Recent News
On February 6, 2026 the company reported fourth-quarter and full-year results and issued 2026 adjusted diluted EPS guidance of greater than $3.00; in December 2025 Centene signed a definitive agreement to divest the remaining Magellan Health businesses and recorded related non‑cash impairment charges, and in November 2025 the Centene Foundation and several subsidiaries announced contributions to address food‑security disruptions.
Technical Analysis
The directional indicators show an emerging trend environment: ADX at 23.83 signals trend formation rather than a strong trend, while DI+ at 21.73 decreasing and DI- at 36.10 increasing indicate directional pressure favors sellers; that combination implies near‑term downside risk that could slow margin recovery sentiment unless DI+ reverses.
MACD sits at -0.55 and declines versus a MACD signal of 0.34, producing negative and falling momentum; the MACD below its signal line confirms bearish momentum and argues the market requires a momentum reversal before sustained upside becomes likely.
MRO reads -21.07 and is decreasing, which means price sits below WMDST’s target with growing magnitude—this suggests a mean‑reversion technical potential where price may gravitate upward toward fair value over time, providing counterbalance to current bearish momentum.
Price relationships reinforce the mixed picture: last close $38.04 below the 200‑day average $40.61 and below the 20‑day average $42.58; the 12‑day EMA $41.49 and 26‑day EMA $42.34 both trend lower. Bollinger band lower bounds (1× at $39.60, 2× at $36.63) place the market near the lower band area, consistent with MRO’s below‑target signal but also consistent with short‑term selling pressure.
RSI at 52.28 and declining shows neutral momentum that recently tipped lower; low 42‑ and 52‑week betas (0.08 and 0.16) indicate muted volatility relative to the market, so follow‑through moves may be smaller in magnitude even if directional.
Fundamental Analysis
Earnings and guidance drive the fundamental narrative. Adjusted diluted EPS for the quarter equaled $(1.19) versus an estimate of $(1.22), producing a positive EPS surprise of approximately 2.46%. The firm reported a GAAP diluted loss per share of $(2.24) for Q4 and a full‑year GAAP loss per share of $(13.53); management guided 2026 adjusted diluted EPS to greater than $3.00. Membership totals and premium growth in Medicare PDP and Marketplace contributed to revenue expansion for the year ending 2025.
Key ratios: trailing P/E stands at -34.63, reflecting reported GAAP losses; this contrasts with the industry peer mean P/E of 93.94 and industry peer median P/E of 48.84, placing Centene well below peer multiples on a trailing basis. Forward EPS sits near $1.00 with a forward P/E of 37.67, which sits below the industry peer mean forward P/E of 61.59 and below the industry peer median forward P/E of 44.72, indicating that forward expectations price in material improvement versus peers.
PEG metrics look compressed: PEG ratio 0.102 and PEG QoQ change of -160.35% (PEGratioQoQ = -1.60346) with a PEGratio YoY change of -106.58% (PEGratioYoY = -1.06582). Forward PEG shows -0.111. Use these values cautiously; the low PEG relative to the industry peer mean PEG of -0.8727 and median of -2.34449 reflects a distorted earnings base and strong forward growth assumptions embedded in consensus.
Operational efficiency and liquidity markers: cash conversion cycle at 0.0 days (above the industry peer mean of approximately -1.55 days), cost of debt at roughly 0.96%, and total cash flow provided by operations of $437 million in Q4 and $5,088 million for the full year. Revenue growth on the provided horizon registered flat to negative in the QoQ/YoY inputs; reported premium and service revenues increased year over year driven by Medicare and Marketplace segments. These operational flows support the company’s stated path to margin improvement but reflect continued pressure from higher medical costs in parts of the portfolio.
