Centene Corp

Find Ratings Reports
CNC : NYSE : Health Care
$62.10 | %
Today's Range: 61.23 - 62.50
Avg. Daily Volume: 1,613,600
10/21/16 - 4:00 PM ET

Financial Analysis

CENTENE CORP's gross profit margin for the second quarter of its fiscal year 2016 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 0.75 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 185.00% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)10897.05506.0
EBITDA ($mil)478.0201.0
EBIT ($mil)402.0175.0
Net Income ($mil)169.088.0

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)3153.02107.0
Total Assets ($mil)19496.07022.0
Total Debt ($mil)4494.01144.0
Equity ($mil)5529.01940.0

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin12.8711.55
EBITDA Margin4.383.65
Operating Margin3.693.18
Sales Turnover1.542.81
Return on Assets1.824.84
Return on Equity6.4717.47
Debt Q2 FY16 Q2 FY15
Current Ratio0.891.11
Interest Expense52.011.0
Interest Coverage7.7315.91

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)170.65119.09
Div / share0.00.0
Book value / share32.416.29
Institutional Own % n/a n/a
Avg Daily Volume1614737.01979625.0


BUY. The current P/E ratio indicates a premium compared to an average of 19.91 for the Health Care Providers & Services industry and a value on par with the S&P 500 average of 24.54. For additional comparison, its price-to-book ratio of 1.86 indicates a discount versus the S&P 500 average of 2.72 and a discount versus the industry average of 3.02. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CNC 23.99 Peers 19.91   CNC 72.35 Peers 11.92

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

CNC is trading at a premium to its peers.


Premium. 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 premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CNC 12.52 Peers 15.13   CNC 0.47 Peers 0.81

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

CNC is trading at a valuation on par with its peers.


Discount. 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 trades at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CNC 1.86 Peers 3.02   CNC -9.72 Peers 28.04

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CNC is trading at a significant discount 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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CNC 0.34 Peers 0.75   CNC 52.04 Peers 14.24

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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