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Centene
(NYSE:CNC)
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Rating:57Neutral
Price Target:
$63.00
▲(65.05% Upside)
Action:Reiterated
Date:06/23/26
The score is primarily constrained by weakened financial performance driven by recent losses and negative returns on equity, despite strong revenue scale and improved cash generation. Technicals are supportive with an established uptrend and positive momentum indicators. Valuation is less supportive due to the negative P/E, while the latest earnings call improves the outlook through raised full-year EPS guidance but leaves notable cost-trend and Marketplace visibility risks.
Positive Factors
Government-backed revenue scale
Centene’s large, government-contracted Medicaid/Medicare and Marketplace footprint creates durable, recurring premium flows and scale advantages. That scale supports negotiating leverage with providers, diversified state contracts, and predictable premium receipts that underpin operations and long-term cash stability.
Negative Factors
Recent profitability deterioration
A swing to meaningful net losses and negative returns on equity erodes capital cushions and regulatory surplus over time. Persistent unprofitability would reduce financial flexibility, pressure reserves and capital ratios, and require sustained margin recovery to restore long-term earnings quality and investor confidence.
Read all positive and negative factors
Positive Factors
Negative Factors
Government-backed revenue scale
Centene’s large, government-contracted Medicaid/Medicare and Marketplace footprint creates durable, recurring premium flows and scale advantages. That scale supports negotiating leverage with providers, diversified state contracts, and predictable premium receipts that underpin operations and long-term cash stability.
Read all positive factors
Centene Key Performance Indicators (KPIs)
Any
Revenue by Product
Details income from each product line, offering insight into which offerings are most successful and where there might be opportunities for growth.
Details income from each product line, offering insight into which offerings are most successful and where there might be opportunities for growth.
Data provided by:
The Fly
The FlyCentene (CNC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.75B
Dividend YieldN/A
Average Volume (3M)5.55M
Price to Earnings (P/E)―
Beta (1Y)0.37
Revenue Growth17.02%
EPS Growth-294.77%
CountryUS
Employees61,100
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)-13.12
Shares Outstanding493,797,000
10 Day Avg. Volume6,355,587
30 Day Avg. Volume5,546,709
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.01
Price to Sales (P/S)0.10
P/FCF Ratio4.68
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit0.85
Enterprise Value/Ebitda-5.64
Forecast
1Y Price Target
$60.29Price Target Upside57.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)3.5
Revenue Forecast (FY)$191.12B
Centene Business Overview & Revenue Model
Company Description
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. ...
How the Company Makes Money
Centene makes money primarily by administering health benefits for members enrolled in government-sponsored programs and receiving premium revenue (often referred to as capitation) that is largely funded by federal and state governments (and, for ...
Centene Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong first-quarter execution with an EPS beat, raised full-year EPS outlook, improved Medicaid margins, Medicare outperformance, disciplined SG&A and robust cash generation. These positives were balanced by ongoing elevated medical and specialty pharmacy trends, Marketplace utilization in the Silver tier (with guidance conservatively not reflecting the full potential risk adjustment offset), seasonality that weights earnings toward Q1 and the need to refine assumptions once June Wakely data arrives. Management emphasized operational progress (trend programs, payment integrity, leadership changes) and prudent conservatism in guidance.Positive Updates
Quarterly EPS Beat and Raised Full-Year Outlook
Reported adjusted diluted EPS of $3.37 for Q1 2026, roughly $0.50 above expectations. Increased full-year adjusted EPS guidance to greater than $3.40 (up from greater than $3.00).
Negative Updates
Marketplace Q1 Utilization Pressure in Silver Tier
Q1 Marketplace HBR was slightly higher-than-expected driven by elevated utilization concentrated in Silver members. Management conservatively embedded only a partial risk adjustment receivable in current guidance and assumed a ~3% pretax margin for Marketplace versus prior ~4% assumption (a ~100 basis-point reduction in embedded pretax margin guidance).
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly EPS Beat and Raised Full-Year Outlook
Reported adjusted diluted EPS of $3.37 for Q1 2026, roughly $0.50 above expectations. Increased full-year adjusted EPS guidance to greater than $3.40 (up from greater than $3.00).
