Centene Corporation

Methodology

Centene's government-sponsored healthcare programs (Medicaid, Medicare Advantage, ACA marketplace) serving lower-income populations create earnings sensitive to medical cost trends and government reimbursement rates. The company's scale advantages in Medicaid managed care provide competitive positioning. This calculation works reasonably, though medical loss ratio volatility, policy changes, and member mix shifts require careful normalization of earnings power.

Methodology

Centene often shows attractive PEG ratios given low valuations relative to growth, reflecting concerns about Medicaid rate adequacy and medical cost inflation. The company's government-focused business model provides volume visibility but margin uncertainty. Compare to other managed care companies serving different populations to assess whether Centene's Medicaid concentration justifies valuation discounts despite growth potential.

Methodology

Centene does not pay dividends, prioritizing growth investments, debt reduction, and share buybacks over income distribution. PEGY is not applicable without dividends. For Centene, focus remains on medical loss ratio management, Medicaid contract renewals, Medicare Advantage penetration, and operational efficiency rather than traditional capital return metrics.