CARDINAL HEALTH INC (CAH)
US14149Y1082 - Common Stock
We assign a fundamental rating of 5 out of 10 to CAH. CAH was compared to 113 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 is not valued too expensively and it also shows a decent growth rate. Finally CAH also has an excellent dividend rating. These ratings could make CAH a good candidate for dividend investing.
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.
In multiple years CAH reported negative net income over the last 5 years.
CAH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAH has a better Return On Assets (2.93%) than 70.80% 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 96.46% 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 8.10%.
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
CAH's Profit Margin of 0.56% is fine compared to the rest of the industry. CAH outperforms 61.06% of its industry peers.
CAH's Profit Margin has declined in the last couple of years.
CAH has a Operating Margin (0.98%) which is comparable to the rest of the industry.
CAH's Operating Margin has declined in the last couple of years.
The Gross Margin of CAH (3.36%) is worse than 82.30% 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.
The number of shares outstanding for CAH has been reduced compared to 1 year ago.
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
An Altman-Z score of 5.71 indicates that CAH is not in any danger for bankruptcy at the moment.
The Altman-Z score of CAH (5.71) is better than 90.27% 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.
CAH's Debt to FCF ratio of 4.79 is amongst the best of the industry. CAH outperforms 80.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 5.71 |
ROIC/WACC2.51
WACC8.26%
2.3 Liquidity
A Current Ratio of 0.95 indicates that CAH may have some problems paying its short term obligations.
The Current ratio of CAH (0.95) is worse than 76.11% of its industry peers.
A Quick Ratio of 0.50 indicates that CAH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.50, CAH is doing worse than 86.73% 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.
CAH shows a small growth in Revenue. In the last year, the Revenue has grown by 6.82%.
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 small growth in Earnings Per Share. The EPS will grow by 7.74% on average per year.
The Revenue is expected to grow by 3.72% on average over the next years.
EPS Next Y5.19%
EPS Next 2Y7.81%
EPS Next 3Y8.49%
EPS Next 5Y7.74%
Revenue Next Year-3.05%
Revenue Next 2Y2.3%
Revenue Next 3Y3.89%
Revenue Next 5Y3.72%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.20, which indicates a correct valuation of CAH.
CAH's Price/Earnings ratio is rather cheap when compared to the industry. CAH is cheaper than 81.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. CAH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.22, the valuation of CAH can be described as correct.
CAH's Price/Forward Earnings ratio is rather cheap when compared to the industry. CAH is cheaper than 82.30% of the companies in the same industry.
CAH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 14.22 |
4.2 Price Multiples
CAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAH is cheaper than 75.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CAH is valued a bit cheaper than 69.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.71 | ||
| EV/EBITDA | 10.76 |
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)3.12
PEG (5Y)2.25
EPS Next 2Y7.81%
EPS Next 3Y8.49%
5. Dividend
5.1 Amount
CAH has a Yearly Dividend Yield of 1.63%.
CAH's Dividend Yield is rather good when compared to the industry average which is at 3.16. CAH pays more dividend than 86.73% of the companies in the same industry.
CAH's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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 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 2Y7.81%
EPS Next 3Y8.49%
CARDINAL HEALTH INC
NYSE:CAH (11/21/2024, 6:40:00 PM)
After market: 123.42 0 (0%)123.42
+3.08 (+2.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap29.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 14.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.12
PEG (5Y)2.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.98% | ||
| PM (TTM) | 0.56% | ||
| GM | 3.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover5.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)20.19%
EPS 3Y7.1%
EPS 5Y
EPS Q2Q%
EPS Next Y5.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.82%
Revenue growth 3Y11.77%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y