CENTENE CORP's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. CENTENE CORP has weak liquidity. Currently, the Quick Ratio is 0.87 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 25.60% 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.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||5821.0||4351.86|
|Net Income ($mil)||93.0||82.62|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||1827.0||1690.59|
|Total Assets ($mil)||7322.0||5446.35|
|Total Debt ($mil)||1281.0||954.85|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||11.61||10.68|
|Return on Assets||4.78||3.99|
|Return on Equity||17.06||12.86|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||119.2||117.33|
|Div / share||0.0||0.0|
|Book value / share||17.21||13.92|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1850545.0||1772316.0|
BUY. CENTENE CORP's P/E ratio indicates a discount compared to an average of 21.35 for the Health Care Providers & Services industry and a value on par with the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 3.51 indicates a premium versus the S&P 500 average of 2.51 and a premium versus the industry average of 3.13. 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 21.09||Peers 21.35||CNC 8.76||Peers 11.69|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
CNC is trading at a valuation on par with 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 15.47||Peers 15.87||CNC NM||Peers 1.06|
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 3.51||Peers 3.13||CNC 61.58||Peers 94.42|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CNC is expected to significantly trail its peers on the basis of its earnings growth rate.
|CNC 0.34||Peers 0.73||CNC 43.44||Peers 14.88|
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.
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