Intrinsic value of Centene - CNC

Previous Close

$142.78

  Intrinsic Value

$357.42

stock screener

  Rating & Target

str. buy

+150%

Previous close

$142.78

 
Intrinsic value

$357.42

 
Up/down potential

+150%

 
Rating

str. buy

We calculate the intrinsic value of CNC stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 29.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  18.60
  17.24
  16.02
  14.91
  13.92
  13.03
  12.23
  11.50
  10.85
  10.27
  9.74
  9.27
  8.84
  8.46
  8.11
  7.80
  7.52
  7.27
  7.04
  6.84
  6.65
  6.49
  6.34
  6.21
  6.08
  5.98
  5.88
  5.79
  5.71
  5.64
Revenue, $m
  57,381
  67,274
  78,048
  89,688
  102,176
  115,490
  129,612
  144,523
  160,210
  176,662
  193,873
  211,840
  230,569
  250,068
  270,352
  291,440
  313,356
  336,131
  359,799
  384,399
  409,975
  436,575
  464,251
  493,059
  523,061
  554,321
  586,908
  620,894
  656,358
  693,381
Variable operating expenses, $m
  55,488
  64,948
  75,252
  86,383
  98,325
  111,057
  124,562
  138,821
  153,823
  169,556
  185,399
  202,582
  220,492
  239,139
  258,536
  278,702
  299,661
  321,441
  344,074
  367,599
  392,057
  417,494
  443,960
  471,510
  500,200
  530,094
  561,257
  593,758
  627,672
  663,076
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  55,488
  64,948
  75,252
  86,383
  98,325
  111,057
  124,562
  138,821
  153,823
  169,556
  185,399
  202,582
  220,492
  239,139
  258,536
  278,702
  299,661
  321,441
  344,074
  367,599
  392,057
  417,494
  443,960
  471,510
  500,200
  530,094
  561,257
  593,758
  627,672
  663,076
Operating income, $m
  1,893
  2,325
  2,796
  3,305
  3,851
  4,433
  5,050
  5,702
  6,387
  7,106
  8,473
  9,259
  10,077
  10,929
  11,816
  12,737
  13,695
  14,691
  15,725
  16,800
  17,918
  19,081
  20,290
  21,549
  22,860
  24,227
  25,651
  27,136
  28,686
  30,304
EBITDA, $m
  2,751
  3,226
  3,742
  4,300
  4,899
  5,537
  6,215
  6,930
  7,682
  8,471
  9,296
  10,157
  11,055
  11,990
  12,963
  13,974
  15,025
  16,117
  17,252
  18,431
  19,657
  20,933
  22,260
  23,641
  25,079
  26,578
  28,141
  29,770
  31,471
  33,246
Interest expense (income), $m
  165
  258
  412
  581
  765
  964
  1,177
  1,404
  1,645
  1,900
  2,167
  2,448
  2,742
  3,049
  3,368
  3,701
  4,047
  4,407
  4,781
  5,170
  5,574
  5,993
  6,430
  6,884
  7,356
  7,848
  8,360
  8,893
  9,450
  10,030
  10,635
Earnings before tax, $m
  1,635
  1,913
  2,215
  2,540
  2,887
  3,256
  3,646
  4,057
  4,488
  4,939
  6,025
  6,517
  7,029
  7,561
  8,115
  8,690
  9,288
  9,910
  10,555
  11,227
  11,925
  12,651
  13,406
  14,193
  15,013
  15,867
  16,757
  17,687
  18,657
  19,669
Tax expense, $m
  441
  517
  598
  686
  780
  879
  984
  1,095
  1,212
  1,334
  1,627
  1,759
  1,898
  2,042
  2,191
  2,346
  2,508
  2,676
  2,850
  3,031
  3,220
  3,416
  3,620
  3,832
  4,053
  4,284
  4,525
  4,775
  5,037
  5,311
Net income, $m
  1,193
  1,397
  1,617
  1,854
  2,108
  2,377
  2,661
  2,961
  3,276
  3,605
  4,398
  4,757
  5,131
  5,520
  5,924
  6,344
  6,780
  7,234
  7,705
  8,195
  8,705
  9,235
  9,787
  10,361
  10,959
  11,583
  12,233
  12,911
  13,619
  14,359

