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Centene

NYSE:CNC
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CNC
NYSE
$26B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

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 last earnings update was 9 days ago. More info.


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CNC Share Price and Events
7 Day Returns
-0.3%
NYSE:CNC
-0.8%
US Healthcare
0.5%
US Market
1 Year Returns
27.7%
NYSE:CNC
9.3%
US Healthcare
2%
US Market
CNC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Centene (CNC) -0.3% 1.8% -6.3% 27.7% 127.8% 315.8%
US Healthcare -0.8% 5.4% -3.6% 9.3% 40.3% 88%
US Market 0.5% 6.3% 1.9% 2% 45.1% 40.5%
1 Year Return vs Industry and Market
  • CNC outperformed the Healthcare industry which returned 9.3% over the past year.
  • CNC outperformed the Market in United States of America which returned 2% over the past year.
Price Volatility
CNC
Industry
5yr Volatility vs Market

Value

 Is Centene undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Centene to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Centene.

NYSE:CNC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CNC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.77
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.768 (1 + (1- 21%) (25.45%))
0.923
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.923 * 7.27%)
9.44%

Discounted Cash Flow Calculation for NYSE:CNC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Centene is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:CNC DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 1,356.67 2,181.78 2,566.76 2,516.50 2,486.00
Source Analyst x3 Analyst x5 Analyst x5 Analyst x2 Analyst x1
Present Value
Discounted (@ 9.44%)
1,239.66 1,821.66 1,958.26 1,754.32 1,583.59
Present value of next 5 years cash flows $8,357.48
NYSE:CNC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $2,486.00 × (1 + 2.73%) ÷ (9.44% – 2.73%)
$38,066.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $38,066.62 ÷ (1 + 9.44%)5
$24,248.50
NYSE:CNC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $8,357.48 + $24,248.50
$32,605.98
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $32,605.98 / 412.48
$79.05
NYSE:CNC Discount to Share Price
Calculation Result
Value per share (USD) From above. $79.05
Current discount Discount to share price of $63.69
= -1 x ($63.69 - $79.05) / $79.05
19.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Centene is available for.
Intrinsic value
19%
Share price is $63.69 vs Future cash flow value of $79.05
Current Discount Checks
For Centene to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Centene's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Centene's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Centene's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Centene's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CNC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.31
NYSE:CNC Share Price ** NYSE (2019-02-13) in USD $63.69
United States of America Healthcare Industry PE Ratio Median Figure of 52 Publicly-Listed Healthcare Companies 21.6x
United States of America Market PE Ratio Median Figure of 3,046 Publicly-Listed Companies 16.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Centene.

NYSE:CNC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CNC Share Price ÷ EPS (both in USD)

= 63.69 ÷ 2.31

27.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Centene is overvalued based on earnings compared to the US Healthcare industry average.
  • Centene is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Centene's expected growth come at a high price?
Raw Data
NYSE:CNC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
22%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 39 Publicly-Listed Healthcare Companies 1.49x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

NYSE:CNC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.62x ÷ 22%

1.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Centene is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Centene's assets?
Raw Data
NYSE:CNC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $26.47
NYSE:CNC Share Price * NYSE (2019-02-13) in USD $63.69
United States of America Healthcare Industry PB Ratio Median Figure of 91 Publicly-Listed Healthcare Companies 2.49x
United States of America Market PB Ratio Median Figure of 5,122 Publicly-Listed Companies 1.81x
NYSE:CNC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CNC Share Price ÷ Book Value per Share (both in USD)

= 63.69 ÷ 26.47

2.41x

* Primary Listing of Centene.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Centene is good value based on assets compared to the US Healthcare industry average.
X
Value checks
We assess Centene's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Centene has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Centene expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Centene expected to grow at an attractive rate?
  • Centene's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Centene's earnings growth is expected to exceed the United States of America market average.
  • Centene's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CNC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CNC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 22%
NYSE:CNC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 10.4%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 16.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CNC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CNC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 94,427 1
2022-12-31 89,764 3,589 2,340 2
2021-12-31 83,295 3,386 2,120 10
2020-12-31 77,088 2,747 1,848 13
2019-12-31 70,828 2,226 1,588 14
NYSE:CNC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 56,688 1,234 900
2018-09-30 52,615 2,318 889
2018-06-30 48,652 1,867 1,075
2018-03-31 47,198 2,087 1,029
2017-12-31 45,807 1,489 828
2017-09-30 44,870 2,631 853
2017-06-30 43,646 3,016 796
2017-03-31 42,468 2,903 713
2016-12-31 37,688 1,851 559
2016-09-30 32,839 460 416
2016-06-30 28,062 40 360
2016-03-31 22,948 809 277

