Recent News
On June 16, 2026 Centene announced voluntary separation offers and buyouts to large portions of its workforce as the insurer responds to declines in health plan membership and seeks cost reductions.
On June 19, 2026 the Board expanded to 10 members with the immediate appointment of Lauren M. Tyler, who will serve on audit and compensation/talent committees.
Investment banks updated coverage in late June, including an initiation at sector‑perform/rating adjustments that accompanied analyst commentary on enrollment and cost trends.
Technical Analysis
Directional Indicators (ADX / DI+ / DI-): ADX at 27.81 signals a meaningful trend strength. DI+ shows a dip-and-reverse (now increasing), and DI- shows a peak-and-reverse (now decreasing); together these directional moves favor a bullish directional bias for price action in the near term.
MACD: MACD at 0.11 with a signal line at 0.37 has recently completed a dip-and-reverse; momentum has begun to recover but MACD remains below its signal line, so bullish momentum has started but lacks a confirmed MACD crossover.
MRO (Momentum/Regression Oscillator): MRO at 14.56 (dip-and-reverse) indicates the market price sits above the model target and carries moderate short-term mean-reversion potential, implying upside momentum could encounter corrective pressure.
RSI and Price Positioning: RSI at 55.8 with a dip-and-reverse reads as neutral-to-bullish momentum. Price closed at $66.99, above the 200‑day average of $47.03 and flirting with the upper Bollinger band (upper 1σ $66.56), which suggests near-term upside remains but with limited immediate breadth for extended moves without a momentum confirmation.
Moving Averages & Cloud: Short-term EMAs (12/26) show dip-and-reverse behavior and price sits above the 20‑ and 50‑day averages; Ichimoku components (Tenkan 62.52 / Kijun 63.02 / Senkou A 62.44) support a near-term bullish tilt while volatility measures remain low (42‑day volatility 2%).
Fundamental Analysis
Profitability & Margins: EBIT equals $1,639,000,000 and EBIT margin stands at 3.06%, down QoQ by 32.49% and down YoY by 18.19%. That EBIT margin sits below the industry peer mean of 8.33% and below the industry peer median of 4.56%, indicating margin compression relative to peers.
Revenue And Growth: Total revenue reached $53,579,000,000 with YoY revenue growth of 59.89% and QoQ growth of 15.54%, showing strong top-line expansion that reflects scale and enrollment mix shifts even as margins contract.
Cash Flow And Liquidity: Operating cash flow $3,590,000,000 and free cash flow $3,416,000,000 produce a free cash flow yield of 11.49%, which lies well above the industry peer mean of about 1.34%, supporting balance‑sheet flexibility. Cash and short‑term investments total $27,057,000,000 and the cash ratio sits at 0.66, while the current ratio reads 1.15, together signaling ample near‑term liquidity to execute cost adjustments.
Leverage And Coverage: Total debt equals $16,105,000,000 with debt-to-equity 0.71 and debt-to-EBITDA 8.31. Interest coverage equals 10.71x, which supports servicing cost even as debt leverage by EBITDA appears elevated versus typical conservative thresholds.
Returns: Return on equity stands at 4.84% and return on assets at 1.33%; ROE lies above the industry peer mean provided, reflecting that profitability on equity remains positive despite margin pressure.
Earnings Signal: Reported EPS of $2.51 exceeded the $1.08 estimate by $1.43, an EPS surprise of approximately +132.41%, reflecting better-than-expected per‑share results in the reported period; treat that gain in the context of margin volatility and membership-driven operating changes.