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  25,917
  30,386
  35,252
  40,510
  46,150
  52,163
  58,542
  65,277
  72,362
  79,793
  87,567
  95,682
  104,141
  112,949
  122,110
  131,635
  141,534
  151,821
  162,511
  173,622
  185,174
  197,188
  209,689
  222,701
  236,251
  250,371
  265,089
  280,440
  296,458
  313,180
Adjusted assets (=assets-cash), $m
  25,917
  30,386
  35,252
  40,510
  46,150
  52,163
  58,542
  65,277
  72,362
  79,793
  87,567
  95,682
  104,141
  112,949
  122,110
  131,635
  141,534
  151,821
  162,511
  173,622
  185,174
  197,188
  209,689
  222,701
  236,251
  250,371
  265,089
  280,440
  296,458
  313,180
Revenue / Adjusted assets
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
  2.214
Average production assets, $m
  4,820
  5,651
  6,556
  7,534
  8,583
  9,701
  10,887
  12,140
  13,458
  14,840
  16,285
  17,795
  19,368
  21,006
  22,710
  24,481
  26,322
  28,235
  30,223
  32,290
  34,438
  36,672
  38,997
  41,417
  43,937
  46,563
  49,300
  52,155
  55,134
  58,244
Working capital, $m
  -6,197
  -7,266
  -8,429
  -9,686
  -11,035
  -12,473
  -13,998
  -15,609
  -17,303
  -19,080
  -20,938
  -22,879
  -24,901
  -27,007
  -29,198
  -31,475
  -33,842
  -36,302
  -38,858
  -41,515
  -44,277
  -47,150
  -50,139
  -53,250
  -56,491
  -59,867
  -63,386
  -67,057
  -70,887
  -74,885
Total debt, $m
  7,499
  10,569
  13,912
  17,524
  21,399
  25,530
  29,912
  34,539
  39,407
  44,512
  49,852
  55,428
  61,239
  67,290
  73,584
  80,127
  86,928
  93,995
  101,339
  108,972
  116,909
  125,162
  133,750
  142,689
  151,999
  161,699
  171,810
  182,356
  193,361
  204,849
Total liabilities, $m
  17,805
  20,875
  24,218
  27,830
  31,705
  35,836
  40,218
  44,845
  49,713
  54,818
  60,158
  65,734
  71,545
  77,596
  83,890
  90,433
  97,234
  104,301
  111,645
  119,278
  127,215
  135,468
  144,056
  152,995
  162,305
  172,005
  182,116
  192,662
  203,667
  215,155
Total equity, $m
  8,112
  9,511
  11,034
  12,680
  14,445
  16,327
  18,324
  20,432
  22,649
  24,975
  27,408
  29,949
  32,596
  35,353
  38,220
  41,202
  44,300
  47,520
  50,866
  54,344
  57,959
  61,720
  65,633
  69,705
  73,947
  78,366
  82,973
  87,778
  92,791
  98,025
Total liabilities and equity, $m
  25,917
  30,386
  35,252
  40,510
  46,150
  52,163
  58,542
  65,277
  72,362
  79,793
  87,566
  95,683
  104,141
  112,949
  122,110
  131,635
  141,534
  151,821
  162,511
  173,622
  185,174
  197,188
  209,689
  222,700
  236,252
  250,371
  265,089
  280,440
  296,458
  313,180
Debt-to-equity ratio
  0.920
  1.110
  1.260
  1.380
  1.480
  1.560
  1.630
  1.690
  1.740
  1.780
  1.820
  1.850
  1.880
  1.900
  1.930
  1.940
  1.960
  1.980
  1.990
  2.010
  2.020
  2.030
  2.040
  2.050
  2.060
  2.060
  2.070
  2.080
  2.080
  2.090
Adjusted equity ratio
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313
  0.313

