CARDINAL HEALTH INC (CAH) Stock Fundamental Analysis
NYSE:CAH - New York Stock Exchange, Inc. - US14149Y1082 - Common Stock - Currency: USD
Overall CAH gets a fundamental rating of 4 out of 10. We evaluated CAH against 108 industry peers in the Health Care Providers & Services industry. While CAH is still in line with the averages on profitability rating, there are concerns on its financial health. CAH is quite expensive at the moment. It does show a decent growth rate. Finally CAH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAH had positive earnings in the past year.
CAH had a negative operating cash flow in the past year.
In multiple years CAH reported negative net income over the last 5 years.
Each year in the past 5 years CAH had a positive operating cash flow.
1.2 Ratios
CAH has a better Return On Assets (2.79%) than 68.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.20%, CAH belongs to the top of the industry, outperforming 91.59% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CAH is significantly above the industry average of 8.14%.
The last Return On Invested Capital (15.20%) for CAH is above the 3 year average (14.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | N/A | ||
| ROIC | 15.2% |
ROA(3y)0.12%
ROA(5y)-1.47%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.1%
ROIC(5y)11.81%
1.3 Margins
CAH's Profit Margin of 0.59% is in line compared to the rest of the industry. CAH outperforms 57.01% of its industry peers.
In the last couple of years the Profit Margin of CAH has declined.
With a Operating Margin value of 1.02%, CAH perfoms like the industry average, outperforming 42.99% of the companies in the same industry.
In the last couple of years the Operating Margin of CAH has declined.
The Gross Margin of CAH (3.44%) is worse than 83.18% of its industry peers.
In the last couple of years the Gross Margin of CAH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.02% | ||
| PM (TTM) | 0.59% | ||
| GM | 3.44% |
OM growth 3Y-5.37%
OM growth 5Y-5.42%
PM growth 3Y-0.04%
PM growth 5Y-16.7%
GM growth 3Y-7.81%
GM growth 5Y-6.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CAH is creating value.
Compared to 1 year ago, CAH has less shares outstanding
Compared to 5 years ago, CAH has less shares outstanding
The debt/assets ratio for CAH is higher compared to a year ago.
2.2 Solvency
CAH has an Altman-Z score of 5.28. This indicates that CAH is financially healthy and has little risk of bankruptcy at the moment.
CAH has a better Altman-Z score (5.28) than 85.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.28 |
ROIC/WACC1.83
WACC8.31%
2.3 Liquidity
A Current Ratio of 1.02 indicates that CAH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.02, CAH is doing worse than 77.57% of the companies in the same industry.
CAH has a Quick Ratio of 1.02. This is a bad value and indicates that CAH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.54, CAH is not doing good in the industry: 88.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.01% over the past year.
CAH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.19% yearly.
The Revenue has been growing slightly by 2.85% in the past year.
The Revenue has been growing by 9.28% on average over the past years. This is quite good.
EPS 1Y (TTM)13.01%
EPS 3Y7.1%
EPS 5Y7.19%
EPS Q2Q%6.04%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y11.77%
Revenue growth 5Y9.28%
Sales Q2Q%-3.8%
3.2 Future
Based on estimates for the next years, CAH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.89% on average per year.
The Revenue is expected to grow by 5.81% on average over the next years.
EPS Next Y7.54%
EPS Next 2Y10.09%
EPS Next 3Y10.22%
EPS Next 5Y9.89%
Revenue Next Year-1.35%
Revenue Next 2Y3.36%
Revenue Next 3Y4.63%
Revenue Next 5Y5.81%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.44, the valuation of CAH can be described as correct.
Based on the Price/Earnings ratio, CAH is valued a bit cheaper than 79.44% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, CAH is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.04, which indicates a correct valuation of CAH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAH indicates a somewhat cheap valuation: CAH is cheaper than 77.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, CAH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
CAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAH is cheaper than 70.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CAH does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.18
PEG (5Y)2.29
EPS Next 2Y10.09%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
CAH has a Yearly Dividend Yield of 1.56%.
CAH's Dividend Yield is rather good when compared to the industry average which is at 2.95. CAH pays more dividend than 85.05% of the companies in the same industry.
