Centene Story

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CNC -- USA Stock  

USD 64.60  0.92  1.44%

Whilst many millenniums are getting more into healthcare space, it makes sense to go over Centene. We will evaluate why we are still confident in anticipation of a recovery. Is the entity valuation justified? Here I will cover 2020 perspective on the current valuation of the stock to give you a better outlook on taking a possible position in this stock.
Published over a month ago
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Is Centene well positioned for November economic uncertainties?
Centene has 17.85 B in debt with debt to equity (D/E) ratio of 0.71, which is OK given its current industry classification. Centene is FAIRLY VALUED at 69.00 per share with modest projections ahead. About 81.0% of the company shares are held by institutions such as insurance companies. Centene has price-to-book (P/B) ratio of 1.56. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 0.98. The firm last dividend was issued on the 29th of October 2010. Centene had 2:1 split on the 7th of February 2019.
We determine the current worth of Centene using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Centene based exclusively on its fundamental and basic technical indicators. By analyzing Centene's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Centene's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Centene. We calculate exposure to Centene's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Centene's related companies.

Centene Investment Alerts

Centene investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Centene performance across your portfolios.Please check all investment alerts for Centene

Centene Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Centene value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Centene competition to find correlations between indicators driving the intrinsic value of Centene.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Centene, but it might be worth checking our own buy vs. sell analysis

Sale by Kenneth Burdick of 35000 shares of Centene

Legal trades by Centene insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Centene insider trading alert for sale of common stock by Kenneth Burdick, EVP Markets & Products, on 10th of November 2020. This event was filed by Centene Corp with SEC on 2020-11-10. Statement of changes in beneficial ownership - SEC Form 4. Kenneth Burdick currently serves as executive vice president - markets & products of Centene [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Centene Investor Appetite?

The entity reported the last year's revenue of 86.52 B. Total Income to common stockholders was 1.56 B with profit before taxes, overhead, and interest of 11.93 B.

Margins Breakdown

Centene profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Centene itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Centene profit margins.
Operating Margin2.74
EBITDA Margin0.0363
Gross Margin0.11
Profit Margin0.0167

Centene Average Assets is increasing over the last 8 years. Moreover, Centene Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years.

Is Centene growth reliable after the slip?

Current mean deviation is at 1.49. Centene currently demonstrates below-verage downside deviation. It has Information Ratio of -0.04 and Jensen Alpha of 0.03. However, we do advice investors to further question Centene expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Centene

When is the right time to buy or sell Centene? Buying stocks such as Centene isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. The inconsistency in the assessment between current Centene valuation and our trade advice on Centene is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Centene.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Centene. Please refer to our Terms of Use for any information regarding our disclosure principles.

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