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Centene

NYSE:CNC
Snowflake Description

Good value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CNC
NYSE
$20B
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 59 days ago. More info.


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  • Centene has significant price volatility in the past 3 months.
CNC Share Price and Events
7 Day Returns
-8.9%
NYSE:CNC
-5.3%
US Healthcare
0.2%
US Market
1 Year Returns
-12.9%
NYSE:CNC
-5.5%
US Healthcare
6.3%
US Market
CNC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Centene (CNC) -8.9% -17.9% -23.9% -12.9% 54.6% 189.9%
US Healthcare -5.3% -10% -11.9% -5.5% 11.3% 59.5%
US Market 0.2% 2.1% 8.5% 6.3% 37.9% 45.7%
1 Year Return vs Industry and Market
  • CNC underperformed the Healthcare industry which returned -5.5% over the past year.
  • CNC underperformed the Market in United States of America which returned 6.3% 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 8.3%
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 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.71
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.712 (1 + (1- 21%) (34.05%))
0.935
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.935 * 5.96%)
8.3%

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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:CNC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.3%)
2019 1,455.00 Analyst x4 1,343.44
2020 2,015.85 Analyst x4 1,718.57
2021 2,378.78 Analyst x4 1,872.49
2022 2,471.20 Analyst x2 1,796.09
2023 2,614.90 Analyst x1 1,754.81
2024 2,739.82 Est @ 4.78% 1,697.67
2025 2,853.87 Est @ 4.16% 1,632.75
2026 2,960.41 Est @ 3.73% 1,563.84
2027 3,062.02 Est @ 3.43% 1,493.49
2028 3,160.66 Est @ 3.22% 1,423.41
Present value of next 10 years cash flows $16,296.57
NYSE:CNC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $3,160.66 × (1 + 2.73%) ÷ (8.3% – 2.73%)
$58,250.61
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $58,250.61 ÷ (1 + 8.3%)10
$26,233.21
NYSE:CNC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $16,296.57 + $26,233.21
$42,529.78
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $42,529.78 / 413.19
$102.93
NYSE:CNC Discount to Share Price
Calculation Result
Value per share (USD) From above. $102.93
Current discount Discount to share price of $48.20
= -1 x ($48.20 - $102.93) / $102.93
53.2%

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
>50%
Share price is $48.2 vs Future cash flow value of $102.93
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, and at a moderate discount (> 20%).
  • Centene's share price is below the future cash flow value, and 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 (2019-04-18) in USD $48.2
United States of America Healthcare Industry PE Ratio Median Figure of 53 Publicly-Listed Healthcare Companies 20.9x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.15x

* 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)

= 48.2 ÷ 2.31

20.9x

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

  • Centene is good value 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 20.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
18.7%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 40 Publicly-Listed Healthcare Companies 1.48x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.57x

*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

= 20.9x ÷ 18.7%

1.12x

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 (2019-04-18) in USD $48.2
United States of America Healthcare Industry PB Ratio Median Figure of 92 Publicly-Listed Healthcare Companies 2.33x
United States of America Market PB Ratio Median Figure of 5,178 Publicly-Listed Companies 1.91x
NYSE:CNC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 48.2 ÷ 26.47

1.82x

* 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 4/6, 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
18.7%
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 18.7%
NYSE:CNC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 10.2%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*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 (3 months 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 96,893 3,419 2,637 1
2022-12-31 88,202 3,362 2,358 3
2021-12-31 82,736 3,278 2,158 9
2020-12-31 76,958 2,674 1,863 13
2019-12-31 70,755 2,257 1,598 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 45,810 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 37,693 1,851 562
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 by 18.7% yearly, however this is not considered high growth (20% yearly).
  • Centene's revenue is expected to grow by 10.2% 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 (3 months 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 3 months 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 6.14 6.14 6.14 1.00
2022-12-31 5.90 6.24 5.56 2.00
2021-12-31 5.17 5.55 4.94 5.00
2020-12-31 4.17 4.64 2.19 10.00
2019-12-31 3.79 3.98 3.72 11.00
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 1.76
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 3/6, 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 exceeded the US Healthcare industry average in the past year (8.7% vs 7.3%).
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 3 months 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 45,810.00 828.00 4,370.00
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 37,693.00 562.00 3,900.00
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

