CARDINAL HEALTH INC (CAH) Stock Fundamental Analysis
NYSE:CAH - New York Stock Exchange, Inc. - US14149Y1082 - Common Stock
Overall CAH gets a fundamental rating of 5 out of 10. We evaluated CAH against 108 industry peers in the Health Care Providers & Services industry. CAH has an average financial health and profitability rating. CAH is not valued too expensively and it also shows 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 positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CAH reported negative net income in multiple years.
CAH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAH has a Return On Assets of 2.93%. This is in the better half of the industry: CAH outperforms 70.09% of its industry peers.
CAH has a Return On Invested Capital of 20.74%. This is amongst the best in the industry. CAH outperforms 96.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAH is significantly above the industry average of 8.27%.
The last Return On Invested Capital (20.74%) for CAH is above the 3 year average (14.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | N/A | ||
| ROIC | 20.74% |
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 0.56% 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.
CAH has a Operating Margin of 0.98%. This is comparable to the rest of the industry: CAH outperforms 42.99% of its industry peers.
CAH's Operating Margin has declined in the last couple of years.
CAH has a worse Gross Margin (3.36%) than 82.24% of its industry peers.
CAH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.98% | ||
| PM (TTM) | 0.56% | ||
| GM | 3.36% |
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
The number of shares outstanding for CAH has been reduced compared to 5 years ago.
CAH has a worse debt/assets ratio than last year.
2.2 Solvency
CAH has an Altman-Z score of 5.73. This indicates that CAH is financially healthy and has little risk of bankruptcy at the moment.
CAH has a Altman-Z score of 5.73. This is amongst the best in the industry. CAH outperforms 88.78% of its industry peers.
The Debt to FCF ratio of CAH is 4.79, which is a neutral value as it means it would take CAH, 4.79 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.79, CAH is in the better half of the industry, outperforming 77.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 5.73 |
ROIC/WACC2.45
WACC8.46%
2.3 Liquidity
A Current Ratio of 0.95 indicates that CAH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.95, CAH is doing worse than 77.57% of the companies in the same industry.
CAH has a Quick Ratio of 0.95. 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 0.50, 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 | 0.95 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
CAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.19%, which is quite impressive.
Measured over the past 5 years, CAH shows a small growth in Earnings Per Share. The EPS has been growing by 7.19% on average per year.
The Revenue has been growing slightly by 6.82% in the past year.
CAH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.28% yearly.
EPS 1Y (TTM)20.19%
EPS 3Y7.1%
EPS 5Y7.19%
EPS Q2Q%8.67%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y11.77%
Revenue growth 5Y9.28%
Sales Q2Q%-4.54%
3.2 Future
CAH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.28% yearly.
CAH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y5.97%
EPS Next 2Y8.44%
EPS Next 3Y9.01%
EPS Next 5Y8.28%
Revenue Next Year-2.4%
Revenue Next 2Y2.81%
Revenue Next 3Y4.2%
Revenue Next 5Y5.53%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
CAH is valuated correctly with a Price/Earnings ratio of 16.74.
Based on the Price/Earnings ratio, CAH is valued a bit cheaper than 78.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. CAH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.52, the valuation of CAH can be described as correct.
CAH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAH is cheaper than 78.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. CAH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.74 | ||
| Fwd PE | 14.52 |
4.2 Price Multiples
70.09% of the companies in the same industry are more expensive than CAH, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAH indicates a somewhat cheap valuation: CAH is cheaper than 67.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.64 | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.81
PEG (5Y)2.33
EPS Next 2Y8.44%
EPS Next 3Y9.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, CAH has a reasonable but not impressive dividend return.
CAH's Dividend Yield is rather good when compared to the industry average which is at 2.87. CAH pays more dividend than 85.98% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.28, CAH is paying slightly less dividend.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
CAH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.22%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
CAH pays out 39.27% of its income as dividend. This is a sustainable payout ratio.
CAH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.27%
EPS Next 2Y8.44%
EPS Next 3Y9.01%
CARDINAL HEALTH INC
NYSE:CAH (1/22/2025, 10:21:06 AM)
127.585
-0.25 (-0.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.49%
Inst Owner Change-0.05%
Ins Owners0.26%
Ins Owner Change0.97%
Market Cap30.88B
Analysts74.55
Price Target134.58 (5.48%)
Short Float %1.75%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend2.02
Dividend Growth(5Y)1.22%
DP39.27%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.87%
Min EPS beat(2)4.62%
Max EPS beat(2)15.13%
EPS beat(4)4
Avg EPS beat(4)9.48%
Min EPS beat(4)4.62%
Max EPS beat(4)15.13%
EPS beat(8)8
Avg EPS beat(8)11.65%
EPS beat(12)10
Avg EPS beat(12)8.7%
EPS beat(16)12
Avg EPS beat(16)7.81%
Revenue beat(2)2
Avg Revenue beat(2)1.34%
Min Revenue beat(2)0.98%
Max Revenue beat(2)1.7%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)1.7%
Revenue beat(8)5
Avg Revenue beat(8)-0.02%
Revenue beat(12)8
Avg Revenue beat(12)0.63%
Revenue beat(16)10
Avg Revenue beat(16)0.75%
PT rev (1m)3.77%
PT rev (3m)11.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.13%
EPS NY rev (1m)0%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.74 | ||
| Fwd PE | 14.52 | ||
| P/S | 0.14 | ||
| P/FCF | 28.64 | ||
| P/OCF | 19.46 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.38 |
EPS(TTM)7.62
EY5.97%
EPS(NY)8.78
Fwd EY6.88%
FCF(TTM)4.45
FCFY3.49%
OCF(TTM)6.56
OCFY5.14%
SpS926.99
BVpS-13.54
TBVpS-39.94
PEG (NY)2.81
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | N/A | ||
| ROCE | 26.25% | ||
| ROIC | 20.74% | ||
| ROICexc | 31.52% | ||
| ROICexgc | N/A | ||
| OM | 0.98% | ||
| PM (TTM) | 0.56% | ||
| GM | 3.36% | ||
| FCFM | 0.48% |
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-Score7
Asset Turnover5.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.79 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 70.69% | ||
| Cap/Sales | 0.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.35% | ||
| Profit Quality | 85.35% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.73 |
F-Score7
WACC8.46%
ROIC/WACC2.45
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)20.19%
EPS 3Y7.1%
EPS 5Y7.19%
EPS Q2Q%8.67%
EPS Next Y5.97%
EPS Next 2Y8.44%
EPS Next 3Y9.01%
EPS Next 5Y8.28%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y11.77%
Revenue growth 5Y9.28%
Sales Q2Q%-4.54%
Revenue Next Year-2.4%
Revenue Next 2Y2.81%
Revenue Next 3Y4.2%
Revenue Next 5Y5.53%
EBIT growth 1Y13.4%
EBIT growth 3Y5.77%
EBIT growth 5Y3.35%
EBIT Next Year31.34%
EBIT Next 3Y15.14%
EBIT Next 5YN/A
FCF growth 1Y-68.79%
FCF growth 3Y19.19%
FCF growth 5Y6.31%
OCF growth 1Y-58.71%
OCF growth 3Y17.48%
OCF growth 5Y6.69%