📊 CNC Key Takeaways
Is Centene Corp. (CNC) a Good Investment?
Centene faces severe profitability challenges with negative operating and net income despite strong revenue growth of 11.6%, indicating fundamental operational distress. While positive free cash flow of 4.3B provides near-term liquidity buffer, the company's negative ROE of -33.4% and operating margin of -3.9% signal structural issues in margin management that require immediate operational restructuring.
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.
Why Buy Centene Corp. Stock? CNC Key Strengths
- Strong revenue growth of 11.6% YoY demonstrating market demand and scale expansion
- Solid free cash flow of 4.3B providing operational flexibility despite negative earnings
- Adequate liquidity with current ratio of 1.10x and cash position of 17.9B covering near-term obligations
- 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
- Significant operating losses of 7.6B with negative operating margin of -3.9% indicating severe cost control issues
- Negative profitability with net margin of -3.4% and net income loss of 6.7B creating shareholder value destruction
- Deteriorating returns with ROE of -33.4% and ROA of -8.7% suggesting inefficient capital deployment and operational mismanagement
- Negative interest coverage of -42.8x indicating inability to service debt from operations, creating refinancing risk
- 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
- Operating margin trajectory - critical to confirm whether losses represent temporary adjustment or structural problem
- Medical loss ratio and cost per member - key operational efficiency metrics for healthcare insurers
- Cash burn rate and free cash flow sustainability - operating losses may eventually exhaust positive FCF generation
- Operating margin recovery
- Operating cash flow consistency
Centene Corp. (CNC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.2% FCF margin may limit capital allocation flexibility.
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $34.0B | -$172.0M | $-0.29 |
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 Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CNC's key strengths?
Claude: Strong revenue growth of 11.6% YoY demonstrating market demand and scale expansion. Solid free cash flow of 4.3B providing operational flexibility despite negative earnings. 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: Significant operating losses of 7.6B with negative operating margin of -3.9% indicating severe cost control issues. Negative profitability with net margin of -3.4% and net income loss of 6.7B creating shareholder value destruction. 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 $194.8B.
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 $-13.53.
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 rating reflects both perspectives for balanced insights.
Is CNC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Centene Corp. has a SELL rating with 84% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CNC stock overvalued or undervalued?
Valuation metrics for CNC: ROE of -33.4% (sector avg: 15%), net margin of -3.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CNC stock in 2026?
Our dual AI analysis gives Centene Corp. a combined SELL rating 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 $5.1B, with capital expenditures of $767.0M. FCF margin is 2.2%.
How does CNC compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -3.4% (avg: 12%), ROE -33.4% (avg: 15%), current ratio 1.10 (avg: 2).