Recent News
On February 6, 2026 Centene reported full-year 2025 results and issued 2026 guidance, including management’s target for adjusted EPS above $3.00. Market commentary from early January and February highlighted analyst revisions following the results and guidance, while coverage noted intraday share gaps and volatile reaction after the announcement.
Technical Analysis
ADX at 11.8 signals no clear underlying trend, which aligns with recent guidance-driven moves rather than momentum-led action; this weak trend reduces the conviction of trend-following valuation adjustments over the coming weeks.
Directional indicators show DI+ at 22.92 with a peak-and-reversal, which acts bearish, while DI- at 23.68 is decreasing, which acts bullish; together these signals imply a tug-of-war between buyers and sellers that could magnify price responses to fundamental news.
MACD shows a peak-and-reversal, indicating bearish momentum has recently developed, even though the MACD value (0.43) sits above the signal line (0.23); the recent peak-and-reversal suggests momentum faded after a short-lived bullish phase, increasing sensitivity to upcoming earnings commentary and guidance execution.
MRO at -21.85 places price below the model target and signals potential upside pressure toward equilibrium; this condition increases the likelihood of mean-reversion if operational improvements materialize under the new guidance.
RSI at 54.31 with a peak-and-reversal indicates neutral-to-modest momentum that has cooled after a recent peak, consistent with consolidation between short-term moving averages and the 200-day average.
Price sits above the 200-day average ($39.00) and the 12-day EMA is increasing, both supporting a constructive price bias relative to longer-term valuation; Ichimoku components show Tenkan above Kijun and a Senkou A above Senkou B, suggesting near-term bullish structure even as price remains just beneath the Senkou A level.
Bollinger bands are relatively tight (20-day average $43.41; 1x upper band $44.54), and current volume remains well below typical averages, indicating range-bound action lacking strong participation—this amplifies the impact of company news on short-term moves.
Fundamental Analysis
Profitability: EBIT totaled a loss of $1,375,000,000 and EBIT margin equals -2.77%, which sits above the industry peer low of -11.84% but below the industry peer mean of 5.71% and median of 2.03%. QoQ EBIT margin moved sharply lower by -78.88%, and YoY change registered -317.37%, reflecting a large 2025 accounting loss that drove GAAP results negative.
Earnings and cash flow: GAAP net income totaled a loss of $1,101,000,000 and EPS came in at -$1.19 versus an estimate of -$1.22, producing a modest positive surprise of $0.03 (about +2.46%). Adjusted forward EPS consensus in company guidance points to recovery—forward EPS implied at $1.03 with a forward P/E around 37.67—while free cash flow of $224,000,000 yields ~1.11% on the current market cap, providing limited but positive cash conversion.
Revenue and margins: Total revenue reached $49.725 billion with YoY revenue growth of 0.07%; short-term comp dynamics show sharp quarter-to-quarter compression (revenue growth QoQ -96.40%), consistent with seasonality and one-off impacts reflected in the year’s accounting. Gross margin sits at 4.96%, notably below the industry peer mean of 25.91%, indicating material room for margin recovery if medical-cost trends and marketplace pricing normalize.
Leverage and coverage: Total debt equals $18.162 billion with debt-to-equity at 0.91 and debt-to-assets at 23.67%, both below the industry peer mean for debt-to-assets but representing meaningful leverage given negative operating income. Interest coverage reads -8.18x, reflecting limited EBIT to absorb interest expense during 2025’s loss-making period.
Liquidity and efficiency: Cash and short-term investments total $20.32 billion and the current ratio equals 1.10, slightly above the industry peer mean of 1.05, supporting near-term obligations. Asset turnover at 0.63 sits marginally above the industry peer mean of 0.55, indicating reasonable revenue productivity relative to the asset base.
