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Centene Corp (CNC) stock analysis

CNCNYSEHospital & Medical Service PlansFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Oct 27, 2026Score 8/301% above fair value
$70.48+0.29 (+0.41%)

Close on Nov 11, 2026Market cap $34.89BP/E 24.1Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value2Growth2Performance2Health2Dividend0

Weak8 of 30 checks passed

Centene passes 8 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
2/6
Growth
2/6
Past performance
2/6
Financial health
2/6
Dividend
0/6

What stands out

  • Revenue growing 10%+ a year

    Revenue grew 10.5% a year over the last three fiscal years.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 30.4% of total debt.

  • P/S below the industry

    Centene's price-to-sales of 0.17 is below the Accident and Health Insurance and Medical median of 0.80.

  • P/B below the industry

    Centene's price-to-book of 1.57 is below the Accident and Health Insurance and Medical median of 2.31.

What to watch

  • Margin of safety under 20%

    The price is 1.1% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $70.48 is above our fair value estimate of $69.68.

  • Return on equity under 15%

    Return on equity was 6.8% over the last twelve months and averaged 0.9% over five years; we look for 15% on both.

  • High debt

    Debt is 70.0% of shareholders' equity, above the 40% we consider low.

Valuation2/6

  • P/E above its 5-year median

    Centene's P/E of 24.1 is above its own 5-year median of 16.3.

  • P/E above the industry

    Centene's P/E of 24.1 is above the Accident and Health Insurance and Medical median of 21.3.

  • P/S below the industry

    Centene's price-to-sales of 0.17 is below the Accident and Health Insurance and Medical median of 0.80.

  • P/B below the industry

    Centene's price-to-book of 1.57 is below the Accident and Health Insurance and Medical median of 2.31.

  • Trading above fair value

    The share price of $70.48 is above our fair value estimate of $69.68.

  • Margin of safety under 20%

    The price is 1.1% above fair value, so there is no margin of safety.

Growth2/6

  • Revenue growing 10%+ a year

    Revenue grew 10.5% a year over the last three fiscal years.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 9.7% over the last twelve months; the Accident and Health Insurance and Medical median is 6.8%.

  • Guidance lowered

    Centene lowered its Full Year 2026 Premium and service revenues outlook on Jul 28, 2026.

  • Gross margin slipping

    Gross margin was 7.9% over the last twelve months, against 8.3% a year earlier.

Past performance2/6

  • Return on equity under 15%

    Return on equity was 6.8% over the last twelve months and averaged 0.9% over five years; we look for 15% on both.

  • Return on assets over 1%

    Return on assets was 1.8%; for a bank or insurer, 1% or more is considered good.

  • Return on equity below the industry

    Centene's return on equity of 6.8% is below the Accident and Health Insurance and Medical median of 11.9%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was 0.7% over the last twelve months, against a 5-year average of 0.5%.

  • Net margin below the industry

    Centene's net margin of 0.7% is below the Accident and Health Insurance and Medical median of 2.0%.

Financial health2/6

  • High debt

    Debt is 70.0% of shareholders' equity, above the 40% we consider low.

  • Debt rising against equity

    Debt to equity rose from 65.1% five years ago to 70.0%.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 30.4% of total debt.

  • Interest not well covered

    Operating income covers interest expense 1.6 times; we look for at least 5.

  • Short-term assets cover short-term debts

    Current assets are 1.16 times current liabilities.

  • Bankruptcy risk (Altman Z)

    The Altman model does not apply to insurers.

Dividend0/6

  • No dividend

    Centene has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$69.68

The share price is 1% above this estimate.

20%+ below
Near fair value
20%+ above
$70.48Price
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E18.8×16.3×21.3×$54.9150%
P/B1.9×1.5×2.3×$84.4550%
Fair value$69.68100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 16.3
  • Accident and Health Insurance and Medical median 21.3

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$366.51M
Value traded per 1% price move
$179.74M

Downside

Medium risk

Typical loss in a bad month
23.4%
Volatility (annualized)
46%
Sharpe ratio, 1 year
2.19
Beta to the S&P 500 (5Y)
0.50

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

7.3%−89.7 pts over 5 years

Operating margin

-3.9%−6.7 pts over 5 years

Net margin

-3.4%−5.1 pts over 5 years

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