Recent News
On June 22, 2026 Centene appointed Lauren M. Tyler to the Board of Directors. On July 9, 2026 a Centene subsidiary, Meridian Health Plan of Illinois, won an Illinois Medicaid contract. On July 28, 2026 the company announced a Board retirement and related governance changes. On August 17, 2026 Centene disclosed a planned Chief Financial Officer transition.
Technical Analysis
ADX & Directional Indicators: ADX at 18.72 indicates no established trend; directional indicators show conflicting signals as DI+ and DI- display peak-and-reverse behavior, with the DI+ peak-and-reverse signaling near-term bearish pressure while the DI- peak-and-reverse implies the negative directional strength has eased. That combination points to muted directional conviction and a propensity for choppy price action.
MACD: MACD sits at 0.38 with the signal line at 0.48 and the MACD trend shows peak-and-reverse; the MACD below its signal line and the peak reversal indicate weakening bullish momentum and a bearish momentum bias near term.
MRO (Momentum/Regression Oscillator): MRO at 14.02 (positive) implies price sits above the target and carries measurable downside potential; the MRO peak-and-reverse further confirms declining momentum toward that target, increasing the chance of mean reversion pressure on the price.
RSI: RSI 53.9 with a peak-and-reverse trend signals a move from neutral toward distribution; momentum loss at this RSI level supports a sideways-to-downward near-term bias rather than a renewed uptrend.
Price vs. Averages and Bands: The last close at $64.70 lies near the 20-day average ($65.14) and above the 200-day average ($48.11), indicating long-term strength but short-term consolidation. Short-term EMAs and the 12-day EMA show peak-and-reverse behavior, consistent with the momentum indicators. Bollinger band lower bounds ($63.20 at 1σ) and the super-trend lower at $60.51 serve as nearby technical reference levels; subdued volume relative to multi-period averages suggests any short-term moves may lack conviction.
Fundamental Analysis
Profitability & Margins: Operating margin registers at 2.236% and EBIT margin at 3.059%; both contracted sharply QoQ (operating margin QoQ -39.99%, EBIT margin QoQ -32.49%) and declined YoY (EBIT margin YoY -18.19%). Centene’s EBIT margin sits below the industry peer mean of 7.683% and below the industry peer median of 4.462%, though it remains above the industry peer low of -4.917%—indicating profitability improvement remains work in progress.
Revenue & Earnings Growth: Total revenue stands at $53,579 million with revenue growth of 59.9% YoY and 15.5% QoQ, showing outsized top-line expansion. GAAP diluted EPS of $2.19 and adjusted diluted EPS of $2.51 translate to an actual EPS of $2.51 versus an estimate of $1.08, a beat of $1.43 or roughly 132.4% above estimate. The beat reflects operating leverage on higher revenues and non-recurring adjustments disclosed in the quarter.
Cash Generation & Capital Structure: Free cash flow totaled $3,416 million with a free cash flow yield of 11.49%, well above the industry peer mean of 2.071%, underscoring strong cash conversion relative to equity value. Operating cash flow reached $3,590 million. Net debt metrics show leverage elevated: debt-to-EBITDA approximately 8.3x and debt-to-equity about 0.714; interest coverage near 10.7x provides substantial coverage despite the leverage level. The balance sheet shows $24,151 million in cash and $27,057 million in cash and short-term investments, and enterprise value of about $18.77 billion versus market cap near $29.73 billion, consistent with the WMDST under-valued classification.
Returns & Efficiency: Return on equity at 4.836% sits marginally above the industry peer mean of 4.350%, while return on assets at 1.329% falls slightly below the industry peer mean of 1.579%. Asset turnover at 0.653 compares favorably with the industry peer mean of 0.417, reflecting efficient revenue generation from assets. QoQ and YoY measures of return show deterioration, signaling temporal pressure on operational efficiency despite favorable asset utilization.
Valuation Snapshot: Price-to-earnings at 23.97 with an enterprise multiple around 9.68 combined with free cash flow yield of 11.49% indicates valuation compression relative to the company’s cash generation; WMDST therefore values the stock as under-valued based on those metrics and the company’s cash flow profile.
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 % |
|