CARDINAL HEALTH INC (CAH)
US14149Y1082 - Common Stock
CAH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 108 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of CAH get a neutral evaluation. Nothing too spectacular is happening here. CAH has a decent growth rate and is not valued too expensively. CAH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAH had positive earnings in the past year.
In the past year CAH had a positive cash flow from operations.
In multiple years CAH reported negative net income over the last 5 years.
In the past 5 years CAH always reported a positive cash flow from operatings.
1.2 Ratios
CAH has a Return On Assets of 2.93%. This is in the better half of the industry: CAH outperforms 70.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.74%, CAH belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
CAH had an Average Return On Invested Capital over the past 3 years of 14.10%. This is significantly above the industry average of 8.15%.
The 3 year average ROIC (14.10%) for CAH is below the current ROIC(20.74%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 0.56%, CAH perfoms like the industry average, outperforming 57.41% of the companies in the same industry.
CAH's Profit Margin has declined in the last couple of years.
CAH has a Operating Margin (0.98%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CAH has declined.
CAH has a Gross Margin of 3.36%. This is amonst the worse of the industry: CAH underperforms 82.41% 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
CAH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, CAH has less shares outstanding
CAH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CAH is higher compared to a year ago.
2.2 Solvency
CAH has an Altman-Z score of 5.70. This indicates that CAH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.70, CAH belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 4.79, CAH is doing good in the industry, outperforming 76.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 5.7 |
ROIC/WACC2.49
WACC8.33%
2.3 Liquidity
A Current Ratio of 0.95 indicates that CAH may have some problems paying its short term obligations.
With a Current ratio value of 0.95, CAH is not doing good in the industry: 76.85% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.50, CAH is doing worse than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.19% over the past year.
The Earnings Per Share has been growing slightly by 7.19% on average over the past years.
Looking at the last year, CAH shows a small growth in Revenue. The Revenue has grown by 6.82% in the last 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
Based on estimates for the next years, CAH will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.28% on average per year.
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-2.42%
Revenue Next 2Y2.74%
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
The Price/Earnings ratio is 15.52, which indicates a correct valuation of CAH.
Compared to the rest of the industry, the Price/Earnings ratio of CAH indicates a somewhat cheap valuation: CAH is cheaper than 79.63% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CAH to the average of the S&P500 Index (27.20), we can say CAH is valued slightly cheaper.
CAH is valuated correctly with a Price/Forward Earnings ratio of 13.47.
Based on the Price/Forward Earnings ratio, CAH is valued a bit cheaper than 78.70% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.73. CAH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 13.47 |
4.2 Price Multiples
CAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAH is cheaper than 73.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAH is valued a bit cheaper than the industry average as 67.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.55 | ||
| EV/EBITDA | 10.59 |
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)2.6
PEG (5Y)2.16
EPS Next 2Y8.44%
EPS Next 3Y9.01%
5. Dividend
5.1 Amount
CAH has a Yearly Dividend Yield of 1.69%.
CAH's Dividend Yield is rather good when compared to the industry average which is at 2.83. CAH pays more dividend than 84.26% of the companies in the same industry.
CAH's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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
39.27% of the earnings are spent on dividend by CAH. This is a low number and sustainable payout ratio.
The dividend of CAH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.27%
EPS Next 2Y8.44%
EPS Next 3Y9.01%
CARDINAL HEALTH INC
NYSE:CAH (12/20/2024, 8:04:00 PM)
After market: 118.28 0 (0%)118.28
+1.28 (+1.09%)
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-0.67%
Ins Owners0.26%
Ins Owner Change0.97%
Market Cap28.62B
Analysts71.82
Price Target129.69 (9.65%)
Short Float %1.98%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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)7.86%
PT rev (3m)8.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.13%
EPS NY rev (1m)0.74%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 13.47 | ||
| P/S | 0.13 | ||
| P/FCF | 26.55 | ||
| P/OCF | 18.04 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.59 |
EPS(TTM)7.62
EY6.44%
EPS(NY)8.78
Fwd EY7.43%
FCF(TTM)4.45
FCFY3.77%
OCF(TTM)6.56
OCFY5.54%
SpS926.99
BVpS-13.54
TBVpS-39.94
PEG (NY)2.6
PEG (5Y)2.16
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 | 5.7 |
F-Score7
WACC8.33%
ROIC/WACC2.49
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-2.42%
Revenue Next 2Y2.74%
Revenue Next 3Y4.2%
Revenue Next 5Y5.53%
EBIT growth 1Y13.4%
EBIT growth 3Y5.77%
EBIT growth 5Y3.35%
EBIT Next Year31.22%
EBIT Next 3Y15.28%
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%