Valuation: Price-to-earnings ratio equals 23.97 while forward P/E reads 42.33. Price-to-sales equals 0.55 and enterprise multiple near 9.68. The current valuation as determined by WMDST rates the stock as under-valued; high free cash flow yield and large cash balances justify a valuation premium relative to headline margin metrics, while elevated debt-to-EBITDA moderates that view.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-07-28 |
| NEXT REPORT DATE: | 2026-10-27 |
| CASH FLOW | Begin Period Cash Flow | $ 21.4 B |
| Operating Cash Flow | $ 3.6 B | |
| Capital Expenditures | $ -174.00 M | |
| Change In Working Capital | $ 2.1 B | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 2.9 B | |
| End Period Cash Flow | $ 24.3 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 53.6 B | |
| Forward Revenue | $ 8.0 B | |
| COSTS | ||
| Cost Of Revenue | $ 49.0 B | |
| Depreciation | $ 139.0 M | |
| Depreciation and Amortization | $ 300.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 52.4 B | |
| PROFITABILITY | ||
| Gross Profit | $ 4.6 B | |
| EBITDA | $ 1.9 B | |
| EBIT | $ 1.6 B | |
| Operating Income | $ 1.2 B | |
| Interest Income | — | |
| Interest Expense | $ 153.0 M | |
| Net Interest Income | $ -153.00 M | |
| Income Before Tax | $ 1.5 B | |
| Tax Provision | $ 399.0 M | |
| Tax Rate | 26.9 % | |
| Net Income | $ 1.1 B | |
| Net Income From Continuing Operations | $ 1.1 B | |
| EARNINGS | ||
| EPS Estimate | $ 1.08 | |
| EPS Actual | $ 2.51 | |
| EPS Difference | $ 1.43 | |
| EPS Surprise | 132.407 % | |
| Forward EPS | $ 1.31 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 83.0 B | |
| Intangible Assets | $ 15.0 B | |
| Net Tangible Assets | $ 7.5 B | |
| Total Current Assets | $ 46.7 B | |
| Cash and Short-Term Investments | $ 27.1 B | |
| Cash | $ 24.2 B | |
| Net Receivables | $ 18.1 B | |
| Inventory | — | |
| Long-Term Investments | $ 2.9 B | |
| LIABILITIES | ||
| Accounts Payable | $ 18.0 B | |
| Short-Term Debt | $ 75.0 M | |
| Total Current Liabilities | $ 40.8 B | |
| Net Debt | — | |
| Total Debt | $ 16.1 B | |
| Total Liabilities | $ 60.4 B | |
| EQUITY | ||
| Total Equity | $ 22.6 B | |
| Retained Earnings | $ 11.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 45.67 | |
| Shares Outstanding | 493.987 M | |
| Revenue Per-Share | $ 108.46 | |
| VALUATION | Market Capitalization | $ 29.7 B |
| Enterprise Value | $ 18.8 B | |
| Enterprise Multiple | 9.682 | |
| Enterprise Multiple QoQ | 113.768 % | |
| Enterprise Multiple YoY | -87.636 % | |
| Enterprise Multiple IPRWA | high: 75.205 median: 34.394 mean: 34.224 low: 14.996 CNC: 9.682 |
|
| EV/R | 0.35 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.679 | |
| Asset To Liability | 1.375 | |
| Debt To Capital | 0.417 | |
| Debt To Assets | 0.194 | |
| Debt To Assets QoQ | -3.803 % | |
| Debt To Assets YoY | -4.64 % | |
| Debt To Assets IPRWA | high: 0.838 mean: 0.417 median: 0.249 low: 0.203 CNC: 0.194 |
|
| Debt To Equity | 0.714 | |
| Debt To Equity QoQ | -6.574 % | |
| Debt To Equity YoY | 11.296 % | |
| Debt To Equity IPRWA | high: 2.844 CNC: 0.714 median: 0.692 mean: -2.028 low: -17.523 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.318 | |
| Price To Book QoQ | 48.748 % | |
| Price To Book YoY | 105.646 % | |
| Price To Book IPRWA | high: 4.088 median: 1.767 CNC: 1.318 mean: -2.015 low: -13.296 |
|
| Price To Earnings (P/E) | 23.974 | |
| Price To Earnings QoQ | 109.344 % | |
| Price To Earnings YoY | -126.209 % | |
| Price To Earnings IPRWA | high: 133.945 mean: 51.587 median: 50.158 CNC: 23.974 low: -16.66 |
|
| PE/G Ratio | -0.939 | |
| Price To Sales (P/S) | 0.555 | |
| Price To Sales QoQ | 46.0 % | |
| Price To Sales YoY | 54.013 % | |
| Price To Sales IPRWA | high: 6.93 mean: 2.42 median: 1.655 CNC: 0.555 low: 0.158 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 42.333 | |
| Forward PE/G | -1.659 | |
| Forward P/S | 3.755 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -3.789 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.653 | |
| Asset Turnover Ratio QoQ | 3.186 % | |
| Asset Turnover Ratio YoY | 16.117 % | |
