Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin3.7%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin3.1%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt10.6 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$11.4B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$4.9B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book1.41x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$4.2B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income13.0%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$2.0B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Centene Corporation
Centene Corporation operates as a managed care company that provides programs and services to under-insured families, and commercial organizations in the United States. It operates through four segments: Medicaid, Medicare, Commercial, and Other. The Medicaid segment offers the temporary assistance for needy families; medicaid expansion; aged, blind, or disabled; and children's health insurance programs, as well as long-term services and supports; foster care; and medicare-medicaid plans. This segment also provides healthcare products and services. The Medicare segment offers special needs and medicare supplement, and prescription drug plans. The Commercial segment provides health insurance marketplace product for individual and commercial group. The Other segment operates clinical healthcare and pharmacies, as well as offers vision and dental, behavioral health, and centralized services. It provides services through primary and specialty care physicians, hospitals, behavioral health practitioners, and ancillary providers. The company was founded in 1984 and is headquartered in Saint Louis, Missouri.
Centene Corporation operates as a managed care company that provides programs and services to under-insured families, and commercial organizations in the United States. It operates through four segments: Medicaid, Medicare, Commercial, and Other. The Medicaid segment offers the temporary assistance for needy families; medicaid expansion; aged, blind, or disabled; and children's health insurance programs, as well as long-term services and supports; foster care; and medicare-medicaid plans. This segment also provides healthcare products and services. The Medicare segment offers special needs and medicare supplement, and prescription drug plans. The Commercial segment provides health insurance marketplace product for individual and commercial group. The Other segment operates clinical healthcare and pharmacies, as well as offers vision and dental, behavioral health, and centralized services. It provides services through primary and specialty care physicians, hospitals, behavioral health practitioners, and ancillary providers. The company was founded in 1984 and is headquartered in Saint Louis, Missouri.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Centene Corporation at $61.02.
The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.
At $61.02, the stock trades at a 11% premium to its Graham Number of $55.10. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Gross Profit %
11.1%▲
5.0%•
N/A
Operating Margin %
3.7%▲
-2.5%•
N/A
Net Income %
3.1%▲
-2.2%•
N/A
Diluted EPS
3.11▲
-2.24•
N/A
Balance Sheet Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Total Assets
$81.2B
$76.7B
N/A
Total Debt
$16.4B▼
$18.2B•
N/A
Working Capital
$4.9B▲
$3.7B•
N/A
Years to Pay Debt
10.62
-16.50
N/A
Cash Flow Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Free Cash Flow
$4.2B▲
$224M•
N/A
Owner Earnings
$2.0B
-$559M
N/A
CapEx % of Net Income
13.0%
N/A
N/A
Income Statement
2026
2025
2024
Tax Effect Of Unusual Items
107,334
-41,056
Tax Rate For Calcs
0
0
Normalized EBITDA
2,161,000
-903,000
Total Unusual Items
402,000
-143,000
Total Unusual Items Excluding Goodwill
402,000
-143,000
Net Income From Continuing Operation Net Minority Interest
1,541,000
-1,101,000
Reconciled Depreciation
300,000
329,000
Reconciled Cost Of Revenue
44,386,000
47,258,000
EBITDA
2,563,000
-1,046,000
EBIT
2,263,000
-1,375,000
Net Interest Income
-164,000
-168,000
Interest Expense
164,000
168,000
Normalized Income
1,246,334
-999,056
Net Income From Continuing And Discontinued Operation
1,541,000
-1,101,000
Total Expenses
48,083,000
50,957,000
Total Operating Income As Reported
1,861,000
-1,745,000
Diluted Average Shares
495,591
491,533
Basic Average Shares
492,069
