Centene (CNC)
NYSE:CNC
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Centene
(NYSE:CNC)
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Rating:64Neutral
Price Target:
$53.00
▲(38.85% Upside)
Action:ReiteratedDate:04/29/26
The score is held back primarily by weak recent profitability and negative ROE despite strong revenue scale and improving cash generation. Support comes from a constructive (but overbought) technical setup, very low P/E valuation, and an earnings call that raised guidance while acknowledging ongoing medical cost and Marketplace risk-adjustment uncertainty.
Positive Factors
Large revenue scale & growth
Centene's massive and growing premium base provides durable scale across Medicaid, Medicare and Marketplace lines. That scale supports stronger provider negotiating leverage, diversified premium streams and the capacity to absorb localized medical cost shocks while pursuing margin recovery over coming quarters.
Negative Factors
Persistently weak profitability & negative ROE
Centene's shift to sizable losses and negative ROE materially weakens earnings quality and equity cushions. If elevated claims and charges persist, the company risks continued margin weakness that can erode capital, limit reinvestment and force further cost or capital-structure actions over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Large revenue scale & growth
Centene's massive and growing premium base provides durable scale across Medicaid, Medicare and Marketplace lines. That scale supports stronger provider negotiating leverage, diversified premium streams and the capacity to absorb localized medical cost shocks while pursuing margin recovery over coming quarters.
Read all positive factors
Centene (CNC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.39B
Dividend YieldN/A
Average Volume (3M)6.65M
Price to Earnings (P/E)2.6
Beta (1Y)0.40
Revenue Growth19.44%
EPS Growth-317.13%
CountryUS
Employees60,400
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)3.37
Shares Outstanding491,772,500
10 Day Avg. Volume4,954,688
30 Day Avg. Volume6,653,140
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 Cap1.01
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit0.73
Enterprise Value/Ebitda-4.24
Forecast
1Y Price Target
$48.60Price Target Upside27.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)3.02
Revenue Forecast (FY)$189.85B
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...
How the Company Makes Money
Centene makes money primarily by administering health benefits for members enrolled in government-sponsored programs and other insurance products. Its core revenue stream is premium revenue: Centene receives a fixed payment (often per member per m...
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 Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 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 | -5.11B | -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
Neutral
38.17
Price Trends
38.31
Negative
40.05
Negative
36.08
Positive
Market Momentum
0.14
Negative
56.37
Neutral
84.03
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNC, the sentiment is Neutral. The current price of 38.17 is above the 20-day moving average (MA) of 35.27, below the 50-day MA of 38.31, and above the 200-day MA of 36.08, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 56.37 is Neutral, neither overbought nor oversold. The STOCH value of 84.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $77.34B | 9.15 | 11.95% | 1.99% | 9.44% | -8.53% | |
71 Outperform | $74.51B | 12.29 | 14.53% | 2.21% | 12.48% | 80.31% | |
64 Neutral | $21.39B | 2.61 | -28.72% | ― | 19.44% | -317.13% | |
64 Neutral | $5.12B | -8.51 | -39.45% | ― | 27.50% | -1091.30% | |
63 Neutral | $26.85B | 25.97 | 6.59% | 1.38% | 10.11% | -1.58% | |
54 Neutral | $9.34B | 121.40 | 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
49.57
-10.28
-17.18%
CI
Cigna
284.92
-48.07
-14.44%
HUM
Humana
229.72
-28.44
-11.02%
MOH
Molina Healthcare
185.46
-141.55
-43.29%
ELV
Elevance Health
362.74
-49.05
-11.91%
OSCR
Oscar Health
18.04
5.03
38.66%
Centene Corporate Events
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...
Business Operations and StrategyFinancial Disclosures
Centene Reaffirms 2026 Outlook and Redeems Debt Notes
Positive
Mar 10, 2026
Centene said it will present at the Barclays 28th Annual Global Healthcare Conference on March 10, 2026, where it expects to reaffirm its 2026 full-year GAAP diluted EPS guidance of more than $1.98 and adjusted diluted EPS of more than $3.00, high...
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.