Recent News
April 6, 2026 — Centene announced a new executive leadership structure, creating two group-president roles and naming Daniel Finke and Michael Carson to senior posts. May 12, 2026 — Superior HealthPlan, a Centene company, awarded $100,000 in community grants and published other community-investment items; the company filed an 8-K on May 12 confirming executive officer appointments and formalizing the updated officer list.
Technical Analysis
ADX at 55.47 indicates a very strong trend; that strength raises the likelihood that directional shifts will produce meaningful short-term moves tied to fundamental news and earnings momentum.
DI+ at 41.0 with a decreasing trend contrasts with DI- showing a dip & reversal; the signals imply the prior bullish directional advantage has begun to weaken and directional pressure may shift toward sellers despite a historically stronger DI+ level.
MACD sits near 4.36 with a peak & reversal pattern and the MACD line below its 4.37 signal, indicating bearish momentum development rather than a bullish crossover; this momentum profile elevates short-term consolidation risk relative to continued breakout upside.
MRO at 13.29 with a peak & reversal indicates price currently trades above model target levels and carries an elevated probability of mean reversion; strength of the MRO read suggests the potential for a measurable pullback to re-synchronize price with valuation metrics.
RSI at 66.1 with an increasing trend signals sustained buying pressure approaching overbought territory, supporting the case for a short-term pause or pullback before any renewed leg higher.
Price sits above short-term averages — 12-day EMA increasing at $56.70 and 20-day average near $56.98 — and well above the 50- and 200-day averages; proximity to the upper Bollinger band and the Ichimoku Tenkan above Kijun corroborate recent upside, but momentum indicators suggest that continuation faces resistance from the noted bearish reversals.
Fundamental Analysis
Q1 results delivered an adjusted EPS of $3.37 versus an estimate of $2.13, a beat of $1.24 and an EPS surprise of 58.22%, reflecting stronger-than-expected profitability in the period. Net income totaled $1,541,000,000 and operating cash flow reached $4,366,000,000, underpinning robust cash generation.
Free cash flow of $4,166,000,000 implies a free cash flow yield of 21.95%, well above the industry peer mean, supporting a valuation discrepancy versus peers. Enterprise multiple stands at 4.53, consistent with materially compressed valuation versus typical peer multiples.
EBIT of $2,263,000,000 produces an EBIT margin of 4.53%, below the industry peer mean of 7.27% and marginally below the industry peer median of 4.69%; EBIT margin rose year-over-year by 10.24% while quarter-over-quarter moved -2.64% (QoQ), indicating recent quarter-level softness against a stronger YoY improvement.
Profitability and leverage metrics present mixed but serviceable credit fundamentals: return on equity at 7.19%, return on assets at 1.95%, debt-to-assets at 20.17%, and debt-to-EBITDA roughly 6.39x with an interest coverage ratio near 13.8x. Cash and short‑term investments total $23,741,000,000 against a market capitalization of $18,978,550,016, delivering sizable liquidity headroom.
Price multiples compress relative to peer averages: P/B at 0.89 sits below the industry peer mean of 1.97 and median of 1.56, and P/E near 11.45 remains markedly below the peer mean. Revenue showed a QoQ increase of 5.29% while YoY revenue change registered near -0.97%; operating margin dynamics trended modestly lower QoQ but improved YoY.
WMDST values the stock as under-valued. The valuation case rests on strong cash conversion, high free cash flow yield, low enterprise multiple, and a balance-sheet profile that supports execution of strategic initiatives while margins continue normalizing toward peer medians.
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 | 26.7 % | |
| 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 | $ 1.11 | |
| 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: 36.047 CNC: 4.529 low: -42.479 |
|
| 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: 0.935 mean: 0.361 median: 0.292 CNC: 0.202 low: 0.006 |
|
| Debt To Equity | 0.764 | |
| Debt To Equity QoQ | -16.062 % | |
| Debt To Equity YoY | 16.425 % | |
| Debt To Equity IPRWA | high: 6.239 CNC: 0.764 median: 0.725 mean: -1.584 low: -7.908 |
|
| 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: 10.639 mean: 1.966 median: 1.563 CNC: 0.886 low: -0.307 |
|
| Price To Earnings (P/E) | 11.452 | |
| Price To Earnings QoQ | -133.072 % | |
| Price To Earnings YoY | -45.381 % | |
| Price To Earnings IPRWA | high: 167.375 mean: 49.435 median: 41.682 CNC: 11.452 low: -165.821 |
|
| 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: 9.603 mean: 2.61 median: 1.073 CNC: 0.38 low: 0.026 |
|
| 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: 1.21 CNC: 0.633 mean: 0.519 median: 0.397 low: 0.013 |
|
| Receivables Turnover | 2.661 | |
| Receivables Turnover Ratio QoQ | 10.297 % | |
| Receivables Turnover Ratio YoY | 20.312 % | |
| Receivables Turnover Ratio IPRWA | high: 10.101 median: 3.671 mean: 3.568 CNC: 2.661 low: 0.052 |
|
| 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 median: 19.637 mean: 16.481 CNC: 4.878 low: -62.922 |
|
| 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: 3.361 CNC: 1.123 mean: 0.984 median: 0.854 low: 0.273 |
|
| 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: 35.836 CNC: 13.799 mean: 11.788 median: 7.359 low: -1.125 |
|
| 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: 21.958 % CNC: 0.44 % mean: -2.248 % median: -4.983 % low: -9.495 % |
|
| Earnings Growth | -383.193 % | |
| Earnings Growth QoQ | 13.371 % | |
| Earnings Growth YoY | -245.978 % | |
| Earnings Growth IPRWA | high: 135.78 % mean: 23.481 % median: 1.648 % low: -333.333 % CNC: -383.193 % |
|
| MARGINS | ||
| Gross Margin | 11.128 % | |
| Gross Margin QoQ | 124.31 % | |
| Gross Margin YoY | -0.269 % | |
| Gross Margin IPRWA | high: 96.442 % mean: 25.715 % median: 15.558 % CNC: 11.128 % low: 4.2 % |
|
| EBIT Margin | 4.531 % | |
| EBIT Margin QoQ | -263.87 % | |
| EBIT Margin YoY | 10.243 % | |
| EBIT Margin IPRWA | high: 23.127 % mean: 7.266 % median: 4.692 % CNC: 4.531 % low: -12.88 % |
|
| Return On Sales (ROS) | 3.726 % | |
| Return On Sales QoQ | -250.363 % | |
| Return On Sales YoY | -9.343 % | |
| Return On Sales IPRWA | high: 22.401 % mean: 7.429 % median: 4.66 % CNC: 3.726 % low: -12.88 % |
|
| 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: 3.132 % mean: 2.888 % low: -7.715 % |
|
| 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 % mean: 17.614 % median: 2.874 % 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 % median: 1.8 % mean: 1.709 % low: -4.166 % |
|
| 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: 0.27 CNC: 0.072 median: 0.038 mean: -0.029 low: -0.261 |
|
| 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: 3.521 % median: 2.946 % low: -6.018 % |
|