Recent News
On July 28, 2026 Centene released its second-quarter corporate update and raised full-year guidance. Subsequent reports in August noted a planned phased leadership transition as the chief financial officer will step down in December and retire at the end of 2027, and the company announced executive-level changes including a new chief information officer; separate reports described a voluntary separation program and workforce actions tied to cost management and restructuring.
Technical Analysis
ADX at 10.23 indicates no established trend, implying price action will likely remain range-bound absent a pickup in directional momentum; this moderates the near-term upside implied by the valuation.
Directional indicators show mixed signals: DI+ at 23.67 has peaked and reversed, which reads as bearish for trend initiation, while DI- at 22.61 also peaked and reversed, a technically bullish sign; together these opposing DI signals point to rotational pressure and short-term uncertainty rather than a clear directional breakout.
MACD sits below its signal line (MACD 0.27 vs signal 0.36) and the MACD trend has peaked and reversed, indicating declining bullish momentum and no confirmed MACD bullish crossover; momentum structure favors consolidation or pullback before renewed upside.
MRO at 21.76 (positive) signals price currently trades above WMDST’s target framework, implying downward pressure toward the firm valuation level; momentum magnitude suggests a moderate near-term correction potential rather than an extreme reversal.
RSI at 52.17 with a peak-and-reversal pattern indicates neutral momentum that has begun to weaken; the indicator fails to show overbought stress but confirms reduced buying intensity.
Price dynamics: the recent close at $64.99 sits below the 20-day average ($66.31) and the 50-day average ($65.45) while remaining above the 200-day average ($51.75); the 12-day EMA shows a short-term peak-and-reversal pattern, so short-term averages offer resistance while the 200-day average provides structural support.
Bollinger positioning places price just above the 1x lower band ($64.61) with a super-trend support at $62.94, constraining near-term downside; volume sits modestly below short- and long-term averages, reducing conviction behind directional moves.
Fundamental Analysis
Revenue expanded sharply: YoY revenue growth equals 59.9% and QoQ revenue growth equals 15.5%, reflecting meaningful top-line momentum that supports improved margin recovery and cash generation.
Profitability shows progress but lags peer central tendencies: operating margin at 2.236% and EBIT margin at 3.059% trail the industry peer mean operating margin of 8.284% and industry peer mean EBIT margin of 7.462%; margin QoQ dynamics show deterioration in the quarter-to-quarter margin change for EBIT (-32.487% QoQ) despite year-over-year improvements being negative for EBIT margin (-18.185% YoY), highlighting volatile margin recovery during cost and mix shifts.
Earnings delivered a material beat: adjusted EPS came in at $2.51 versus an estimate of $1.08, a $1.43 beat representing roughly a 132% upside to estimate; management concurrently raised full-year EPS guidance, reflecting operational improvement and some one-time benefits reported with the quarter.
Cash and leverage offer balance-sheet flexibility: cash and short-term investments total $27.06 billion while total debt stands at $16.105 billion, producing a debt-to-assets ratio near 19.4% and debt-to-equity around 0.714; interest coverage near 10.7x supports debt service capacity even as coverage showed QoQ weakness.
Free cash flow generation appears healthy relative to peers: free cash flow yield equals 11.49% versus the industry peer mean of 2.03%, indicating strong cash conversion on the current market cap and supporting valuation upside if cash flow sustains. Operating cash flow reached $3.59 billion for the period and the cash conversion ratio sits at 9.04, reinforcing liquidity strength.
Operational efficiency and working capital: asset turnover at 0.653 compares favorably to the industry peer mean of 0.411, and the cash conversion cycle at approximately -3.8 days signals efficient cash collection and payable management; these operational metrics undergird the company’s ability to fund operations without excessive external financing.
Valuation and WMDST view: WMDST values the stock as under-valued based on current free cash flow metrics, adjusted earnings power, and a market enterprise multiple near 9.68; the combination of robust cash generation and a positive guidance revision supports the view that market price may understate intrinsic value over longer horizons.
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 | $ 1.34 | |
| 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 % |
|