Read all positive updates
Company Guidance
Centene raised full‑year adjusted EPS guidance to greater than $3.40 (from >$3) after reporting Q1 adjusted diluted EPS of $3.37 on $44.7B of premium and service revenue; consolidated Q1 HBR was 87.3% with Medicaid HBR 93.1% (12.4M Medicaid members) and Medicare HBR 84.9% (PDP membership ~8.7M), Marketplace membership ~3.58M (Q1 metal mix ~50% Silver, ~35% Bronze; 75% of Silver were renewals) and an embedded Marketplace pretax margin of ~3% (vs prior ~4%); management expects Medicaid net trend in the mid‑4% range and a Medicaid composite rate yield of roughly 4.5%, year‑end Medicaid membership down ~6% YoY, full‑year HBR guidance unchanged at 90.9%–91.7%, consolidated SG&A ratio 7.6% in Q1 (down from 7.9% YoY) with SG&A guidance lowered 10 bps, added $1B of premium revenue to prior range, $50M more investment income, $437M cash available for general use, $1B receivable sale used to repurchase $1B of senior notes leaving debt‑to‑cap at 43.2% (vs 46.5% YE), Q1 cash from operations $4.4B, and medical claims liability of $20.6B (48 days, +2 days); management noted the June Wakely data will be key to refining Marketplace risk adjustment assumptions.Centene Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
52
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 198.10B | 194.78B | 163.07B | 154.00B | 144.55B | 125.98B |
| Gross Profit | 29.57B | 23.83B | 16.83B | 17.32B | 16.66B | 14.20B |
| EBITDA | -4.44B | -5.14B | 6.20B | 5.62B | 4.06B | 3.81B |
| Net Income | -6.44B | -6.67B | 3.31B | 2.70B | 1.20B | 1.35B |
Balance Sheet | ||||||
| Total Assets | 81.17B | 77.66B | 82.44B | 84.64B | 76.87B | 78.38B |
| Cash, Cash Equivalents and Short-Term Investments | 23.74B | 17.89B | 16.68B | 19.65B | 14.39B | 14.66B |
| Total Debt | 16.37B | 18.78B | 19.43B | 18.88B | 21.33B | 22.66B |
| Total Liabilities | 59.65B | 57.60B | 55.94B | 58.69B | 52.63B | 51.35B |
| Stockholders Equity | 21.43B | 19.95B | 26.41B | 25.84B | 24.06B | 26.80B |
Cash Flow | ||||||
| Free Cash Flow | 6.35B | 4.32B | -490.00M | 7.25B | 5.26B | 3.29B |
| Operating Cash Flow | 7.18B | 5.09B | 154.00M | 8.05B | 6.26B | 4.21B |
| Investing Cash Flow | 1.07B | 453.00M | -1.05B | -1.28B | -2.92B | -3.30B |
| Financing Cash Flow | -2.42B | -1.60B | -2.41B | -1.57B | -4.20B | 1.36B |
Centene Technical Analysis
Positive
38.17
Price Trends
58.04
Positive
48.16
Positive
43.40
Positive
Market Momentum
2.18
Positive
67.43
Neutral
83.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNC, the sentiment is Positive. The current price of 38.17 is below the 20-day moving average (MA) of 63.69, below the 50-day MA of 58.04, and below the 200-day MA of 43.40, indicating a bullish trend. The MACD of 2.18 indicates Positive momentum. The RSI at 67.43 is Neutral, neither overbought nor oversold. The STOCH value of 83.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNC.
Centene Risk Analysis
Centene disclosed 34 risk factors in its most recent earnings report. Centene reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Centene Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $73.29B | 11.68 | 15.16% | 2.21% | 9.30% | 30.22% | |
75 Outperform | $90.38B | 17.70 | 11.95% | 1.99% | 9.44% | -8.53% | |
73 Outperform | $9.62B | -83.95 | -3.27% | ― | 31.95% | -180.28% | |
63 Neutral | $49.16B | 43.65 | 6.19% | 1.38% | 14.08% | -33.82% | |
57 Neutral | $33.75B | -5.21 | -28.72% | ― | 17.02% | -294.77% | |
57 Neutral | $12.12B | 68.60 | 4.44% | ― | 7.72% | -83.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CNC
Centene
68.35
34.57
102.34%
CI
Cigna
277.07
-36.38
-11.60%
HUM
Humana
409.42
169.10
70.36%
MOH
Molina Healthcare
232.55
-6.45
-2.70%
ELV
Elevance Health
416.19
73.15
21.32%
OSCR
Oscar Health
31.90
15.28
91.94%
Centene Corporate Events
Business Operations and StrategyExecutive/Board Changes
Centene Adds Veteran Executive Lauren Tyler to Board
Positive
Jun 22, 2026
Centene Corporation announced that effective June 19, 2026, its board expanded from nine to ten members and elected veteran banking and human-capital executive Lauren M. Tyler as a director, with her term running until the 2027 annual meeting. Tyl...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Centene refreshes leadership team and affirms governance direction
Positive
May 15, 2026
On May 12, 2026, Centene’s board confirmed a refreshed senior leadership roster aligned with its core businesses, naming CEO Sarah London, CFO Drew Asher, COO Susan Smith, and General Counsel Christopher Koster among its executive officers, ...
Business Operations and StrategyExecutive/Board Changes
Centene Reshapes Finance Leadership With New Controller
Positive
Mar 24, 2026
Centene’s board has appointed long-time finance executive Theodore Pienkos as Corporate Controller and Chief Accounting Officer, effective March 18, 2026, formalizing a leadership transition in the company’s finance organization. Pienk...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.