*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 2/6, 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 3 months 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 6,781.00 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
  • Centene's level of debt (61.5%) 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 61.5% today).
  • Debt is not well covered by operating cash flow (18.2%, 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 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
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 4.00
2020-12-31 0.00 5.00
2019-12-31 0.00 5.00

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 $26,122,414
AGE 75
TENURE AS CEO 22.9 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:

4.7
Average Tenure
49.5
Average Age
  • The tenure for the Centene management team is about average.
Management Team

Michael Neidorff

TITLE
Chairman & CEO
COMPENSATION
$26M
AGE
75
TENURE
22.9 yrs

Jeff Schwaneke

TITLE
Executive VP
COMPENSATION
$10M
AGE
42
TENURE
3.1 yrs

Brandy Burkhalter

TITLE
Executive VP of Operations
COMPENSATION
$8M
AGE
45

Mark Brooks

TITLE
Executive VP & Chief Information Officer
COMPENSATION
$4M
AGE
48
TENURE
3 yrs

Jesse Hunter

TITLE
Executive VP & Chief Strategy Officer
COMPENSATION
$6M
AGE
42
TENURE
6.3 yrs

Christopher Isaak

TITLE
Senior VP
AGE
51
TENURE
3 yrs

Edmund Kroll

TITLE
Senior Vice President
AGE
58
TENURE
11.9 yrs

Keith Williamson

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

Matthew Snyder

TITLE
Senior Vice President of Internal Audit
TENURE
0.3 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:

14
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
$26M
AGE
75
TENURE
14.9 yrs

Alexander McLean

TITLE
Chairman of University Health Plans
AGE
47
TENURE
14.5 yrs

Robert Ditmore

TITLE
Presiding Director
COMPENSATION
$402K
AGE
83

David Steward

TITLE
Director
COMPENSATION
$387K
AGE
66
TENURE
15.9 yrs

Tommy Thompson

TITLE
Director
COMPENSATION
$387K
AGE
76
TENURE
14 yrs

John Roberts

TITLE
Director
COMPENSATION
$402K
AGE
76
TENURE
15.1 yrs

Dick Gephardt

TITLE
Director
COMPENSATION
$362K
AGE
77
TENURE
12.3 yrs

Orlando Lozano

TITLE
Director
COMPENSATION
$337K
AGE
61
TENURE
7.6 yrs

Fred Eppinger

TITLE
Director
COMPENSATION
$360K
AGE
59
TENURE
13 yrs

Jessica Blume

TITLE
Director
COMPENSATION
$698K
AGE
63
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) 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 (NYSE:CNC) Shareholders Have Enjoyed An Impressive 212% Share Price Gain

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Centene achieved compound earnings per share (EPS) growth of 25% per year. … In fact, the share price seems to largely reflect the EPS growth

Simply Wall St -

Here's What Centene Corporation's (NYSE:CNC) P/E Is Telling Us

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Centene Corporation's (NYSE:CNC) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

At US$57.05, Is It Time To Put Centene Corporation (NYSE:CNC) On Your Watch List?

saw significant share price movement during recent months on the NYSE, rising to highs of $65.89 and falling to the lows of $54.55. … 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 -

Does Centene Corporation's (NYSE:CNC) 8.7% Earnings Growth Reflect The Long-Term Trend?

When Centene Corporation (NYSE:CNC) released its most recent earnings update (31 December 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Centene's average earnings over the past couple of years, and its industry performance. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 36%, indicating the rate at which CNC is growing has slowed down

Simply Wall St -

How Financially Strong Is Centene Corporation (NYSE:CNC)?

the key to their continued success lies in its financial health. … Today we will look at Centene’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

Should Centene Corporation (NYSE:CNC) Focus On Improving This Fundamental Metric?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.081 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

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 -

Company Info

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 company’s 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 covers 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, limited over-the-counter drugs, medical equipment, and behavioral health and abuse services. This segment also offers various individual, small group, and large group commercial healthcare products to employers and directly to members in the Managed Care segment. Its Specialty Services segment provides pharmacy benefits management services; health, triage, wellness, and disease management services; and vision and dental, and management 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, 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
$19,915,787,932
413,190,621
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
BMV CNC * Common Stock Bolsa Mexicana de Valores MX MXN 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: 2019/04/19 23:49
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/19
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.