Recent News
On August 13, 2026 Centene announced a planned chief financial officer transition. On July 10, 2026 the company reported changes to its board of directors. On June 24, 2026 a Centene subsidiary secured an Illinois Medicaid contract. Several subsidiary community and program investments and grants appeared across late June–August 2026.
Technical Analysis
Directional indicators conflict: DI+ shows an increasing trend (bullish signal) while DI- recorded a dip-and-reversal (bearish signal); ADX at 12.38 classifies the move as lacking trend strength, implying range-bound near-term price action that leaves valuation-driven catalysts as primary directional drivers.
MACD displays a peak-and-reversal pattern with MACD at 0.23 below the signal line at 0.25, signaling bearish momentum development and reducing the likelihood of sustained upside until momentum re-accelerates.
MRO at 20.53 registers positive, indicating price sits above the model target and that downward pressure into the coming weeks represents the higher-probability path for mean reversion toward fair value levels.
RSI sits at 53.2 but shows a peak-and-reversal, reflecting fading buying pressure despite a neutral absolute reading; that combination favors consolidation or modest pullback rather than continued trend extension.
Price sits above short- and long-term averages—price close $66.42 exceeds the 20-day ($65.62), 50-day ($65.49) and 200-day ($50.92) averages—yet the 12-day EMA shows a peak-and-reversal, and the close trades just under the 1x Bollinger upper band, which points to limited immediate upside without renewed momentum. SuperTrend support near $62.92 offers a technical reference for the current short-term structure.
Fundamental Analysis
Top-line and cash flow: Revenue rose materially year-over-year, with YoY revenue growth of 59.89% and QoQ revenue growth of 15.54%, while operating cash flow reached $3.59 billion and free cash flow totaled $3.416 billion; free cash flow yield equals 11.49%, a level that supports the view that the market undervalues available cash generation relative to the company’s price.
Profitability and margins: Operating margin stands at 2.24% and EBIT margin at 3.06%; both margins contracted QoQ (EBIT margin QoQ -32.49%) and EBIT margin fell YoY by 18.19%. Centene’s EBIT margin sits below the industry peer mean of 7.462% and below the industry peer median of 4.462%, indicating margin pressure relative to typical peer performance even as revenue expands.
Returns and leverage: Return on equity equals 4.84%, which exceeds the industry peer mean and sits above the industry peer median return on equity, showing modest equity returns. Debt-to-EBITDA equals 8.31x, a materially elevated leverage multiple, while debt-to-assets equals 19.40% and interest coverage stands at 10.71x, implying interest obligations remain serviceable but leverage sits toward the high end of operating-serviceable ranges.
Earnings and surprises: EPS ran $2.51 versus an estimate of $1.08, producing a $1.43 upside and an EPS surprise of roughly +132.4%. Despite the upside, earnings growth metrics show strain—earnings growth stands at -25.52% and YoY earnings growth at -78.30%—reflecting volatile year-over-year comparisons even as current-period earnings exceeded expectations.
Balance sheet and liquidity: Cash and short-term investments total $27.06 billion and cash conversion remains strong, with a cash conversion ratio of 9.04 and a cash conversion cycle slightly negative (≈ -3.83 days), supporting operational liquidity. Capital expenditures remain modest relative to revenue, while asset turnover at 0.6527 improved YoY and QoQ.
Valuation context: WMDST values the stock as under-valued. Current market price $66.42 compares with a price-target mean of $72.77 and an enterprise multiple of ~9.68x; the combination of strong free cash flow yield and stretched leverage frames the valuation gap as a function of margin and earnings volatility rather than cash-generation shortfall.
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: 34.57 median: 32.178 CNC: 9.682 low: -86.959 |
|
| 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: 0.93 mean: 0.38 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: 2.844 mean: 0.887 median: 0.748 CNC: 0.714 low: -1.417 |
|
| 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: 15.571 mean: 2.251 median: 1.767 CNC: 1.318 low: -0.408 |
|
| Price To Earnings (P/E) | 23.974 | |
| Price To Earnings QoQ | 109.344 % | |
| Price To Earnings YoY | -126.209 % | |
| Price To Earnings IPRWA | high: 152.36 mean: 47.716 median: 45.322 CNC: 23.974 low: -81.789 |
|
| 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: 2.5 median: 1.655 CNC: 0.555 low: 0.097 |
|
| 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: 0.412 low: 0.106 |
|
| Receivables Turnover | 2.857 | |
| Receivables Turnover Ratio QoQ | 7.361 % | |
| Receivables Turnover Ratio YoY | 28.935 % | |
| Receivables Turnover Ratio IPRWA | high: 7.49 mean: 3.724 median: 3.304 CNC: 2.857 low: 0.429 |
|
| 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: 11.545 CNC: -3.834 low: -106.668 |
|
| 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: 1.055 median: 0.934 low: 0.278 |
|
| 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: 6.282 median: 6.254 low: -9.603 |
|
| 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: 17.804 % CNC: 7.278 % median: 3.075 % mean: 1.498 % low: -6.05 % |
|
| Earnings Growth | -25.519 % | |
| Earnings Growth QoQ | -93.34 % | |
| Earnings Growth YoY | -78.298 % | |
| Earnings Growth IPRWA | high: 108.333 % median: 0.389 % mean: -3.101 % 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: 29.468 % 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: 7.462 % median: 4.462 % CNC: 3.059 % low: -12.904 % |
|
| 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: 8.284 % median: 4.433 % CNC: 2.236 % low: -12.904 % |
|
| 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: 2.03 % 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 % CNC: -18.003 % mean: -35.744 % low: -972.093 % |
|
| 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: 1.507 % CNC: 1.329 % median: 1.176 % low: -2.927 % |
|
| 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 median: 0.037 mean: -0.011 low: -0.286 |
|
| 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: 3.236 % CNC: 3.099 % median: 2.555 % low: -5.362 % |
|