-0.70%
5.93%
3.07%
-16.58%
-14.79%
-17.48%
2.17%
AI Spotlight on CNC
Company Description
Centene Corporation operates as a multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States.Its Managed Care segment offers health plan coverage to individuals through government subsidized programs, including Medicaid, the State children's health insurance program, long-term services and support, foster care, and medicare-medicaid plans, which cover dually eligible individuals, as well as aged, blind, or disabled programs.Its health plans include primary and specialty physician care, inpatient and outpatient hospital care, emergency and urgent care, prenatal care, laboratory and X-ray, home-based primary care, transportation assistance, vision care, dental care, telehealth, immunization, specialty pharmacy, therapy, social work, nurse advisory, and care coordination services, as well as prescriptions and limited over-the-counter drugs, medical equipment, and behavioral health and abuse services.
This segment also offers various individual, small group, and large group commercial healthcare products to employers and directly to members.The company's Specialty Services segment provides pharmacy benefits management services; nurse advice line and after-hours support services; vision and dental services, as well as staffing services to correctional systems and other government agencies; and services to Military Health System eligible beneficiaries.This segment offers its services and products to state programs, correctional facilities, healthcare organizations, employer groups, and other commercial organizations.
The company provides its services through primary and specialty care physicians, hospitals, and ancillary providers.Centene Corporation was founded in 1984 and is headquartered in St. Louis, Missouri.
Market Data
| Last Price | 64.17 |
| Change Percentage | -0.70% |
| Open | 64.1 |
| Previous Close | 64.62 |
| Market Cap ( Millions) | 32397 |
| Volume | 1092042 |
| Year High | 81.42 |
| Year Low | 55.03 |
| M A 50 | 60.72 |
| M A 200 | 68.73 |
Financial Ratios
| FCF Yield | 0.76% |
| Dividend Yield | 0.00% |
| ROE | 11.42% |
| Debt / Equity | 64.47% |
| Net Debt / EBIDTA | 51.42% |
| Price To Book | 1.23 |
| Price Earnings Ratio | 10.92 |
| Price To FCF | 132.26 |
| Price To sales | 0.2 |
| EV / EBITDA | 6.02 |
News
- Jan -29 - Can Centene's Q4 Earnings Navigate Through Rising Medical Costs?
- Jan -16 - Focus On Costs, Regulatory Outlook For Health Insurers In Q4'24 Earnings Season
- Jan -15 - Centene Expands Care in Hawaii With a Residential Program
- Jan -15 - CENTENE CORPORATION TO HOST 2024 FOURTH QUARTER AND YEAR-END FINANCIAL RESULTS EARNINGS CALL
- Jan -14 - 'Ohana Health Plan and Hope Services Hawaii Launch Residential Program for Integrated Clinical Care
- Jan -10 - Insiders are Buying These 3 Large Cap Stocks
- Jan -10 - 3 HMO Stocks Poised to Thrive Despite Industry Headwinds
- Jan -09 - Centene Corporation Names First President over Individual Coverage Health Reimbursement Arrangements (ICHRA) Business
- Jan -08 - Health Net Providing Special Assistance to Members Affected by Palisades Fire and Windstorm Conditions in Los Angeles and Ventura Counties
- Jan -07 - MHS' Health Equity Program, MHS Serves, Launches Youth Mental Health Partnership
- Jan -06 - Compelling Reasons for Investors to Hold on to Centene Stock
- Jan -02 - Centene: Attractive Risk-Reward For A Growing Company At A Value Price
- Dec -19 - Health Net Providing Special Assistance to Members Affected by Bird Flu Throughout California
- Dec -16 - Superior HealthPlan Commemorates 25-year Anniversary by Awarding $25,000 Grant to NAMI El Paso
- Dec -13 - Centene Unveils Its 2025 Guidance, Reaffirms 2024 Outlook
- Dec -12 - Why Is Insurance Firm Centene Stock Trading Higher On Thursday?
- Dec -12 - Health insurer Centene forecasts 2025 profit above expectations
- Dec -12 - CENTENE CORPORATION ANNOUNCES 2025 GUIDANCE
- Dec -09 - North American Morning Briefing : Global Ad Shares -2-
- Dec -06 - UnitedHealthcare CEO killing spurs Centene to hold virtual meeting and insurers to pull exec photos
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Medicaid
Expected Growth : 8.37 %
What the company do ?
Medicaid from Centene Corporation provides government-sponsored healthcare programs for low-income individuals and families, offering affordable health coverage and services.
Why we expect these perspectives ?
