Centene Corporation Intrinsic Stock Value – CENTENE CORPORATION Reports Second Quarter FY2023 Financial Results
August 3, 2023
🌥️Earnings Overview
CENTENE CORPORATION ($NYSE:CNC) announced their financial results for the second quarter of FY2023 on June 30 2023, revealing a 4.7% year-over-year increase in total revenue to USD 37608.0 million. Net income rose to USD 1058.0 million, compared to -172.0 million a year earlier.
Stock Price
The stock opened at $69.1 and closed at $66.2, which was a 5.4% drop from its prior closing price of $70.0. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Centene Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 147.92k | 2.71k | 1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Centene Corporation. More…
| Operations | Investing | Financing |
| 8.57k | -453 | -4.15k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Centene Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 82.85k | 57.07k | 47.02 |
Key Ratios Snapshot
Some of the financial key ratios for Centene Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.3% | 5.1% | 3.1% |
| FCF Margin | ROE | ROA |
| 5.2% | 11.2% | 3.4% |
Analysis – Centene Corporation Intrinsic Stock Value
At GoodWhale, we recently conducted an analysis on the wellbeing of CENTENE CORPORATION, and our proprietary Valuation Line shows that the intrinsic value of its share is around $88.0. This means that at its current trading price of $66.2, the CENTENE CORPORATION stock is undervalued by 24.8%. This presents an excellent opportunity for investors to buy and benefit from the potential upside. We believe that this undervaluation is driven by the market’s short term focus on quarterly results, and not taking into account the long term value of CENTENE CORPORATION. As a result, it is trading at a Discount to its intrinsic value. We present this analysis as a way to help investors find opportunities in areas of the market that are currently undervalued, and make informed decisions about their investments. We recommend investors take advantage of this opportunity, and consider investing in CENTENE CORPORATION stock while it is undervalued in the market. More…
Peers
In the world of health insurance providers, Centene Corp faces some stiff competition. Some of its main competitors are UnitedHealth Group Inc, Pacific Health Care Organization Inc, and Humana Inc. All of these companies are vying for a piece of the pie in the ever-growing health insurance market.
– UnitedHealth Group Inc ($NYSE:UNH)
UnitedHealth Group Inc is an American for-profit managed health care company based in Minnetonka, Minnesota. It offers health care products and services through its subsidiaries, UnitedHealthcare and Optum. As of 2022, it has a market cap of 486.7B and a ROE of 21.75%.
The company’s main business is UnitedHealthcare, which provides health care coverage and benefits services to individuals, families, and businesses through plans sold by state and federal governments, employers, and directly to consumers through the Health Insurance Marketplace. Optum is the company’s health services business, which provides technology and information-enabled health services, including provider network management, care management, clinical decision support, and consumer engagement.
– Pacific Health Care Organization Inc ($OTCPK:PFHO)
As of 2022, Pacific Health Care Organization Inc has a market cap of 10.11M. The company has a return on equity of 1.33%. Pacific Health Care Organization Inc is a healthcare organization that provides services to patients in the Pacific region. The company offers a wide range of services, including primary care, mental health, and substance abuse services. The company also operates a network of clinics and hospitals in the Pacific region.
– Humana Inc ($NYSE:HUM)
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. As of 2019, Humana has had over 13 million customers in the United States. The company offers health, dental, and vision insurance plans, as well as Medicare and Medicaid plans. Humana also offers a wide range of supplemental plans, such as life insurance, long-term care insurance, and pet insurance.
Summary
Centene Corporation reported a strong financial performance for the second quarter of FY2023, with total revenue increasing 4.7% year-on-year and net income reaching USD 1058.0 million, compared to the -172.0 million from the same period in the prior year. Despite this positive news, the stock price of Centene Corporation dropped on June 30 2023. Investors should consider this stock as a long-term buy, since its strong financial performance is reflective of Centene Corporation’s potential for future stability and growth. However, short-term investors should monitor market conditions closely and watch for potential further drops in share prices before investing.
