CNC – Market expectations are for Uniform ROA to fade, but management is confident about their value enhancement, new offerings, and guidance
- Centene Corporation (CNC) currently trades below corporate but above historical averages relative to Uniform earnings, with a 13.8x Uniform P/E (Fwd. V/E’).
At these levels, markets are pricing in expectations for Uniform ROA to fade to 10%, accompanied by 7% Uniform asset growth.
However, analysts expect Uniform ROA to improve to 18% by 2023, accompanied by 3% Uniform asset growth.
If sustained going forward, these levels would imply a stock price closer to $147, representing significant potential equity upside for the firm.
Moreover, the firm’s most recent earnings call suggests management is confident about their value enhancement, new offerings, and guidance.