Centene Corporation
CNCFinancial Snapshot
ticker: CNC step: 04 generated: 2026-05-12 source: quick-research
Centene Corporation (CNC) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $144.5B | $154.0B | $163.1B | +6% |
| Health Benefits Ratio (HBR) | ~87.7% | ~87.7% | ~88.5%+ | |
| Operating Margin | ~2.5% | ~2.8% | ~2.7% | |
| Net Income | ~$1.7B | ~$2.7B | $3.3B | +22% |
| EPS (GAAP diluted) | $2.07 | ~$5.00 | ~$6.30 | |
| EPS (adjusted diluted) | $5.78 | ~$7.00+ | ~$7.50 |
Note: FY2025 was highly disrupted — ACA losses and Medicaid HBR pressure caused multiple guidance withdrawals and a large Q4 2025 loss. FY2025 full-year results showed ~$1.5B+ in challenges before partial recovery in Q1 2026.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$2.3B |
| Free Cash Flow | ~$1.4B |
| Cash & Equivalents | ~$14B |
| Total Debt | ~$18B |
Note: FY2022 FCF was $5.3B and FY2023 was $7.3B — FY2024 decline reflects Medicaid acuity and ACA cost pressures impacting earnings.
Key Ratios (approximate)
- P/E (forward): ~8–10x | P/B: ~1.2x | FCF Yield: ~5–8%
- Revenue Growth (FY2024): +6% | Net Margin: ~2%
Growth Profile
Centene has grown revenue rapidly through Medicaid contract wins and ACA marketplace expansion, but profitability has been highly volatile. The 2023–2025 period was defined by: (1) Medicaid redeterminations removing ~1.5M low-acuity members and raising average acuity/HBR; (2) ACA Marketplace adverse selection as enhanced subsidies fueled enrollment of high-cost members; and (3) state rate increases lagging medical cost inflation. ACA membership has already contracted sharply — from 5.5M at end-2025 to ~3.5M in Q1 2026 (-36%) as subsidy expirations drove healthier enrollees out.
Forward Estimates
- FY2026: Revenue guidance reduced due to ACA membership losses; Medicaid HBR improvement is the key earnings driver; management expects "meaningful margin improvement and renewed adjusted EPS growth" — consensus cautious, Hold rating from 20 analysts
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $CNC.