Centene Corporation Intrinsic Value Calculation – Centene Co. Stock Price Reaches New 12-Month Low of $61.41
June 6, 2023
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The company’s stock has not been performing well in recent months due to a number of factors, including the uncertainty surrounding the Affordable Care Act, changes in state Medicaid policies, and other healthcare reform measures. Additionally, Centene ($NYSE:CNC) has faced increased competition from other managed care companies and pharmacy benefit managers. Analysts are expecting Centene’s stock price to remain low for the near future, although there is hope that the company will be able to turn things around and begin to rise again. In the meantime, investors are advised to exercise caution and do their due diligence before investing in Centene’s stock.
Stock Price
On Monday, the stock opened at $66.8 and closed at $67.3, up by 1.3%. Although the long-term outlook for the company is unclear, it is clear that current market conditions have had a negative impact on their share price. 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 |
| 146.25k | 1.48k | 1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Centene Corporation. More…
| Operations | Investing | Financing |
| 9.38k | -773 | -3.88k |
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 |
| 82.98k | 57.8k | 45.39 |
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 |
| 21.2% | 30.6% | 2.0% |
| FCF Margin | ROE | ROA |
| 5.7% | 7.4% | 2.2% |
Analysis – Centene Corporation Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis on the wellbeing of CENTENE CORPORATION. Our proprietary Valuation Line found the intrinsic value of CENTENE CORPORATION’s share to be around $87.7. Surprisingly, CENTENE CORPORATION stock is currently being traded at only $67.3, marking a 23.3% discount in its intrinsic value. We believe that long-term investors should take advantage of the drop in price and consider buying CENTENE CORPORATION stock now. More…
Peers
In the world of health insurance providers, Centene Corp faces some stiff competition. Some of its main competitors are UnitedHealth Group Inc, Pacific Health Care Organization Inc, and Humana Inc. All of these companies are vying for a piece of the pie in the ever-growing health insurance market.
– UnitedHealth Group Inc ($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
Investors may be hesitant to invest in Centene due to the uncertain future of healthcare reform, however, the company has consistently grown with increasing profits year over year. Investors should consider the stability of Centene’s business model and the increasing demand for their services in light of rising healthcare costs and continued population growth. Despite potential risks, investors may find value in Centene’s long-term growth potential and its strong competitive position.