| Asset Turnover Ratio IPRWA | high: 1.051 CNC: 0.653 mean: 0.426 median: 0.4 low: 0.156 |
|
| Receivables Turnover | 2.857 | |
| Receivables Turnover Ratio QoQ | 7.361 % | |
| Receivables Turnover Ratio YoY | 28.935 % | |
| Receivables Turnover Ratio IPRWA | high: 7.49 mean: 3.354 CNC: 2.857 median: 2.487 low: 1.319 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 31.935 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -3.834 | |
| Cash Conversion Cycle Days QoQ | -178.591 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 41.543 median: 20.353 mean: 9.859 CNC: -3.834 low: -56.959 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 9.041 | |
| CapEx To Revenue | -0.003 | |
| CapEx To Depreciation | -1.252 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 38.6 B | |
| Net Invested Capital | $ 38.7 B | |
| Invested Capital | $ 38.7 B | |
| Net Tangible Assets | $ 7.5 B | |
| Net Working Capital | $ 5.9 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.664 | |
| Current Ratio | 1.145 | |
| Current Ratio QoQ | 1.952 % | |
| Current Ratio YoY | 4.322 % | |
| Current Ratio IPRWA | high: 1.698 CNC: 1.145 mean: 1.07 median: 0.993 low: 0.846 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 8.306 | |
| Cost Of Debt | 0.689 % | |
| Interest Coverage Ratio | 10.712 | |
| Interest Coverage Ratio QoQ | -22.367 % | |
| Interest Coverage Ratio YoY | -2193.251 % | |
| Interest Coverage Ratio IPRWA | CNC: 10.712 high: 9.848 median: 6.321 mean: 6.033 low: 1.576 |
|
| Operating Cash Flow Ratio | 0.095 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 35.768 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.263 % | |
| Revenue Growth | 7.278 % | |
| Revenue Growth QoQ | 1554.091 % | |
| Revenue Growth YoY | 59.886 % | |
| Revenue Growth IPRWA | high: 8.131 % CNC: 7.278 % median: 4.497 % mean: 3.647 % low: -4.722 % |
|
| Earnings Growth | -25.519 % | |
| Earnings Growth QoQ | -93.34 % | |
| Earnings Growth YoY | -78.298 % | |
| Earnings Growth IPRWA | high: 26.971 % median: -0.128 % mean: -11.332 % CNC: -25.519 % low: -60.417 % |
|
| MARGINS | ||
| Gross Margin | 8.587 % | |
| Gross Margin QoQ | -22.834 % | |
| Gross Margin YoY | 42.028 % | |
| Gross Margin IPRWA | high: 96.512 % median: 32.697 % mean: 31.309 % CNC: 8.587 % low: 8.543 % |
|
| EBIT Margin | 3.059 % | |
| EBIT Margin QoQ | -32.487 % | |
| EBIT Margin YoY | -1818.539 % | |
| EBIT Margin IPRWA | high: 25.559 % mean: 8.331 % median: 4.559 % CNC: 3.059 % low: 1.333 % |
|
| Return On Sales (ROS) | 2.236 % | |
| Return On Sales QoQ | -39.989 % | |
| Return On Sales YoY | -370.375 % | |
| Return On Sales IPRWA | high: 23.787 % median: 15.161 % mean: 10.449 % CNC: 2.236 % low: 1.333 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 3.4 B | |
| Free Cash Flow Yield | 11.492 % | |
| Free Cash Flow Yield QoQ | -47.647 % | |
| Free Cash Flow Yield YoY | 27.945 % | |
| Free Cash Flow Yield IPRWA | CNC: 11.492 % high: 5.103 % mean: 1.337 % median: 1.25 % low: -3.081 % |
|
| Free Cash Growth | -18.003 % | |
| Free Cash Growth QoQ | -101.023 % | |
| Free Cash Growth YoY | -222.544 % | |
| Free Cash Growth IPRWA | high: 84.175 % CNC: -18.003 % median: -60.312 % mean: -60.897 % low: -921.619 % |
|
| Free Cash To Net Income | 3.131 | |
| Cash Flow Margin | 7.23 % | |
| Cash Flow To Earnings | 3.551 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.329 % | |
| Return On Assets QoQ | -31.916 % | |
| Return On Assets YoY | -555.137 % | |
| Return On Assets IPRWA | high: 2.878 % mean: 1.636 % CNC: 1.329 % median: 1.234 % low: 0.197 % |
|
| Return On Capital Employed (ROCE) | 3.879 % | |
| Return On Equity (ROE) | 0.048 | |
| Return On Equity QoQ | -32.759 % | |
| Return On Equity YoY | -623.944 % | |
| Return On Equity IPRWA | high: 0.177 CNC: 0.048 median: 0.033 mean: -0.046 low: -0.347 |
|
| DuPont ROE | 4.96 % | |
| Return On Invested Capital (ROIC) | 3.099 % | |
| Return On Invested Capital QoQ | -29.408 % | |
| Return On Invested Capital YoY | -2125.49 % | |
| Return On Invested Capital IPRWA | high: 6.906 % mean: 3.628 % CNC: 3.099 % median: 2.914 % low: 0.822 % |
|