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Centene's earnings are expected to grow significantly at over 20% yearly.
  • Centene's revenue is expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CNC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Centene Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CNC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 6.24 6.24 6.24 1.00
2021-12-31 5.23 5.40 4.94 3.00
2020-12-31 4.40 4.75 4.17 7.00
2019-12-31 3.81 4.20 3.72 10.00
NYSE:CNC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.31
2018-09-30 2.38
2018-06-30 3.01
2018-03-31 2.98
2017-12-31 2.40
2017-09-30 2.48
2017-06-30 2.32
2017-03-31 2.08
2016-12-31 1.75
2016-09-30 1.42
2016-06-30 1.35
2016-03-31 1.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Centene is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Centene's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Centene has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Centene performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Centene's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Centene has delivered over 20% year on year earnings growth in the past 5 years.
  • Centene's 1-year earnings growth is less than its 5-year average (8.7% vs 35.9%)
  • Centene's earnings growth has not exceeded the US Healthcare industry average in the past year (8.7% vs 17.9%).
Earnings and Revenue History
Centene's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Centene Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CNC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 56,688.00 900.00 6,331.00
2018-09-30 52,615.00 889.00 5,844.00
2018-06-30 48,652.00 1,075.00 5,098.00
2018-03-31 47,198.00 1,029.00 4,790.00
2017-12-31 45,807.00 828.00 4,363.00
2017-09-30 44,870.00 853.00 4,211.00
2017-06-30 43,646.00 796.00 4,303.00
2017-03-31 42,468.00 713.00 4,246.00
2016-12-31 37,688.00 559.00 3,814.00
2016-09-30 32,839.00 416.00 3,284.00
2016-06-30 28,062.00 360.00 2,719.00
2016-03-31 22,948.00 277.00 2,152.00
2015-12-31 21,292.00 356.00 1,990.00
2015-09-30 19,854.00 350.00 1,827.00
2015-06-30 18,548.00 339.00 1,699.00
2015-03-31 17,102.00 298.00 1,564.00
2014-12-31 15,689.00 268.00 1,424.00
2014-09-30 14,133.89 209.75 1,300.22
2014-06-30 12,699.91 179.07 1,183.25
2014-03-31 11,474.90 172.36 1,054.70
2013-12-31 10,544.00 161.00 931.00
2013-09-30 9,426.91 208.99 840.62
2013-06-30 8,931.60 162.48 772.66
2013-03-31 8,474.25 87.19 717.27
2012-12-31 7,716.00 89.00 677.00
2012-09-30 7,432.65 22.91 672.26
2012-06-30 6,464.92 48.08 634.12
2012-03-31 5,680.23 111.45 609.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Centene has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Centene used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.
  • Centene's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Centene's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Centene has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Centene's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Centene's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Centene is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Centene's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Centene's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Centene Company Filings, last reported 1 month ago.

NYSE:CNC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 11,023.00 6,686.00 6,064.00
2018-09-30 10,761.00 6,530.00 7,441.00
2018-06-30 10,708.00 6,415.00 7,309.00
2018-03-31 7,588.00 5,296.00 6,175.00
2017-12-31 6,876.00 4,771.00 4,603.00
2017-09-30 6,673.00 4,774.00 4,876.00
2017-06-30 6,528.00 4,773.00 5,011.00
2017-03-31 6,222.00 4,719.00 5,564.00
2016-12-31 6,054.00 4,717.00 4,435.00
2016-09-30 5,872.00 4,589.00 3,388.00
2016-06-30 5,687.00 4,494.00 3,153.00
2016-03-31 5,453.00 4,290.00 3,705.00
2015-12-31 2,324.00 1,223.00 1,936.00
2015-09-30 2,209.00 1,281.00 1,827.00
2015-06-30 2,095.00 1,149.00 2,107.00
2015-03-31 1,992.00 1,130.00 1,817.00
2014-12-31 1,891.00 879.00 1,787.00
2014-09-30 1,781.55 956.10 1,690.59
2014-06-30 1,605.62 891.03 1,327.13
2014-03-31 1,542.86 817.08 1,317.70
2013-12-31 1,243.00 669.00 1,076.00
2013-09-30 1,185.09 520.98 863.91
2013-06-30 1,122.27 551.50 820.04
2013-03-31 986.53 536.15 876.90
2012-12-31 953.77 538.85 884.03
2012-09-30 957.06 395.31 936.54
2012-06-30 947.99 408.76 574.44
2012-03-31 979.12 350.40 559.22
  • Centene's level of debt (60.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (53.8% vs 60.7% today).
  • Debt is not well covered by operating cash flow (18.5%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).
X
Financial health checks
We assess Centene's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Centene has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Centene dividends. Estimated to be 0% next year.
If you bought $2,000 of Centene shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Centene's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Centene's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CNC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CNC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 3.00
2020-12-31 0.00 4.00
2019-12-31 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Centene has not reported any payouts.
  • Unable to verify if Centene's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Centene's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Centene has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Centene's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Centene's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Centene afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Centene has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Centene's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael Neidorff
COMPENSATION $25,259,468
AGE 75
TENURE AS CEO 22.8 years
CEO Bio