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,193
  1,397
  1,617
  1,854
  2,108
  2,377
  2,661
  2,961
  3,276
  3,605
  4,398
  4,757
  5,131
  5,520
  5,924
  6,344
  6,780
  7,234
  7,705
  8,195
  8,705
  9,235
  9,787
  10,361
  10,959
  11,583
  12,233
  12,911
  13,619
  14,359
Depreciation, amort., depletion, $m
  858
  900
  946
  995
  1,048
  1,105
  1,165
  1,228
  1,294
  1,364
  822
  899
  978
  1,061
  1,147
  1,236
  1,329
  1,426
  1,526
  1,631
  1,739
  1,852
  1,970
  2,092
  2,219
  2,352
  2,490
  2,634
  2,785
  2,942
Funds from operations, $m
  2,051
  2,297
  2,563
  2,849
  3,156
  3,481
  3,826
  4,189
  4,570
  4,970
  5,221
  5,656
  6,109
  6,581
  7,071
  7,580
  8,110
  8,660
  9,232
  9,826
  10,444
  11,087
  11,756
  12,453
  13,178
  13,934
  14,723
  15,545
  16,404
  17,300
Change in working capital, $m
  -972
  -1,068
  -1,164
  -1,257
  -1,349
  -1,438
  -1,525
  -1,610
  -1,694
  -1,777
  -1,859
  -1,941
  -2,023
  -2,106
  -2,191
  -2,277
  -2,367
  -2,460
  -2,556
  -2,657
  -2,762
  -2,873
  -2,989
  -3,111
  -3,240
  -3,376
  -3,519
  -3,671
  -3,830
  -3,998
Cash from operations, $m
  3,023
  3,365
  3,726
  4,107
  4,504
  4,919
  5,351
  5,800
  6,265
  6,746
  7,080
  7,596
  8,132
  8,686
  9,261
  9,858
  10,477
  11,120
  11,788
  12,483
  13,206
  13,960
  14,745
  15,564
  16,418
  17,310
  18,242
  19,216
  20,234
  21,299
Maintenance CAPEX, $m
  -205
  -243
  -285
  -331
  -380
  -433
  -490
  -550
  -613
  -680
  -749
  -822
  -899
  -978
  -1,061
  -1,147
  -1,236
  -1,329
  -1,426
  -1,526
  -1,631
  -1,739
  -1,852
  -1,970
  -2,092
  -2,219
  -2,352
  -2,490
  -2,634
  -2,785
New CAPEX, $m
  -769
  -831
  -905
  -978
  -1,049
  -1,118
  -1,186
  -1,253
  -1,318
  -1,382
  -1,446
  -1,509
  -1,573
  -1,638
  -1,704
  -1,771
  -1,841
  -1,913
  -1,988
  -2,066
  -2,148
  -2,234
  -2,325
  -2,420
  -2,520
  -2,626
  -2,737
  -2,855
  -2,979
  -3,110
Cash from investing activities, $m
  -974
  -1,074
  -1,190
  -1,309
  -1,429
  -1,551
  -1,676
  -1,803
  -1,931
  -2,062
  -2,195
  -2,331
  -2,472
  -2,616
  -2,765
  -2,918
  -3,077
  -3,242
  -3,414
  -3,592
  -3,779
  -3,973
  -4,177
  -4,390
  -4,612
  -4,845
  -5,089
  -5,345
  -5,613
  -5,895
Free cash flow, $m
  2,050
  2,291
  2,536
  2,798
  3,075
  3,368
  3,675
  3,997
  4,334
  4,685
  4,884
  5,265
  5,660
  6,070
  6,497
  6,939
  7,399
  7,877
  8,374
  8,890
  9,427
  9,986
  10,568
  11,174
  11,806
  12,466
  13,153
  13,871
  14,621
  15,404
Issuance/(repayment) of debt, $m
  2,800
  3,070
  3,343
  3,612
  3,875
  4,131
  4,382
  4,627
  4,868
  5,105
  5,340
  5,575
  5,812
  6,051
  6,294
  6,543
  6,801
  7,067
  7,344
  7,633
  7,936
  8,254
  8,588
  8,939
  9,309
  9,700
  10,112
  10,546
  11,004
  11,488
Issuance/(repurchase) of shares, $m
  69
  2
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  2,869
  3,072
  3,343
  3,612
  3,875
  4,131
  4,382
  4,627
  4,868
  5,105
  5,340
  5,575
  5,812
  6,051
  6,294
  6,543
  6,801
  7,067
  7,344
  7,633
  7,936
  8,254
  8,588
  8,939
  9,309
  9,700
  10,112
  10,546
  11,004
  11,488
Total cash flow (excl. dividends), $m
  4,919
  5,362
  5,879
  6,410
  6,950
  7,499
  8,057
  8,624
  9,201
  9,790
  10,225
  10,840
  11,471
  12,121
  12,791
  13,483
  14,200
  14,944
  15,718
  16,524
  17,363
  18,240
  19,156
  20,114
  21,116
  22,165
  23,265
  24,417
  25,625
  26,892
Retained Cash Flow (-), $m
  -1,262
  -1,399
  -1,523
  -1,646
  -1,765
  -1,882
  -1,996
  -2,108
  -2,218
  -2,326
  -2,433
  -2,540
  -2,648
  -2,757
  -2,868
  -2,981
  -3,098
  -3,220
  -3,346
  -3,478
  -3,616
  -3,760
  -3,913
  -4,073
  -4,241
  -4,419
  -4,607
  -4,805
  -5,014
  -5,234
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  3,657
  3,964
  4,356
  4,764
  5,184
  5,617
  6,060
  6,516
  6,984
  7,464
  7,792
  8,300
  8,824
  9,364
  9,923
  10,502
  11,102
  11,725
  12,372
  13,046
  13,748
  14,480
  15,243
  16,041
  16,875
  17,746
  18,658
  19,612
  20,612
  21,658
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  3,506
  3,629
  3,791
  3,923
  4,019
  4,076
  4,094
  4,073
  4,012
  3,913
  3,700
  3,542
  3,355
  3,144
  2,913
  2,669
  2,416
  2,159
  1,905
  1,658
  1,422
  1,201
  999
  817
  656
  518
  400
  303
  225
  163
Current shareholders' claim on cash, %
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8
  99.8

