Centene Corporation Intrinsic Value Calculation – Scharf Investments LLC Lifts Position in Centene Corporation
December 23, 2023
🌥️Trending News
Scharf Investments LLC recently raised their rating of Centene Corporation ($NYSE:CNC), signaling a positive outlook for the company. Centene Corporation is a leading healthcare enterprise that provides programs and services to government sponsored healthcare programs, focusing on under-insured and uninsured individuals. Their services are tailored to meet the needs of those who are most vulnerable, including low-income families, the elderly, and people with disabilities. Centene Corporation provides programs such as Medicaid, Children’s Health Insurance Program (CHIP), and Long Term Services and Supports (LTSS).
In addition to providing healthcare plans, Centene Corporation also offers program management in areas such as disease management and utilization review. The company also offers health care data analysis, pharmacy benefit management, and enrollment services. With Scharf Investments LLC raising their rating of the company, investors may want to take note of this stock.
Stock Price
Friday proved to be a volatile day for shares of Centene Corporation as the stock opened at $73.6 and closed at $73.3, down by 0.1% from its last closing price of 73.4. This move is likely to have positive implications for the overall performance of Centene Corporation in the long run. 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 |
| 150.1k | 2.44k | 1.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Centene Corporation. More…
| Operations | Investing | Financing |
| 6.26k | -21 | -3.19k |
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 |
| 84.38k | 58.97k | 47.35 |
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 |
| 13.9% | 4.5% | 2.9% |
| FCF Margin | ROE | ROA |
| 3.6% | 10.6% | 3.2% |
Analysis – Centene Corporation Intrinsic Value Calculation
At GoodWhale, we have been analyzing the financials of CENTENE CORPORATION. Our proprietary Valuation Line has calculated the fair value of CENTENE CORPORATION’s share to be around $87.0. However, the stock is currently trading at $73.3, indicating it is undervalued by a margin of 15.8%. We believe this presents an opportunity to invest in the company at a discounted price. More…
Peers
In the world of health insurance providers, Centene Corp faces some stiff competition. Some of its main competitors are UnitedHealth Group Inc, Pacific Health Care Organization Inc, and Humana Inc. All of these companies are vying for a piece of the pie in the ever-growing health insurance market.
– UnitedHealth Group Inc ($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
Scharf Investments LLC recently lifted CENTENE CORPORATION‘s position in its portfolio. The move is likely to reflect the firm’s confidence in the stock’s prospects. Analysts have recently noted that CENTENE CORPORATION has solid fundamentals, including a strong financial position, an attractive dividend yield, and excellent cash flow generation. As a result, investors are likely to continue to see CENTENE CORPORATION as an attractive investment opportunity.
