Recent News
July 28, 2026 — Centene filed an 8‑K announcing second‑quarter 2026 results and related disclosures. August 17, 2026 — company filings note an upcoming finance leadership transition. August 31, 2026 — Centene named a new Chief Information Officer as part of broader operational changes, and reports and filings through July–August referenced workforce optimization and severance actions.
Technical Analysis
ADX and Directional Indicators: ADX sits at 13.75, indicating no established trend strength; however, DI+ at 18.59 increases while DI‑ at 20.14 decreases, producing a directional tilt toward buyers that supports modest near‑term upside versus the valuation anchor.
MACD: MACD reads 0.24 with a dip‑and‑reversal pattern and sits above the signal line at 0.21, which constitutes a bullish momentum crossover and supports further positive re‑rating pressure if sustained.
MRO: MRO equals 16.37 and the oscillator shows an increasing trajectory, which signals the market price sits above the internal target and raises the probability of a corrective pullback from current levels while the indicator gains strength.
RSI and Short EMAs: RSI at 54.24 with a dip‑and‑reversal indicates renewed buying interest without overbought readings. The 12‑day EMA and 26‑day EMA both show dip‑and‑reversal behavior and price at $67.34 trades above the 20‑day ($65.29) and 50‑day ($65.39) averages and well above the 200‑day average ($50.03), aligning medium‑term bias with the valuation view.
Bands, Volatility, Beta: Price sits near the upper Bollinger band (upper1x $66.41, upper2x $67.52), creating resistance risk on intraday moves; 42‑day beta 0.75 and 52‑week beta 0.36 plus low realized volatility imply price moves may remain orderly, favoring measured, trend‑based swings.
Fundamental Analysis
Margins and Profitability: EBIT equals $1,639,000,000 and the EBIT margin stands at 3.059%. That margin compares below the industry peer mean of 7.683% and below the industry peer median of 4.462%. EBIT margin contracted QoQ by -32.487% and declined YoY by -18.18539%.
Operating metrics show operating margin at 2.236%, down QoQ by -39.989% and down YoY by -3.70375%. Return metrics: return on equity at 4.836% and return on assets at 1.329% both sit below typical expanded peer means, and ROIC at 3.099% declined sharply QoQ and YoY per supplied dynamics.
Earnings and Cash Flow: GAAP/adjusted diluted EPS reported $2.51 versus consensus $1.08, a beat of $1.43 and an EPS surprise of 132.41%. Operating cash flow reached $3,590,000,000 with free cash flow $3,416,000,000, producing a free cash flow yield of 11.492%, materially above the industry peer mean free cash flow yield of 2.071% and supporting the valuation conclusion.
Leverage and Coverage: Total debt $16,105,000,000 with debt/EBITDA about 8.31x and debt/equity 0.7138, while interest coverage registers 10.71x. Coverage remains adequate but leverage versus trailing EBITDA merits monitoring given episodic impairments and restructuring costs disclosed in recent periods.
Revenue and Growth: Total revenue $53,579,000,000 with revenue growth at 7.278% (most recent) and revenue growth YoY at 59.886%; QoQ revenue growth reads 15.54091% per the supplied figure. Asset turnover equals 0.65266, above the industry peer mean of 0.41704, indicating relatively efficient use of assets to generate sales.
Valuation Summary: The current valuation as determined by WMDST labels the stock under‑valued. Key drivers: enterprise multiple 9.68 sits below the industry peer mean of 34.23, and free cash flow yield at 11.49% materially exceeds the industry peer mean of 2.07%, while price/book at 1.32 sits below the industry peer mean of 2.09. Those valuation gaps reflect heavy cash conversion offset by margin compression and elevated leverage metrics.
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 % |
|