Valuation: The current valuation as determined by WMDST: under-valued. Market cap approximates $20.26 billion while enterprise value equals ~$18.11 billion, yielding an EV-to-revenue relationship consistent with a materially discounted multiple given 2025 GAAP losses and the company’s recovery guidance.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-06 |
| NEXT REPORT DATE: | 2026-05-08 |
| CASH FLOW | Begin Period Cash Flow | $ 17.2 B |
| Operating Cash Flow | $ 437.0 M | |
| Capital Expenditures | $ -213.00 M | |
| Change In Working Capital | $ 723.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 772.0 M | |
| End Period Cash Flow | $ 18.0 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 49.7 B | |
| Forward Revenue | $ -5.71 B | |
| COSTS | ||
| Cost Of Revenue | $ 47.3 B | |
| Depreciation | $ 160.0 M | |
| Depreciation and Amortization | $ 329.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 51.0 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.5 B | |
| EBITDA | $ -1.05 B | |
| EBIT | $ -1.38 B | |
| Operating Income | $ -1.23 B | |
| Interest Income | — | |
| Interest Expense | $ 168.0 M | |
| Net Interest Income | $ -168.00 M | |
| Income Before Tax | $ -1.54 B | |
| Tax Provision | $ -443.00 M | |
| Tax Rate | 28.71 % | |
| Net Income | $ -1.10 B | |
| Net Income From Continuing Operations | $ -1.10 B | |
| EARNINGS | ||
| EPS Estimate | $ -1.22 | |
| EPS Actual | $ -1.19 | |
| EPS Difference | $ 0.03 | |
| EPS Surprise | 2.459 % | |
| Forward EPS | $ 1.03 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 76.7 B | |
| Intangible Assets | $ 15.4 B | |
| Net Tangible Assets | $ 4.6 B | |
| Total Current Assets | $ 40.4 B | |
| Cash and Short-Term Investments | $ 20.3 B | |
| Cash | $ 17.9 B | |
| Net Receivables | $ 18.1 B | |
| Inventory | — | |
| Long-Term Investments | $ 1.6 B | |
| LIABILITIES | ||
| Accounts Payable | $ 13.6 B | |
| Short-Term Debt | $ 50.0 M | |
| Total Current Liabilities | $ 36.7 B | |
| Net Debt | — | |
| Total Debt | $ 18.2 B | |
| Total Liabilities | $ 56.7 B | |
| EQUITY | ||
| Total Equity | $ 20.0 B | |
| Retained Earnings | $ 8.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 40.57 | |
| Shares Outstanding | 491.757 M | |
| Revenue Per-Share | $ 101.12 | |
| VALUATION | Market Capitalization | $ 20.3 B |
| Enterprise Value | $ 18.1 B | |
| Enterprise Multiple | -17.31 | |
| Enterprise Multiple QoQ | 588.607 % | |
| Enterprise Multiple YoY | -198.204 % | |
| Enterprise Multiple IPRWA | high: 100.261 median: 51.214 mean: 45.824 CNC: -17.31 low: -40.274 |
|
| EV/R | 0.364 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.846 | |
| Asset To Liability | 1.354 | |
| Debt To Capital | 0.477 | |
| Debt To Assets | 0.237 | |
| Debt To Assets QoQ | 10.481 % | |
| Debt To Assets YoY | 17693.233 % | |
| Debt To Assets IPRWA | high: 0.927 mean: 0.355 median: 0.264 CNC: 0.237 low: 0.029 |
|
| Debt To Equity | 0.91 | |
| Debt To Equity QoQ | 8.445 % | |
| Debt To Equity YoY | 21728.297 % | |
| Debt To Equity IPRWA | high: 3.121 CNC: 0.91 median: 0.73 mean: -2.062 low: -8.08 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.016 | |
| Price To Book QoQ | 23.642 % | |
| Price To Book YoY | -14.192 % | |
| Price To Book IPRWA | high: 9.281 mean: 2.124 median: 1.75 CNC: 1.016 low: -0.324 |
|
| Price To Earnings (P/E) | -34.628 | |
| Price To Earnings QoQ | -149.448 % | |
| Price To Earnings YoY | -143.95 % | |
| Price To Earnings IPRWA | high: 223.057 median: 71.489 mean: 60.744 CNC: -34.628 low: -73.764 |
|
| PE/G Ratio | 0.102 | |
| Price To Sales (P/S) | 0.408 | |
| Price To Sales QoQ | 17.685 % | |
| Price To Sales YoY | -46.8 % | |
| Price To Sales IPRWA | high: 14.8 mean: 2.552 median: 1.008 CNC: 0.408 low: 0.146 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 37.668 | |
| Forward PE/G | -0.111 | |
| Forward P/S | -3.535 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -1119.575 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.626 | |
| Asset Turnover Ratio QoQ | 6.149 % | |
