Centene Corp Profitability Analysis

CNC -  USA Stock  

USD 82.95  0.69  0.82%

For Centene Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Centene Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Centene Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Centene Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Centene Corp over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
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Centene Corp Price to Sales Ratio is projected to increase slightly based on the last few years of reporting. The past year's Price to Sales Ratio was at 0.38. The current year Return on Sales is expected to grow to 0.0225, whereas Sales per Share is forecasted to decline to 181.93. As of June 25, 2022, Accumulated Other Comprehensive Income is expected to decline to about 64.2 M. In addition to that, Consolidated Income is expected to decline to about 1.1 B.

Centene Corp Revenues

135.93 Billion

Share
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.
Quarterly Earnings Growth YOY
0.21
Market Capitalization
48.9 B
Quarterly Revenue Growth YOY
0.22
Return On Assets
0.0312
Return On Equity
0.0553
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.

Centene Corp Price to Sales vs. Retained Earnings Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Centene Corp's current stock value. Our valuation model uses many indicators to compare Centene Corp value to that of its competitors to determine the firm's financial worth.
Centene Corp is number one stock in retained earnings category among related companies. It is number one stock in price to sales category among related companies . The ratio of Retained Earnings to Price to Sales for Centene Corp is about  13,788,394,062 . The current year Price to Sales Ratio is expected to grow to 0.39. Comparative valuation analysis is a catch-all model that can be used if you cannot value Centene Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Centene Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Centene Corp's earnings, one of the primary drivers of an investment's value.

Centene Price to Sales vs. Retained Earnings

Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
Centene Corp 
Retained Earnings 
 = 
Beginning RE + Income 
Dividends 
5.38 B
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Centene Corp 
P/S 
 = 
MV Per Share 
Revenue Per Share 
0.39 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Centene Price to Sales Comparison

Centene Corp is currently under evaluation in price to sales category among related companies.

Centene Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Centene Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Centene Corp will eventually generate negative long term returns. The profitability progress is the general direction of Centene Corp's change in net profit over the period of time. It can combine multiple indicators of Centene Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income77 M64.2 M
Consolidated Income1.3 B1.1 B
Net Income1.3 B1.1 B
Net Income Common Stock1.3 B1.1 B
Net Loss Income from Discontinued Operations900 K894.7 K
Net Income to Non Controlling Interests-11 M-11.9 M
Operating Income1.8 B1.6 B
Income Tax Expense477 M466.2 M
Net Income Per Employee18.6 K17.9 K
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 Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Centene Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Centene Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Centene Corp's important profitability drivers and their relationship over time.

Centene Corp Profitability Trends

Centene Corp profitability trend refers to the progression of profit or loss within a business. An upward trend means that Centene Corp's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Centene Corp's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Centene Corp Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Centene Corp different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Centene Corp in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Centene Corp's future profitability.

Use Centene Corp in pair-trading

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 Trading

Centene Corp Pair Trading Analysis

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

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Baby Boomer Prospects Theme
Equities with large market capitalization that account for significant contribution to overall economic growth especially within dividend-paying instruments and stocks from healthcare and financial sectors. The Baby Boomer Prospects theme has 97 constituents.
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Continue to Trending Equities. 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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To fully project Centene Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Centene Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Centene Corp's income statement, its balance sheet, and the statement of cash flows.
Potential Centene Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Centene Corp investors may work on each financial statement separately, they are all related. The changes in Centene Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Centene Corp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.