CENCORA INC (COR)

US03073E1055 - Common Stock

227.69  +1.42 (+0.63%)

Premarket: 234.01 +6.32 (+2.78%)

Fundamental Rating

6

Taking everything into account, COR scores 6 out of 10 in our fundamental rating. COR was compared to 108 industry peers in the Health Care Providers & Services industry. While COR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. COR is not valued too expensively and it also shows a decent growth rate.



7

1. Profitability

1.1 Basic Checks

In the past year COR was profitable.
In the past year COR had a positive cash flow from operations.
Of the past 5 years COR 4 years were profitable.
In the past 5 years COR always reported a positive cash flow from operatings.

1.2 Ratios

COR has a Return On Assets of 2.25%. This is in the better half of the industry: COR outperforms 65.42% of its industry peers.
COR's Return On Equity of 233.63% is amongst the best of the industry. COR outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.49%, COR belongs to the top of the industry, outperforming 93.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for COR is significantly above the industry average of 8.15%.
The 3 year average ROIC (16.51%) for COR is below the current ROIC(18.49%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.25%
ROE 233.63%
ROIC 18.49%
ROA(3y)2.68%
ROA(5y)0.61%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.51%
ROIC(5y)15.55%

1.3 Margins

COR has a Profit Margin (0.51%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of COR has grown nicely.
COR has a Operating Margin of 1.03%. This is comparable to the rest of the industry: COR outperforms 42.99% of its industry peers.
In the last couple of years the Operating Margin of COR has remained more or less at the same level.
COR's Gross Margin of 3.33% is on the low side compared to the rest of the industry. COR is outperformed by 83.18% of its industry peers.
COR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 1.03%
PM (TTM) 0.51%
GM 3.33%
OM growth 3Y-6.12%
OM growth 5Y-0.1%
PM growth 3Y-10.65%
PM growth 5Y1.52%
GM growth 3Y1.72%
GM growth 5Y3.69%

6

2. Health

2.1 Basic Checks

COR 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, COR has less shares outstanding
Compared to 5 years ago, COR has less shares outstanding
Compared to 1 year ago, COR has an improved debt to assets ratio.

2.2 Solvency

COR has an Altman-Z score of 4.92. This indicates that COR is financially healthy and has little risk of bankruptcy at the moment.
COR's Altman-Z score of 4.92 is amongst the best of the industry. COR outperforms 85.98% of its industry peers.
COR has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
COR has a Debt to FCF ratio of 1.46. This is amongst the best in the industry. COR outperforms 88.78% of its industry peers.
A Debt/Equity ratio of 5.90 is on the high side and indicates that COR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.90, COR is doing worse than 82.24% of the companies in the same industry.
Although COR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 5.9
Debt/FCF 1.46
Altman-Z 4.92
ROIC/WACC2.13
WACC8.7%

2.3 Liquidity

COR has a Current Ratio of 0.88. This is a bad value and indicates that COR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of COR (0.88) is worse than 80.37% of its industry peers.
A Quick Ratio of 0.53 indicates that COR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.53, COR is doing worse than 86.92% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.88
Quick Ratio 0.53

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.76% over the past year.
Measured over the past years, COR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.21% on average per year.
COR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.12%.
The Revenue has been growing by 10.36% on average over the past years. This is quite good.
EPS 1Y (TTM)14.76%
EPS 3Y14.11%
EPS 5Y14.21%
EPS Q2Q%16.78%
Revenue 1Y (TTM)12.12%
Revenue growth 3Y11.16%
Revenue growth 5Y10.36%
Sales Q2Q%14.69%

3.2 Future

COR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.76% yearly.
COR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.34% yearly.
EPS Next Y9.8%
EPS Next 2Y9.4%
EPS Next 3Y9.14%
EPS Next 5Y10.76%
Revenue Next Year8.5%
Revenue Next 2Y7.55%
Revenue Next 3Y7.28%
Revenue Next 5Y7.34%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 16.55, the valuation of COR can be described as correct.
Based on the Price/Earnings ratio, COR is valued a bit cheaper than 76.64% of the companies in the same industry.
COR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 15.07, the valuation of COR can be described as correct.
74.77% of the companies in the same industry are more expensive than COR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.73. COR is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 16.55
Fwd PE 15.07

4.2 Price Multiples

70.09% of the companies in the same industry are more expensive than COR, based on the Enterprise Value to EBITDA ratio.
82.24% of the companies in the same industry are more expensive than COR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 14.68
EV/EBITDA 10.88

4.3 Compensation for Growth

COR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of COR may justify a higher PE ratio.
PEG (NY)1.69
PEG (5Y)1.16
EPS Next 2Y9.4%
EPS Next 3Y9.14%

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.97%, COR is not a good candidate for dividend investing.
COR's Dividend Yield is rather good when compared to the industry average which is at 2.83. COR pays more dividend than 81.31% of the companies in the same industry.
With a Dividend Yield of 0.97, COR pays less dividend than the S&P500 average, which is at 2.36.
Industry RankSector Rank
Dividend Yield 0.97%