Valuation summary: WMDST values the stock as under‑valued on its current fundamentals and WMDST forward targets. Trailing GAAP metrics remain depressed by 2025 impairments and losses, while forward EPS and forward P/E suggest the market can re‑rate the company if management delivers the guided margin improvement.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-06 |
| NEXT REPORT DATE: | 2026-05-08 |
| CASH FLOW | Begin Period Cash Flow | — |
| Operating Cash Flow | — | |
| Capital Expenditures | — | |
| Change In Working Capital | — | |
| Dividends Paid | — | |
| Cash Flow Delta | — | |
| End Period Cash Flow | — | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | — | |
| Forward Revenue | — | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | — | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | — | |
| Operating Income | — | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | — | |
| Tax Provision | — | |
| Tax Rate | — | |
| Net Income | — | |
| Net Income From Continuing Operations | — | |
| EARNINGS | ||
| EPS Estimate | $ -1.22 | |
| EPS Actual | $ -1.19 | |
| EPS Difference | $ 0.03 | |
| EPS Surprise | 2.459 % | |
| Forward EPS | $ 1.00 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | — | |
| Intangible Assets | — | |
| Net Tangible Assets | — | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | — | |
| Cash | — | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | — | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | — | |
| Total Debt | — | |
| Total Liabilities | — | |
| EQUITY | ||
| Total Equity | — | |
| Retained Earnings | — | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | — | |
| Shares Outstanding | — | |
| Revenue Per-Share | — | |
| VALUATION | Market Capitalization | — |
| Enterprise Value | — | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | — | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | — | |
| Asset To Liability | — | |
| Debt To Capital | — | |
| Debt To Assets | — | |
| Debt To Assets QoQ | — | |
| Debt To Assets YoY | — | |
| Debt To Assets IPRWA | — | |
| Debt To Equity | — | |
| Debt To Equity QoQ | — | |
| Debt To Equity YoY | — | |
| Debt To Equity IPRWA | — | |
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | — | |
| Price To Book QoQ | — | |
| Price To Book YoY | — | |
| Price To Book IPRWA | — | |
| Price To Earnings (P/E) | -34.628 | |
| Price To Earnings QoQ | -149.448 % | |
| Price To Earnings YoY | -143.95 % | |
| Price To Earnings IPRWA | high: 104.977 mean: 93.944 median: 48.838 low: 33.87 CNC: -34.628 |
|
| PE/G Ratio | 0.102 | |
| Price To Sales (P/S) | — | |
| Price To Sales QoQ | — | |
| Price To Sales YoY | — | |
| Price To Sales IPRWA | — | |
| FORWARD MULTIPLES | ||
| Forward P/E | 37.668 | |
| Forward PE/G | -0.111 | |
| Forward P/S | — | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | — | |
| ASSET & SALES | ||
| Asset Turnover Ratio | — | |
| Asset Turnover Ratio QoQ | — | |
| Asset Turnover Ratio YoY | — | |
| Asset Turnover Ratio IPRWA | — | |
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 0.0 | |
| Cash Conversion Cycle Days QoQ | -100.0 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 33.528 CNC: 0.0 mean: -1.551 median: -7.057 low: -17.884 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | — | |
| Net Invested Capital | — | |
| Invested Capital | $ -1.65 B | |
| Net Tangible Assets | — | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 0.961 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | — | |
| Revenue Growth | 0.0 % | |
| Revenue Growth QoQ | -100.0 % | |
| Revenue Growth YoY | -100.0 % | |
| Revenue Growth IPRWA | high: 4.954 % median: 2.916 % mean: 2.509 % CNC: 0.0 % low: -1.677 % |
|
| Earnings Growth | -338.0 % | |
| Earnings Growth QoQ | -18.061 % | |
| Earnings Growth YoY | 567.76 % | |
| Earnings Growth IPRWA | high: 40.152 % median: -5.274 % mean: -18.86 % low: -44.776 % CNC: -338.0 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | — | |
| EBIT Margin QoQ | — | |
| EBIT Margin YoY | — | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | — | |
| Free Cash Flow Yield | — | |
| Free Cash Flow Yield QoQ | — | |
| Free Cash Flow Yield YoY | — | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | — | |
| Free Cash Growth QoQ | — | |
| Free Cash Growth YoY | — | |
| Free Cash Growth IPRWA | — | |
| Free Cash To Net Income | — | |
| Cash Flow Margin | 0.0 % | |
| Cash Flow To Earnings | 0.0 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | — | |
| Return On Assets QoQ | — | |
| Return On Assets YoY | — | |
| Return On Assets IPRWA | — | |
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | — | |
| Return On Equity QoQ | — | |
| Return On Equity YoY | — | |
| Return On Equity IPRWA | — | |
| DuPont ROE | — | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |