Centene Corporation (CNC)
Health Care · $31.2B market cap · SEC CIK 0001071739
fundamentals score out of 100
Next reports on Oct 27, 2026, before the open, with analysts expecting $0.10 in earnings per share.
The case for CNC
- Holds more cash ($17.9B) than long-term debt ($17.4B).
- Free cash flow of 13.8% of its market value a year: a lot of cash for the price.
- Revenue growing 17.0% year over year.
- Has compounded revenue at 24.5% a year over five years.
- Up 104.6% over the past year.
- Price/sales of 0.2× is lower than 100% of Health Care companies.
The case against
- Losing money over the last year: net margin -3.3%, return on equity -24%.
- Stability is weak (35/100): beta 1.09, 3.4 years of cash flow to clear its debt, a 55% swing over the year.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 55 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 83 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 8 |
| Momentumhow the price has behaved lately | 80 |
| Stabilityhow violently it moves, what it owes and what it pays you | 35 |
- It is losing money, so it has no P/E; that counts against value rather than being skipped.
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | n/a |
|---|---|
| Price / book | 1.40× |
| Price / sales | 0.2× |
| Revenue growth (YoY) | +17.0% |
| EPS growth (YoY) | — |
| Gross margin | 7% |
| Operating margin | -4% |
| Net margin | -3% |
| Return on equity | -24% |
| Debt / equity | 0.71× |
| Current ratio | 1.12 |
| Dividend yield | none |
| Beta | 1.09 |
| 52-week range | $31.63 – $69.63 |
| Position in that range | 83% of the way up |
| 3-month return | +6.5% |
| 1-year return | +104.6% |
Five years of financials, as filed
Pulled from Centene Corporation's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $175B | $146B | $140B | $135B | $118B |
| Gross profit | $14.2B | $17.1B | $17.6B | $16.9B | $14.5B |
| Operating income | -$7.6B | $3.2B | $2.9B | $1.3B | $1.8B |
| Net income | -$6.7B | $3.3B | $2.7B | $1.2B | $1.3B |
| Operating cash flow | $5.1B | $154M | $8.1B | $6.3B | $4.2B |
| Capital expenditure | $767M | $644M | $799M | $1.0B | $910M |
| Total assets | $76.7B | $82.4B | $84.6B | $76.9B | $78.4B |
| Total liabilities | $56.7B | $55.9B | $58.7B | $52.6B | $51.4B |
| Shareholder equity | $20.0B | $26.4B | $25.8B | $24.1B | $26.8B |
| Cash | $17.9B | $14.1B | $17.2B | $12.1B | $13.1B |
| Long-term debt | $17.4B | $18.4B | $17.7B | $17.9B | $18.6B |
| Free cash flow | $4.3B | -$490M | $7.3B | $5.3B | $3.3B |
| Gross margin | 8.1% | 11.7% | 12.6% | 12.5% | 12.3% |
| Operating margin | -4.4% | 2.2% | 2.1% | 1.0% | 1.5% |
| Net margin | -3.8% | 2.3% | 1.9% | 0.9% | 1.1% |
| Diluted shares | 493M | 524M | 546M | 582M | 591M |
Share count is down 16.5% over 4 years. Buybacks have been shrinking the pie.
What Centene Corporation says it does
OVERVIEW Our mission is to transform the health of the communities we serve, one person at a time. As the nation's largest managed care company focused on underserved populations, Centene is committed to helping people live healthier lives. Centene offers affordable and high-quality products to more than 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace. Centene provides access to high-quality healthcare, innovative programs and a wide range of health solutions that help families and individuals get well, stay well and be well. We believe the best way to deliver healthcare is with a personal approach, with local brands and local teams who live in, care about and directly influence the communities they serve – a key differentiator in our ability to provide access to quality care for our…
Risk factors CNC lists in its 10-K
- Our Medicare programs are subject to a variety of unique risks that could adversely impact our financial results
- results of operations, financial condition and cash flows
- Increases in our pharmaceutical costs could have a material adverse effect on the level of our medical costs and our results of operations
- Ineffectiveness of state-operated systems and subcontractors could adversely affect our business
- If state regulators do not approve payments of dividends and distributions by our subsidiaries to us, we may not have sufficient funds to implement our business strategy
- Competition may limit our ability to increase penetration of the markets that we serve
- We operate in a highly competitive, dynamic and rapidly evolving industry and our failure to adapt could negatively impact our business
- If we are unable to maintain relationships with our provider networks and timely update our provider directories, our profitability may be materially adversely affected
- If we or our third-party vendors are unable to integrate and manage information systems and networks effectively, our operations could be disrupted
- We may be unable to attract, retain or effectively manage the succession of key personnel
- An impairment charge with respect to our recorded goodwill, intangible assets and real estate portfolio could have a material impact on our results of operations and shareholders' equity
- Risks Relating to Regulatory and Legal Matters
- Significant changes to the ACA and the other government-sponsored healthcare programs in which we participate could materially and adversely affect our results of operations, financial condition, and cash flows
- Negative public perception of the managed care industry, including industry practices, could adversely affect our business, operating results, cash flows and prospects