Recent News
April 2, 2026: Carolina Complete Health and WellCare of North Carolina combined to form a provider-led managed care organization. Late April 2026: the company published first-quarter 2026 results materials and scheduled its earnings call and related investor disclosures.
Technical Analysis
ADX / DI+ / DI-: ADX at 46.03 signals a very strong trend environment. DI+ sits at 30.20 and is decreasing, which reads as bearish directional pressure; DI- registered a dip-and-reversal at 13.47, which also signals bearish direction as DI- has moved higher after the dip. Together these directional readings point to strong trend strength with a bearish directional bias for the near term, which directly increases the odds of short-term consolidation or downward intraday pressure relative to the current valuation.
MACD: MACD at 2.48 sits below its signal line (signal 3.19) and the MACD trend shows decreasing momentum; that configuration indicates contracting bullish momentum and aligns with a near-term negative momentum bias versus the valuation backdrop.
MRO: MRO at -3.7 (negative) indicates price currently sits below the calculated target, implying upward pressure exists from a price-to-target perspective; the MRO trend decreases, reinforcing the presence of mean-reversion potential that contrasts with the directional indicators described above.
RSI: RSI at 64.71 and decreasing points to waning upward momentum while still below classic overbought thresholds, which suggests limited immediate upside runway but room for rotation back toward the moving averages without extreme readings.
Price vs. Moving Averages and Bands: The 12-day EMA shows a peak-and-reversal pattern, which denotes a short-term bearish turn. Price closed at $61.02, below the 20-day average ($62.74) but above the 50-day ($53.75) and 200-day ($42.05) averages; that arrangement implies short-term weakness inside a longer-term bullish base. Price sits close to the lower 1x Bollinger band ($60.36), leaving technical room for a range-bound bounce toward the 20-day average while the dominant trend strength (ADX) favors continuation of the prevailing move until momentum rebuilds.
Fundamental Analysis
Profitability & Margins: EBIT of $2,263,000,000 produces an EBIT margin of 4.531%. That margin runs slightly below the industry peer median of 4.692% and below the industry peer mean of 7.315%, indicating profitability at modest levels relative to peers. Operating margin registers 3.726%, consistent with mid-single-digit operating profitability.
Earnings & Guidance Context: Reported diluted EPS of $3.37 exceeded the estimate of $2.13 by $1.24, an EPS surprise ratio of 58.22%. Forward EPS sits at $1.11 with a forward P/E near 38.7; current trailing P/E equals 11.45, reflecting the gap between recent realized earnings and forward consensus.
Cash Flow & Liquidity: Operating cash flow reached $4,366,000,000 with free cash flow of $4,166,000,000 and a free cash flow yield of 21.95%. The free cash flow yield exceeds the industry peer mean of 2.88%, emphasizing unusually strong cash conversion relative to peers. Cash and short-term investments total $23,741,000,000 and the cash ratio sits at 0.593, while the current ratio measures 1.123, slightly above the industry peer mean of 0.991, supporting near-term liquidity.
Leverage & Coverage: Total debt equals $16,371,000,000 with debt-to-EBITDA near 6.39 and debt-to-equity 0.764. Interest coverage at 13.80 exceeds the industry peer mean of 11.73, indicating serviceability of interest expense despite elevated leverage by the debt-to-EBITDA metric.
Growth Metrics: Reported revenue totaled $49,944,000,000. Quarter-over-quarter revenue growth reads 5.29%, while the provided year-over-year growth figure shows a negative reading; earnings growth shows negative year-over-year movement of about -3.83% but a positive sequential percent change quarter-over-quarter. Asset turnover at 0.6325 sits above the industry peer mean of 0.5185, signaling relatively efficient asset use.
Valuation: Enterprise multiple stands at 4.53 and the P/B ratio at 0.89 runs below the industry peer mean of 2.18 and median of 1.56. WMDST values the stock as under-valued, supported by high free cash flow yield and a low enterprise multiple relative to the firm’s cash generation and interest coverage profile. The valuation case balances strong cash conversion against elevated leverage measured by debt-to-EBITDA.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-28 |
| NEXT REPORT DATE: | 2026-07-28 |
| CASH FLOW | Begin Period Cash Flow | $ 18.0 B |
| Operating Cash Flow | $ 4.4 B | |
| Capital Expenditures | $ -200.00 M | |
| Change In Working Capital | $ 2.5 B | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 3.4 B | |
| End Period Cash Flow | $ 21.4 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 49.9 B | |
| Forward Revenue | $ 4.5 B | |
| COSTS | ||
| Cost Of Revenue | $ 44.4 B | |
| Depreciation | $ 134.0 M | |
| Depreciation and Amortization | $ 300.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 48.1 B | |
| PROFITABILITY | ||
| Gross Profit | $ 5.6 B | |
| EBITDA | $ 2.6 B | |
| EBIT | $ 2.3 B | |
| Operating Income | $ 1.9 B | |
| Interest Income | — | |
| Interest Expense | $ 164.0 M | |
| Net Interest Income | $ -164.00 M | |
| Income Before Tax | $ 2.1 B | |
| Tax Provision | $ 560.0 M | |
| Tax Rate | 26.7 % | |
| Net Income | $ 1.5 B | |
| Net Income From Continuing Operations | $ 1.5 B | |
| EARNINGS | ||
| EPS Estimate | $ 2.13 | |
| EPS Actual | $ 3.37 | |
| EPS Difference | $ 1.24 | |
| EPS Surprise | 58.216 % | |
| Forward EPS | $ 1.11 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 81.2 B | |
| Intangible Assets | $ 15.2 B | |
| Net Tangible Assets | $ 6.2 B | |
| Total Current Assets | $ 45.0 B | |
| Cash and Short-Term Investments | $ 23.7 B | |
| Cash | $ 21.3 B | |
| Net Receivables | $ 19.4 B | |
| Inventory | — | |
| Long-Term Investments | $ 2.3 B | |
| LIABILITIES | ||
| Accounts Payable | $ 16.8 B | |
| Short-Term Debt | $ 63.0 M | |
| Total Current Liabilities | $ 40.0 B | |
| Net Debt | — | |
| Total Debt | $ 16.4 B | |
| Total Liabilities | $ 59.6 B | |
| EQUITY | ||
| Total Equity | $ 21.4 B | |
| Retained Earnings | $ 10.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 43.57 | |
| Shares Outstanding | 493.771 M | |
| Revenue Per-Share | $ 101.56 | |
| VALUATION | Market Capitalization | $ 19.0 B |
| Enterprise Value | $ 11.6 B | |
| Enterprise Multiple | 4.529 | |
| Enterprise Multiple QoQ | -126.166 % | |
| Enterprise Multiple YoY | -67.7 % | |
| Enterprise Multiple IPRWA | high: 159.017 median: 41.816 mean: 36.158 CNC: 4.529 low: -42.479 |
|
| EV/R | 0.232 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.788 | |
| Asset To Liability | 1.361 | |
| Debt To Capital | 0.433 | |
| Debt To Assets | 0.202 | |
| Debt To Assets QoQ | -14.777 % | |
| Debt To Assets YoY | -4.176 % | |
| Debt To Assets IPRWA | high: 0.935 mean: 0.36 median: 0.262 CNC: 0.202 low: 0.006 |
|
| Debt To Equity | 0.764 | |
| Debt To Equity QoQ | -16.062 % | |
| Debt To Equity YoY | 16.425 % | |
| Debt To Equity IPRWA | high: 6.239 CNC: 0.764 median: 0.732 mean: -0.104 low: -6.439 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.886 | |
| Price To Book QoQ | -12.786 % | |
| Price To Book YoY | -18.264 % | |
| Price To Book IPRWA | high: 13.088 mean: 2.183 median: 1.563 CNC: 0.886 low: -0.307 |
|
| Price To Earnings (P/E) | 11.452 | |
| Price To Earnings QoQ | -133.072 % | |
| Price To Earnings YoY | -45.381 % | |
| Price To Earnings IPRWA | high: 167.375 mean: 49.421 median: 38.698 CNC: 11.452 low: -165.821 |
|
| PE/G Ratio | -0.03 | |
| Price To Sales (P/S) | 0.38 | |
| Price To Sales QoQ | -6.753 % | |
| Price To Sales YoY | -41.438 % | |
| Price To Sales IPRWA | high: 11.743 mean: 2.655 median: 1.073 CNC: 0.38 low: 0.026 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 38.694 | |
| Forward PE/G | -0.101 | |
| Forward P/S | 4.737 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -600.746 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.633 | |
| Asset Turnover Ratio QoQ | 1.019 % | |
