Recent News
Nov. 4, 2025 — Ambetter from WellCare of Kentucky announced availability across 108 Kentucky counties for plan year 2026, with enrollment running Nov. 1, 2025–Jan. 15, 2026. Nov. 18, 2025 — Buckeye Health Plan and the Centene Foundation announced a $200,000 investment to address food insecurity in Ohio. Nov. 19, 2025 — Wellcare outlined expanded Medicare Advantage and PDP offerings for 2026 across multiple states. Jan. 28, 2026 — WellCare of Kentucky and the Centene Foundation committed $145,000 to Kentucky food pantries and local nutrition programs.
Technical Analysis
Directional indicators show emerging trend strength with a bearish directional tilt: ADX at 20.47 indicates an emerging trend strength while DI+ decreases (25.44, decreasing) and DI− increases (29.84, increasing), which favors near-term downside pressure.
MACD sits below its signal line (MACD 0.59 vs signal 1.15) and the MACD trend declines, indicating bearish momentum that weighs on short-term upside until momentum reverses.
Price versus moving averages shows short-term weakness inside a broader constructive band: the close at $42.80 falls below the 12-day EMA ($43.95) and 20-day average ($44.78) but remains above the 50-day ($41.54) and 200-day ($41.12) averages, suggesting near-term resistance near the short-term averages while longer-term averages offer support.
MRO at −13.51 (negative) signals the market price sits below WMDST’s implied target, suggesting mean-reversion potential for price to increase; the MRO trend decreasing strengthens that potential. RSI at 57.65 with a peak-and-reversal reading points to a recent top and now-decelerating momentum.
Fundamental Analysis
Profitability and cash: EBIT stands at −$6,504,000,000 with an EBIT margin of −13.09%, versus an industry peer mean EBIT margin of 5.33% and median of 3.46%, placing Centene well below the industry peer mean and median. EBITDA equals −$6,187,000,000 and net income equals −$6,631,000,000. Operating income of −$211,000,000 produces an operating margin of −0.43%.
Recent movement: EBIT margin improved QoQ by 72.53% but declined YoY by 6.01%, reflecting sequential recovery after a weak prior period while year-over-year profitability remains under pressure.
Earnings metrics: Reported EPS of $0.50 exceeded the estimate of −$0.16, producing an EPS surprise ratio of 412.5%. Trailing P/E sits at 70.03x, above the industry peer mean of 60.79x and median of 54.99x, while forward P/E equals 19.46x reflecting materially lower forward multiples based on projected earnings.
Balance sheet and liquidity: Cash equals $17.06 billion and cash plus short-term investments equal $19.24 billion, leaving net debt at approximately $525.0 million. Debt-to-equity equals 83.94% and debt-to-assets equals 21.42%, indicating leverage that remains manageable against the cash position. Current ratio equals 1.08.
Cash generation and valuation signals: Free cash flow totals $1.145 billion with a free cash flow yield of 6.65%, above the industry peer mean of 2.18%, supporting the WMDST valuation case. Revenue totaled $49.69 billion; gross profit equaled $3.251 billion and gross margin measured 6.54%.
Growth and returns: Reported revenue shows deep sequential softness (QoQ revenue growth −57.27% and revenue growth YoY −64.57%) while longer-term indicators show mixed trends: return on equity at −31.66% and return on assets at −7.87% reflect recent losses but QoQ improvements in ROE (33.30%) and ROA (25.96%) indicate some recovery dynamics.
