NYSE:CNC

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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


Snowflake Analysis

Undervalued with solid 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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CNC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-6.2%

CNC

-2.1%

US Healthcare

-1.0%

US Market


1 Year Return

-0.9%

CNC

14.2%

US Healthcare

19.6%

US Market

Return vs Industry: CNC underperformed the US Healthcare industry which returned 14.2% over the past year.

Return vs Market: CNC underperformed the US Market which returned 19.6% over the past year.


Shareholder returns

CNCIndustryMarket
7 Day-6.2%-2.1%-1.0%
30 Day4.6%5.6%2.3%
90 Day-2.6%14.3%13.1%
1 Year-0.9%-0.9%15.6%14.2%22.3%19.6%
3 Year15.6%15.6%32.7%27.1%45.3%35.7%
5 Year102.9%102.9%92.3%78.5%124.8%99.8%

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

Valuation

Is Centene undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CNC ($63.99) is trading below our estimate of fair value ($154.54)

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 (16.7x) compared to the US Healthcare industry average (29.8x).

PE vs Market: CNC is good value based on its PE Ratio (16.7x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: CNC is poor value based on its PEG Ratio (1x)


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 (3.5x).


Next Steps

Future Growth

How is Centene forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNC's forecast earnings growth (15.9% per year) is above the savings rate (2%).

Earnings vs Market: CNC's earnings (15.9% per year) are forecast to grow slower than the US market (21.5% per year).

High Growth Earnings: CNC's earnings are forecast to grow, but not significantly.

Revenue vs Market: CNC's revenue (5.7% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: CNC's revenue (5.7% 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 (10.2%).


Next Steps

Past Performance

How has Centene performed over the past 5 years?

29.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNC has high quality earnings.

Growing Profit Margin: CNC's current net profit margins (2.1%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: CNC's earnings have grown significantly by 29% per year over the past 5 years.

Accelerating Growth: CNC's earnings growth over the past year (50%) exceeds its 5-year average (29% per year).

Earnings vs Industry: CNC earnings growth over the past year (50%) exceeded the Healthcare industry 21.4%.


Return on Equity

High ROE: CNC's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is Centene's financial position?


Financial Position Analysis

Short Term Liabilities: CNC's short term assets ($27.3B) exceed its short term liabilities ($21.8B).

Long Term Liabilities: CNC's short term assets ($27.3B) exceed its long term liabilities ($20.7B).


Debt to Equity History and Analysis

Debt Level: CNC's debt to equity ratio (64.5%) is considered high.

Reducing Debt: CNC's debt to equity ratio has increased from 57.9% to 64.5% over the past 5 years.

Debt Coverage: CNC's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: CNC's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Next Steps

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?

4.8yrs

Average management tenure


CEO

Michael Neidorff (77 yo)

24.67yrs

Tenure

US$26,438,425

Compensation

Mr. Michael Frederic Neidorff has been Chairman and Chief Executive Officer of Centene Corporation since May 2004 and its President since April 23, 2019. From May 1996 to May 2004, Mr. Neidorff served as P...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD26.44M) is above average for companies of similar size in the US market ($USD10.56M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Neidorff
Chairman24.67yrsUS$26.44m1.11%
$ 412.3m
Jeffrey Schwaneke
Executive VP4.83yrsUS$9.43m0.023%
$ 8.6m
Brandy Burkhalter
Executive VP & COOno dataUS$8.64m0.025%
$ 9.2m
Mark Brooks
Executive VP & Chief Information Officer4.75yrsUS$4.41m0.0092%
$ 3.4m
Jesse Hunter
Executive VP of Mergers & Acquisitions and Chief Strategy Officer8.08yrsUS$6.12m0.059%
$ 21.9m
Christopher Isaak
Senior VP4.75yrsno data0.0040%
$ 1.5m
Jennifer Gilligan
Senior Vice President of Investor Relations0.75yrno datano data
Christopher Koster
Senior VP0.92yrno data0.0058%
$ 2.1m
Matthew Snyder
Senior Vice President of Internal Audit2.08yrsno datano data
Patrick Rooney
Senior VP of Health Plans6.67yrsno datano data
Cary Hobbs
Executive VP & Chief of Staff17yrsno datano data
H. Sanders
Executive Vice President of Human Resourcesno datano datano data

4.8yrs

Average Tenure

51yo

Average Age

Experienced Management: CNC's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Neidorff
Chairman24.67yrsUS$26.44m1.11%
$ 412.3m
David Steward
Independent Director17.67yrsUS$347.92k0.0023%
$ 842.2k
William Trubeck
Director1yrno data0.015%
$ 5.6m
Frederick Eppinger
Independent Director14.75yrsUS$332.92k0%
$ 0
John Roberts
Independent Director16.83yrsUS$362.92k0.066%
$ 24.4m
Robert Ditmore
Independent Presiding Directorno dataUS$352.92k0.090%
$ 33.3m
Orlando Ayala Lozano
Independent Director9.33yrsUS$297.92k0.024%
$ 8.9m
Thomas Thompson
Independent Director15.75yrsUS$342.92k0.049%
$ 18.0m
Richard Gephardt
Independent Director14.08yrsUS$322.92k0.010%
$ 3.9m
H. Dallas
Director1yrno data0.0037%
$ 1.4m
Jessica Blume
Director2.92yrsUS$305.37k0.0017%
$ 638.1k
Lori Robinson
Director1.25yrsUS$287.63k0.00095%
$ 352.5k

14.1yrs

Average Tenure

70.5yo

Average Age

Experienced Board: CNC's board of directors are seasoned and experienced ( 14.1 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 been diluted in the past year, with total shares outstanding growing by 40.1%.


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$37.101b
  • Shares outstanding: 579.80m
  • Website: https://www.centene.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNCNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2001
QENDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2001
0HVBLSE (London Stock Exchange)YesCommon StockGBUSDDec 2001
CNC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 2001
QENETLX (Eurotlx)YesCommon StockITEURDec 2001
C1NC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 23:22
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.