491,533
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
1,541,000
-1,101,000
Net Income Common Stockholders
1,541,000
-1,101,000
Net Income
1,541,000
-1,101,000
Minority Interests
2,000
-1,000
Net Income Including Noncontrolling Interests
1,539,000
-1,100,000
Net Income Continuous Operations
1,539,000
-1,100,000
Tax Provision
560,000
-443,000
Pretax Income
2,099,000
-1,543,000
Other Income Expense
402,000
-143,000
Special Income Charges
-5,000
-512,000
Other Special Charges
5,000
Write Off
-6,778,000
0
Impairment Of Capital Assets
Gain On Sale Of Security
407,000
369,000
Net Non Operating Interest Income Expense
-164,000
-168,000
Interest Expense Non Operating
164,000
168,000
Operating Income
1,861,000
-1,232,000
Operating Expense
3,697,000
3,699,000
Depreciation Amortization Depletion Income Statement
300,000
329,000
Depreciation And Amortization In Income Statement
300,000
329,000
Amortization
166,000
169,000
Amortization Of Intangibles Income Statement
166,000
169,000
Depreciation Income Statement
134,000
160,000
Selling General And Administration
3,397,000
3,370,000
Gross Profit
5,558,000
2,467,000
Cost Of Revenue
44,386,000
47,258,000
Total Revenue
49,944,000
49,725,000
Excise Taxes
-5,289,000
-4,998,000
Operating Revenue
44,655,000
44,727,000
Balance Sheet
2026
2025
2024
Treasury Shares Number
131,706
131,706
Ordinary Shares Number
493,771
491,757
Share Issued
625,477
623,463
Net Debt
4,470,000
Total Debt
16,371,000
18,162,000
Tangible Book Value
6,228,000
4,588,000
Invested Capital
37,798,000
37,354,000
Working Capital
4,944,000
3,674,000
Net Tangible Assets
6,228,000
4,588,000
Capital Lease Obligations
761,000
896,000
Common Stock Equity
21,427,000
19,953,000
Total Capitalization
37,735,000
37,304,000
Total Equity Gross Minority Interest
21,527,000
20,056,000
Minority Interest
100,000
103,000
Stockholders Equity
21,427,000
19,953,000
Gains Losses Not Affecting Retained Earnings
-171,000
-58,000
Other Equity Adjustments
-171,000
-58,000
Treasury Stock
9,441,000
9,441,000
Retained Earnings
10,215,000
8,674,000
Additional Paid In Capital
20,823,000
20,777,000
Capital Stock
1,000
1,000
Common Stock
1,000
1,000
Total Liabilities Net Minority Interest
59,648,000
56,691,000
Total Non Current Liabilities Net Minority Interest
19,603,000
19,995,000
Other Non Current Liabilities
2,551,000
1,196,000
Non Current Deferred Liabilities
744,000
833,000
Non Current Deferred Taxes Liabilities
744,000
833,000
Long Term Debt And Capital Lease Obligation
16,308,000
17,966,000
Long Term Capital Lease Obligation
615,000
738,000
Long Term Debt
16,308,000
17,351,000
Current Liabilities
40,045,000
36,696,000
Other Current Liabilities
20,627,000
20,544,000
Current Deferred Liabilities
953,000
736,000
Current Deferred Revenue
953,000
736,000
Current Debt And Capital Lease Obligation
63,000
196,000
Current Capital Lease Obligation
146,000
158,000
Current Debt
63,000
50,000
Other Current Borrowings
50,000
110,000
Payables And Accrued Expenses
18,402,000
15,220,000
Payables
18,402,000
15,220,000
Other Payable
1,570,000
1,592,000
Accounts Payable
16,832,000
13,628,000
Total Assets
81,175,000
76,747,000
Total Non Current Assets
36,186,000
36,377,000
Other Non Current Assets
2,298,000
1,623,000
Investments And Advances
16,599,000
17,035,000
Goodwill And Other Intangible Assets
15,199,000
15,365,000
Other Intangible Assets
4,364,000
4,530,000
Goodwill
10,835,000
10,835,000
Net PPE
2,090,000
2,354,000
Gross PPE
4,586,000
5,229,000
Leases
277,000
273,000
Other Properties
317,000
359,000
Machinery Furniture Equipment
3,355,000
3,918,000
Buildings And Improvements
492,000
523,000
Land And Improvements
145,000
156,000
Current Assets
44,989,000
40,370,000
Other Current Assets
1,822,000
1,945,000
Receivables
19,426,000
18,105,000
Accounts Receivable
19,426,000
18,105,000
Allowance For Doubtful Accounts Receivable
-134,000
-111,000
Gross Accounts Receivable
18,239,000
19,824,000
Cash Cash Equivalents And Short Term Investments
23,741,000
20,320,000
Other Short Term Investments
2,477,000
2,432,000
Cash And Cash Equivalents
21,264,000
17,888,000
Cash Flow
2026
2025
2024
Free Cash Flow
4,166,000
224,000
Repurchase Of Capital Stock
-29,000
-2,000
Repayment Of Debt
-1,046,000
-187,000
Issuance Of Debt
0
0
Issuance Of Capital Stock
10,000
8,000
Capital Expenditure
-200,000
-213,000
Interest Paid Supplemental Data
146,000
189,000
Income Tax Paid Supplemental Data
