Centene Corporation
- Open
- 65.68
- Day high
- 65.69
- Day low
- 64.30
- Prev close
- 65.22
- Volume
- 2.1M
- Mkt cap
- $32.0B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 1.4
- P/S
- 0.2
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$5.2M over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions accumulating (13F)
Centene Corporation (CNC) is a Healthcare company listed on NYSE. The stock is up 119% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4). Drillr has 1 published research article covering CNC.
Centene Corporation (CNC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 12 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CNC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 28, 2026 | $1.09 | $2.51 | +130.3% | $53.6B | +12.5% |
| Apr 28, 2026 | $1.87 | $3.37 | +80.2% | $49.9B | +5.1% |
| Feb 6, 2026 | $-1.22 | $-1.19 | +2.5% | $49.7B | +2.7% |
| Oct 29, 2025 | $-0.14 | $0.50 | +445.4% | $49.7B | +4.1% |
| Jul 25, 2025 | $0.11 | $-0.16 | -243.4% | $48.7B | +10.4% |
| Apr 25, 2025 | $2.52 | $2.90 | +15.1% | $46.6B | +9.0% |
| Feb 4, 2025 | $0.44 | $0.80 | +81.8% | $40.8B | +3.7% |
| Oct 25, 2024 | $1.33 | $1.62 | +21.8% | $42.0B | +10.8% |
| Jul 26, 2024 | $2.07 | $2.42 | +16.9% | $39.8B | +8.2% |
| Apr 26, 2024 | $2.08 | $2.26 | +8.7% | $40.4B | +10.9% |
| Feb 6, 2024 | $0.43 | $0.45 | +4.7% | $39.5B | +9.2% |
| Jul 28, 2023 | $2.03 | $2.10 | +3.4% | $37.6B | +3.1% |
CNC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 28, 2026 | DIAZ PAUL Jdirector | Grant | 2,771 | — |
| Jul 20, 2026 | Tyler Lauren Mdirector | Grant | 3,155 | — |
| Jul 1, 2026 | Samuels Theodore R. IIdirector | Grant | 465 | — |
| Jul 1, 2026 | Tyler Lauren Mdirector | Grant | 61 | — |
| Jul 1, 2026 | TANJI KENNETHdirector | Grant | 581 | — |
| Jul 1, 2026 | EPPINGER FREDERICK Hdirector | Grant | 833 | — |
| Jul 1, 2026 | COUGHLIN CHRISTOPHER Jdirector | Grant | 562 | — |
| Jun 15, 2026 | SMITH SUSAN RAYEofficer: Chief Operating Officer | Tax | 483 | $65.19 |
| Jun 11, 2026 | Burdick Kenneth Adirector | Sell | 80,000 | $64.55 |
| May 26, 2026 | Carson Michael Aofficer: Group President, Medicare&Spec | Grant | 48 | — |
| May 13, 2026 | BLUME JESSICA L.director | Grant | 3,992 | — |
| May 13, 2026 | Burdick Kenneth Adirector | Grant | 3,992 | — |
| May 13, 2026 | Dallas H Jamesdirector | Grant | 3,992 | — |
| May 13, 2026 | COUGHLIN CHRISTOPHER Jdirector | Grant | 3,992 | — |
| May 13, 2026 | FORD MONTE Edirector | Grant | 3,992 | — |
Source: CNC SEC Form 4 filings, latest Jul 28, 2026. For informational purposes only — not investment advice.
See the full CNC insider & 13F page →Centene Corporation company profile
Overview
Centene Corporation (NYSE:CNC) is a multi-national healthcare enterprise founded in 1984 and headquartered in St. Louis, Missouri. The company went public in 2001 and has grown to become one of the largest managed care organizations in the United States, primarily serving under-insured and uninsured populations through government-subsidized healthcare programs. Centene operates as a diversified healthcare company with managed care plans across Medicaid, Medicare, and commercial marketplace segments, serving approximately 28 million members nationwide as of 2025.
Business
Centene operates in the managed healthcare industry, functioning as a health insurance intermediary that contracts with government agencies and individuals to provide comprehensive healthcare coverage. The company's core business revolves around managing healthcare benefits for vulnerable populations who typically lack access to employer-sponsored insurance. The company operates through two primary business segments. The Managed Care segment represents approximately 95% of total revenue and provides health plan coverage through three main product lines. Medicaid plans serve low-income individuals and families through state-administered programs, covering services like primary care, hospital care, prescription drugs, and specialized services for disabled and elderly populations. Medicare plans include Medicare Advantage and Medicare Part D prescription drug plans, primarily targeting dual-eligible beneficiaries who qualify for both Medicare and Medicaid. The Marketplace segment offers individual and small group commercial insurance plans through the Affordable Care Act (ACA) exchanges under the Ambetter brand. The Specialty Services segment accounts for the remaining 5% of revenue and provides ancillary services including pharmacy benefit management, vision and dental services, correctional healthcare services, and military health system support. These services complement the managed care operations and provide additional revenue streams while supporting the company's integrated healthcare delivery model. Centene's business model is built on risk-based contracting, where the company receives predetermined premium payments from government agencies or individuals and assumes responsibility for managing all covered healthcare costs for its members. This capitated payment structure incentivizes the company to manage care efficiently while maintaining quality outcomes.
