Recent News
Feb. 17–18, 2026: Reports indicate Centene completed a divestiture of its remaining Magellan Health businesses and has continued contract starts for subsidiary-managed dual-eligible (FIDE SNP) plans in multiple states during January 2026; analysts issued fresh ratings and updated price targets through March 2026.
Technical Analysis
The ADX at 24.78 signals an emerging trend in price strength rather than a mature directional trend. DI+ sits at 22.75 and shows an increasing trajectory, while DI- at 28.95 has been decreasing; those DI movements together constitute a bullish directional shift in momentum.
MACD reads -1.01 and has been increasing, with the MACD line now above its signal line (-1.63). That cross above the signal line constitutes a bullish momentum confirmation for shorter-term price action.
MRO at -28.19 indicates the market price remains below the WMDST target, implying upside potential toward that target; the negative value suggests a higher probability of price convergence upward from current levels.
RSI stands at 46.99 and is rising, remaining below 50 but showing improving relative-strength conditions consistent with a short-term recovery rather than an overbought condition.
Price sits at $37.55 near the 200-day average of $36.58 and above the 20-day average of $34.19; the 12-day EMA shows a dip-and-reversal pattern while the 50-day average remains higher at $38.87. That combination places the stock in a consolidation band between immediate support and medium-term resistance levels.
Bollinger bands place the 1x lower band at $32.08 and the 1x upper band at $36.30; current price trading above the 1x upper band baseline indicates the recent move has exited the narrow consolidation band. The super trend lower at $34.06 provides a technical support reference below current price.
Volume at 3.66M trails 10- and 50-day averages, suggesting this momentum advance lacks broad intraday participation so far; lower-than-average volume tempers the strength of the technical breakout signal.
Fundamental Analysis
Profitability shows meaningful stress. EBIT registered at -$1,375,000,000, producing an EBIT margin of -2.765%. That margin sits well below the industry peer mean and median for EBIT margin and below the industry peer higher bound, indicating profitability lags typical managed-care peers. QoQ change in EBIT margin registers -78.875%, and YoY change reads -317.374%, reflecting sizable margin contraction over both intervals.
Net income equaled -$1,101,000,000 and operating income totaled -$1,232,000,000. EBITDA reached -$1,046,000,000. Earnings per share came in at -$1.19 versus an estimate of -$1.22, an EPS surprise of approximately 2.46% in the reported period; forward EPS stands at $1.019, which produces a forward P/E of 37.67 based on consensus forward earnings.
Liquidity and capital structure provide offsetting strengths. Cash and short-term investments total $20.32B against total debt of $18.162B, and cash alone equals $17.888B. The current ratio reads 1.10 and the cash ratio 0.554, showing available near-term liquidity. Debt-to-equity at 0.91 sits slightly below the industry peer mean and near the industry peer median, indicating leverage sits within a typical peer band.
Revenue dynamics remain muted: total revenue measured $49.725B with revenue growth essentially flat at 0.07% overall; revenue growth QoQ shows a sharp negative swing (-96.401%) and revenue growth YoY reads -102.415%, reflecting significant short-term timing or seasonal effects rather than sustained top-line expansion.
Cash generation shows positive signals: operating cash flow reached $437M with free cash flow of $224M and a free cash flow yield roughly 1.11%. Cash flow margin sits at 1.981% and the company increased cash during the period (cash flow delta $772M). Cost of debt remains low at ~0.961%, and interest expense totaled $168M, though interest coverage reads negative due to operating losses.
WMDST values the stock as under-valued based on the firm’s current mix of tangible liquidity, negative near-term profitability, and forward earnings expectations; that valuation assessment reflects available cash versus near-term operating losses and forward EPS projections.
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 | $ -5.66 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 | $ 1.02 | |
| 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: 169.984 median: 51.214 mean: 46.412 CNC: -17.31 low: -93.578 |
|
| 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: 0.353 median: 0.264 CNC: 0.237 low: 0.007 |
|
| Debt To Equity | 0.91 | |
| Debt To Equity QoQ | 8.445 % | |
| Debt To Equity YoY | 21728.297 % | |
| Debt To Equity IPRWA | high: 3.121 mean: 0.976 CNC: 0.91 median: 0.754 low: -1.835 |
|
| 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: 2.163 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: 61.092 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: 2.598 median: 1.008 CNC: 0.408 low: 0.027 |
|
| 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: 0.544 median: 0.415 low: 0.013 |
|
| Receivables Turnover | 2.413 | |
| Receivables Turnover Ratio QoQ | 8.44 % | |
| Receivables Turnover Ratio YoY | 12.339 % | |
| Receivables Turnover Ratio IPRWA | high: 6.521 median: 3.758 mean: 3.62 CNC: 2.413 low: 0.053 |
|
| 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: 1.075 median: 0.965 low: 0.244 |
|
| 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: 7.588 median: 5.671 CNC: -8.185 low: -9.664 |
|
| 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: 13.35 % median: 2.743 % mean: 2.433 % CNC: 0.07 % low: -7.264 % |
|
| Earnings Growth | -338.0 % | |
| Earnings Growth QoQ | -18.061 % | |
| Earnings Growth YoY | 567.76 % | |
| Earnings Growth IPRWA | high: 220.0 % median: -5.274 % mean: -21.507 % low: -249.457 % 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: 25.775 % 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: 20.352 % mean: 5.696 % median: 2.026 % CNC: -2.765 % low: -39.27 % |
|
| Return On Sales (ROS) | -2.478 % | |
| Return On Sales QoQ | 483.059 % | |
| Return On Sales YoY | -294.811 % | |
| Return On Sales IPRWA | high: 20.384 % mean: 7.502 % 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: 1.578 % 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: -61.846 % 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: 9.352 % mean: 1.289 % median: 1.157 % CNC: -1.386 % low: -13.174 % |
|
| 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: 0.486 median: 0.023 CNC: -0.055 mean: -0.055 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: 2.576 % median: 2.088 % CNC: -2.624 % low: -4.467 % |
|