-92,000
181,000
End Cash Position
21,353,000
17,957,000
Other Cash Adjustment Outside Changein Cash
4,000
-138,000
3,000
Beginning Cash Position
17,957,000
17,185,000
Effect Of Exchange Rate Changes
0
1,000
Changes In Cash
3,392,000
910,000
Financing Cash Flow
-1,063,000
-187,000
Cash Flow From Continuing Financing Activities
-1,063,000
-187,000
Net Other Financing Charges
2,000
-6,000
Net Common Stock Issuance
-19,000
6,000
Common Stock Payments
-29,000
-2,000
Common Stock Issuance
10,000
8,000
Net Issuance Payments Of Debt
-1,046,000
-187,000
Net Long Term Debt Issuance
-1,046,000
-187,000
Long Term Debt Payments
-1,046,000
-187,000
Long Term Debt Issuance
0
0
Investing Cash Flow
89,000
660,000
Cash Flow From Continuing Investing Activities
89,000
660,000
Net Investment Purchase And Sale
289,000
873,000
Sale Of Investment
1,276,000
1,649,000
Purchase Of Investment
-987,000
-776,000
Net Business Purchase And Sale
0
31,000
Sale Of Business
0
31,000
Capital Expenditure Reported
-200,000
-213,000
Operating Cash Flow
4,366,000
437,000
Cash Flow From Continuing Operating Activities
4,366,000
437,000
Change In Working Capital
2,508,000
723,000
Change In Other Working Capital
200,000
152,000
Change In Other Current Liabilities
944,000
-924,000
Change In Other Current Assets
-188,000
15,000
Change In Payables And Accrued Expense
2,905,000
-3,338,000
Change In Receivables
-1,353,000
4,818,000
Changes In Account Receivables
-1,353,000
4,818,000
Other Non Cash Items
18,000
Stock Based Compensation
67,000
58,000
Asset Impairment Charge
513,000
0
Deferred Tax
-53,000
-73,000
Deferred Income Tax
-53,000
-73,000
Depreciation Amortization Depletion
300,000
329,000
Depreciation And Amortization
300,000
329,000
Amortization Cash Flow
166,000
Amortization Of Intangibles
166,000
Depreciation
134,000
Operating Gains Losses
5,000
-13,000
Gain Loss On Sale Of Business
0
-12,000
-17,000
Net Income From Continuing Operations
1,539,000
-1,100,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $46.6B▲ $49.9B+7.1%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 11.2%▲ 11.1%-0.0pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 4.0%▲ 3.7%-0.3pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 2.8%▲ 3.1%+0.3pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$49.9B/qtr (≈$199.8B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.12x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$4.2B
vs Positive
Operating Cash Flow
$4.4B
Latest quarter · Buffett's cash reality check
ROIC
3.6%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
1.4x
Net Assets: $21.5B
Peers & Industry
No auto-detected peers for Healthcare Plans. You can manually compare CNC against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.39%
Low — management has little skin in the game
Return on Equity (ROE)
7.2%
Weak — poor returns on equity
Return on Assets (ROA)
1.9%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$475M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-9.9% YoY
Debt is declining — management is deleveraging
Leadership Team
Sarah London
CEO & Director
Age 44
Pay: $3,968,565
0.258% of net income
Andrew Lynn Asher
Executive VP & CFO
Age 56
Pay: $2,709,957
0.176% of net income
Susan Smith
Chief Operating Officer
Age 49
Pay: $1,309,301
0.085% of net income
Jennifer Lynch Gilligan
Senior Vice President of Investor Relations
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
8.06%
39,822,399
AQR Capital Management, LLC
6.81%
33,613,787
Vanguard Capital Management LLC
6.33%
31,234,065
Vanguard Portfolio Management LLC
4.38%
21,629,537
State Street Corporation
4.38%
21,646,128
Harris Associates L.P.
2.85%
14,094,531
Geode Capital Management, LLC
2.63%
12,987,512
Invesco Ltd.
2.15%
10,616,171
Risk Analysis
Beta (Market Risk)
1.09
Moderate volatility — moves slightly more than market
Short Interest
3.4% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.76x
Conservative balance sheet — low financial risk
Current Ratio
1.12x
Adequate liquidity
52-Week Price Range
Low: $25.08Current: $61.02High: $66.55
Currently at 87% of 52-week range
Centene Corporation (CNC) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $55.10. Margin of safety: 0%. Gross profit margin: 11.1%. Operating margin: 3.7%. Net margin: 3.1%. Market cap: $30.1B. Sector: Healthcare. Industry: Healthcare Plans. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.