5.2 History

The dividend of COR has a limited annual growth rate of 5.42%.
COR has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of COR decreased in the last 3 years.
Dividend Growth(5Y)5.42%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

27.58% of the earnings are spent on dividend by COR. This is a low number and sustainable payout ratio.
COR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.58%
EPS Next 2Y9.4%
EPS Next 3Y9.14%

CENCORA INC

NYSE:COR (12/20/2024, 8:04:00 PM)

Premarket: 234.01 +6.32 (+2.78%)

227.69

+1.42 (+0.63%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)11-06 2024-11-06/bmo
Earnings (Next)01-29 2025-01-29/amc
Inst Owners89.98%
Inst Owner Change0%
Ins Owners0.22%
Ins Owner Change9.41%
Market Cap44.01B
Analysts76.36
Price Target275.21 (20.87%)
Short Float %5.86%
Short Ratio7.93
Dividend
Industry RankSector Rank
Dividend Yield 0.97%
Dividend Growth(5Y)5.42%
DP27.58%
Div Incr Years2
Div Non Decr Years2
Ex-Date11-15 2024-11-15 (0.55)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.73%
Min EPS beat(2)2.68%
Max EPS beat(2)2.79%
EPS beat(4)4
Avg EPS beat(4)4.92%
Min EPS beat(4)1.86%
Max EPS beat(4)12.33%
EPS beat(8)8
Avg EPS beat(8)3.8%
EPS beat(12)11
Avg EPS beat(12)3.32%
EPS beat(16)15
Avg EPS beat(16)3.55%
Revenue beat(2)2
Avg Revenue beat(2)0.42%
Min Revenue beat(2)0.04%
Max Revenue beat(2)0.79%
Revenue beat(4)3
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)3.42%
Revenue beat(8)6
Avg Revenue beat(8)1.28%
Revenue beat(12)8
Avg Revenue beat(12)0.85%
Revenue beat(16)11
Avg Revenue beat(16)0.83%
PT rev (1m)4.02%
PT rev (3m)2.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.46%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)1.27%
Valuation
Industry RankSector Rank
PE 16.55
Fwd PE 15.07
P/S 0.15
P/FCF 14.68
P/OCF 12.63
P/B 68.13
P/tB N/A
EV/EBITDA 10.88
EPS(TTM)13.76
EY6.04%
EPS(NY)15.11
Fwd EY6.64%
FCF(TTM)15.51
FCFY6.81%
OCF(TTM)18.03
OCFY7.92%
SpS1520.9
BVpS3.34
TBVpS-65.57
PEG (NY)1.69
PEG (5Y)1.16
Profitability
Industry RankSector Rank
ROA 2.25%
ROE 233.63%
ROCE 23.71%
ROIC 18.49%
ROICexc 24.47%
ROICexgc N/A
OM 1.03%
PM (TTM) 0.51%
GM 3.33%
FCFM 1.02%
ROA(3y)2.68%
ROA(5y)0.61%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.51%
ROIC(5y)15.55%
ROICexc(3y)21.56%
ROICexc(5y)21.55%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.17%
ROCE(5y)19.93%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y15.26%
ROICexc growth 5Y0.87%
OM growth 3Y-6.12%
OM growth 5Y-0.1%
PM growth 3Y-10.65%
PM growth 5Y1.52%
GM growth 3Y1.72%
GM growth 5Y3.69%
F-Score7
Asset Turnover4.38
Health
Industry RankSector Rank
Debt/Equity 5.9
Debt/FCF 1.46
Debt/EBITDA 0.92
Cap/Depr 43.54%
Cap/Sales 0.17%
Interest Coverage 12.16
Cash Conversion 83.79%
Profit Quality 198.63%
Current Ratio 0.88
Quick Ratio 0.53
Altman-Z 4.92
F-Score7
WACC8.7%
ROIC/WACC2.13
Cap/Depr(3y)53.4%
Cap/Depr(5y)67.19%
Cap/Sales(3y)0.18%
Cap/Sales(5y)0.19%
Profit Quality(3y)175.45%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.76%
EPS 3Y14.11%
EPS 5Y14.21%
EPS Q2Q%16.78%
EPS Next Y9.8%
EPS Next 2Y9.4%
EPS Next 3Y9.14%
EPS Next 5Y10.76%
Revenue 1Y (TTM)12.12%
Revenue growth 3Y11.16%
Revenue growth 5Y10.36%
Sales Q2Q%14.69%
Revenue Next Year8.5%
Revenue Next 2Y7.55%
Revenue Next 3Y7.28%
Revenue Next 5Y7.34%
EBIT growth 1Y19.97%
EBIT growth 3Y4.36%
EBIT growth 5Y10.24%
EBIT Next Year27.68%
EBIT Next 3Y10.38%
EBIT Next 5Y5.18%
FCF growth 1Y-13.19%
FCF growth 3Y10.42%
FCF growth 5Y8.07%
OCF growth 1Y-10.91%
OCF growth 3Y9.35%
OCF growth 5Y8.25%