CNC:NYE-Centene Corporation (USD)

COMMON STOCK | Healthcare Plans | NYE

Last Closing Price

USD 59.35

Change

+0.05 (+0.08)%

Market Cap

USD 34.48B

Volume

1.95M

Average Target Price

USD 78.44 (+32.16%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

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. 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. The company's 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; staffing services; and services to Military Health System eligible beneficiaries. 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.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-02-24 )

Largest Industry Peers for Healthcare Plans

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
UNH UnitedHealth Group Incorporate..

+2.70 (+0.82%)

USD312.65B 20.56 13.43
CVS CVS Health Corporation

+0.76 (+1.09%)

USD91.32B 12.75 9.45
ANTM Anthem, Inc

+1.21 (+0.40%)

USD74.59B 16.94 N/A
CI Cigna Corporation

+2.27 (+1.07%)

USD74.56B 9.26 N/A
HUM Humana Inc

+3.11 (+0.82%)

USD48.75B 14.95 N/A
MOH Molina Healthcare, Inc

+0.88 (+0.39%)

USD13.06B 20.05 7.93
GTS Triple-S Management Corporatio..

+1.95 (+8.15%)

USD0.56B 10.37 N/A

ETFs Containing CNC

Symbol Name Weight Mer Price(Change) Market Cap
IHF iShares U.S. Healthcare P.. 0.00 % 0.42 %

+2.09 (+0.87%)

USD1.13B
JNKS:LSE SPDR Bloomberg Barclays 0.. 0.00 % 0.40 %

+0.11 (+0.33%)

USD0.13B
SYBK:F SPDR Bloomberg Barclays 0.. 0.00 % 0.30 %

+0.09 (+0.25%)

USD0.16B
SYBK:XETRA SPDR Bloomberg Barclays 0.. 0.00 % 0.30 %

+0.19 (+0.50%)

USD0.16B

Market Performance

  Market Performance vs.
Industry/Classification (Healthcare Plans)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -1.13% 50% F 22% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -1.13% 50% F 21% F
Trailing 12 Months  
Capital Gain 6.08% 13% F 46% F
Dividend Return N/A N/A N/A N/A N/A
Total Return 6.08% 13% F 42% F
Trailing 5 Years  
Capital Gain 311.58% 100% A+ 95% A
Dividend Return N/A N/A N/A N/A N/A
Total Return 311.58% 100% A+ 95% A
Average Annual (5 Year Horizon)  
Capital Gain 44.91% 100% A+ 97% A+
Dividend Return N/A N/A N/A N/A N/A
Total Return 44.91% 100% A+ 97% A+
Risk Return Profile  
Volatility (Standard Deviation) 35.25% 38% F 16% F
Risk Adjusted Return 127.39% 88% B+ 95% A
Market Capitalization 34.48B 38% F 92% A-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Healthcare Plans)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 19.01 38% F 47% F
Price/Book Ratio 1.31 88% B+ 63% D
Price / Cash Flow Ratio 6.27 75% C 56% F
EV/EBITDA 8.01 75% C 77% C+
Management Effectiveness  
Return on Equity 9.28% 25% F 63% D
Return on Invested Capital 6.11% 25% F 60% D-
Return on Assets 4.80% 50% F 79% C+
Debt to Equity Ratio 64.73% 43% F 55% F
Technical Ratios  
Short Ratio 2.21 88% B+ 44% F
Short Percent 1.66% 38% F 72% C-
Beta 0.51 100% A+ 81% B-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.