CNC Centene Corporation - Fundamental Analysis
BEARISH
CNC Stock | Fundamental Analysis & Investment Insights
NYSE
•
Healthcare
•
Healthcare Plans
Current Price
$41.78
Analyst Target
$40.41
-3.3% Downside
52W High
$66.81
52W Low
$25.08
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 04, 2026
Market cap
$20.54B
P/E
N/A
ROE
-21.9%
Profit margin
-3.2%
Debt/Equity
0.84
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
78%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a deeply concerning financial profile: a Piotroski F-Score of 2/9 indicates severe weakness in fundamental health, and while the Altman Z-Score is astronomically high (205199346380.8), suggesting no distress risk, this may reflect accounting anomalies or non-standard capital structure rather than operational strength. Despite strong revenue growth of 21.50% and a low Price/Sales ratio of 0.12, the company is unprofitable with a negative profit margin (-3.16%) and ROE (-21.86%), undermining valuation appeal. Recent insider selling, deteriorating earnings trends (YoY EPS growth down -69.1%), and a technical trend score of 0/100 point to deteriorating investor confidence. Although the stock has rebounded 25.4% over the past six months, this appears disconnected from fundamentals, increasing downside risk.
Key Strengths
Exceptionally high Altman Z-Score suggests no near-term bankruptcy risk
Strong year-over-year revenue growth of 21.50%, outpacing sector average of 9.60%
Low Price/Sales ratio of 0.12 indicates potential undervaluation relative to sales
Recent quarterly earnings surprises have been volatile but included large upside beats (e.g., +404.3% in Q4 2025)
Operating cash flow and free cash flow data may be suppressed by accounting timing, but revenue momentum remains robust
Key Risks
Piotroski F-Score of 2/9 signals critical deterioration in profitability, leverage, and operating efficiency
Negative profit margin (-3.16%) and ROE (-21.86%) indicate systemic profitability issues
Earnings growth is collapsing year-over-year (-69.1%) despite revenue growth, suggesting margin compression
Insider selling activity ($2.58M in sales, no buys) reflects lack of confidence among executives
Technical trend score of 0/100 confirms strong bearish momentum despite short-term price bounce
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
33
Weak
45
58
30
20
10
AI Verdict
High-risk turnaround play with speculative upside but deteriorating fundamentals
Key drivers: Piotroski F-Score of 2 severely penalizes health score, Revenue growth supports future potential, Negative earnings and ROE drag down value and health, Insider selling and technical weakness limit near-term upside, Valuation multiples appear cheap but lack earnings support
Confidence
75%
Value
45/100
Ref P/E, PEG, Graham Number
Positives
- Low Price/Sales ratio of 0.12 suggests potential undervaluation
- Price/Book of 0.98 implies asset-backed floor
Watchpoints
- P/E is N/A due to negative earnings
- No Graham Number due to unprofitability
- PEG ratio unavailable, no sustainable growth-pricing anchor
Future
58/100
Ref Growth rates
Positives
- Revenue growth of 21.50% YoY exceeds peer average
- Recent Q/Q EPS growth of +412.5% shows potential for rebound
Watchpoints
- Year-over-year EPS growth is -69.1%, indicating deteriorating earnings power
- Forward P/E of 14.45 relies on recovery assumptions
Past
30/100
Ref Historical trends
Positives
- History of large earnings surprises (e.g., +404.3%) shows potential for volatility-driven rallies
Watchpoints
- Earnings trend shows sharp decline from positive to negative quarters
- Only 2 out of last 4 quarters beat estimates
- Long-term price performance is deeply negative (-32.7% over 5Y)
Health
20/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Altman Z-Score of 205199346380.8 indicates no statistical risk of bankruptcy
- Current ratio (1.08) and quick ratio (1.04) are above 1, suggesting short-term liquidity
Watchpoints
- Piotroski F-Score of 2/9 reflects poor financial health
- Negative ROE (-21.86%) and profit margin (-3.16%)
- Debt/Equity of 0.84 is manageable but risky given lack of profitability
Dividend
10/100
Ref Yield, Payout
Positives
No standout positives identified.
Watchpoints
- Dividend Strength score of 0/100
- No dividend yield or payout history
- No indication of future dividend plans
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$41.78
Analyst Target
$40.41
Upside/Downside
-3.3%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for CNC and closest competitors.
