News Image

NYSE:CAH stands out as a stock that provides good value for the fundamentals it showcases.

By Mill Chart

Last update: Apr 30, 2024

Our stock screener has singled out CARDINAL HEALTH INC (NYSE:CAH) as a stellar value proposition. NYSE:CAH not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Understanding NYSE:CAH's Valuation

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:

  • Based on the Price/Earnings ratio, CAH is valued cheaper than 85.34% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of CAH to the average of the S&P500 Index (25.02), we can say CAH is valued slightly cheaper.
  • 86.21% of the companies in the same industry are more expensive than CAH, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 21.32. CAH is valued slightly cheaper when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, CAH is valued cheaper than 82.76% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAH indicates a rather cheap valuation: CAH is cheaper than 92.24% of the companies listed 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 14.84% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NYSE:CAH

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:CAH scores a 5 out of 10:

  • CAH has a better Return On Assets (1.37%) than 62.93% of its industry peers.
  • CAH's Return On Invested Capital of 19.39% is amongst the best of the industry. CAH outperforms 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 8.59%.
  • 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 61.21% of its industry peers.

Unpacking NYSE:CAH's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:CAH, the assigned 5 for health provides valuable insights:

  • CAH has an Altman-Z score of 5.06. This indicates that CAH is financially healthy and has little risk of bankruptcy at the moment.
  • CAH's Altman-Z score of 5.06 is amongst the best of the industry. CAH outperforms 88.79% 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.
  • With an excellent Debt to FCF ratio value of 1.38, CAH belongs to the best of the industry, outperforming 87.93% of the companies in the same industry.

Deciphering NYSE:CAH's Growth Rating

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:

  • The Earnings Per Share has grown by an impressive 36.25% over the past year.
  • 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.
  • CAH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.81% yearly.
  • 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


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.