CNC

CenteneNYSE:CNC Stock Report

Market Cap

US$37.7b

7D

2.3%

1Y

14.9%

Updated

20 Sep, 2021

Data

Company Financials +
CNC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance1/6
Financial Health5/6
Dividends0/6

CNC 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.

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 +/- 4% a week.

Volatility Over Time: CNC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.3%

CNC

-0.9%

US Healthcare

-2.5%

US Market


1 Year Return

14.9%

CNC

34.3%

US Healthcare

33.0%

US Market

Return vs Industry: CNC underperformed the US Healthcare industry which returned 33% over the past year.

Return vs Market: CNC underperformed the US Market which returned 33.8% over the past year.


Shareholder returns

CNCIndustryMarket
7 Day2.3%-0.9%-2.5%
30 Day0.06%-1.8%-0.9%
90 Day-10.9%-3.6%0.8%
1 Year14.9%14.9%35.9%34.3%35.0%33.0%
3 Year-10.0%-10.0%38.0%32.2%57.6%47.9%
5 Year88.9%88.9%108.8%93.0%120.8%96.7%

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

Centene Fundamentals Summary

How do Centene's earnings and revenue compare to its market cap?
CNC fundamental statistics
Market CapUS$37.69b
Earnings (TTM)US$720.00m
Revenue (TTM)US$111.16b

52.1x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNC income statement (TTM)
RevenueUS$111.16b
Cost of RevenueUS$93.32b
Gross ProfitUS$17.84b
ExpensesUS$17.12b
EarningsUS$720.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 26, 2021

Earnings per share (EPS)1.24
Gross Margin16.05%
Net Profit Margin0.65%
Debt/Equity Ratio63.6%

How did CNC perform over the long term?

See historical performance and comparison

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 ($64.35) is trading below our estimate of fair value ($177.67)

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 (52.1x) compared to the US Healthcare industry average (22.6x).

PE vs Market: CNC is poor value based on its PE Ratio (52.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CNC is poor value based on its PEG Ratio (1.2x)


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 (3.4x).


Future Growth

How is Centene forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

42.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNC's forecast earnings growth (42% per year) is above the savings rate (2%).

Earnings vs Market: CNC's earnings (42% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CNC's revenue (4.8% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: CNC's revenue (4.8% 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 (10.5%).


Past Performance

How has Centene performed over the past 5 years?

23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNC has a large one-off loss of $1.6B impacting its June 30 2021 financial results.

Growing Profit Margin: CNC's current net profit margins (0.6%) are lower than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: CNC's earnings have grown significantly by 23.5% 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 (-53.7%) over the past year, making it difficult to compare to the Healthcare industry average (32.2%).


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 ($25.5B) exceed its short term liabilities ($23.6B).

Long Term Liabilities: CNC's short term assets ($25.5B) exceed its long term liabilities ($21.8B).


Debt to Equity History and Analysis

Debt Level: CNC's debt to equity ratio (63.6%) is considered high.

Reducing Debt: CNC's debt to equity ratio has reduced from 79% to 63.6% over the past 5 years.

Debt Coverage: CNC's debt is well covered by operating cash flow (22.6%).

Interest Coverage: CNC's interest payments on its debt are well covered by EBIT (4.9x 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?

1.2yrs

Average management tenure


CEO

Michael Neidorff (78 yo)

25.33yrs

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 ($USD24.96M) is above average for companies of similar size in the US market ($USD11.33M).

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 ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: CNC's board of directors are seasoned and experienced ( 15.1 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 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$37.688b
  • Shares outstanding: 583.04m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 22:26
End of Day Share Price2021/09/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.