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CNC

BEARISH
$43.5 Live
Centene Corporation · NYSE
Target $43.47 (-0.1%)
$25.08 52W Range $64.15

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AI Analysis

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Confidence
85%
Centene Corporation exhibits severe fundamental weakness, highlighted by a critical Piotroski F-Score of 2/9, indicating poor financial health and deteriorating operational efficiency. While the company shows strong top-line revenue growth of 23.2%, this is completely offset by a catastrophic YoY EPS decline of -248.7% and a deeply negative ROE of -28.68%. The stock appears cheap on a Price-to-Sales (0.12) and Price-to-Book (1.07) basis, but these metrics likely reflect a 'value trap' given the negative profit margins and lack of earnings stability. Despite a recent short-term price rally, the long-term technical trend remains bearish and analyst targets are flat.

Key Strengths

Strong YoY revenue growth of 23.20%
Very low Price-to-Sales ratio (0.12) suggesting high revenue relative to market cap
Price-to-Book ratio (1.07) indicates the stock is trading near its accounting value
PEG ratio of 0.94 suggests potential undervaluation relative to growth if margins recover
Reasonable Forward P/E of 10.93

Key Risks

Critical Piotroski F-Score of 2/9 signaling severe financial distress
Extreme earnings collapse with YoY EPS growth at -248.7%
Negative Return on Equity (ROE) of -28.68% indicating failure to generate profit from shareholder capital
Negative profit margins (-3.79%) and operating margins (-1.88%)
Long-term price erosion with a 5-year change of -26.9%
AI Fair Value Estimate
Based on comprehensive analysis
$43.47
-0.1% below current price

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