Recent News
April 28, 2026: Centene reported first-quarter 2026 results and raised full-year guidance. April 6, 2026: the company created two new executive leadership roles reporting to the CEO. February 6, 2026: Centene published 2025 results and issued 2026 guidance. April 2, 2026: two Centene subsidiaries received regulatory approval to combine operations in North Carolina. Early March 2026: Centene submitted proposed Medicaid program integrity reforms to federal regulators.
Technical Analysis
Directional indicators (ADX/DI+/DI-): ADX at 43.41 signals a very strong underlying trend; DI+ at 48.10 and rising while DI- at 11.02 and falling indicates clear bullish directional strength tied to upward price pressure and supports a near-term positive price bias.
MACD: MACD sits at 4.05, the MACD trend shows increasing momentum, and the MACD has crossed above its signal line (signal 2.57), which confirms bullish momentum expansion that aligns with the valuation gap implied below.
MRO: MRO reads 4.21 and trends higher, a positive value that indicates price sits modestly above the model target and implies a limited mean-reversion risk to the downside absent fresh catalysts; that constraint tempers immediate upside from current levels.
RSI and momentum: RSI at 61.52 and rising reflects constructive short-term momentum without extreme overextension; price sits above the 12-day EMA ($49.19) and well above the 50- and 200-day averages ($39.95 and $37.13), reinforcing upward price bias versus longer-term averages.
Price structure and volatility: Close at $55.33 lies just above the 1x Bollinger upper band ($54.54) but below the 2x band ($62.40), suggesting strength within a reasonable volatility band; super trend lower at $49.58 offers a nearby technical support level. Trading volume near 7.98M trades below the 10- and 200-day averages, implying current moves lack unusually high participation despite trend confirmation. Low 42-day and 52-week betas (0.37) indicate muted market sensitivity and lower expected directional volatility.
Fundamental Analysis
Profitability and margins: EBIT equals $2,263,000,000 and EBIT margin stands at 4.53%. EBIT margin QoQ changed -2.6387% while EBIT margin YoY changed 0.10243%. The EBIT margin sits below the industry peer mean and below the industry peer median, but above the industry peer low, indicating room to converge toward peer medians if cost controls persist.
Earnings and guidance: Adjusted diluted EPS for the quarter printed $3.37 versus an estimate of $2.13, a beat of $1.24 and an EPS surprise of 58.22%, reinforcing management’s ability to lift near-term profitability versus consensus expectations.
Cash flow and valuation signals: Operating cash flow reached $4,366,000,000 and free cash flow $4,166,000,000, producing a free cash flow yield of 21.95%, well above the industry peer mean; the enterprise multiple stands at 4.53, materially below the industry peer mean. Those cash-generation metrics drive the WMDST valuation: WMDST values the stock as under-valued on a free-cash-flow and enterprise-multiple basis.
Liquidity and leverage: Cash and short-term investments total $23,741,000,000 and the cash ratio equals 0.5929; total debt equals $16,371,000,000 with debt-to-equity 0.7640 (slightly below the industry peer mean). Interest coverage sits at 13.80, comfortably above the industry peer mean, signaling strong capacity to service debt despite a debt-to-EBITDA of 6.39.
Revenue and growth: Total revenue equals $49,944,000,000 with YoY revenue growth of 0.44% and revenue growth QoQ at 5.28571%. Reported net income totaled $1,541,000,000. Asset turnover equals 0.6325, above the industry peer mean, contributing to positive operational leverage even as some margin measures compress.