Centene Corporation is a healthcare company. The Company provides a portfolio of services to government sponsored healthcare programs, focusing on under-insured and uninsured individuals. The Company operates through two segments: Managed Care and Specialty Services. The Company's Managed Care segment provides health plan coverage to individuals, through government subsidized programs, including Medicaid, the State Children's Health Insurance Program (CHIP), Long Term Care, Foster Care, dual-eligible individuals (Duals) and the Supplemental Security Income Program, also known as the Aged, Blind or Disabled Program (ABD), Medicare, and Health Insurance Marketplace. Its Specialty Services segment consists of its specialty companies offering a range of healthcare services and products to state programs, correctional facilities, healthcare organizations, employer groups and other commercial organizations, as well as to its own subsidiaries.

FINANCIAL RATIOS  of  Centene (CNC)

Valuation Ratios
P/E Ratio 43.7
Price to Sales 0.6
Price to Book 4.2
Price to Tangible Book
Price to Cash Flow 13.3
Price to Free Cash Flow 99
Growth Rates
Sales Growth Rate 78.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 854.2%
Cap. Spend. - 3 Yr. Gr. Rate 65%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 78.9%
Total Debt to Equity 79%
Interest Coverage 8
Management Effectiveness
Return On Assets 4.7%
Ret/ On Assets - 3 Yr. Avg. 5.6%
Return On Total Capital 8.1%
Ret/ On T. Cap. - 3 Yr. Avg. 10.6%
Return On Equity 14%
Return On Equity - 3 Yr. Avg. 16.8%
Asset Turnover 2.9
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 3.9%
EBITDA Margin - 3 Yr. Avg. 3.8%
Operating Margin 3.1%
Oper. Margin - 3 Yr. Avg. 3%
Pre-Tax Margin 2.8%
Pre-Tax Margin - 3 Yr. Avg. 2.9%
Net Profit Margin 1.4%
Net Profit Margin - 3 Yr. Avg. 1.5%
Effective Tax Rate 51.8%
Eff/ Tax Rate - 3 Yr. Avg. 47.8%
Payout Ratio 0%

CNC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CNC stock intrinsic value calculation we used $48382 million for the last fiscal year's total revenue generated by Centene. The default revenue input number comes from 0001 income statement of Centene. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CNC stock valuation model: a) initial revenue growth rate of 18.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for CNC is calculated based on our internal credit rating of Centene, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Centene.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CNC stock the variable cost ratio is equal to 96.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for CNC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.5% for Centene.

