitedHealth Group

NYSE:UNH

US$430.3b

Anthem

NYSE:ANTM

US$106.6b

Humana

NYSE:HUM

US$48.2b

Molina Healthcare

NYSE:MOH

US$15.8b

Price History & Performance

Summary of all time highs, changes and price drops for Centene
Historical stock prices
Current Share PriceUS$76.37
52 Week HighUS$85.44
52 Week LowUS$57.16
Beta0.54
1 Month Change-9.86%
3 Month Change8.25%
1 Year Change27.07%
3 Year Change19.43%
5 Year Change141.41%
Change since IPO5,228.13%

Recent News & Updates

Dec 31

Centene: Finally Gets Respect And Is Poised To Profit

Centene has an impressive track record of growth, outperforming the S&P 500 over the past 5 and 10 years. It continues to demonstrate strong growth. Plus, demographic tailwinds and the pending Magellan Health acquisition should fuel growth. Meanwhile, management is driving margin expansion and the stock still appears to be undervalued.

Dec 13
Is Centene (NYSE:CNC) A Risky Investment?

Is Centene (NYSE:CNC) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

CNCUS HealthcareUS Market
7D-2.9%-1.9%-5.1%
1Y27.1%13.6%3.3%

Return vs Industry: CNC exceeded the US Healthcare industry which returned 14.5% over the past year.

Return vs Market: CNC exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is CNC's price volatile compared to industry and market?
CNC volatility
CNC Average Weekly Movement4.3%
Healthcare Industry Average Movement8.1%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

Stable Share Price: CNC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CNC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198471,300Michael Neidorffhttps://www.centene.com

Centene Corporation operates as a multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States. Its Managed Care segment offers health plan coverage to individuals through government subsidized programs, including Medicaid, the State children’s health insurance program, long-term services and support, foster care, and medicare-medicaid plans, which cover dually eligible individuals, as well as aged, blind, or disabled programs. Its health plans include primary and specialty physician care, inpatient and outpatient hospital care, emergency and urgent care, prenatal care, laboratory and X-ray, home-based primary care, transportation assistance, vision care, dental care, telehealth, immunization, specialty pharmacy, therapy, social work, nurse advisory, and care coordination services, as well as prescriptions and limited over-the-counter drugs, medical equipment, and behavioral health and abuse services.

Centene Fundamentals Summary

How do Centene's earnings and revenue compare to its market cap?
CNC fundamental statistics
Market CapUS$44.56b
Earnings (TTM)US$736.00m
Revenue (TTM)US$114.13b

60.5x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNC income statement (TTM)
RevenueUS$114.13b
Cost of RevenueUS$95.82b
Gross ProfitUS$18.32b
ExpensesUS$17.58b
EarningsUS$736.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 08, 2022

Earnings per share (EPS)1.26
Gross Margin16.05%
Net Profit Margin0.64%
Debt/Equity Ratio68.8%

How did CNC perform over the long term?

See historical performance and comparison

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 ($76.37) is trading below our estimate of fair value ($187.5)

Significantly Below Fair Value: CNC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CNC is poor value based on its PE Ratio (60.5x) compared to the US Healthcare industry average (21.1x).

PE vs Market: CNC is poor value based on its PE Ratio (60.5x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: CNC is poor value based on its PEG Ratio (2.4x)


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 (2.6x).


Future Growth

How is Centene forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNC's forecast earnings growth (25.1% per year) is above the savings rate (2%).

Earnings vs Market: CNC's earnings (25.1% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CNC's revenue (5% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: CNC's revenue (5% 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 (11.7%).


Past Performance

How has Centene performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNC has a large one-off loss of $1.5B impacting its September 30 2021 financial results.

Growing Profit Margin: CNC's current net profit margins (0.6%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: CNC's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: CNC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CNC had negative earnings growth (-63.7%) over the past year, making it difficult to compare to the Healthcare industry average (32.5%).


Return on Equity

High ROE: CNC's Return on Equity (2.7%) is considered low.


Financial Health

How is Centene's financial position?


Financial Position Analysis

Short Term Liabilities: CNC's short term assets ($28.1B) exceed its short term liabilities ($25.0B).

Long Term Liabilities: CNC's short term assets ($28.1B) exceed its long term liabilities ($26.0B).


Debt to Equity History and Analysis

Debt Level: CNC's net debt to equity ratio (12.8%) is considered satisfactory.

Reducing Debt: CNC's debt to equity ratio has reduced from 78.1% to 68.8% over the past 5 years.

Debt Coverage: CNC's debt is well covered by operating cash flow (35.5%).

Interest Coverage: CNC's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Dividend

What is Centene current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CNC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CNC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Michael Neidorff (78 yo)

25.67yrs

Tenure

US$24,956,777

Compensation

Mr. Michael Frederic Neidorff has been Chairman of Centene Corporation since May 2004 and has been its Chief Executive Officer since May 4, 1996 and Director since May 1996 and served as its President unti...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD24.96M) is above average for companies of similar size in the US market ($USD11.47M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CNC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: CNC's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Centene Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Centene Corporation
  • Ticker: CNC
  • Exchange: NYSE
  • Founded: 1984
  • Industry: Managed Health Care
  • Sector: Healthcare
  • Implied Market Cap: US$44.562b
  • Shares outstanding: 583.50m
  • Website: https://www.centene.com

Number of Employees


Location

  • Centene Corporation
  • Centene Plaza
  • 7700 Forsyth Boulevard
  • St. Louis
  • Missouri
  • 63105
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 00:51
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.