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Centene Corp CNC

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Centene Maintains Cautious Earnings Outlook for 2021; Shares Still Undervalued

Julie Utterback, CFA Senior Equity Analyst

Analyst Note

| Julie Utterback, CFA |

Centene turned in solid fourth-quarter results, in our opinion, and management maintained its adjusted EPS guidance for 2021 that was given at its December investor day. We do not anticipate changing our $85 fair value estimate based on these results and near-term guidance. In the long run, we believe Centene's prospects serving individuals in government-sponsored health insurance programs remain strong, which helps support our narrow moat view for the company.

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Company Profile

Business Description

Centene is a managed-care organization focused on government-sponsored healthcare plans, including Medicaid, Medicare, and the individual exchanges. After acquiring WellCare in early 2020, Centene serves nearly 25 million members, mostly in Medicaid (13 million), Medicare (5 million total, including 4 million in Part D plans and 1 million in Medicare Advantage), the individual exchanges (2 million), and other plans (4 million), including Tricare (West region), correctional facility, and international plans.

Contact
7700 Forsyth Boulevard, Centene Plaza
St. Louis, MO, 63105
T +1 314 725-4477
Sector Healthcare
Industry Healthcare Plans
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type Aggressive Growth
Employees 71,300