Centene Corp Price To Book vs. Price To Sales
| CNC Stock | USD 74.00 1.68 2.22% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.21 | 0.2048 |
|
| |||||
| Return On Equity | 0.0751 | 0.1046 |
|
|
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.
Centene |
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 (0.32) | Earnings Share 4.95 | Revenue Per Share 260.006 | Quarterly Revenue Growth 0.056 | Return On Assets 0.037 |
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 if Centene Corp is a good investment 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. Price To Book 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 rated second in price to book category among related companies. It is rated second in price to sales category among related companies fabricating about 0.18 of Price To Sales per Price To Book. The ratio of Price To Book to Price To Sales for Centene Corp is roughly 5.47 . At present, Centene Corp's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting.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. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Centene Corp |
| = | 1.46 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
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 |
| = | 0.27 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -652 M | -619.4 M | |
| Operating Income | 2.9 B | 3.1 B | |
| Income Before Tax | 3.6 B | 3.8 B | |
| Total Other Income Expense Net | 668 M | 701.4 M | |
| Net Income | 2.7 B | 2.8 B | |
| Income Tax Expense | 899 M | 944 M | |
| Net Income Applicable To Common Shares | 1.4 B | 1.5 B | |
| Net Income From Continuing Ops | 2.4 B | 2.6 B | |
| Non Operating Income Net Other | 1.5 B | 1.5 B | |
| Interest Income | 764.8 M | 457.6 M | |
| Net Interest Income | -716 M | -751.8 M | |
| Change To Netincome | 1.5 B | 1.6 B | |
| Net Income Per Share | 4.97 | 5.22 | |
| Income Quality | 2.98 | 3.13 | |
| Net Income Per E B T | 0.75 | 0.81 |
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.
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 instruments. 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.Use Investing Themes to Complement your Centene Corp position
In addition to having Centene Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Processed Foods Thematic Idea Now
Processed Foods
Companies producing and distributing processed foods to retail sectors. The Processed Foods theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Processed Foods Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Trending Equities. For information on how to trade Centene Stock refer to our How to Trade Centene Stock guide.You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Complementary Tools for Centene Stock analysis
When running Centene Corp's 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 the 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.
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |
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.