CENTENE CORP (CNC)

Price—Loading quote

AI: Fair-priced

Price checkThe shares look fairly priced because recovery potential is balanced by fragile earnings.

The 14 August closing price of $67.47 values 494.0 million shares at about $33.3 billion. It equals 14.1 times management’s adjusted 2026 earnings floor of $4.80 per share, or 21.7 times the $3.11 standard-accounting floor. Removing roughly $0.50 of disclosed nonrecurring second-quarter benefits raises the adjusted multiple to about 15.7 times. Conversely, the price is only 10.7 times 2024 earnings of $6.31. My inference is that neither a clear bargain nor an obvious excess is established.

Big pictureProfit has recovered sharply, but reported cash remains unusually sensitive to payment timing.

Revenue rose from $145.5 billion in 2024 to $174.6 billion in 2025, yet medical-cost problems produced a $6.7 billion loss. The first half of 2026 then generated $2.6 billion of profit. Operating cash less capital spending—cash left after running and investing in the business—was $7.6 billion during that half, versus negative $490 million in all of 2024. Management says 2026 cash benefited from receivable sales and payment timing, so it should not be annualized. This volatility reflects the insurer’s recurring cost-and-pricing cycle.

Business strengthLower debt strengthens the balance sheet, while recent buybacks no longer offset dilution.

June 2026 cash exceeded debt by $8.0 billion, versus debt exceeding cash by $4.5 billion at December 2024; total debt fell from $18.5 billion to $16.1 billion. However, insurer cash supports claims and regulators: Centene reported $44.8 billion of cash, investments and restricted deposits but only $715 million available for general corporate use, alongside $20.3 billion of claims liabilities. Buybacks cut shares 7.2% during 2024, but only $33 million was repurchased in early 2026 and shares increased 0.5%, while stock compensation totaled $126 million.

What could change the storyThe price assumes medical costs and government payments keep moving back into balance.

The strongest bull case is sustainable earnings returning above 2024’s $6.31 per share as premium increases, government risk payments and cost controls mature; $67.47 would then represent roughly eleven times earnings. The bear case is that second-quarter Medicaid medical costs still consumed 93.9% of related premiums while Medicaid and marketplace membership contracted. Management also expects a seasonally weak second half, and $0.50 of second-quarter adjusted earnings was nonrecurring. Sustained earnings above $6 would suggest undervaluation; stagnation near $4.80 would make today’s price demanding.

$67.47 price considered

AI: News

Second-quarter outlook raisedA major earnings beat confirmed recovery, although one-time benefits and future membership losses temper confidence.

On 28 July 2026, Centene reported $2.51 of adjusted quarterly earnings per share and raised its 2026 floor from $3.40 to $4.80. Revenue was $53.6 billion, while medical costs consumed 89.6% of premiums, down from 93.0% a year earlier. About $0.50 per share came from nonrecurring items. Shares closed approximately 0.3% lower on heavy volume that day; the mixed reaction cannot reliably be attributed to one concern.

Employee buyouts launchedCentene began shrinking its workforce as falling membership reduced the organization’s required operating capacity.

On 16 June 2026, Centene confirmed that most of its approximately 61,000 employees could apply for voluntary separation, without disclosing a targeted headcount. By July, management estimated 2026 severance costs of $355 million to $405 million, plus $85 million to $115 million of outside restructuring costs. The program could lower future administrative spending, but large upfront charges and possible service disruption make the eventual savings uncertain. No reliable immediate share-price reaction was established.

First-quarter recovery emergedBetter medical-cost control produced an early earnings beat and the year’s first guidance increase.

On 28 April 2026, Centene reported adjusted earnings of $3.37 per share, about $0.50 above its own expectations, and raised its full-year floor from $3.00 to $3.40. Medicaid and Medicare medical costs were better controlled, while first-quarter profit reached $1.5 billion. Reuters reported the shares rose more than 6% that morning. That timing supports, but does not prove, attribution to the earnings news. Cash flow also benefited from temporary payment timing and a receivable sale.

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$174.58B	$145.50B	$140.09B	$135.48B	$117.98B	$103.80B	$70.36B	$56.44B	$45.62B	$37.58B	$22.76B	$16.56B	$10.86B	$8.11B	$5.21B	$4.45B	$4.10B	$3.36B
Gross profit	$14.21B	$17.07B	$17.64B	$16.92B	$14.49B	—	—	—	—	—	—	—	—	—	—	—	—	—
Operating income	−$7.62B	$3.17B	$2.93B	$1.32B	$1.78B	$3.08B	$1.78B	$1.46B	$1.20B	$1.26B	$705.0M	$464.0M	$277.0M	$108.0M	$203.8M	$157.1M	$138.1M	$131.6M
EBITDAderived	−$6.35B	$4.42B	$4.22B	$2.75B	$3.12B	$4.34B	$2.42B	$1.95B	$1.56B	$1.54B	$816.0M	$553.0M	$344.0M	$174.0M	$262.1M	$209.1M	$182.1M	$167.0M
Net income	−$6.67B	$3.31B	$2.70B	$1.20B	$1.35B	$1.81B	$1.32B	$900.0M	$828.0M	$562.0M	$355.0M	$271.0M	$165.0M	$2.0M	$111.2M	$94.8M	$83.7M	$83.5M
Basic EPSper diluted share	-$13.53	$6.33	$4.97	$2.09	$2.31	$3.17	$3.19	$2.31	$2.40	$1.76	$2.98	$2.33	$1.52	$0.02	$2.22	$1.95	$1.94	$1.93
Diluted EPSper diluted share	-$13.53	$6.31	$4.95	$2.07	$2.28	$3.12	$3.14	$2.26	$2.34	$1.71	$2.88	$2.25	$1.47	$0.02	$2.12	$1.88	$1.89	$1.88

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys9$4.01M disclosed value

Sells (SEC code S)3$7.74M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 10, 2026Form 4	Burdick Kenneth ADirector	SellCommon Stock	80.0K	$64.55	$5.16M	197.1K
Dec 4, 2025Form 4	Burdick Kenneth ADirector	SellCommon Stock	32.8K	$39.00	$1.28M	272.4K
Dec 3, 2025Form 4	Burdick Kenneth ADirector	SellCommon Stock	33.2K	$39.04	$1.30M	305.2K
Aug 8, 2025Form 4	LONDON SARAHChief Executive Officer	BuyCommon Stock	19.2K	$25.50	$490.4K	845.3K
Jul 28, 2025Form 4	Samuels Theodore R. IIDirector	BuyCommon Stock · indirect	9.0K	$27.62	$248.6K	32.0K

Review ownership filings at SEC.gov ↗

CENTENE CORP (CNC)

Financial charts

Financial statements

Insider buys & sells