📊 CNC Key Takeaways
Is Centene Corp. (CNC) a Good Investment?
Centene demonstrates strong top-line growth (11.6% YoY) and robust cash generation ($4.2B FCF), supported by a solid balance sheet with $21.3B cash and manageable 0.76x debt/equity. However, the company faces significant operational headwinds: net income is flat despite double-digit revenue growth, and diluted EPS declined 314% YoY, indicating margin compression and potential share dilution that offset otherwise healthy fundamentals.
Centene shows solid top-line growth and still generates meaningful operating and free cash flow, which indicates the business retains underlying scale and liquidity. However, the latest period’s sharp swing to large operating and net losses, deeply negative returns, and negative interest coverage materially weaken the quality of that growth. Until profitability normalizes and margins recover, the fundamentals look too impaired to support a constructive view.
Centene Corp. Key Strengths (CNC)
- Strong revenue growth of 11.6% YoY in large $49.9B base
- Excellent cash generation with $4.2B free cash flow (8.3% FCF margin) and $21.3B cash position
- Solid balance sheet with manageable debt/equity of 0.76x and strong interest coverage of 10.5x
- Low capital intensity ($200M CapEx) characteristic of insurance business model
- Revenue grew 11.6% year over year, showing continued scale expansion
- Operating cash flow of $5.09B and free cash flow of $4.32B remain positive
- Large cash balance of $17.89B and a current ratio of 1.10x provide near-term liquidity support
CNC Stock Risks: Centene Corp. Investment Risks
- Severe profitability deceleration: net income flat despite 11.6% revenue growth indicates margin compression
- Alarming 314% diluted EPS decline YoY suggests substantial share dilution or operational deterioration
- Thin profitability margins (3.1% net margin, 3.7% operating margin) leave minimal buffer for sector headwinds
- Weak returns metrics: 7.2% ROE and 1.9% ROA indicate inefficient capital deployment
- Tight liquidity with current ratio of only 1.12x
- Operating margin of -3.9% and net margin of -3.4% indicate significant earnings deterioration
- ROE of -33.4% and ROA of -8.7% reflect weak capital efficiency and balance sheet pressure
- Interest coverage of -42.8x suggests current earnings do not support debt servicing capacity
Key Metrics to Watch
- Trends in net profit margin and operating margin; whether they can improve from current 3.1% and 3.7%
- Explanation and trajectory of diluted EPS; if share count expansion continues or if it stabilizes
- Segment profitability breakdown and which lines are compressing margins despite revenue growth
- Free cash flow sustainability and capital allocation decisions (dividends, buybacks, debt reduction)
- Operating margin recovery
- Operating cash flow consistency
Centene Corp. (CNC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Centene Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CNC Profit Margin, ROE & Profitability Analysis
CNC vs Healthcare Sector: How Centene Corp. Compares
How Centene Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Centene Corp. Stock Overvalued? CNC Valuation Analysis 2026
Based on fundamental analysis, Centene Corp. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Centene Corp. Balance Sheet: CNC Debt, Cash & Liquidity
CNC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Centene Corp.'s revenue has grown significantly by 48% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.95 reflects profitable operations.
CNC Revenue Growth, EPS Growth & YoY Performance
CNC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $42.5B | $1.3B | $2.63 |
| Q3 2025 | $36.9B | $713.0M | $1.36 |
| Q2 2025 | $36.0B | -$253.0M | $-0.51 |
| Q1 2025 | $36.3B | $1.2B | $2.16 |
| Q3 2024 | $35.0B | $469.0M | $0.87 |
| Q2 2024 | $34.8B | $1.1B | $1.92 |
| Q1 2024 | $35.0B | $1.1B | $2.04 |
| Q3 2023 | $33.7B | $469.0M | $0.87 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Centene Corp. Dividends, Buybacks & Capital Allocation
CNC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Centene Corp. (CIK: 0001071739)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CNC
What is the AI rating for CNC?
Centene Corp. (CNC) has a Combined AI Grade of C from Claude (B) and ChatGPT (C) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CNC's key strengths?
Claude: Strong revenue growth of 11.6% YoY in large $49.9B base. Excellent cash generation with $4.2B free cash flow (8.3% FCF margin) and $21.3B cash position. ChatGPT: Revenue grew 11.6% year over year, showing continued scale expansion. Operating cash flow of $5.09B and free cash flow of $4.32B remain positive.
What are the risks of investing in CNC?
Claude: Severe profitability deceleration: net income flat despite 11.6% revenue growth indicates margin compression. Alarming 314% diluted EPS decline YoY suggests substantial share dilution or operational deterioration. ChatGPT: Operating margin of -3.9% and net margin of -3.4% indicate significant earnings deterioration. ROE of -33.4% and ROA of -8.7% reflect weak capital efficiency and balance sheet pressure.
What is CNC's revenue and growth?
Centene Corp. reported revenue of $49.9B.
Does CNC pay dividends?
Centene Corp. does not currently pay dividends.
Where can I find CNC SEC filings?
Official SEC filings for Centene Corp. (CIK: 0001071739) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CNC's EPS?
Centene Corp. has a diluted EPS of $3.11.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CNC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Centene Corp. has a C grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CNC stock overvalued or undervalued?
Valuation metrics for CNC: ROE of 7.2% (sector avg: 15%), net margin of 3.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is CNC's AI grade for 2026?
Our dual AI analysis gives Centene Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CNC's free cash flow?
Centene Corp.'s operating cash flow is $4.4B, with capital expenditures of $200.0M. FCF margin is 8.3%.
How does CNC compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 3.1% (avg: 12%), ROE 7.2% (avg: 15%), current ratio 1.12 (avg: 2).