| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 1/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$76.37 |
| 52 Week High | US$85.44 |
| 52 Week Low | US$57.16 |
| Beta | 0.54 |
| 1 Month Change | -9.86% |
| 3 Month Change | 8.25% |
| 1 Year Change | 27.07% |
| 3 Year Change | 19.43% |
| 5 Year Change | 141.41% |
| Change since IPO | 5,228.13% |
Recent News & Updates
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.
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
| CNC | US Healthcare | US Market | |
|---|---|---|---|
| 7D | -2.9% | -1.9% | -5.1% |
| 1Y | 27.1% | 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
| CNC volatility | |
|---|---|
| CNC Average Weekly Movement | 4.3% |
| Healthcare Industry Average Movement | 8.1% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.4% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1984 | 71,300 | Michael Neidorff | https://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
| CNC fundamental statistics | |
|---|---|
| Market Cap | US$44.56b |
| Earnings (TTM) | US$736.00m |
| Revenue (TTM) | US$114.13b |
60.5x
P/E Ratio0.4x
P/S RatioIs CNC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CNC income statement (TTM) | |
|---|---|
| Revenue | US$114.13b |
| Cost of Revenue | US$95.82b |
| Gross Profit | US$18.32b |
| Expenses | US$17.58b |
| Earnings | US$736.00m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 08, 2022
| Earnings per share (EPS) | 1.26 |
| Gross Margin | 16.05% |
| Net Profit Margin | 0.64% |
| Debt/Equity Ratio | 68.8% |
How did CNC perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/26 00:51 |
| End of Day Share Price | 2022/01/25 00:00 |
| Earnings | 2021/09/30 |
| 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.