Recent News
On June 10, 2026 Home State Health and the Centene Foundation opened a $750,000 grant round for Missouri organizations addressing social drivers of health, with applications open through July 10 and awards expected in August. On July 28, 2026 Centene announced a Board change: Kenneth A. Burdick retired and Paul J. Diaz joined the Board, effective July 28, 2026. Centene and subsidiaries continued community investments in early August, including targeted disaster relief and local medical-respite program support.
Technical Analysis
ADX sits at 17.52, indicating no dominant trend and therefore increased probability of range-bound price behavior over the near term.
DI+ shows a peak-and-reverse, which reads as bearish; DI‑ also shows a peak-and-reverse, which reads as bullish. The simultaneous peak-and-reverse on both directional indicators plus a sub-20 ADX suggests directional signals conflict and reinforce sideways action rather than a clear breakout.
MACD registers 0.21 with a dip-and-reversal pattern (MACD increasing) but remains below its signal line (MACD signal 0.28), so momentum has turned constructive yet lacks a confirmed bullish cross; momentum remains tentative until MACD clears the signal line.
MRO at 12.92 sits positive, implying the current price sits above a short-term target and therefore carries potential downward pressure despite other constructive elements; treat this as near-term overextension risk against the longer-term valuation.
RSI at 53.6 and decreasing points to neutral-to-fading upside momentum rather than a fresh rally; the indicator supports a consolidation view while momentum cools.
Price sits around $65.47, inside the 20-day Bollinger band range (lower ~$64.43, upper ~$66.63) and above the 200-day average ($49.29), so shorter-term mean reversion within the upper-$60s and support near the mid-$60s appears most likely.
Fundamental Analysis
Revenue growth shows a strong annual expansion: revenue growth year-over-year at 59.89% and revenue growth quarter-over-quarter at 15.54%, supporting top-line momentum. Total revenue reached $53,579,000,000 for the period ending 2026-06-30.
Margins contracted: operating margin equals 2.236% and EBIT margin equals 3.059%; EBIT margin declined QoQ by 32.49% and YoY by 18.19%, leaving margins below the industry peer mean (EBIT margin mean 7.683%) and below the industry peer median (4.462%) but above the industry peer low. Margin compression represents a material near-term headwind to earnings power.
Earnings and cash flow show divergence: reported EPS came in at $2.51 versus an estimate of $1.08, for an EPS surprise of +132.41%, while net income from continuing operations totaled $1,087,000,000. Operating cash flow totaled $3,590,000,000 and free cash flow reached $3,416,000,000; free-cash-flow yield equals 11.49%, meaning cash generation materially outpaces the industry peer mean free-cash-flow yield (2.071%).
Returns and balance-sheet metrics: return on equity equals 4.84%, slightly above the industry peer mean (4.35%); return on assets equals 1.33%, slightly below the industry peer mean (1.579%). Total debt stands at $16,105,000,000 with debt-to-equity of 0.714, just below the industry peer mean (0.807). Debt-to-EBITDA reads 8.31x, indicating elevated leverage relative to operating earnings and a sensitivity to continued margin pressure.
Earnings growth shows deterioration: earnings growth QoQ fell ~93.34% and YoY fell ~78.30%, reflecting the sharp short-run swing in profitability even as revenue expands. Asset turnover at 0.6527 sits above the industry peer mean (0.4170), indicating efficient revenue generation from asset base despite margin erosion.
Valuation summary: WMDST values the stock as under-valued. Supporting that valuation: a P/B around 1.32 (below the industry peer mean 2.09), a P/E about 23.97, and a high free-cash-flow yield (11.49%) which together suggest significant cash-backed value. Offsetting that view: persistent margin decline, steep QoQ earnings deterioration, and elevated debt-to-EBITDA create risk to near-term earnings sustainability.
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 | $ 8.1 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 | $ 1.33 | |
| 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: 87.909 mean: 34.227 median: 32.178 CNC: 9.682 low: 9.161 |
|
| 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: 0.375 median: 0.301 CNC: 0.194 low: 0.006 |
|
| Debt To Equity | 0.714 | |
| Debt To Equity QoQ | -6.574 % | |
| Debt To Equity YoY | 11.296 % | |
| Debt To Equity IPRWA | high: 1.375 mean: 0.807 median: 0.748 CNC: 0.714 low: 0.011 |
|
| 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: 7.829 mean: 2.092 median: 1.767 CNC: 1.318 low: -0.321 |
|
| 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: 48.954 median: 45.322 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: 11.857 mean: 2.384 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 median: 0.419 mean: 0.417 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: 3.742 median: 3.723 CNC: 2.857 low: 0.6 |
|
| 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: 133.289 median: 17.698 mean: 13.096 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: 2.421 CNC: 1.145 mean: 1.052 median: 0.866 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 | high: 26.066 CNC: 10.712 mean: 6.327 median: 6.254 low: -4.266 |
|
| 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: 9.387 % CNC: 7.278 % median: 3.075 % mean: 1.519 % low: -4.983 % |
|
| Earnings Growth | -25.519 % | |
| Earnings Growth QoQ | -93.34 % | |
| Earnings Growth YoY | -78.298 % | |
| Earnings Growth IPRWA | high: 108.333 % median: 0.389 % mean: -4.425 % CNC: -25.519 % low: -112.5 % |
|
| MARGINS | ||
| Gross Margin | 8.587 % | |
| Gross Margin QoQ | -22.834 % | |
| Gross Margin YoY | 42.028 % | |
| Gross Margin IPRWA | high: 96.512 % mean: 28.905 % median: 14.844 % CNC: 8.587 % low: 7.168 % |
|
| EBIT Margin | 3.059 % | |
| EBIT Margin QoQ | -32.487 % | |
| EBIT Margin YoY | -1818.539 % | |
| EBIT Margin IPRWA | high: 25.559 % mean: 7.683 % median: 4.462 % CNC: 3.059 % low: -4.917 % |
|
| 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 % mean: 8.646 % median: 4.433 % CNC: 2.236 % low: -2.862 % |
|
| 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: 6.209 % mean: 2.071 % median: 1.947 % low: -4.3 % |
|
| Free Cash Growth | -18.003 % | |
| Free Cash Growth QoQ | -101.023 % | |
| Free Cash Growth YoY | -222.544 % | |
| Free Cash Growth IPRWA | high: 293.51 % median: 23.352 % mean: -17.916 % CNC: -18.003 % low: -438.717 % |
|
| 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: 4.836 % mean: 1.579 % CNC: 1.329 % median: 1.176 % low: 0.129 % |
|
| 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 mean: 0.043 median: 0.037 low: -0.05 |
|
| 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: 7.881 % mean: 3.372 % CNC: 3.099 % median: 2.555 % low: -0.608 % |
|