Centene Corporation — Earnings Quality Grade C
CNC · Healthcare
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 34 days, change -10 days YoY
AR growth -8.2% vs revenue growth 19.4%
Revenue 19.4%, CFFO 3203.9%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 19.1% vs revenue 19.4%. Normal
SG&A/Gross Profit = 93.1%, exceeds 70%
Gross margin 7.1%, change -3.2pp. Stable
Cash Flow Quality
CFFO/NI = -0.76. Below 1.0
FCF $4.3B, FCF/NI = -0.65
Accruals ratio = -15.3%. Low accruals
Cash $20.3B covers debt $18.2B
Balance Sheet Health
Goodwill+Intangibles $15.4B = 77% of equity. Over 50%
Interest coverage = -0.5x (<2x). Financial stress
Other assets -0.1% vs revenue 19.4%. Normal
Write-offs up 54% YoY
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -33% YoY. Normal
Manipulation Score
M-Score = -3.07 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09