Centene Corp. (CNC) is a publicly traded company in the Healthcare — Medical - Healthcare Plans industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Centene Corporation operates as a managed care company that provides programs and services to under-insured families, and commercial organizations in the United States. It operates through four segments: Medicaid, Medicare, Commercial, and Other.
Is Centene Corp. stock overvalued or undervalued in 2026?
Centene Corp. (CNC) trades at 23.4× earnings (P/E), below the median of the 246 healthcare companies over $2bn in Kaplio's universe. At the decade median (23.8×) $69 (+1 %); at its sector median (30.4×) $89 (+30 %).
Kaplio overview: Centene Corp.
Market cap $34B · 52 weeks $32 – $71 (4 % below the high) · P/E 23.4× · 2027 expected P/E 12.8× · Dividend none · Next earnings February 5, 2027 · expected EPS $-1.12 · Closing price, Oct 30 · accounts published Oct 27.
- Valuation: P/E 23.4× (fairly priced).
- Business: ROIC 2 % (weak).
- Balance sheet: Net cash/EBITDA 0.2× (solid).
- Earnings: 7 of 8 (uneven).
What would it be worth at its usual multiples?
At the decade median (23.8×) $69 (+1 %); at its sector median (30.4×) $89 (+30 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
Why is Centene Corp.'s P/E so low?
Centene Corp. trades at a P/E of 23.4× on reported earnings, but over the last 12 months 38 % of its pre-tax income ($731M) came from outside the business, such as revaluations or sales of stakes in other companies. It is real money, but it doesn't repeat every year. Without that part, its P/E would be about 37.9×. Kaplio's calculation from the official quarterly accounts filed up to the quarter ended September 30, 2026.
| Quarter ended | From the business | Outside the business | Net income |
|---|---|---|---|
| December 31, 2025 | $197M | ||
| March 31, 2026 | $1.9B | $238M | $1.5B |
| June 30, 2026 | $1.4B | $111M | $1.1B |
| September 30, 2026 | $185M |
What matters in pharma: 2 of 5 pass
- R&D / Revenue 0.0 %, fails.
- Gross margin 12.2 %, fails.
- ROIC 2.2 %, fails.
- Net debt / EBITDA −0.2×, passes.
- P/E vs own 10y history 23.4×, passes.
Against its peers (reference peers) — Centene Corp.: P/E 23.4×; EV/EBITDA 7.6×; ROIC 2.2 %; $33.9B. Humana Inc. (P/E 39.2×; EV/EBITDA 18.4×; ROIC 4.5 %; $49.8B), Cigna Corporation (P/E 12.3×; EV/EBITDA 8.3×; ROIC 7.7 %; $78.8B), Elevance Health Inc. (P/E 17.9×; EV/EBITDA 12.6×; ROIC 7.5 %; $91.1B).
Expensive or cheap against its last ten years?
P/E at each close: today 23.4× · median 23.8× · minimum 4.0× · maximum 41.9× · cheap below 20.6× · expensive above 31.5×. It has been cheaper than today only 48% of the time over its last ten years.
Kaplio's reading: Centene Corp.
Updated on October 31, 2026 · accounts published on October 27, 2026
A fast-growing business that keeps very little of its revenue as profit
Centene trades at a P/E of 23.4 over the last 12 months, 23 % below its sector median of 30.4, after the stock rose 95 % in a year.
- Is Centene expensive or cheap? Centene's P/E of 23.4 is 23 % below the sector median of 30.4 and 1 % under its own ten-year median.
- How is the business doing? Revenue grew 19 % over the last 12 months, but the operating margin is only 0.6 %, below its 1.8 % average since 2014.
- How strong is the balance sheet? Net debt was $3.19 per share in fiscal 2025, about 5 % of the share price, with debt to equity of 0.70.
- What to expect from the next earnings? Analysts expect a loss of $1.12 per share in the quarter reported on February 5, 2027, after raising 2026 EPS estimates 4.5 %.