Valuation summary: High free cash flow yield, low enterprise multiple, and strong interest coverage underpin the WMDST valuation of under-valued; margin expansion and sustained cash conversion represent the primary pathways for the market to re-rate the stock.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-28 |
| NEXT REPORT DATE: | 2026-07-28 |
| CASH FLOW | Begin Period Cash Flow | $ 18.0 B |
| Operating Cash Flow | $ 4.4 B | |
| Capital Expenditures | $ -200.00 M | |
| Change In Working Capital | $ 2.5 B | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 3.4 B | |
| End Period Cash Flow | $ 21.4 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 49.9 B | |
| Forward Revenue | $ 4.5 B | |
| COSTS | ||
| Cost Of Revenue | $ 44.4 B | |
| Depreciation | $ 134.0 M | |
| Depreciation and Amortization | $ 300.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 48.1 B | |
| PROFITABILITY | ||
| Gross Profit | $ 5.6 B | |
| EBITDA | $ 2.6 B | |
| EBIT | $ 2.3 B | |
| Operating Income | $ 1.9 B | |
| Interest Income | — | |
| Interest Expense | $ 164.0 M | |
| Net Interest Income | $ -164.00 M | |
| Income Before Tax | $ 2.1 B | |
| Tax Provision | $ 560.0 M | |
| Tax Rate | 26.679 % | |
| Net Income | $ 1.5 B | |
| Net Income From Continuing Operations | $ 1.5 B | |
| EARNINGS | ||
| EPS Estimate | $ 2.13 | |
| EPS Actual | $ 3.37 | |
| EPS Difference | $ 1.24 | |
| EPS Surprise | 58.216 % | |
| Forward EPS | $ 1.12 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 81.2 B | |
| Intangible Assets | $ 15.2 B | |
| Net Tangible Assets | $ 6.2 B | |
| Total Current Assets | $ 45.0 B | |
| Cash and Short-Term Investments | $ 23.7 B | |
| Cash | $ 21.3 B | |
| Net Receivables | $ 19.4 B | |
| Inventory | — | |
| Long-Term Investments | $ 2.3 B | |
| LIABILITIES | ||
| Accounts Payable | $ 16.8 B | |
| Short-Term Debt | $ 63.0 M | |
| Total Current Liabilities | $ 40.0 B | |
| Net Debt | — | |
| Total Debt | $ 16.4 B | |
| Total Liabilities | $ 59.6 B | |
| EQUITY | ||
| Total Equity | $ 21.4 B | |
| Retained Earnings | $ 10.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 43.57 | |
| Shares Outstanding | 493.771 M | |
| Revenue Per-Share | $ 101.56 | |
| VALUATION | Market Capitalization | $ 19.0 B |
| Enterprise Value | $ 11.6 B | |
| Enterprise Multiple | 4.529 | |
| Enterprise Multiple QoQ | -126.166 % | |
| Enterprise Multiple YoY | -67.7 % | |
| Enterprise Multiple IPRWA | high: 159.017 median: 41.816 mean: 38.688 low: 10.495 CNC: 4.529 |
|
| EV/R | 0.232 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.788 | |
| Asset To Liability | 1.361 | |
| Debt To Capital | 0.433 | |
| Debt To Assets | 0.202 | |
| Debt To Assets QoQ | -14.777 % | |
| Debt To Assets YoY | -4.176 % | |
| Debt To Assets IPRWA | high: 0.481 mean: 0.275 median: 0.253 CNC: 0.202 low: 0.154 |
|
| Debt To Equity | 0.764 | |
| Debt To Equity QoQ | -16.062 % | |
| Debt To Equity YoY | 16.425 % | |
| Debt To Equity IPRWA | high: 1.595 mean: 0.851 CNC: 0.764 median: 0.753 low: 0.279 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.886 | |
| Price To Book QoQ | -12.786 % | |
| Price To Book YoY | -18.264 % | |
| Price To Book IPRWA | high: 6.333 mean: 1.846 median: 1.563 low: 1.082 CNC: 0.886 |
|
| Price To Earnings (P/E) | 11.452 | |
| Price To Earnings QoQ | -133.072 % | |
| Price To Earnings YoY | -45.381 % | |
| Price To Earnings IPRWA | high: 165.793 mean: 45.505 median: 35.418 low: 19.261 CNC: 11.452 |
|
| PE/G Ratio | -0.03 | |
| Price To Sales (P/S) | 0.38 | |
| Price To Sales QoQ | -6.753 % | |
| Price To Sales YoY | -41.438 % | |
| Price To Sales IPRWA | high: 8.255 mean: 2.689 median: 1.367 low: 0.61 CNC: 0.38 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 38.694 | |
| Forward PE/G | -0.101 | |
| Forward P/S | 4.737 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -600.746 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.633 | |
| Asset Turnover Ratio QoQ | 1.019 % | |
| Asset Turnover Ratio YoY | 14.977 % | |