Mr. Michael Frederic Neidorff has served as Centene Corporation’s (“Centene”) Chairman and Chief Executive Officer since May 2004. From May 1996 to May 2004, Mr. Neidorff served as President, Chief Executive Officer and as a Member of Centene’s Board of Directors. From 1995 to 1996, Mr. Neidorff served as a Regional Vice President of Coventry Corporation, a publicly-traded managed care organization, and as the President and Chief Executive Officer of one of its subsidiaries, Group Health Plan, Inc. From 1985 to 1995, Mr. Neidorff served as the President and Chief Executive Officer of Physicians Health Plan of Greater St. Louis, a subsidiary of United Healthcare Corp., a publicly-traded managed care organization now known as UnitedHealth Group Incorporated.

CEO Compensation
  • Michael's compensation has been consistent with company performance over the past year.
  • Michael's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Centene management team in years:

2.9
Average Tenure
54.5
Average Age
  • The tenure for the Centene management team is about average.
Management Team

Michael Neidorff

TITLE
Chairman & CEO
COMPENSATION
$25M
AGE
75
TENURE
22.8 yrs

Cindy Brinkley

TITLE
President
COMPENSATION
$6M
AGE
58
TENURE
1.3 yrs

Jeff Schwaneke

TITLE
Executive
COMPENSATION
$6M
AGE
42
TENURE
2.9 yrs

Keith Williamson

TITLE
Executive VP
COMPENSATION
$3M
AGE
66
TENURE
12.3 yrs

Jesse Hunter

TITLE
Executive VP & Chief Strategy Officer
COMPENSATION
$5M
AGE
42
TENURE
6.2 yrs

Christopher Isaak

TITLE
Senior VP
AGE
51
TENURE
2.8 yrs

Mark Brooks

TITLE
Executive VP & Chief Information Officer
AGE
48
TENURE
2.8 yrs

Edmund Kroll

TITLE
Senior Vice President
AGE
58
TENURE
11.8 yrs

Matthew Snyder

TITLE
Senior Vice President of Internal Audit
TENURE
0.2 yrs

Shannon Bagley

TITLE
Senior Vice President of Human Resources
Board of Directors Tenure

Average tenure and age of the Centene board of directors in years:

13.8
Average Tenure
70.5
Average Age
  • The average tenure for the Centene board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Michael Neidorff

TITLE
Chairman & CEO
COMPENSATION
$25M
AGE
75
TENURE
14.8 yrs

Alexander McLean

TITLE
Chairman of University Health Plans
AGE
47
TENURE
14.3 yrs

Robert Ditmore

TITLE
Presiding Director
COMPENSATION
$410K
AGE
83

David Steward

TITLE
Director
COMPENSATION
$369K
AGE
66
TENURE
15.8 yrs

Tommy Thompson

TITLE
Director
COMPENSATION
$396K
AGE
76
TENURE
13.8 yrs

John Roberts

TITLE
Director
COMPENSATION
$415K
AGE
76
TENURE
14.9 yrs

Dick Gephardt

TITLE
Director
COMPENSATION
$394K
AGE
77
TENURE
12.2 yrs

Orlando Lozano

TITLE
Director
COMPENSATION
$350K
AGE
61
TENURE
7.4 yrs

Fred Eppinger

TITLE
Director
COMPENSATION
$383K
AGE
59
TENURE
12.8 yrs

Jessica Blume

TITLE
Director
AGE
63
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Jun 18 Sell Keith Williamson Individual 11. Jun 18 11. Jun 18 -4,000 $60.00 $-240,000
04. May 18 Sell Keith Williamson Individual 02. May 18 02. May 18 -2,000 $57.50 $-115,000
28. Apr 18 Sell Keith Williamson Individual 27. Apr 18 27. Apr 18 -2,000 $55.00 $-110,000
X
Management checks
We assess Centene's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Centene has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Centene Corporation (NYSE:CNC): Immense Growth Potential?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … Centene Corporation's (NYSE:CNC) most recent earnings announcement in December 2018a

