Centene Corporation

Positive: management has rationalized the portfolio (e.g., Circle Health divested in 2024; prior pharmacy business simplification), executed large buybacks ($3.0 billion in 2024; authorization still available), and targeted SG&A improvements under a multi-year value-creation plan. 2025 YTD, buybacks continued more modestly while preserving liquidity.

Capex is primarily systems-related (≈$700 million guided for 2025), which is reasonable for a data- and compliance-heavy payer. Cautions: 2025 guidance withdrawal and morbidity surprise indicate underwriting and forecasting risk; we prefer restraint on repurchases until rate adequacy and morbidity stabilize.

Track record trending better since 2021, but not yet best-in-class.