Centene
Market Cap
US$36.3b
Last Updated
2021/04/13 22:09 UTC
Data Sources
Company Financials +
Executive Summary
Centene Corporation operates as a multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with proven track record.
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
Stable Share Price: CNC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: CNC's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-0.7%
CNC
1.2%
US Healthcare
1.3%
US Market
1 Year Return
-6.3%
CNC
37.4%
US Healthcare
53.9%
US Market
Return vs Industry: CNC underperformed the US Healthcare industry which returned 37.4% over the past year.
Return vs Market: CNC underperformed the US Market which returned 53.9% over the past year.
Shareholder returns
| CNC | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.7% | 1.2% | 1.3% |
| 30 Day | -1.1% | 2.4% | 2.8% |
| 90 Day | -6.4% | 3.9% | 6.6% |
| 1 Year | -6.3%-6.3% | 39.2%37.4% | 56.6%53.9% |
| 3 Year | 11.0%11.0% | 48.9%42.7% | 62.7%52.3% |
| 5 Year | 110.4%110.4% | 87.3%73.3% | 120.5%95.9% |
Long-Term 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
2 weeks ago | Simply Wall St
Did Business Growth Power Centene's (NYSE:CNC) Share Price Gain of 114%?1 month ago | Simply Wall St
The Independent Presiding Director of Centene Corporation (NYSE:CNC), Robert Ditmore, Just Bought A Few More Shares2 months ago | Simply Wall St
If You Like EPS Growth Then Check Out Centene (NYSE:CNC) Before It's Too LateValuation
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 ($62.23) is trading below our estimate of fair value ($150.51)
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 (19.6x) compared to the US Healthcare industry average (24.6x).
PE vs Market: CNC is good value based on its PE Ratio (19.6x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: CNC is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: CNC is good value based on its PB Ratio (1.4x) compared to the US Healthcare industry average (3.7x).
Future Growth
How is Centene forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
14.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CNC's forecast earnings growth (14.6% per year) is above the savings rate (2%).
Earnings vs Market: CNC's earnings (14.6% per year) are forecast to grow slower than the US market (18.5% per year).
High Growth Earnings: CNC's earnings are forecast to grow, but not significantly.
Revenue vs Market: CNC's revenue (6.2% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: CNC's revenue (6.2% 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%).
Past Performance
How has Centene performed over the past 5 years?
28.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CNC has high quality earnings.
Growing Profit Margin: CNC's current net profit margins (1.7%) are lower than last year (1.9%).
Past Earnings Growth Analysis
Earnings Trend: CNC's earnings have grown significantly by 28.6% per year over the past 5 years.
Accelerating Growth: CNC's earnings growth over the past year (37.4%) exceeds its 5-year average (28.6% per year).
Earnings vs Industry: CNC earnings growth over the past year (37.4%) exceeded the Healthcare industry 20.5%.
Return on Equity
High ROE: CNC's Return on Equity (6.9%) is considered low.
Financial Health
How is Centene's financial position?
Financial Position Analysis
Short Term Liabilities: CNC's short term assets ($23.4B) exceed its short term liabilities ($21.6B).
Long Term Liabilities: CNC's short term assets ($23.4B) exceed its long term liabilities ($21.2B).
Debt to Equity History and Analysis
Debt Level: CNC's debt to equity ratio (64%) is considered high.
Reducing Debt: CNC's debt to equity ratio has increased from 53.9% to 64% over the past 5 years.
Debt Coverage: CNC's debt is well covered by operating cash flow (33.1%).
Interest Coverage: CNC's interest payments on its debt are well covered by EBIT (5.6x 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?
2.3yrs
Average management tenure
CEO
Michael Neidorff (77 yo)
24.92yrs
Tenure
US$24,956,777
Compensation
Mr. Michael Frederic Neidorff has been Chairman of Centene Corporation since May 2004 and has been its President, Chief Executive Officer since May 4, 1996 and Director since May 1996. From 1995 to 1996, M...
CEO Compensation Analysis
Compensation vs Market: Michael's total compensation ($USD24.96M) is above average for companies of similar size in the US market ($USD10.98M).
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 considered experienced (2.3 years average tenure).
Board Members
Experienced Board: CNC's board of directors are seasoned and experienced ( 14.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CNC 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 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$36.309b
- Shares outstanding: 581.59m
- Website: https://www.centene.com
Number of Employees
Location
- Centene Corporation
- Centene Plaza
- 7700 Forsyth Boulevard
- St. Louis
- Missouri
- 63105
- United States
Listings
Biography
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 h...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/13 22:09 |
| End of Day Share Price | 2021/04/13 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.