Centene's Medicaid segment growth of 8.37% is driven by increasing government funding, expansion of Medicaid programs, and rising enrollment in Affordable Care Act (ACA) marketplace plans. Additionally, the company's strategic acquisitions, such as Fidelis Care, and its focus on providing cost-effective healthcare services to underserved populations contribute to its growth.
Segment n°2 -> Commercial
Expected Growth : 8.37 %
What the company do ?
Centene Corporation's commercial segment offers healthcare services and insurance products to self-insured employers, individuals, and families.
Why we expect these perspectives ?
Centene Corporation's commercial segment growth of 8.37% is driven by increasing membership in Affordable Care Act (ACA) marketplace plans, expansion of Medicaid managed care contracts, and growth in specialty services such as correctional healthcare and military services. Additionally, strategic acquisitions and investments in digital health platforms have contributed to the segment's growth.
Segment n°3 -> Medicare
Expected Growth : 7.92 %
What the company do ?
Medicare from Centene Corporation is a government-sponsored health insurance program for people 65+, offering medical, hospital, and prescription drug coverage.
Why we expect these perspectives ?
Centene's Medicare growth driven by increasing enrollment in Medicare Advantage plans, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on providing cost-effective healthcare solutions and improving health outcomes for seniors has contributed to its 7.92% growth.
Segment n°4 -> Other/Eliminations
Expected Growth : 10.27 %
What the company do ?
Other/Eliminations from Centene Corporation refers to the removal of intersegment revenues and expenses, resulting in a more accurate representation of the company's financial performance.
Why we expect these perspectives ?
Centene's Other/Eliminations segment growth of 10.27% is driven by increased investments in technology and infrastructure, expansion of specialty services, and strategic acquisitions. Additionally, the company's focus on cost savings initiatives and operational efficiencies have contributed to the segment's growth.
Centene Corporation Products
| Product Range | What is it ? |
|---|---|
| Medicaid | Government-sponsored health insurance program for low-income individuals and families |
| Medicare | Federal health insurance program for people 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant) |
| Health Insurance Marketplace | Health insurance plans sold through the Affordable Care Act (ACA) marketplace |
| TRICARE | Health insurance program for military personnel, veterans, and their families |
| Long-Term Services and Supports (LTSS) | Home and community-based services for individuals with disabilities or chronic conditions |
| Correctional Healthcare | Healthcare services for correctional facilities and inmates |
| Health and Wellness | Preventive health services and wellness programs |
Centene Corporation's Porter Forces
Threat Of Substitutes
Centene Corporation operates in a highly regulated industry, and the threat of substitutes is moderate. While there are alternative healthcare providers, Centene's government-sponsored healthcare services and diversified product offerings reduce the threat of substitutes.
Bargaining Power Of Customers
Centene Corporation's customers are primarily government agencies and individuals, who have limited bargaining power. The company's large customer base and diversified revenue streams reduce the bargaining power of customers.
Bargaining Power Of Suppliers
Centene Corporation relies on a network of healthcare providers, who have some bargaining power. However, the company's scale and diversified supplier base reduce the bargaining power of suppliers.
Threat Of New Entrants
The healthcare industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This reduces the threat of new entrants and provides a competitive advantage to established players like Centene Corporation.
Intensity Of Rivalry
The healthcare industry is highly competitive, with several large players competing for market share. Centene Corporation faces intense rivalry from competitors, which can lead to pricing pressure and reduced margins.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 40.83% |
| Debt Cost | 3.95% |
| Equity Weight | 59.17% |
| Equity Cost | 6.00% |
| WACC | 5.16% |
| Leverage | 69.00% |
Centene Corporation : Quality Control
Centene Corporation passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| UNH | UnitedHealth Group Incorporated operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment … |
| CVS | CVS Health Corporation provides health services in the United States. The company's Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer … |
| HUM | Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. It operates through three segments: Retail, Group and Specialty, and Healthcare Services. The … |
| ELV | Elevance Health Inc. operates as a health benefits company. It supports consumers, families, and communities across the entire care journey connecting to the care, support, and resources to lead healthier … |
| MCK | McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, International, Medical-Surgical Solutions, and Prescription Technology Solutions (RxTS). The U.S. Pharmaceutical segment … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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McKesson
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1-Year Total Return ->
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UnitedHealth
A-Score
1-Year Total Return ->
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Elevance Health
A-Score
1-Year Total Return ->
4
CVS Health
A-Score
1-Year Total Return ->
5
Centene
A-Score
1-Year Total Return ->
6