CAH's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of CAH has a limited annual growth rate of 1.22%.
CAH has paid a dividend for at least 10 years, which is a reliable track record.
CAH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.22%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
37.71% of the earnings are spent on dividend by CAH. This is a low number and sustainable payout ratio.
CAH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.71%
EPS Next 2Y10.09%
EPS Next 3Y10.22%
127.06
-0.32 (-0.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners88.83%
Inst Owner Change-0.97%
Ins Owners0.26%
Ins Owner Change-3.89%
Market Cap30.69B
Analysts78.18
Price Target144.92 (14.06%)
Short Float %1.84%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend2.02
Dividend Growth(5Y)1.22%
DP37.71%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.89%
Min EPS beat(2)8.65%
Max EPS beat(2)15.13%
EPS beat(4)4
Avg EPS beat(4)8.49%
Min EPS beat(4)4.62%
Max EPS beat(4)15.13%
EPS beat(8)8
Avg EPS beat(8)10.88%
EPS beat(12)10
Avg EPS beat(12)9.22%
EPS beat(16)12
Avg EPS beat(16)7.14%
Revenue beat(2)1
Avg Revenue beat(2)0.58%
Min Revenue beat(2)-0.55%
Max Revenue beat(2)1.7%
Revenue beat(4)2
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)1.7%
Revenue beat(8)4
Avg Revenue beat(8)-0.14%
Revenue beat(12)8
Avg Revenue beat(12)0.69%
Revenue beat(16)10
Avg Revenue beat(16)0.76%
PT rev (1m)2.76%
PT rev (3m)15.01%
EPS NQ rev (1m)-1.79%
EPS NQ rev (3m)3.84%
EPS NY rev (1m)1.49%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)3.15%
Revenue NQ rev (3m)7.35%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.04 | ||
| P/S | 0.14 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.51 |
EPS(TTM)7.73
EY6.08%
EPS(NY)9.05
Fwd EY7.13%
FCF(TTM)-2.12
FCFYN/A
OCF(TTM)-0.08
OCFYN/A
SpS919.65
BVpS-12.38
TBVpS-43.16
PEG (NY)2.18
PEG (5Y)2.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | N/A | ||
| ROCE | 19.24% | ||
| ROIC | 15.2% | ||
| ROICexc | 22.46% | ||
| ROICexgc | 335.86% | ||
| OM | 1.02% | ||
| PM (TTM) | 0.59% | ||
| GM | 3.44% | ||
| FCFM | N/A |
ROA(3y)0.12%
ROA(5y)-1.47%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.1%
ROIC(5y)11.81%
ROICexc(3y)26.39%
ROICexc(5y)19.93%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.84%
ROCE(5y)14.95%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y54.01%
ROICexc growth 5Y31.18%
OM growth 3Y-5.37%
OM growth 5Y-5.42%
PM growth 3Y-0.04%
PM growth 5Y-16.7%
GM growth 3Y-7.81%
GM growth 5Y-6.99%
F-Score6
Asset Turnover4.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 67.03% | ||
| Cap/Sales | 0.22% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 5.28 |
F-Score6
WACC8.31%
ROIC/WACC1.83
Cap/Depr(3y)65.8%
Cap/Depr(5y)57.91%
Cap/Sales(3y)0.22%
Cap/Sales(5y)0.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.01%
EPS 3Y7.1%
EPS 5Y7.19%
EPS Q2Q%6.04%
EPS Next Y7.54%
EPS Next 2Y10.09%
EPS Next 3Y10.22%
EPS Next 5Y9.89%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y11.77%
Revenue growth 5Y9.28%
Sales Q2Q%-3.8%
Revenue Next Year-1.35%
Revenue Next 2Y3.36%
Revenue Next 3Y4.63%
Revenue Next 5Y5.81%
EBIT growth 1Y11.13%
EBIT growth 3Y5.77%
EBIT growth 5Y3.35%
EBIT Next Year34.14%
EBIT Next 3Y16.72%
EBIT Next 5YN/A
FCF growth 1Y-118.03%
FCF growth 3Y19.19%
FCF growth 5Y6.31%
OCF growth 1Y-100.58%
OCF growth 3Y17.48%
OCF growth 5Y6.69%