- Does Centene invest enough in R&D and turn profit into cash? Centene spent 0.0 % of revenue on R&D in fiscal 2025, against a healthy 15 %, yet its free cash flow yield is 26 %.
Is Centene expensive or cheap?
Over the last 12 months Centene trades at a P/E of 23.4, almost exactly its ten-year median of 23.8. It has traded lower 48 % of the time in the last decade, within a range of 4.0 to 41.9. Against 246 health-care peers with a median P/E of 30.4, it sits 23 % lower. The other multiples look lower still: EV/EBITDA of 7.6×, P/B of 1.5× and a free cash flow yield of 26 %. Much of the rerating has already happened. The stock is up 95 % in 12 months and sits 4 % below its 52-week high of $71.24, against a low of $31.80.
How is the business doing?
Centene is selling more: revenue rose 19 % over the last 12 months. Very little of it reaches the bottom line. The operating margin is 0.6 % and the net margin 0.8 %, against an average operating margin of 1.8 % across fiscal 2014-2025. Fiscal 2025 closed at −3.9 %, the weakest of those 12 years, and EPS fell 316 % year on year. Returns show the same strain. ROIC of 2.2 % over the last 12 months is 3.6 points below the sector median of 5.8 %, and it has not cleared 10 % in any of the last ten fiscal years.
How strong is the balance sheet?
The balance sheet carries little net debt. At the end of fiscal 2025 Centene held $39.62 of debt per share against $36.43 of cash, which leaves net debt of $3.19 per share, about 5 % of today's price. Over the last 12 months debt to equity is 0.70 and the current ratio 1.16, enough to cover short-term obligations with a modest cushion. The quality scores are middling. An Altman Z of 2.8 sits in the grey zone, a reading that thin margins can drag down, and a Piotroski score of 6 out of 9 passes more tests than it fails.
What to expect from the next earnings?
Centene reports next on February 5, 2027, and analysts expect a loss of $1.12 per share for the quarter. The last report, on October 27, 2026, delivered EPS of $0.58 against $0.10 expected, a 506 % surprise and the largest of the last eight quarters. The company has beaten EPS estimates in 7 of those 8 quarters. Estimates are rising: over the last 30 days the 2026 EPS consensus went from $4.87 to $5.09 among 12 analysts, up 4.5 %, and revenue estimates rose 0.9 %. Of 44 analysts, 27 rate it a buy, 16 a hold and 1 a sell.
Does Centene invest enough in R&D and turn profit into cash?
In health care the R&D pipeline is the hidden asset, because expiring patents are revenue that disappears. That is why the sector checklist looks at innovation, gross margin and cash. Centene does not fit the drug-maker template. R&D was 0.0 % of revenue in fiscal 2025 against a healthy 15 %, and the gross margin of 12.2 % is far from the 70 % typical of branded pharma. ROIC of 2.2 % over the last 12 months misses the healthy 12 %. Cash is the stronger answer, with a 26 % free cash flow yield over the last 12 months.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve Centene today?
The Buffett Method would not approve Centene today: it fails its quality rules. Business quality: 49 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Would Peter Lynch approve Centene today?
The Lynch Method approves Centene today. Business quality: 100 out of 100 (price not included). Lynch classifies it as a turnaround. Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | 6.78% |
| Return on Invested Capital | 2.24% |
| Return on Assets | 1.84% |
| Gross Margin | 16.41% |
| Operating Margin | 0.61% |
| Net Margin | 0.75% |
Financial Health
| Debt / Equity | 0.70 |
| Current Ratio | 1.16 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 2.78 |
Price Performance
| 1 month | +12.23% |
| 3 months | +10.01% |
| Year-to-date | +66.34% |
| 1 year | +93.53% |
| 3 years | -1.26% |
| 5 years | -4.59% |
| 10 years | +124.79% |
Related companies: UNH · CVS · CI · ELV · HUM · MOH · OSCR
Explore sector: Healthcare · Medical - Healthcare Plans
More sections of CNC: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method today · Companies that pass the Lynch method today · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks