Centene (CNC) AI Stock Analysis

• Market Cap: $17.75B
• Dividend Yield: N/A
• Average Volume (3M): 11.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: 14.92%
• EPS Growth: -286.72%
• Country: US
• Employees: 60,400
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 0.50
• Shares Outstanding: 491,518,000
• 10 Day Avg. Volume: 13,018,602
• 30 Day Avg. Volume: 11,097,517
• PEG Ratio: 0.35
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -64.51
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 1.76
• Enterprise Value/Ebitda: -12.16
• 1Y Price Target: $39.43
• Price Target Upside: 9.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16
• EPS Forecast (FY): 1.83
• Revenue Forecast (FY): $191.72B

• Rating: 61 Neutral
• Price Target: $39.00 ▲(8.00% Upside)

Centene's overall stock score reflects a combination of mixed financial performance and positive technical and valuation indicators. The most significant factor is the financial performance, which shows challenges in profitability despite positive revenue growth and cash flow improvements. Technical analysis indicates short-term momentum, while valuation suggests the stock may be undervalued. The earnings call provided a positive outlook, but highlighted ongoing challenges that could impact future performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and ability to expand service offerings, supporting long-term business sustainability.

Cash Flow Improvements

Significant free cash flow growth enhances financial flexibility, allowing for reinvestment in business operations and strategic acquisitions.

SG&A Efficiency

Improved SG&A efficiency reflects disciplined cost management, which can lead to better profitability and operational performance over time.

Negative Factors

Profitability Challenges

Negative profitability indicates operational challenges that could affect long-term financial health and shareholder returns if not addressed.

Goodwill Impairment

Significant goodwill impairment suggests potential overvaluation of past acquisitions, impacting future earnings and balance sheet strength.

Medical Cost Pressures

Rising medical costs can erode margins and profitability, posing a risk to financial stability and necessitating strategic cost management.

Centene Business Overview & Revenue Model

Company Description

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. The company's Specialty Services segment provides pharmacy benefits management services; nurse advice line and after-hours support services; vision and dental services, as well as staffing services to correctional systems and other government agencies; 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.

How the Company Makes Money

Centene generates revenue primarily through the provision of healthcare services to government programs such as Medicaid and Medicare. The company earns money by receiving monthly premiums for each member enrolled in its health plans, which are paid by state and federal government agencies. Key revenue streams include Medicaid managed care, Medicare Advantage plans, and the Health Insurance Marketplace. Additionally, Centene benefits from partnerships with various states to administer Medicaid programs and engages in value-based care arrangements that incentivize cost savings and improved health outcomes. The company's growth is also supported by strategic acquisitions that expand its service offerings and member base, enhancing its overall revenue potential.

Centene Financial Statement Overview

Summary

Centene shows strong revenue growth and a stable balance sheet with moderate leverage. However, low operational margins and challenges in cash conversion limit overall profitability.

Income Statement

Centene's TTM (Trailing-Twelve-Months) data shows a robust Gross Profit Margin of 12.5% and a Net Profit Margin of 1.15%. The company demonstrated a strong Revenue Growth Rate of 9.29% from the previous year, indicating healthy expansion. However, the EBIT Margin of 1.07% and EBITDA Margin of 2.25% are relatively low, suggesting limited operational efficiency.

Balance Sheet

Centene's financial leverage is moderate with a Debt-to-Equity Ratio of 0.64. The company has a Return on Equity (ROE) of 7.5%, which is satisfactory but shows room for improvement. The Equity Ratio stands at 31.73%, reflecting a stable capital structure with a reasonable proportion of equity financing.

Cash Flow

The company's Free Cash Flow Growth Rate is positive, recovering from a negative position last year to $1.08 billion. The Operating Cash Flow to Net Income Ratio of 0.84 indicates adequate cash generation relative to net profits. However, the Free Cash Flow to Net Income Ratio of 0.53 suggests potential challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.86B	163.07B	154.00B	144.55B	125.98B	111.11B
Gross Profit	20.01B	16.83B	17.32B	16.66B	14.20B	15.22B
EBITDA	-2.90B	6.20B	5.62B	4.06B	3.81B	4.76B
Net Income	-5.29B	3.31B	2.70B	1.20B	1.35B	1.81B
Balance Sheet
Total Assets	82.09B	82.44B	84.64B	76.87B	78.38B	68.72B
Cash, Cash Equivalents and Short-Term Investments	19.24B	16.68B	19.65B	14.39B	14.66B	12.38B
Total Debt	17.58B	19.43B	18.88B	21.33B	22.66B	18.32B
Total Liabilities	61.03B	55.94B	58.69B	52.63B	51.35B	42.76B
Stockholders Equity	20.95B	26.41B	25.84B	24.06B	26.80B	25.77B
Cash Flow
Free Cash Flow	3.36B	-490.00M	7.25B	5.26B	3.29B	4.63B
Operating Cash Flow	4.06B	154.00M	8.05B	6.26B	4.21B	5.50B
Investing Cash Flow	-86.00M	-1.05B	-1.28B	-2.92B	-3.30B	-6.96B
Financing Cash Flow	-1.45B	-2.41B	-1.57B	-4.20B	1.36B	260.00M

Centene Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 36.11 is above the 20-day moving average (MA) of 35.62, above the 50-day MA of 33.82, and below the 200-day MA of 47.04, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 54.24 is Neutral, neither overbought nor oversold. The STOCH value of 52.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNC.

Centene Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVS	74 Outperform	$99.12B	204.02	0.63%	3.41%	6.71%	-90.11%
HUM	70 Outperform	$33.90B	21.63	9.03%	1.21%	9.88%	-7.25%
CI	69 Neutral	$70.70B	11.68	14.65%	1.93%	16.75%	113.48%
ELV	68 Neutral	$70.37B	12.95	12.61%	1.93%	11.96%	-11.11%
CNC	61 Neutral	$17.75B	―	-21.93%	―	14.92%	-286.72%
MOH	61 Neutral	$7.80B	9.40	19.71%	―	13.71%	-18.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Centene Corporate Events

Centene Corporation Reports Q3 2025 Financial Results

Centene Corporation is a leading healthcare enterprise that provides integrated services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals across the United States. The company offers products to Medicaid and Medicare members, as well as individuals and families served by the Health Insurance Marketplace.

Centene’s Earnings Call: Positive Outlook Amid Challenges

Centene’s recent earnings call conveyed a generally positive sentiment, highlighting strong performance in adjusted EPS and improvements in Medicaid HBR. However, the company also faced challenges, such as a significant goodwill impairment charge and ongoing medical cost pressures in the Marketplace segment.

Centene to Present at Deutsche Bank Healthcare Summit

Centene Corporation announced its participation in the Deutsche Bank 2025 Healthcare Summit on September 11, 2025, where management will discuss the company’s business and financial results through August. The results align with its full-year 2025 forecast of approximately $1.75 adjusted diluted earnings per share. The company emphasizes the use of non-GAAP financial measures to provide investors with a clearer view of its core operations, although it cautions that these measures may differ from those used by other companies.

The most recent analyst rating on (CNC) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Centene stock, see the CNC Stock Forecast page.

Centene Announces Director Resignation Effective August 22

On August 12, 2025, Centene Corporation announced the resignation of Director Thomas R. Greco, effective August 22, 2025, due to his new role as CEO of FleetPride, Inc. This resignation was not due to any disagreements with Centene, and the board will reduce its number of directors to nine following his departure.

The most recent analyst rating on (CNC) stock is a Hold with a $64.00 price target. To see the full list of analyst forecasts on Centene stock, see the CNC Stock Forecast page.

Centene Director Wayne DeVeydt Resigns Effective Immediately

On August 1, 2025, Wayne S. DeVeydt resigned from his position as a director at Centene Corporation, effective immediately. His departure was not due to any disagreements with the company or its board, and following his resignation, the board reduced its size to ten directors.

The most recent analyst rating on (CNC) stock is a Hold with a $64.00 price target. To see the full list of analyst forecasts on Centene stock, see the CNC Stock Forecast page.