Centene aims to be a top provider of government-sponsored health plans. Although it has grown at a solid clip organically, it also has made significant acquisitions—most notably WellCare in Medicare Advantage plans in 2020—to meet that goal. Technology investments to boost efficiency have also helped Centene prosper in this relatively low-margin market.
Centene represents a countercyclical investment opportunity in managed care, as it can benefit from economic downturns through increasing enrollment in its Medicaid and individual exchange products.
Republicans are taking aim at Centene's Medicaid and individual exchange strongholds as avenues to reduce federal spending, which is cutting into the company's profit prospects.
|
Metric
|
CNC
|
CVS
|
CI
|
|---|---|---|---|
Price/Earnings (Normalized) | 25.87 | 14.42 | 9.64 |
Price/Book Value | 1.50 | 1.68 | 1.87 |
Price/Sales | 0.16 | 0.32 | 0.17 |
Price/Cash Flow | 14.38 | 9.82 | — |
|
Metric
|
CNC
|
CVS
|
CI
|
|---|---|---|---|
Quick Ratio | 1.08 | 0.61 | 0.66 |
Current Ratio | 1.12 | 0.87 | 0.82 |
Interest Coverage | −8.49 | 2.11 | 7.47 |
|
Metric
|
CNC
|
CVS
|
CI
|
|---|---|---|---|
Return on Assets (Normalized) | 1.52% | 3.54% | 5.34% |
Return on Equity (Normalized) | 5.33% | 11.87% | 19.96% |
Return on Invested Capital (Normalized) | 4.33% | 7.41% | 14.02% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| UnitedHealth Group Inc
UNH
| Dvhvylwm | Djwwmf | $371B | |||
| CVS Health Corp
CVS
| Dxzrfqyv | Dnf | $130B | |||
| Elevance Health Inc
ELV
| Gwrzdstr | Zmcgrh | $88B | |||
| The Cigna Group
CI
| Sxrfkhgh | Ntkxm | $79B | |||
| Humana Inc
HUM
| Zbgkvgc | Ccntjb | $46B | |||
| Molina Healthcare Inc
MOH
| Ygyqlytq | Pxhhvb | $10B | |||
| Oscar Health Inc Class A
OSCR
| — | Brp | $9B | |||
| Alignment Healthcare Inc
ALHC
| — | Nvlgk | $4B | |||
| Clover Health Investments Corp Ordinary Shares - Class A
CLOV
| — | Xfxp | $2B |
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United States