CENTENE CORP's gross profit margin for the second quarter of its fiscal year 2015 has increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. CENTENE CORP has weak liquidity. Currently, the Quick Ratio is 0.97 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 31.42% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||5506.0||4023.7|
|Net Income ($mil)||88.0||48.86|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||2107.0||1386.15|
|Total Assets ($mil)||7022.0||4682.57|
|Total Debt ($mil)||1144.0||891.03|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||11.64||10.82|
|Return on Assets||4.84||3.93|
|Return on Equity||17.47||12.14|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||119.09||115.68|
|Div / share||0.0||0.0|
|Book value / share||16.29||12.76|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1807265.0||1096412.0|
BUY. The current P/E ratio indicates a discount compared to an average of 28.80 for the Health Care Providers & Services industry and a premium compared to the S&P 500 average of 21.25. For additional comparison, its price-to-book ratio of 4.29 indicates a premium versus the S&P 500 average of 2.83 and a premium versus the industry average of 3.86. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. The valuation analysis reveals that, CENTENE CORP seems to be trading at a discount to investment alternatives within the industry.
|CNC 25.15||Peers 28.80||CNC 6.94||Peers 17.62|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
CNC is trading at a discount to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
CNC is trading at a significant discount to its peers.
|CNC 21.42||Peers 19.92||CNC NM||Peers 1.73|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
CNC is trading at a significant premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
CNC's negative PEG ratio makes this valuation measure meaningless.
|CNC 4.29||Peers 3.86||CNC 79.93||Peers 54.04|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CNC is trading at a premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
CNC is expected to have an earnings growth rate that significantly exceeds its peers.
|CNC 0.42||Peers 0.91||CNC 49.22||Peers 15.83|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
CNC is trading at a significant discount to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CNC has a sales growth rate that significantly exceeds its peers.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV