A Business at a Glance
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CENTENE CORP
CNC
$31.3B
Mkt Cap
$63.41
-0.52%
CENTENE CORP (CNC) has a 5-year average return on invested capital (ROIC) of 0.7%. This is below average and may indicate limited pricing power.
CENTENE CORP (CNC) has a market capitalization of $31.3B. It is classified as a large-cap stock.
CENTENE CORP (CNC) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.48%.
CENTENE CORP (CNC) operates in the Hospital & Medical Service Plans industry, within the Financials sector.
CENTENE CORP (CNC) reported annual revenue of $194.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
CENTENE CORP (CNC) has a net profit margin of -3.4%. The company is currently unprofitable.
CENTENE CORP (CNC) generated $4.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Centene is the nation's largest managed care company focused on underserved populations, serving more than 1 in 15 individuals across the United States through a diversified portfolio of Medicaid, Medicare, Commercial, and Other segments. The company operates a state-based model with local brands and teams embedded in the communities they serve, partnering with providers, policymakers, and communities to deliver coordinated care and address social determinants of health such as food, housing, utilities, and transportation. Centene's Medicaid business, representing 57% of 2025 revenues, covers low-income families, children, elderly and disabled populations, and long-term services and supports across 30 states; its Medicare segment (19% of revenues) includes Medicare Advantage, Dual-Eligible Special Needs Plans, and Medicare Part D prescription drug plans; and its Commercial segment (21% of revenues) comprises Health Insurance Marketplace products and individual and group coverage. The company's unit economics are characterized by fixed monthly premiums per member from government programs (Medicaid and Medicare) and risk-sharing arrangements with the federal government, while its competitive moat derives from scale, data analytics capabilities, local market expertise, and alignment with low-income and complex populations including dual-eligible beneficiaries. As of December 31, 2025, Centene served 27.6 million members and generated $194.8 billion in total revenues with $5.1 billion in operating cash flow.
【Medicaid margin stabilization, Medicare recovery path】 Management expects meaningful margin improvement across core business lines in 2026 following a challenging 2025. In Medicaid, the company anticipates stable health benefits ratios supported by composite rate yields of approximately 4.5% and disciplined execution on trend management initiatives targeting mid-4% net trend; behavioral health, home health, and high-cost drugs remain elevated but are being addressed through scaled modernization and standardization programs. Medicare Advantage is positioned for continued progress toward break-even in 2027 through strategic membership alignment with Medicaid footprint, optimized provider contracts, and favorable D-SNP mix now representing 40% of the portfolio, while Medicare Part D is expected to deliver improved results despite elevated pharmacy trends. The Commercial segment, predominantly Marketplace, is expected to achieve significant margin recovery in 2026 after losses in 2025, driven by repricing actions that account for observed morbidity shifts, program integrity changes, and the expiration of Enhanced Advanced Premium Tax Credits. The company is deploying advanced analytics and AI-enabled tools to enhance forecasting and medical economics validation, and continues to invest in quality programs and value-based care alignment to support long-term profitability and member outcomes.
| Metric | Target | Period |
|---|---|---|
| Medicaid Composite Rate Yield | roughly 4.5% | FY2026 |
| Medicaid Net Trend | mid 4% range | FY2026 |
| Consolidated Health Benefits Ratio | 90.9%-91.7% | FY2026 |
| Premium and Service Revenue | $170 billion-$174 billion | FY2026 |
| Medicaid Member Months | down 5%-6% | FY2026 |
| Marketplace Members | approximately 3.5 million at end of Q1, slight attrition thereafter, ending 2026 a little over 3 million | FY2026 |
Medicaid Composite Rate Yield (FY2026): “we continue to track in line with our expectation for a composite rate yield of roughly 4.5%”
Medicaid Net Trend (FY2026): “our guidance assumes net trend, defined as medical costs net of these trends management initiatives, remains in the mid 4% range”
Consolidated Health Benefits Ratio (FY2026): “No change to our HBR full year range of 90.9%-91.7%”
Premium and Service Revenue (FY2026): “We expect premium and service revenue of $170 billion-$174 billion”
Medicaid Member Months (FY2026): “We expect Medicaid member months down 5%-6% in 2026”
“we expect around 3.5 million Marketplace members as of the end of Q1 and slight attrition thereafter”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 198.1B | 194.8B | 163.1B | 154.0B | 144.5B | 126.0B |
| Net Income | -6.4B | -6.7B | 3.3B | 2.7B | 1.2B | 1.3B |
| EPS | $-13.13 | $-13.53 | $6.31 | $4.95 | $2.07 | $2.28 |
| Free Cash Flow | 7.1B | 4.3B | -490M | 7.3B | 5.3B | 3.3B |
| ROIC | -41.0% | -16.3% | 7.5% | 6.3% | 2.8% | 3.1% |
| Gross Margin | 7.4% | 7.3% | 10.5% | 11.5% | 11.7% | 11.5% |
| Debt/Equity | 0.76 | 0.87 | 0.70 | 0.69 | 0.75 | 0.70 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | -7.3B | -7.6B | 3.2B | 2.9B | 1.3B | 1.8B |
| Operating Margin | -3.7% | -3.9% | 1.9% | 1.9% | 0.9% | 1.4% |
| ROE | -30.1% | -28.8% | 12.7% | 10.8% | 4.7% | 5.1% |
| Shares Outstanding | 494M | 493M | 524M | 546M | 581M | 591M |
CENTENE CORP passes 2 of 9 quality checks, indicating weak fundamentals.
On a free-cash-flow basis, the stock trades at 7.2x vs a median of 12.2x. The company's 5-year average ROIC is 0.7% with a gross margin of 10.5%. Total shareholder yield (buybacks) is 1.5%. At current prices, the estimated annualized return to fair value is +11.0%.
CENTENE CORP (CNC) has a debt-to-equity ratio of 0.87. This indicates moderate leverage.
CENTENE CORP (CNC) reported earnings per share (EPS) of $-13.53 in its most recent fiscal year.
CENTENE CORP (CNC) has a return on equity (ROE) of -28.8%. A negative ROE may indicate losses or negative equity.
CENTENE CORP (CNC) has a 5-year average gross margin of 10.5%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 18 years of financial data for CENTENE CORP (CNC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CENTENE CORP (CNC) has a book value per share of $40.45, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects meaningful margin improvement across core business lines in 2026 following a challenging 2025. In Medicaid, the company anticipates stable health benefits ratios supported by composite rate yields of approximately 4.5% and disciplined execution on trend management initiatives targeting mid-4% net trend; behavioral health, home health, and high-cost drugs remain elevated but are being addressed through scaled modernization and standardization programs. Medicare Advantage is positioned for continued progress toward break-even in 2027 through strategic membership alignment with Medicaid footprint, optimized provider contracts, and favorable D-SNP mix now representing 40% of the portfolio, while Medicare Part D is expected to deliver improved results despite elevated pharmacy trends. The Commercial segment, predominantly Marketplace, is expected to achieve significant margin recovery in 2026 after losses in 2025, driven by repricing actions that account for observed morbidity shifts, program integrity changes, and the expiration of Enhanced Advanced Premium Tax Credits. The company is deploying advanced analytics and AI-enabled tools to enhance forecasting and medical economics validation, and continues to invest in quality programs and value-based care alignment to support long-term profitability and member outcomes.
Based on recent SEC filings and earnings calls, CENTENE CORP (CNC) has provided the following forward guidance: Medicaid Composite Rate Yield: roughly 4.5% (FY2026); Medicaid Net Trend: mid 4% range (FY2026); Consolidated Health Benefits Ratio: 90.9%-91.7% (FY2026); Premium and Service Revenue: $170 billion-$174 billion (FY2026); Medicaid Member Months: down 5%-6% (FY2026), plus 1 additional metric.