For those who appreciate value investing, NYSE:CAH is a compelling option with its solid fundamentals.

CARDINAL HEALTH INC (NYSE:CAH) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:CAH showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

What does the Valuation looks like for NYSE:CAH

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:CAH, the assigned 7 reflects its valuation:

• 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.
• Compared to an average S&P500 Price/Earnings ratio of 26.07, CAH is valued a bit cheaper.
• Based on the Price/Forward Earnings ratio, CAH is valued cheaply inside the industry as 84.48% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Forward Earnings ratio of 22.37, CAH is valued a bit cheaper.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAH indicates a somewhat cheap valuation: CAH is cheaper than 76.72% of the companies listed in the same industry.
• CAH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CAH is cheaper than 89.66% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• A more expensive valuation may be justified as CAH's earnings are expected to grow with 14.99% in the coming years.

Profitability Assessment of NYSE:CAH

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CAH, the assigned 5 is noteworthy for profitability:

• 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 better Return On Invested Capital (19.39%) than 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.
• CAH has a Profit Margin of 0.30%. This is in the better half of the industry: CAH outperforms 60.34% of its industry peers.

Health Assessment of NYSE:CAH

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CAH was assigned a score of 5 for health:

• CAH has an Altman-Z score of 5.09. This indicates that CAH is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of CAH (5.09) is better than 87.07% of its industry peers.
• The Debt to FCF ratio of CAH is 1.38, which is an excellent value as it means it would take CAH, only 1.38 years of fcf income to pay off all of its debts.
• CAH has a better Debt to FCF ratio (1.38) than 87.07% of its industry peers.

Growth Analysis for NYSE:CAH

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CAH has earned a 7 for growth:

• 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.
• CAH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.99%.
• 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.
• Based on estimates for the next years, CAH will show a quite strong growth in Revenue. The Revenue will grow by 8.11% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of CAH contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.