Centene Beneish M Score

CNC -  USA Stock  

USD 85.32  1.89  2.17%

This module uses fundamental data of Centene Corp to approximate the value of its Beneish M Score. Centene Corp M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Centene Corp Piotroski F Score and Centene Corp Altman Z Score analysis.
  
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Centene Corp Total Debt is projected to increase significantly based on the last few years of reporting. The past year's Total Debt was at 18.84 Billion. The current year Debt Current is expected to grow to about 288.1 M, whereas Long Term Debt to Equity is forecasted to decline to 0.57. Centene Corp Interest Coverage is projected to drop based on the last few years of reporting. The past year's Interest Coverage was at 4.87. The current year Calculated Tax Rate is expected to grow to 43.67, whereas Long Term Debt to Equity is forecasted to decline to 0.57.
At this time, it appears that Centene Corp is an unlikely manipulator. The earnings manipulation may begin if Centene Corp's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Centene Corp executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Centene Corp's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.49
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality1.0Focus
Expense Coverage1.0Focus
Gross Margin Strengs1.15Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

Centene Corp Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Centene Corp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues135.9 B126 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense11 B10.2 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations4.5 B4.2 B
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion1.6 B1.5 B
Significantly Up
Increasing
Slightly volatile
Total Assets84.6 B78.4 B
Significantly Up
Increasing
Slightly volatile
Investments16.8 B15.6 B
Significantly Up
Increasing
Slightly volatile
Investments Current1.7 B1.5 B
Significantly Up
Increasing
Slightly volatile
Investments Non Current15.2 B14 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net3.7 B3.4 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables13.2 B12.2 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities55.4 B51.4 B
Significantly Up
Increasing
Slightly volatile
Current Assets30.7 B28.5 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current53.8 B49.9 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities27.8 B25.8 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current27.6 B25.6 B
Significantly Up
Increasing
Slightly volatile
Total Debt20.3 B18.8 B
Significantly Up
Increasing
Slightly volatile
Debt Current288.1 M267 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current20 B18.6 B
Significantly Up
Increasing
Slightly volatile
Operating Income1.6 B1.8 B
Fairly Down
Increasing
Slightly volatile
Gross Margin0.130.113
Fairly Up
Decreasing
Stable

Centene Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Centene Corp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Centene Corp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Centene Corp's degree of accounting gimmicks and manipulations.

About Centene Corp Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

13.4 Billion

Share
Centene Corp Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 12.41 Billion

Centene Corp Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Centene Corp. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues48.38 B60.12 B74.64 B111.11 B125.98 B135.93 B
Total Assets21.86 B30.9 B40.99 B68.72 B78.38 B84.56 B
Current Assets8.7 B12 B20.32 B23.39 B28.5 B30.75 B
Assets Non Current13.15 B18.9 B20.67 B45.33 B49.88 B53.82 B
Total Liabilities14.98 B19.88 B28.3 B42.76 B51.35 B55.41 B
Current Liabilities9.33 B11.97 B12.93 B21.59 B25.77 B27.8 B
Total Debt4.7 B6.69 B13.73 B16.78 B18.84 B20.33 B
Debt Non Current4.7 B6.65 B13.64 B16.68 B18.57 B20.04 B
Operating Income1.2 B1.46 B1.78 B3.08 B1.78 B1.59 B
Investments5.84 B7.58 B8.58 B14.43 B15.58 B16.81 B
Investments Current531 M722 M863 M1.58 B1.54 B1.66 B

About Centene Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Centene Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Centene Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Centene Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Centene Corporation operates as a multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States. Centene Corporation was founded in 1984 and is headquartered in St. Centene Corp operates under Healthcare Plans classification in the United States and is traded on New York Stock Exchange. It employs 72500 people.

Centene Corp Investors Sentiment

The influence of Centene Corp's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Centene. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Centene Corp Implied Volatility

    
  6.98  
Centene Corp's implied volatility exposes the market's sentiment of Centene Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Centene Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Centene Corp stock will not fluctuate a lot when Centene Corp's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Centene Corp in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Centene Corp's short interest history, or implied volatility extrapolated from Centene Corp options trading.

Current Sentiment - CNC

Centene Corp Investor Sentiment

Greater number of Macroaxis users are currently bullish on Centene Corp. What is your opinion about investing in Centene Corp? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Pair Trading with Centene Corp

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Centene Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Centene Corp will appreciate offsetting losses from the drop in the long position's value.

Centene Corp Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Centene Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Centene Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Centene Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Centene Corp to buy it.
The correlation of Centene Corp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Centene Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Centene Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Centene Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Centene Corp Piotroski F Score and Centene Corp Altman Z Score analysis. Note that the Centene Corp information on this page should be used as a complementary analysis to other Centene Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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When running Centene Corp price analysis, check to measure Centene Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Centene Corp is operating at the current time. Most of Centene Corp's value examination focuses on studying past and present price action to predict the probability of Centene Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Centene Corp's price. Additionally, you may evaluate how the addition of Centene Corp to your portfolios can decrease your overall portfolio volatility.
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Is Centene Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Centene Corp. If investors know Centene will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Centene Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Centene Corp is measured differently than its book value, which is the value of Centene that is recorded on the company's balance sheet. Investors also form their own opinion of Centene Corp's value that differs from its market value or its book value, called intrinsic value, which is Centene Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Centene Corp's market value can be influenced by many factors that don't directly affect Centene Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Centene Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Centene Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Centene Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.