Valuation view: The current valuation as determined by WMDST classifies the stock as under-valued, supported by a sizable cash balance, low net debt, and a free cash flow yield of 6.65%, offset by negative trailing earnings and margins. Forward earnings and a forward P/E near 19.5x present a materially different multiple profile versus the trailing P/E.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-29 |
| NEXT REPORT DATE: | 2026-01-28 |
| CASH FLOW | Begin Period Cash Flow | $ 14.6 B |
| Operating Cash Flow | $ 1.4 B | |
| Capital Expenditures | $ -211.00 M | |
| Change In Working Capital | $ 763.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 2.6 B | |
| End Period Cash Flow | $ 17.2 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 49.7 B | |
| Forward Revenue | $ -688.16 M | |
| COSTS | ||
| Cost Of Revenue | $ 46.4 B | |
| Depreciation | $ 147.0 M | |
| Depreciation and Amortization | $ 317.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 49.9 B | |
| PROFITABILITY | ||
| Gross Profit | $ 3.3 B | |
| EBITDA | $ -6.19 B | |
| EBIT | $ -6.50 B | |
| Operating Income | $ -211.00 M | |
| Interest Income | — | |
| Interest Expense | $ 170.0 M | |
| Net Interest Income | $ -170.00 M | |
| Income Before Tax | $ -6.67 B | |
| Tax Provision | $ -42.00 M | |
| Tax Rate | 0.629 % | |
| Net Income | $ -6.63 B | |
| Net Income From Continuing Operations | $ -6.63 B | |
| EARNINGS | ||
| EPS Estimate | $ -0.16 | |
| EPS Actual | $ 0.50 | |
| EPS Difference | $ 0.66 | |
| EPS Surprise | 412.5 % | |
| Forward EPS | $ 0.75 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 82.1 B | |
| Intangible Assets | $ 15.7 B | |
| Net Tangible Assets | $ 5.3 B | |
| Total Current Assets | $ 44.1 B | |
| Cash and Short-Term Investments | $ 19.2 B | |
| Cash | $ 17.1 B | |
| Net Receivables | $ 23.1 B | |
| Inventory | — | |
| Long-Term Investments | $ 2.0 B | |
| LIABILITIES | ||
| Accounts Payable | $ 16.9 B | |
| Short-Term Debt | $ 38.0 M | |
| Total Current Liabilities | $ 40.6 B | |
| Net Debt | $ 525.0 M | |
| Total Debt | $ 17.6 B | |
| Total Liabilities | $ 61.0 B | |
| EQUITY | ||
| Total Equity | $ 20.9 B | |
| Retained Earnings | $ 9.8 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 42.63 | |
| Shares Outstanding | 491.414 M | |
| Revenue Per-Share | $ 101.12 | |
| VALUATION | Market Capitalization | $ 17.2 B |
| Enterprise Value | $ 15.6 B | |
| Enterprise Multiple | -2.514 | |
| Enterprise Multiple QoQ | -103.21 % | |
| Enterprise Multiple YoY | -118.73 % | |
| Enterprise Multiple IPRWA | high: 190.244 median: 35.913 mean: 12.901 CNC: -2.514 low: -105.843 |
|
| EV/R | 0.313 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.919 | |
| Asset To Liability | 1.345 | |
| Debt To Capital | 0.456 | |
| Debt To Assets | 0.214 | |
| Debt To Assets QoQ | 5.284 % | |
| Debt To Assets YoY | 15766.667 % | |
| Debt To Assets IPRWA | high: 0.914 mean: 0.346 median: 0.262 CNC: 0.214 low: 0.005 |
|
| Debt To Equity | 0.839 | |
| Debt To Equity QoQ | 30.872 % | |
| Debt To Equity YoY | 20573.892 % | |
| Debt To Equity IPRWA | high: 3.285 mean: 0.993 CNC: 0.839 median: 0.814 low: -0.295 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.821 | |
| Price To Book QoQ | 28.208 % | |
| Price To Book YoY | -38.348 % | |
| Price To Book IPRWA | high: 11.321 mean: 2.199 median: 1.722 CNC: 0.821 low: -1.461 |
|
| Price To Earnings (P/E) | 70.028 | |
| Price To Earnings QoQ | -176.556 % | |
| Price To Earnings YoY | 59.054 % | |
| Price To Earnings IPRWA | high: 167.73 CNC: 70.028 mean: 60.79 median: 54.99 low: -41.31 |
|
| PE/G Ratio | -0.17 | |
| Price To Sales (P/S) | 0.346 | |
| Price To Sales QoQ | -3.873 % | |
| Price To Sales YoY | -60.002 % | |
| Price To Sales IPRWA | high: 19.515 mean: 2.797 median: 1.147 CNC: 0.346 low: 0.079 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 19.463 | |
| Forward PE/G | -0.047 | |
| Forward P/S | -10.619 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3792.345 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.59 | |
| Asset Turnover Ratio QoQ | 4.944 % | |
| Asset Turnover Ratio YoY | 16.144 % | |
| Asset Turnover Ratio IPRWA | high: 0.945 CNC: 0.59 median: 0.401 mean: 0.392 low: 0.029 |
|
| Receivables Turnover | 2.225 | |
| Receivables Turnover Ratio QoQ | 0.409 % | |
| Receivables Turnover Ratio YoY | -7.683 % | |
| Receivables Turnover Ratio IPRWA | high: 9.084 mean: 3.804 median: 3.655 CNC: 2.225 low: 0.147 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 41.007 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 10.725 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 99.303 median: 15.133 mean: 10.834 CNC: 10.725 low: -55.902 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 14.478 | |
| CapEx To Revenue | -0.004 | |
| CapEx To Depreciation | -1.435 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 38.5 B | |
| Net Invested Capital | $ 38.5 B | |
| Invested Capital | $ 38.5 B | |
| Net Tangible Assets | $ 5.3 B | |
| Net Working Capital | $ 3.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.473 | |
| Current Ratio | 1.084 | |
| Current Ratio QoQ | -1.227 % | |
| Current Ratio YoY | -1.258 % | |
| Current Ratio IPRWA | high: 3.196 CNC: 1.084 mean: 1.066 median: 0.88 low: 0.004 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -2.842 | |
| Cost Of Debt | 0.961 % | |
| Interest Coverage Ratio | -38.259 | |
| Interest Coverage Ratio QoQ | 7375.93 % | |
| Interest Coverage Ratio YoY | -713.816 % | |
| Interest Coverage Ratio IPRWA | high: 30.491 mean: 6.456 median: 5.31 low: -11.697 CNC: -38.259 |
|
| Operating Cash Flow Ratio | -0.111 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 30.282 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -4.986 % | |
| Revenue Growth | 1.945 % | |
| Revenue Growth QoQ | -57.272 % | |
| Revenue Growth YoY | -64.572 % | |
| Revenue Growth IPRWA | high: 14.194 % median: 3.999 % mean: 3.327 % CNC: 1.945 % low: -8.694 % |
|
| Earnings Growth | -412.5 % | |
| Earnings Growth QoQ | 250.807 % | |
| Earnings Growth YoY | 1147.807 % | |
| Earnings Growth IPRWA | high: 131.373 % median: 1.754 % mean: -7.05 % low: -66.667 % CNC: -412.5 % |
|
| MARGINS | ||
| Gross Margin | 6.543 % | |
| Gross Margin QoQ | 8.22 % | |
| Gross Margin YoY | -31.858 % | |
| Gross Margin IPRWA | high: 96.429 % mean: 29.098 % median: 14.673 % CNC: 6.543 % low: -4.713 % |
|
| EBIT Margin | -13.089 % | |
| EBIT Margin QoQ | 7253.371 % | |
| EBIT Margin YoY | -601.494 % | |
| EBIT Margin IPRWA | high: 19.623 % mean: 5.327 % median: 3.465 % CNC: -13.089 % low: -14.17 % |
|
| Return On Sales (ROS) | -0.425 % | |
| Return On Sales QoQ | -48.609 % | |
| Return On Sales YoY | -116.284 % | |
| Return On Sales IPRWA | high: 16.487 % mean: 7.381 % median: 2.448 % CNC: -0.425 % low: -12.809 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 1.1 B | |
| Free Cash Flow Yield | 6.654 % | |
| Free Cash Flow Yield QoQ | -25.919 % | |
| Free Cash Flow Yield YoY | -314.024 % | |
| Free Cash Flow Yield IPRWA | high: 14.006 % CNC: 6.654 % median: 2.383 % mean: 2.181 % low: -12.138 % |
|
| Free Cash Growth | -27.394 % | |
| Free Cash Growth QoQ | -286.468 % | |
| Free Cash Growth YoY | -82.536 % | |
| Free Cash Growth IPRWA | high: 316.092 % CNC: -27.394 % median: -66.858 % mean: -110.726 % low: -300.903 % |
|
| Free Cash To Net Income | -0.173 | |
| Cash Flow Margin | -9.088 % | |
| Cash Flow To Earnings | 0.681 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -7.871 % | |
| Return On Assets QoQ | 2595.548 % | |
| Return On Assets YoY | -1013.109 % | |
| Return On Assets IPRWA | high: 6.141 % median: 1.207 % mean: 0.985 % CNC: -7.871 % low: -14.166 % |
|
| Return On Capital Employed (ROCE) | -15.689 % | |
| Return On Equity (ROE) | -0.317 | |
| Return On Equity QoQ | 3329.577 % | |
| Return On Equity YoY | -1312.371 % | |
| Return On Equity IPRWA | high: 0.237 median: 0.019 mean: -0.051 low: -0.308 CNC: -0.317 |
|
| DuPont ROE | -27.428 % | |
| Return On Invested Capital (ROIC) | -16.774 % | |
| Return On Invested Capital QoQ | 10863.399 % | |
| Return On Invested Capital YoY | 246.213 % | |
| Return On Invested Capital IPRWA | high: 7.692 % median: 2.996 % mean: 2.399 % low: -1.536 % CNC: -16.774 % |
|