Centene Corp (CNC)
UndervaluedFundamental
44
Price
$62.12
Market Cap
$30.89B
Part 1 · What the company is worth
Overview
Centene Corporation operates as a managed care company that provides programs and services to under-insured families, and commercial organizations in the United States. It operates through four segments: Medicaid, Medicare, Commercial, and Other. The Medicaid segment offers the temporary assistance for needy families; medicaid expansion; aged, blind, or disabled; and children's health insurance programs, as well as long-term services and supports; foster care; and medicare-medicaid plans. This segment also provides healthcare products and services. The Medicare segment offers special needs and medicare supplement, and prescription drug plans. The Commercial segment provides health insurance marketplace product for individual and commercial group. The Other segment operates clinical healthcare and pharmacies, as well as offers vision and dental, behavioral health, and centralized services. It provides services through primary and specialty care physicians, hospitals, behavioral health practitioners, and ancillary providers. The company was founded in 1984 and is headquartered in Saint Louis, Missouri.
No editorial profile for this company yet
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
Elevance is the second-largest Medicaid managed care operator after Centene and also sells marketplace plans under its Anthem brands, so the two compete for the same state contracts and the same individual enrollees.
UnitedHealth's community and state business is one of the Big Five Medicaid plans and it has the widest ACA marketplace footprint of any insurer, overlapping Centene's Medicaid and Ambetter lines in most states.
Through Aetna, CVS Health is one of the five largest Medicaid managed care companies and a direct rival in Medicare Advantage and dual-eligible plans, the same government-funded members Centene serves.
Humana competes with Centene's Wellcare brand for Medicare Advantage and Part D members and bids for the same state Medicaid contracts, though it is far more concentrated on seniors.
Molina is Centene's closest business twin: both build their revenue on state Medicaid contracts and ACA marketplace plans for low-income members, and they bid against each other in the same state procurements.
Oscar sells almost exclusively ACA marketplace plans in twenty states and is the main challenger to Ambetter, Centene's individual-exchange brand.
Balance Sheet & Liquidity
Revenue
$178.66B
Trailing 12 months (through 6/30/2026)
Net Income
$-5.10B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$4.32B
Total Equity
$19.95B
Total Liabilities
$56.69B
Current Ratio
1.15
Interest Coverage
8.61
Debt/EBITDA
-
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$152.99
Current Price
$62.12
Margin of Safety
+59.4%
Fair Value Range
$99.44 - $206.54
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
-
ROE
-33.4%
P/B Ratio
1.36
P/FCF
3.43
Gross Margin
9.1%
ROIC
-10.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
-10.5%
WACC
8.0%
ROIC − WACC
-18.6 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (11)
- Price CAGR 8.92%
- P/FCF 3.43
- P/B Ratio 1.36
- Debt/Equity ratio
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Revenue Growth 5Y 24.5%
- Earnings Surprise avg 161.0%
- Share Dilution -5.8%
Failed (11)
- EPS shows upward trend
- ROIC -10.5%
- Gross Margin 9.1%
- Operating Margin -3.2%
- Return on Tangible Assets
- Low reliance on intangibles
- DCF valuation (Fairly valued)
- ROE -24.0%
- Analyst Consensus 44% Buy
- Net Margin Trend -2.9% vs 1.3%
- Piotroski F-Score 4/9
Unavailable (5)
- Dividend Payout NaN%
- Debt/EBITDA
- Price below Graham Number
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Low quality: investigate accounting
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Ms. Sarah M. London | CEO & Director | 44 |
| Mr. Andrew Lynn Asher | Executive VP & CFO | 56 |
| Ms. Susan R. Smith | Chief Operating Officer | 49 |
| Mr. Christopher Andrew Koster | Executive VP, General Counsel & Secretary | 60 |
| Ms. Tanya M. McNally | Senior VP & Chief People Officer | 51 |
| Mr. Theodore Joseph Pienkos | Corporate Controller & Chief Accounting Officer | 43 |
| Mr. Bradley Bolivar | Chief Information Officer | - |
| Ms. Jennifer Lynch Gilligan | Senior Vice President of Investor Relations | - |
| Ms. Ashlee Knuckey | Chief Risk, Ethics & Compliance Officer | - |
| Ms. Cary D. Hobbs | Executive VP & Chief of Staff | 57 |
Audit Risk
2
Board Risk
2
Compensation Risk
5
Shareholder Rights Risk
1
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-17
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-28
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-16
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for CNC, sourced from Markets Gazette.