Revenue model
Centene generates revenue primarily through premium collections from government agencies and individual members, operating on a capitated payment model where it receives fixed monthly payments per member regardless of actual healthcare utilization. The company's paying customers include state Medicaid agencies, the federal Centers for Medicare & Medicaid Services (CMS), and individual consumers purchasing marketplace plans. For Medicaid plans, state governments pay Centene monthly premiums based on member enrollment and risk-adjusted rates. Medicare revenue comes from federal premium payments for Medicare Advantage and Part D plans, supplemented by member premiums and cost-sharing. Marketplace revenue derives from individual premium payments, often subsidized by federal Advanced Premium Tax Credits (APTCs) for eligible members. The company's profitability depends on maintaining a Health Benefit Ratio (HBR) or medical loss ratio below premium collections. Several factors influence margins positively or negatively. Favorable factors include successful care management programs that reduce unnecessary utilization, favorable medical cost trends, effective provider network negotiations, and rate increases that reflect member acuity levels. The company benefits from economies of scale in administrative functions and improved STARS ratings in Medicare that generate bonus payments. Margin pressures arise from medical cost inflation exceeding premium rate increases, adverse selection attracting sicker members, regulatory changes limiting rate flexibility, and increased utilization following coverage expansions. Specialty drug costs, behavioral health services, and post-acute care represent particular cost pressure areas. External factors like economic downturns can increase Medicaid enrollment but may pressure state budgets, while regulatory changes affecting subsidy levels in marketplace plans directly impact membership and profitability. The company also generates ancillary revenue through its Specialty Services segment via service fees, transaction-based pricing for pharmacy benefits management, and per-member fees for vision, dental, and other supplemental services.
Competitive moat
Centene's competitive moat is moderately strong but faces ongoing challenges from regulatory dependency and competitive pressures. The company's primary moat stems from its specialized expertise in serving complex, government-sponsored populations, particularly Medicaid beneficiaries who require intensive care coordination and social services integration. This specialization creates barriers to entry as competitors need significant operational capabilities, regulatory expertise, and local market knowledge to effectively serve these populations. The company benefits from regulatory barriers and contract duration, as state Medicaid contracts typically span multiple years and require extensive bidding processes, creating switching costs for states. Centene's established relationships with state agencies, proven track record in managing vulnerable populations, and integrated delivery capabilities provide competitive advantages in contract renewals and expansions. However, the moat faces several vulnerabilities. Regulatory dependency represents the most significant weakness, as government policy changes can dramatically impact membership, reimbursement rates, and profitability. The company operates in a highly regulated environment where rate approvals, benefit mandates, and program modifications are subject to political and budgetary pressures beyond its control. Competitive threats include large national insurers with greater scale and resources, regional players with deep local market knowledge, and potential new entrants including technology-enabled healthcare companies. The commoditized nature of insurance products limits pricing power, while the growing emphasis on value-based care and social determinants of health requires continuous investment in capabilities that may not generate immediate returns. The company's Medicare and Marketplace segments face intense competition from well-established players with superior brand recognition and distribution networks. Medicare Advantage margins are particularly pressured by regulatory changes and the need for significant quality investments to achieve competitive STARS ratings.
Risks & safety
Centene demonstrates adequate financial stability with manageable leverage and strong liquidity, though cash flow volatility presents some concerns. • Liquidity and Solvency: Strong cash position of $14.8 billion and current ratio of 1.11 provide adequate short-term liquidity. Debt-to-equity ratio of 0.66 represents moderate leverage levels that are manageable for the business model. • Cash Flow Volatility: Significant cash flow fluctuations with negative operating cash flow of -$587 million in Q4 2024 and -$978 million in Q3 2024, contrasting with positive $2.2 billion in Q2 2024. Full-year 2024 operating cash flow of only $154 million represents a concerning decline from $8.1 billion in 2023. • Valuation Metrics: Trading at attractive valuation multiples with P/E ratio of 5.7, EV/EBITDA of 4.4, and price-to-book of 1.08, suggesting potential undervaluation relative to earnings power. • Regulatory Risk: High dependence on government reimbursement rates and policy stability creates ongoing uncertainty around future profitability and cash generation. • Operational Challenges: Elevated Health Benefit Ratios in Medicaid (mid-90s range) indicate margin pressure requiring rate adjustments and operational improvements to restore historical profitability levels.
Recent development
Over the past several years, Centene has undergone significant strategic transformation focused on portfolio optimization and operational efficiency. The company completed multiple divestitures including Panther, Magellan Specialty, Centurion, and HealthSmart to streamline operations and focus on core managed care competencies. Management implemented a comprehensive cost reduction program targeting $400 million in SG&A savings, including a 70% reduction in real estate footprint and organizational restructuring. The company navigated the complex Medicaid redetermination process following the end of COVID-19 public health emergency, losing approximately 2.2 million members as states resumed eligibility verifications. This transition required extensive operational adjustments and member outreach efforts to maximize retention while working with states to ensure appropriate rate adjustments reflecting changing member acuity levels. Medicare strategy has been significantly refined, with management exiting six states and focusing on lower-income, dual-eligible populations that align with the company's core competencies. The company invested heavily in quality improvement initiatives, hiring a Chief Quality Officer and implementing operational changes to improve STARS ratings, targeting 85% of members in 3.5-star plans or better by 2025. The Marketplace segment experienced substantial growth, expanding from 2.1 million members in 2022 to over 5 million members by early 2024, driven by enhanced premium tax credits and improved distribution strategies. Management has focused on program integrity measures and operational efficiency to maintain target margins of 5-7.5%. Recent technological investments include AI implementation for provider contract management, infrastructure modernization, and automation of administrative processes. The company successfully migrated to a new PBM platform partnership with Express Scripts and has been exploring Individual Coverage Health Reimbursement Arrangements (ICHRA) as a growth opportunity.
CNC company profile · for informational purposes only — not investment advice.
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