Corporate tax rate of 27% is the nominal tax rate for Centene. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CNC stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CNC are equal to 8.4%.

Life of production assets of 19.8 years is the average useful life of capital assets used in Centene operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CNC is equal to -10.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $6850 million for Centene - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 205.257 million for Centene is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Centene at the current share price and the inputted number of shares is $29.3 billion.

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COMPANY NEWS

▶ IBD Stock Of The Day Cigna Nears Buy Point After Fighting Off Merger Doubts   [Oct-19-18 04:04PM  Investor's Business Daily]
▶ Cramer's 5 health-care stocks he likes right now   [Oct-16-18 07:22PM  CNBC Videos]
▶ Health care co. to add 90 jobs after landing county contract   [Oct-15-18 04:24PM  American City Business Journals]
▶ Centene: This Fortune 500 Insurer Beats Apple, Amazon In Key Metric   [Oct-12-18 04:28PM  Investor's Business Daily]
▶ Centene Expands Offerings in Health Insurance Marketplaces   [Oct-10-18 07:47PM  The Wall Street Journal]
▶ Centene to Expand Its ACA Business   [01:59PM  The Wall Street Journal]
▶ IBD Stock Of The Day Forms New Buy Point After 32% Run   [Oct-08-18 04:10PM  Investor's Business Daily]
▶ Editorial: You should be proud, St. Louis   [Oct-05-18 06:00AM  American City Business Journals]
▶ Health Net name disappearing in Arizona   [Oct-04-18 03:01AM  American City Business Journals]
▶ 120-unit apartment complex proposed near planned Centene campus   [Oct-01-18 05:53PM  American City Business Journals]
▶ Public paychecks: The highest-paid college and university employees in Missouri   [Sep-30-18 10:41AM  American City Business Journals]
▶ 'Success begets success': Steinberg on Centene project   [Sep-14-18 05:58PM  American City Business Journals]
▶ 5 things to know: A big development in Centene's move into Sacramento   [11:06AM  American City Business Journals]
▶ IBD Stock Of The Day: This Health Leader Hits Buy Point After Tight Trading   [Sep-06-18 04:02PM  Investor's Business Daily]
▶ Centene To Present At Upcoming Healthcare Conferences   [Aug-29-18 08:00AM  PR Newswire]
▶ Labor union withdraws challenge to Centene campus plan   [Aug-14-18 02:59PM  American City Business Journals]
▶ Centene Stock May Soon Need Some Care of Its Own   [Jul-25-18 02:49PM  TheStreet.com]
▶ Centene: 2Q Earnings Snapshot   [06:14AM  Associated Press]
▶ A Preview Of Centene's Q2 Earnings   [Jul-23-18 03:32PM  Benzinga]
▶ EXCLUSIVE: Union files challenge to proposal for Centene corporate campus   [Jul-20-18 10:22AM  American City Business Journals]
▶ Envolve Earns NCQA Utilization Management Accreditation   [Jul-17-18 07:00AM  PR Newswire]
▶ First building permit applications filed for Centene corporate hub in Natomas   [Jul-12-18 10:53AM  American City Business Journals]
▶ Centene CEO Sees Disruption as a Force for Good in Health Care   [Jul-11-18 05:24PM  Bloomberg Video]
▶ ObamaCare Just Blew Up; Can Centene Pick Up The Pieces?   [Jul-09-18 04:05PM  Investor's Business Daily]
▶ After-hours buzz: MLHR, ACXM & more   [Jul-02-18 05:13PM  CNBC]
▶ Centene closes on Fidelis acquisition   [03:45PM  American City Business Journals]
▶ [$$] ObamaCare Can Be Worse Than Medicaid   [Jun-26-18 08:00PM  The Wall Street Journal]
▶ The Shuman Law Firm Investigates Centene Corp.   [Jun-25-18 02:01PM  Business Wire]
▶ Centene's Kansas Subsidiary Wins Medicaid Contract   [Jun-22-18 12:34PM  PR Newswire]

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