For those who appreciate growth without the sticker shock, NYSE:CAH is worth considering.

Discover CARDINAL HEALTH INC (NYSE:CAH), an undervalued growth gem identified by our stock screener. NYSE:CAH is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Unpacking NYSE:CAH's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:CAH has received a 7 out of 10:

• CAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.25%, which is quite impressive.
• The Revenue has grown by 11.99% in the past year. This is quite good.
• Measured over the past years, CAH shows a quite strong growth in Revenue. The Revenue has been growing by 8.43% on average per year.
• The Earnings Per Share is expected to grow by 8.81% on average over the next years. This is quite good.
• CAH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.11% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NYSE:CAH's Valuation Score

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:CAH has achieved a 7 out of 10:

• CAH's Price/Earnings ratio is rather cheap when compared to the industry. CAH is cheaper than 81.03% of the companies in the same industry.
• CAH is valuated rather cheaply when we compare the Price/Earnings ratio to 25.97, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of CAH indicates a rather cheap valuation: CAH is cheaper than 85.34% of the companies listed in the same industry.
• CAH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.30.
• CAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAH is cheaper than 75.86% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, CAH is valued cheaper than 89.66% of the companies in the same industry.
• CAH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• CAH's earnings are expected to grow with 14.99% in the coming years. This may justify a more expensive valuation.

What does the Health looks like for NYSE:CAH

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:CAH, the assigned 5 reflects its health status:

• An Altman-Z score of 5.09 indicates that CAH is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.09, CAH belongs to the best of the industry, outperforming 87.07% of the companies in the same industry.
• CAH has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
• CAH has a better Debt to FCF ratio (1.38) than 87.07% of its industry peers.

How do we evaluate the Profitability for NYSE:CAH?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CAH has earned a 5 out of 10:

• With a decent Return On Assets value of 1.37%, CAH is doing good in the industry, outperforming 62.93% of the companies in the same industry.
• CAH has a Return On Invested Capital of 19.39%. This is amongst the best in the industry. CAH outperforms 97.41% of its industry peers.
• CAH had an Average Return On Invested Capital over the past 3 years of 10.97%. This is above the industry average of 8.23%.
• The last Return On Invested Capital (19.39%) for CAH is above the 3 year average (10.97%), which is a sign of increasing profitability.
• The Profit Margin of CAH (0.30%) is better than 60.34% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of CAH for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.