Simply Wall St -

Centene Corporation’s (NYSE:CNC) Investment Returns Are Lagging Its Industry

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Is Centene Corporation (NYSE:CNC) Overpaying Its CEO?

In 1996 Michael Neidorff was appointed CEO of Centene Corporation (NYSE:CNC). … First, this article will compare CEO compensation with compensation at other large companies. … How Does Michael Neidorff's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is There An Opportunity With Centene Corporation's (NYSE:CNC) 38.41% Undervaluation?

by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Is It Time To Consider Buying Centene Corporation (NYSE:CNC)?

saw significant share price movement during recent months on the NYSE, rising to highs of $146.83 and falling to the lows of $109.09. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … Let’s take a look at Centene’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

What Does Centene Corporation's (NYSE:CNC) P/E Ratio Tell You?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Centene has a price to earnings ratio of 26.81, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

How Much Are Centene Corporation (NYSE:CNC) Insiders Taking Off The Table?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … In the last twelve months, the biggest single sale by an insider was when Executive VP Keith Williamson sold US$240k worth of shares at a price of US$120 per share. … As a general rule we consider it to be discouraging when insiders are selling below the current price

Simply Wall St -

Is Centene Corporation's (NYSE:CNC) Balance Sheet Strong Enough To Weather A Storm?

Risk-averse investors who are attracted to diversified streams of revenue and strong capital returns tend to seek out these large companies. … the health of the financials determines whether the company continues to succeed. … This article will examine Centene’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth.

Simply Wall St -

How Does Centene Corporation's (NYSE:CNC) Earnings Growth Stack Up Against The Industry?

Below, I will assess CNC's latest performance announced on 30 September 2018 and weigh these figures against its longer term trend and industry movements. … CNC's trailing twelve-month earnings (from 30 September 2018) of US$889m has. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 37%, indicating the rate at which CNC is growing has slowed down

Simply Wall St -

A Closer Look At Centene Corporation's (NYSE:CNC) Uninspiring ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.081. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Map
Description

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. It operates through two segments, Managed Care and Specialty Services. The Managed Care segment offers health plan coverage to individuals through government subsidized programs, including Medicaid, the State children’s health insurance program, long-term care, foster care, and dual eligible individual, 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 services, home-based primary care, transportation assistance, vision care, dental care, immunizations, prescriptions and limited over-the-counter drugs, specialty pharmacy, therapies, social work services, and care coordination. The Specialty Services segment provides pharmacy benefits management services; health, triage, wellness, and disease management services; vision and dental services; correctional healthcare services; home based primary care services; and integrated long-term care services, as well as care management software that automate the clinical, administrative, and technical components of care management programs. This segment offers its services and products to state programs, correctional facilities, healthcare organizations, employer groups, military service members and their families, and other commercial organizations. The company provides its services through primary and specialty care physicians, hospitals, and ancillary providers. Centene Corporation was founded in 1984 and is headquartered in St. Louis, Missouri.

Details
Name: Centene Corporation
CNC
Exchange: NYSE
Founded: 1984
$26,270,723,820
412,478,000
Website: http://www.centene.com
Address: Centene Corporation
Centene Plaza,
7700 Forsyth Boulevard,
St. Louis,
Missouri, 63105,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CNC Common Stock New York Stock Exchange US USD 13. Dec 2001
DB QEN Common Stock Deutsche Boerse AG DE EUR 13. Dec 2001
LSE 0HVB Common Stock London Stock Exchange GB USD 13. Dec 2001
Number of employees
Current staff
Staff numbers
47,300
Centene employees.
Industry
Managed Health Care
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/14 00:01
End of day share price update: 2019/02/13 00:00
Last estimates confirmation: 2019/02/11
Last earnings filing: 2019/02/05
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.