| Asset Turnover Ratio YoY | 26.435 % | |
| Asset Turnover Ratio IPRWA | high: 1.261 CNC: 0.626 mean: 0.547 median: 0.415 low: 0.126 |
|
| Receivables Turnover | 2.413 | |
| Receivables Turnover Ratio QoQ | 8.44 % | |
| Receivables Turnover Ratio YoY | 12.339 % | |
| Receivables Turnover Ratio IPRWA | high: 11.152 mean: 4.073 median: 3.758 CNC: 2.413 low: 1.046 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 37.816 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 33.528 CNC: 0 mean: -1.551 median: -7.057 low: -17.884 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 13.534 | |
| CapEx To Revenue | -0.004 | |
| CapEx To Depreciation | -1.331 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 37.3 B | |
| Net Invested Capital | $ 37.4 B | |
| Invested Capital | $ 37.4 B | |
| Net Tangible Assets | $ 4.6 B | |
| Net Working Capital | $ 3.7 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.554 | |
| Current Ratio | 1.1 | |
| Current Ratio QoQ | 1.443 % | |
| Current Ratio YoY | -0.81 % | |
| Current Ratio IPRWA | high: 2.726 CNC: 1.1 mean: 1.054 median: 0.965 low: 0.842 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -17.363 | |
| Cost Of Debt | 0.961 % | |
| Interest Coverage Ratio | -8.185 | |
| Interest Coverage Ratio QoQ | -78.607 % | |
| Interest Coverage Ratio YoY | -371.241 % | |
| Interest Coverage Ratio IPRWA | high: 26.873 mean: 7.762 median: 5.671 low: -5.925 CNC: -8.185 |
|
| Operating Cash Flow Ratio | 0.027 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 29.968 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -6.505 % | |
| Revenue Growth | 0.07 % | |
| Revenue Growth QoQ | -96.401 % | |
| Revenue Growth YoY | -102.415 % | |
| Revenue Growth IPRWA | high: 9.348 % median: 2.743 % mean: 2.452 % CNC: 0.07 % low: -7.264 % |
|
| Earnings Growth | -338.0 % | |
| Earnings Growth QoQ | -18.061 % | |
| Earnings Growth YoY | 567.76 % | |
| Earnings Growth IPRWA | high: 100.0 % median: -5.274 % mean: -6.65 % low: -90.278 % CNC: -338.0 % |
|
| MARGINS | ||
| Gross Margin | 4.961 % | |
| Gross Margin QoQ | -24.179 % | |
| Gross Margin YoY | -45.585 % | |
| Gross Margin IPRWA | high: 96.255 % mean: 25.907 % median: 12.836 % CNC: 4.961 % low: -5.777 % |
|
| EBIT Margin | -2.765 % | |
| EBIT Margin QoQ | -78.875 % | |
| EBIT Margin YoY | -317.374 % | |
| EBIT Margin IPRWA | high: 18.639 % mean: 5.707 % median: 2.026 % CNC: -2.765 % low: -11.841 % |
|
| Return On Sales (ROS) | -2.478 % | |
| Return On Sales QoQ | 483.059 % | |
| Return On Sales YoY | -294.811 % | |
| Return On Sales IPRWA | high: 18.348 % mean: 7.547 % median: 1.998 % CNC: -2.478 % low: -10.112 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 224.0 M | |
| Free Cash Flow Yield | 1.105 % | |
| Free Cash Flow Yield QoQ | -83.393 % | |
| Free Cash Flow Yield YoY | -146.605 % | |
| Free Cash Flow Yield IPRWA | high: 7.984 % mean: 1.569 % CNC: 1.105 % median: 1.041 % low: -12.708 % |
|
| Free Cash Growth | -80.437 % | |
| Free Cash Growth QoQ | 193.63 % | |
| Free Cash Growth YoY | 133.266 % | |
| Free Cash Growth IPRWA | high: 184.763 % mean: -63.432 % median: -72.187 % CNC: -80.437 % low: -369.889 % |
|
| Free Cash To Net Income | -0.203 | |
| Cash Flow Margin | 1.981 % | |
| Cash Flow To Earnings | -0.895 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -1.386 % | |
| Return On Assets QoQ | -82.391 % | |
| Return On Assets YoY | -504.082 % | |
| Return On Assets IPRWA | high: 4.855 % mean: 1.332 % median: 1.157 % CNC: -1.386 % low: -1.614 % |
|
| Return On Capital Employed (ROCE) | -3.433 % | |
| Return On Equity (ROE) | -0.055 | |
| Return On Equity QoQ | -82.568 % | |
| Return On Equity YoY | -614.739 % | |
| Return On Equity IPRWA | high: 0.088 median: 0.03 CNC: -0.055 mean: -0.057 low: -0.604 |
|
| DuPont ROE | -5.383 % | |
| Return On Invested Capital (ROIC) | -2.624 % | |
| Return On Invested Capital QoQ | -84.357 % | |
| Return On Invested Capital YoY | 3.839 % | |
| Return On Invested Capital IPRWA | high: 7.875 % mean: 2.63 % median: 2.088 % low: -2.171 % CNC: -2.624 % |
|