| Asset Turnover Ratio YoY | 14.977 % | |
| Asset Turnover Ratio IPRWA | high: 1.21 CNC: 0.633 mean: 0.518 median: 0.397 low: 0.013 |
|
| Receivables Turnover | 2.661 | |
| Receivables Turnover Ratio QoQ | 10.297 % | |
| Receivables Turnover Ratio YoY | 20.312 % | |
| Receivables Turnover Ratio IPRWA | high: 9.342 median: 3.671 mean: 3.556 CNC: 2.661 low: 0.052 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 34.285 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 4.878 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 101.8 median: 19.637 mean: 16.515 CNC: 4.878 low: -62.922 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 10.102 | |
| CapEx To Revenue | -0.004 | |
| CapEx To Depreciation | -1.493 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 37.7 B | |
| Net Invested Capital | $ 37.8 B | |
| Invested Capital | $ 37.8 B | |
| Net Tangible Assets | $ 6.2 B | |
| Net Working Capital | $ 4.9 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.593 | |
| Current Ratio | 1.123 | |
| Current Ratio QoQ | 2.122 % | |
| Current Ratio YoY | 1.067 % | |
| Current Ratio IPRWA | high: 3.361 CNC: 1.123 mean: 0.991 median: 0.854 low: 0.273 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.387 | |
| Cost Of Debt | 0.696 % | |
| Interest Coverage Ratio | 13.799 | |
| Interest Coverage Ratio QoQ | -268.596 % | |
| Interest Coverage Ratio YoY | 22.432 % | |
| Interest Coverage Ratio IPRWA | high: 35.836 CNC: 13.799 mean: 11.729 median: 7.359 low: -1.125 |
|
| Operating Cash Flow Ratio | 0.093 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 29.407 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.77 % | |
| Revenue Growth | 0.44 % | |
| Revenue Growth QoQ | 528.571 % | |
| Revenue Growth YoY | -96.912 % | |
| Revenue Growth IPRWA | high: 21.958 % CNC: 0.44 % mean: -2.21 % median: -4.983 % low: -9.495 % |
|
| Earnings Growth | -383.193 % | |
| Earnings Growth QoQ | 13.371 % | |
| Earnings Growth YoY | -245.978 % | |
| Earnings Growth IPRWA | high: 157.143 % mean: 25.003 % median: 1.648 % low: -200.0 % CNC: -383.193 % |
|
| MARGINS | ||
| Gross Margin | 11.128 % | |
| Gross Margin QoQ | 124.31 % | |
| Gross Margin YoY | -0.269 % | |
| Gross Margin IPRWA | high: 96.442 % mean: 25.743 % median: 15.558 % CNC: 11.128 % low: 4.2 % |
|
| EBIT Margin | 4.531 % | |
| EBIT Margin QoQ | -263.87 % | |
| EBIT Margin YoY | 10.243 % | |
| EBIT Margin IPRWA | high: 23.127 % mean: 7.315 % median: 4.692 % CNC: 4.531 % low: -12.88 % |
|
| Return On Sales (ROS) | 3.726 % | |
| Return On Sales QoQ | -250.363 % | |
| Return On Sales YoY | -9.343 % | |
| Return On Sales IPRWA | high: 22.401 % mean: 7.483 % median: 4.66 % CNC: 3.726 % low: -12.88 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 4.2 B | |
| Free Cash Flow Yield | 21.951 % | |
| Free Cash Flow Yield QoQ | 1886.516 % | |
| Free Cash Flow Yield YoY | 382.97 % | |
| Free Cash Flow Yield IPRWA | CNC: 21.951 % high: 13.5 % median: 3.132 % mean: 2.88 % low: -7.715 % |
|
| Free Cash Growth | 1759.821 % | |
| Free Cash Growth QoQ | -2287.825 % | |
| Free Cash Growth YoY | -716.27 % | |
| Free Cash Growth IPRWA | CNC: 1759.821 % high: 298.093 % mean: 17.28 % median: 2.874 % low: -455.219 % |
|
| Free Cash To Net Income | 2.703 | |
| Cash Flow Margin | 7.456 % | |
| Cash Flow To Earnings | 2.417 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.952 % | |
| Return On Assets QoQ | -240.837 % | |
| Return On Assets YoY | 26.18 % | |
| Return On Assets IPRWA | high: 4.991 % CNC: 1.952 % median: 1.8 % mean: 1.712 % low: -5.482 % |
|
| Return On Capital Employed (ROCE) | 5.502 % | |
| Return On Equity (ROE) | 0.072 | |
| Return On Equity QoQ | -230.337 % | |
| Return On Equity YoY | 53.152 % | |
| Return On Equity IPRWA | high: 0.27 CNC: 0.072 median: 0.038 mean: -0.029 low: -0.261 |
|
| DuPont ROE | 7.447 % | |
| Return On Invested Capital (ROIC) | 4.39 % | |
| Return On Invested Capital QoQ | -267.302 % | |
| Return On Invested Capital YoY | 40.705 % | |
| Return On Invested Capital IPRWA | high: 7.871 % CNC: 4.39 % mean: 3.545 % median: 2.946 % low: -6.018 % |
|