- 7/28/2026POSITIVECentene Boosts Guidance, Reports Favorable Medical Costs
Centene Corporation has raised its annual profit guidance, signaling strong performance in the second quarter. The health insurer's improved outlook comes amid expectations that it can successfully navigate evolving government policies impacting the sector. This upward revision suggests robust operational execution and potentially better-than-anticipated medical cost management, which are key drivers for profitability in the health insurance industry. Investors will likely view this as a positive indicator of the company's resilience and future earnings potential.
- 6/18/2026NEUTRALIf You Invested $100 In Centene Stock 20 Years Ago, You Would Have This Much Today
An investment of $100 in Centene Corporation (CNC) stock twenty years ago would have yielded a significant return, though the exact figure is not provided in this summary. The article likely details the historical performance of Centene, a major managed care organization, over the past two decades. Investors considering Centene should analyze its long-term growth trajectory, market position within the healthcare sector, and any significant strategic shifts or regulatory challenges it has faced during this period to understand the drivers of its past performance and future potential.
- 6/16/2026NEGATIVEMembership Slump Forces Health Giant Centene Into Staff Buyouts: Report
Centene Corporation is implementing a significant cost-cutting initiative, offering voluntary buyouts to employees due to a notable decline in health plan enrollment. This move signals financial pressure and a strategic pivot to reduce operational expenses. Investors should monitor the effectiveness of these cost-saving measures and the company's ability to stabilize or grow its membership base in the coming quarters. The success of this plan will be crucial for future profitability and stock performance.
- 3/25/2026NEUTRALThe youngest-ever female Fortune 500 CEO is reinventing the largest Medicaid insurer amid funding cuts and rising costs
The article highlights the leadership of the youngest-ever female CEO at a Fortune 500 company, who is navigating Centene Corporation, a major Medicaid insurer, through a challenging environment of funding cuts and rising healthcare costs. While the article focuses on the CEO's strategic initiatives and the company's resilience, it does not provide specific financial performance data or forward-looking guidance that would directly impact stock valuation. Investors will be watching for how these strategies translate into tangible financial results in upcoming quarters.
- 3/15/2026NEGATIVECentene, Paramount Skydance, And Ulta Beauty Are Among Top 10 Large Cap Losers Last Week (March 9-March 13): Are the Others in Your Portfolio?
Centene Corporation was among the top 10 large-cap decliners last week, with its stock price falling significantly. The broader market saw healthcare, media, beauty, and tech stocks leading the downturn. This decline was attributed to a combination of factors including earnings misses, weak forward-looking guidance provided by companies, downward analyst revisions, and challenging financing conditions. Investors are advised to monitor these headwinds closely as they impact sentiment and stock performance across various sectors.
- 3/10/2026NEGATIVEObamacare enrollment is plunging as costs soar, pushing down stocks like Centene
Centene Corporation's stock is facing pressure as enrollment in the Affordable Care Act (ACA), also known as Obamacare, plummets. Soaring costs associated with the ACA are making health insurance plans less attractive, leading to a decline in policyholders. This trend directly impacts health insurers like Centene, which derive a significant portion of their revenue from ACA-compliant plans. The decrease in enrollment suggests lower premium revenues and potentially higher per-member costs for insurers, signaling a challenging financial outlook for the company and potentially others in the managed care sector.
via Markets Gazette