NYSE:CAH appears to be flying under the radar despite its strong fundamentals.

Take a closer look at CARDINAL HEALTH INC (NYSE:CAH), a remarkable value stock uncovered by our stock screener. NYSE:CAH excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Looking at the Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:CAH scores a 7 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of CAH indicates a rather cheap valuation: CAH is cheaper than 89.38% of the companies listed in the same industry.
• CAH is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of CAH indicates a somewhat cheap valuation: CAH is cheaper than 78.76% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.14, CAH is valued a bit cheaper.
• 80.53% of the companies in the same industry are more expensive than CAH, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, CAH is valued cheaply inside the industry as 90.27% of the companies are valued more expensively.
• CAH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• A more expensive valuation may be justified as CAH's earnings are expected to grow with 13.28% in the coming years.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:CAH, the assigned 5 is a significant indicator of profitability:

• The Return On Assets of CAH (1.20%) is better than 63.72% of its industry peers.
• With an excellent Return On Invested Capital value of 17.31%, CAH belongs to the best of the industry, outperforming 95.58% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for CAH is above the industry average of 8.88%.
• The last Return On Invested Capital (17.31%) for CAH is above the 3 year average (10.97%), which is a sign of increasing profitability.
• CAH has a Profit Margin of 0.25%. This is in the better half of the industry: CAH outperforms 60.18% of its industry peers.

Deciphering NYSE:CAH's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CAH was assigned a score of 5 for health:

• An Altman-Z score of 5.24 indicates that CAH is not in any danger for bankruptcy at the moment.
• CAH has a Altman-Z score of 5.24. This is amongst the best in the industry. CAH outperforms 89.38% of its industry peers.
• CAH has a debt to FCF ratio of 2.92. This is a good value and a sign of high solvency as CAH would need 2.92 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.92, CAH belongs to the top of the industry, outperforming 84.07% of the companies in the same industry.

Understanding NYSE:CAH's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:CAH scores a 6 out of 10:

• CAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.22%, which is quite impressive.
• Looking at the last year, CAH shows a quite strong growth in Revenue. The Revenue has grown by 11.03% in the last year.
• CAH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.43% yearly.
• CAH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.62% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of CAH for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.