| Asset Turnover Ratio IPRWA | high: 1.061 CNC: 0.633 mean: 0.403 median: 0.397 low: 0.15 |
|
| Receivables Turnover | 2.661 | |
| Receivables Turnover Ratio QoQ | 10.297 % | |
| Receivables Turnover Ratio YoY | 20.312 % | |
| Receivables Turnover Ratio IPRWA | high: 9.342 mean: 3.688 CNC: 2.661 median: 2.236 low: 0.645 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 34.285 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 4.878 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 101.8 mean: 21.907 median: 19.637 CNC: 4.878 low: -49.905 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 10.102 | |
| CapEx To Revenue | -0.004 | |
| CapEx To Depreciation | -1.493 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 37.7 B | |
| Net Invested Capital | $ 37.8 B | |
| Invested Capital | $ 37.8 B | |
| Net Tangible Assets | $ 6.2 B | |
| Net Working Capital | $ 4.9 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.593 | |
| Current Ratio | 1.123 | |
| Current Ratio QoQ | 2.122 % | |
| Current Ratio YoY | 1.067 % | |
| Current Ratio IPRWA | high: 1.711 CNC: 1.123 mean: 0.97 median: 0.866 low: 0.834 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.387 | |
| Cost Of Debt | 0.696 % | |
| Interest Coverage Ratio | 13.799 | |
| Interest Coverage Ratio QoQ | -268.596 % | |
| Interest Coverage Ratio YoY | 22.432 % | |
| Interest Coverage Ratio IPRWA | high: 17.352 CNC: 13.799 mean: 6.314 median: 6.088 low: 1.286 |
|
| Operating Cash Flow Ratio | 0.093 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 29.407 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.77 % | |
| Revenue Growth | 0.44 % | |
| Revenue Growth QoQ | 528.571 % | |
| Revenue Growth YoY | -96.912 % | |
| Revenue Growth IPRWA | high: 42.726 % CNC: 0.44 % mean: -0.765 % median: -2.07 % low: -7.833 % |
|
| Earnings Growth | -383.193 % | |
| Earnings Growth QoQ | 13.371 % | |
| Earnings Growth YoY | -245.978 % | |
| Earnings Growth IPRWA | high: 428.571 % mean: 51.451 % median: -3.589 % low: -360.354 % CNC: -383.193 % |
|
| MARGINS | ||
| Gross Margin | 11.128 % | |
| Gross Margin QoQ | 124.31 % | |
| Gross Margin YoY | -0.269 % | |
| Gross Margin IPRWA | high: 96.442 % median: 32.815 % mean: 31.978 % CNC: 11.128 % low: 9.466 % |
|
| EBIT Margin | 4.531 % | |
| EBIT Margin QoQ | -263.87 % | |
| EBIT Margin YoY | 10.243 % | |
| EBIT Margin IPRWA | high: 23.127 % mean: 8.192 % median: 5.303 % CNC: 4.531 % low: 0.769 % |
|
| Return On Sales (ROS) | 3.726 % | |
| Return On Sales QoQ | -250.363 % | |
| Return On Sales YoY | -9.343 % | |
| Return On Sales IPRWA | high: 37.538 % median: 12.863 % mean: 10.527 % CNC: 3.726 % low: 1.255 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 4.2 B | |
| Free Cash Flow Yield | 21.951 % | |
| Free Cash Flow Yield QoQ | 1886.516 % | |
| Free Cash Flow Yield YoY | 382.97 % | |
| Free Cash Flow Yield IPRWA | CNC: 21.951 % high: 13.5 % median: 3.426 % mean: 3.077 % low: -0.71 % |
|
| Free Cash Growth | 1759.821 % | |
| Free Cash Growth QoQ | -2287.825 % | |
| Free Cash Growth YoY | -716.27 % | |
| Free Cash Growth IPRWA | CNC: 1759.821 % high: 298.093 % median: 2.874 % mean: -24.003 % low: -455.219 % |
|
| Free Cash To Net Income | 2.703 | |
| Cash Flow Margin | 7.456 % | |
| Cash Flow To Earnings | 2.417 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.952 % | |
| Return On Assets QoQ | -240.837 % | |
| Return On Assets YoY | 26.18 % | |
| Return On Assets IPRWA | high: 4.991 % CNC: 1.952 % mean: 1.718 % median: 1.426 % low: 0.074 % |
|
| Return On Capital Employed (ROCE) | 5.502 % | |
| Return On Equity (ROE) | 0.072 | |
| Return On Equity QoQ | -230.337 % | |
| Return On Equity YoY | 53.152 % | |
| Return On Equity IPRWA | high: 0.146 CNC: 0.072 mean: 0.047 median: 0.039 low: 0.002 |
|
| DuPont ROE | 7.447 % | |
| Return On Invested Capital (ROIC) | 4.39 % | |
| Return On Invested Capital QoQ | -267.302 % | |
| Return On Invested Capital YoY | 40.705 % | |
| Return On Invested Capital IPRWA | high: 7.1 % CNC: 4.39 % mean: 3.693 % median: 2.946 % low: 0.635 % |
|