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NYSE:CAH: good value for what you're paying.

By Mill Chart

Last update: Apr 5, 2024

Our stock screening tool has pinpointed CARDINAL HEALTH INC (NYSE:CAH) as an undervalued stock option. NYSE:CAH retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Looking at the Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:CAH has received a 7 out of 10:

  • CAH's Price/Earnings ratio is rather cheap when compared to the industry. CAH is cheaper than 83.62% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of CAH to the average of the S&P500 Index (25.77), we can say CAH is valued slightly cheaper.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CAH indicates a rather cheap valuation: CAH is cheaper than 87.07% 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 22.16.
  • Based on the Enterprise Value to EBITDA ratio, CAH is valued a bit cheaper than 78.45% of the companies 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.
  • CAH's earnings are expected to grow with 14.99% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: 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:

  • CAH's Return On Assets of 1.37% is fine compared to the rest of the industry. CAH outperforms 62.93% of its industry peers.
  • CAH has a better Return On Invested Capital (19.39%) than 97.41% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CAH is above the industry average of 8.67%.
  • 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 61.21% of its industry peers.

Health Assessment of NYSE:CAH

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CAH has received a 5 out of 10:

  • An Altman-Z score of 5.08 indicates that CAH is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of CAH (5.08) is better than 89.66% of its industry peers.
  • 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 87.93% of its industry peers.

What does the Growth looks like for NYSE:CAH

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:CAH boasts 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.
  • Looking at the last year, CAH shows a quite strong growth in Revenue. The Revenue has grown by 11.99% in the last year.
  • CAH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.43% yearly.
  • The Earnings Per Share is expected to grow by 8.81% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 8.11% on average over the next years. This is quite good.
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of CAH

Disclaimer

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.

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CARDINAL HEALTH INC

NYSE:CAH (5/29/2024, 7:04:00 PM)

After market: 96.14 0 (0%)

96.14

+1.39 (+1.47%)

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