Updated 2026-01-02
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
CNC
Centene Corporation
Primary
|
-32.7% | -47.6% | -30.9% | +25.4% | +7.7% | +3.1% |
|
ILMN
Illumina, Inc.
Peer
|
-62.5% | -31.2% | +2.6% | +33.3% | +5.0% | -0.4% |
|
INCY
Incyte Corporation
Peer
|
+17.3% | +27.5% | +45.9% | +48.2% | -0.1% | +1.3% |
|
ZBH
Zimmer Biomet Holdings, Inc.
Peer
|
-36.9% | -27.4% | -13.0% | -3.4% | -3.0% | -0.6% |
|
BNTX
BioNTech SE
Peer
|
+14.3% | -35.0% | -16.1% | -12.1% | -0.0% | +2.3% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
N/A
Forward P/E
14.45
PEG Ratio
N/A
P/B Ratio
0.98
P/S Ratio
0.12
EV/Revenue
0.11
EV/EBITDA
4.87
Market Cap
$20.54B
Profitability
Profit margins and return metrics
Profit Margin
-3.16%
Operating Margin
0.55%
Gross Margin
11.72%
ROE
-21.86%
ROA
2.01%
Growth
Revenue and earnings growth rates
Revenue Growth
+21.5%
Earnings Growth
N/A
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
N/A
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.84
Moderate
Current Ratio
1.08
Good
Quick Ratio
1.04
Good
Cash/Share
$39.14
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-06
$N/A
2025-10-29
$0.5
+404.3% surprise
2025-07-25
$-0.16
-177.3% surprise
2025-04-25
$2.9
+15.3% surprise
Healthcare Sector Comparison
Comparing CNC against 42 companies in the Healthcare sector
(5 bullish, 31 neutral, 6 bearish)
Return on Equity (ROE)
-21.86%
This Stock
vs
25.54%
Sector Avg
-185.6%
(Below Avg)
Profit Margin
-3.16%
This Stock
vs
9.99%
Sector Avg
-131.6%
(Weaker)
Debt to Equity
0.84
This Stock
vs
0.92
Sector Avg
-9.2%
(Lower)
Revenue Growth
21.5%
This Stock
vs
9.8%
Sector Avg
+119.3%
(Fast Growth)
Current Ratio
1.08
This Stock
vs
2.27
Sector Avg
-52.3%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
CNC
Centene Corporation
|
BEARISH | $20.54B | - | -21.9% | -3.2% | $41.78 | |
|
ILMN
Illumina, Inc.
|
NEUTRAL | $20.65B | 30.12 | 31.2% | 16.4% | $134.35 | |
|
INCY
Incyte Corporation
|
NEUTRAL | $19.91B | 17.19 | 30.4% | 24.7% | $101.42 | |
|
ZBH
Zimmer Biomet Holdings, Inc.
|
NEUTRAL | $17.84B | 22.34 | 6.4% | 10.1% | $90.02 | |
|
BNTX
BioNTech SE
|
BEARISH | $23.25B | - | -3.0% | -18.1% | $96.69 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-04 | BURDICK KENNETH A | Director | Sale | 66,007 | $2,575,601 |
| 2025-09-30 | EPPINGER FREDERICK H | Director | Stock Award | 710 | - |
| 2025-09-30 | COUGHLIN CHRISTOPHER J | Director | Stock Award | 852 | - |
| 2025-09-30 | SAMUELS THEODORE R II | Director | Stock Award | 710 | - |
| 2025-09-30 | TANJI KENNETH Y. | Director | Stock Award | 803 | - |
| 2025-09-30 | BURDICK KENNETH A | Director | Stock Award | 852 | - |
| 2025-08-08 | LONDON SARAH M. | Chief Executive Officer | Purchase | 19,230 | $490,365 |
| 2025-07-28 | SAMUELS THEODORE R II | Director | Purchase | 9,000 | $248,580 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
17 analysts
Bernstein
2025-11-21
Outperform
Outperform
Wells Fargo
2025-11-12
Equal-Weight
Equal-Weight
JP Morgan
2025-11-04
Neutral
Neutral
Barclays
2025-11-04
Equal-Weight
Equal-Weight
TD Cowen
2025-10-31
Hold
Hold
Goldman Sachs
2025-10-31
Sell
Sell
UBS
2025-10-30
Neutral
Neutral
Cantor Fitzgerald
2025-10-30
Neutral
Neutral
Truist Securities
2025-10-30
Buy
Buy
Morgan Stanley
2025-10-14
Equal-Weight
Equal-Weight