Centene Corp

Health Care
Medical Specialities
www.centene.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $29.81B
PE 10
Debt $17.61B
Cash $14.65B
EV $32.77B
FCF $245.00M

Earnings

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Sales & Net Margins

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Earnings	$3.06B
EBIT	$3.93B
ROE	11%
ROA	5%
FCF	$245.00M
Equity	$27.40B
Growth Stability	81%
PE	9.76
PEG	0.47
PB	1.09
P/FCF	121.69
P/S	0.18
Price/Cash	0.49
Debt/Equity	0.64
Debt/FCF	71.86
Net Margins	2%
Gross Margins	11%
Op. Margins	2%
Earnings CAGR	23%
Sales Growth YoY	10%
Sales Growth QoQ	5%
Sales CAGR	24%
FCF CAGR	24%
Equity CAGR	33%
Earnings Stability	0.75
Earnings Growth YoY	50%
Earnings Growth QoQ	-38%

Earnings CAGR 5Y	21%
Sales CAGR 5Y	15%
FCF CAGR 5Y	6%
Equity CAGR 5Y	5%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	-43%
Equity CAGR 3Y	1%
Market Cap	$29.81B
Revenue	$161.73B
Assets	$82.35B
Total Debt	$17.61B
Cash	$14.65B
Shares Outstanding	510.08M
EV	32.77B
Earnings Score	92%
Moat Score	71%
Safety Score	70%
Final Score	78%
Working Capital	3.35B
Current Ratio	1.1
Gross Profit	$17.01B
Shares Growth 3y	-5%
Equity Growth QoQ	-0%
Equity Growth YoY	8%

Assets & ROA

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Stockholders Equity & ROE

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Centene is a managed-care organization focused on government-sponsored healthcare plans, including Medicaid, Medicare, and the individual exchanges. Centene served 22 million medical members as of September 2021, mostly in Medicaid (68% of membership), the individual exchanges (10%), Medicare Advantage (6%), and the balance in Tricare (West region), correctional facility, and international plans. The company also serves 4 million users through the Medicare Part D pharmaceutical program.

SEC Filings

Direct access to Centene Corp (CNC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Centene Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Centene Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 23%

Stability 75%

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Centene Corp Discounted Cash Flow

Fully customizable DCF calculator online for Centene Corp.

Years

Calculation mode

= $13B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$245M	$305M	$379M	$471M	$585M	$728M	$905M	$1.1B	$1.4B	$1.7B	$2.2B	$22B
DCF		$277M	$313M	$354M	$400M	$452M	$511M	$577M	$652M	$737M	$833M	$8.3B
Value	$13B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	2%	2%	1%	2%	1%	2%	2%	1%	1%	2%	2%
ROA	-	10%	7%	6%	6%	5%	5%	2%	3%	4%	5%
ROE	-	16%	9%	12%	8%	10%	7%	5%	5%	10%	11%

Bad Net Margins (2.47%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	2.42	3.1	4.53	12.32	18.52	3.66	5.86	3.47	2.49	71.86
Debt over Equity	0.51	0.57	0.81	0.7	0.63	1.1	0.66	0.72	0.76	0.7	0.64
Growth Stability	-	-	-	100%	100%	100%	100%	100%	81%	100%	81%

Bad Debt/FCF ratio (71.86)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.64)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (81%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	37%	78%	19%	24%	24%	49%	13%	15%	7%	15%
Earnings YoY growth	-	34%	58%	44%	11%	46%	37%	-26%	-10%	125%	21%
Equity YoY growth	-	24%	173%	16%	60%	15%	104%	4%	-10%	7%	5%
FCF YoY growth	-	-55%	204%	-31%	-48%	35%	515%	-29%	60%	38%	6%