CARDINAL HEALTH INC (CAH) Stock Fundamental Analysis
USA - NYSE:CAH - US14149Y1082 - Common Stock
152.24 USD
-0.23 (-0.15%)
152.24 USD
0 (0%)
Taking everything into account, CAH scores 4 out of 10 in our fundamental rating. CAH was compared to 101 industry peers in the Health Care Providers & Services industry. CAH has an average financial health and profitability rating. CAH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CAH had positive earnings in the past year.
CAH had a positive operating cash flow in the past year.
Of the past 5 years CAH 4 years were profitable.
In the past 5 years CAH always reported a positive cash flow from operatings.
1.2 Ratios
CAH's Return On Assets of 2.94% is fine compared to the rest of the industry. CAH outperforms 65.35% of its industry peers.
CAH has a Return On Invested Capital of 12.72%. This is amongst the best in the industry. CAH outperforms 88.12% of its industry peers.
CAH had an Average Return On Invested Capital over the past 3 years of 14.18%. This is above the industry average of 9.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | N/A | ||
| ROIC | 12.72% |
ROA(3y)1.81%
ROA(5y)0.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.18%
ROIC(5y)11.92%
1.3 Margins
With a Profit Margin value of 0.70%, CAH perfoms like the industry average, outperforming 52.48% of the companies in the same industry.
CAH has a Operating Margin of 1.12%. This is comparable to the rest of the industry: CAH outperforms 44.55% of its industry peers.
CAH's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 3.67%, CAH is not doing good in the industry: 77.23% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CAH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.12% | ||
| PM (TTM) | 0.7% | ||
| GM | 3.67% |
OM growth 3Y6.46%
OM growth 5Y-0.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.56%
GM growth 5Y-3.96%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAH is creating some value.
The number of shares outstanding for CAH has been reduced compared to 1 year ago.
Compared to 5 years ago, CAH has less shares outstanding
Compared to 1 year ago, CAH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.70 indicates that CAH is not in any danger for bankruptcy at the moment.
CAH has a Altman-Z score of 4.70. This is in the better half of the industry: CAH outperforms 79.21% of its industry peers.
The Debt to FCF ratio of CAH is 4.61, which is a neutral value as it means it would take CAH, 4.61 years of fcf income to pay off all of its debts.
CAH has a better Debt to FCF ratio (4.61) than 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 4.7 |
ROIC/WACC1.53
WACC8.31%
2.3 Liquidity
A Current Ratio of 0.94 indicates that CAH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.94, CAH is doing worse than 75.25% of the companies in the same industry.
CAH has a Quick Ratio of 0.94. This is a bad value and indicates that CAH is not financially healthy enough and could expect problems in meeting its short term obligations.
CAH has a worse Quick ratio (0.50) than 88.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
CAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.31%, which is quite good.
CAH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.62% yearly.
CAH shows a decrease in Revenue. In the last year, the revenue decreased by -1.82%.
Measured over the past years, CAH shows a small growth in Revenue. The Revenue has been growing by 7.80% on average per year.
EPS 1Y (TTM)10.31%
EPS 3Y17.65%
EPS 5Y8.62%
EPS Q2Q%13.04%
Revenue 1Y (TTM)-1.82%
Revenue growth 3Y7.06%
Revenue growth 5Y7.8%
Sales Q2Q%0.49%
3.2 Future
Based on estimates for the next years, CAH will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.25% on average per year.
CAH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.50% yearly.
EPS Next Y15.65%
EPS Next 2Y14.09%
EPS Next 3Y13.21%
EPS Next 5Y12.25%
Revenue Next Year11.35%
Revenue Next 2Y9.61%
Revenue Next 3Y8.77%
Revenue Next 5Y8.5%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.48, CAH is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CAH indicates a somewhat cheap valuation: CAH is cheaper than 74.26% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CAH to the average of the S&P500 Index (27.30), we can say CAH is valued slightly cheaper.
CAH is valuated correctly with a Price/Forward Earnings ratio of 15.98.
CAH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAH is cheaper than 71.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, CAH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 15.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAH is valued a bit cheaper than 62.38% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAH indicates a somewhat cheap valuation: CAH is cheaper than 65.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.65 | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CAH's earnings are expected to grow with 13.21% in the coming years.
PEG (NY)1.18
PEG (5Y)2.14
EPS Next 2Y14.09%
EPS Next 3Y13.21%
5. Dividend
5.1 Amount
CAH has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.43, CAH pays a better dividend. On top of this CAH pays more dividend than 87.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, CAH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of CAH has a limited annual growth rate of 1.25%.
CAH has been paying a dividend for at least 10 years, so it has a reliable track record.
CAH has decreased its dividend recently.
Dividend Growth(5Y)1.25%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CAH pays out 31.65% of its income as dividend. This is a sustainable payout ratio.
The dividend of CAH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.65%
EPS Next 2Y14.09%
EPS Next 3Y13.21%
152.24
-0.23 (-0.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.07%
Inst Owner Change-3.26%
Ins Owners0.25%
Ins Owner Change-1.51%
Market Cap36.35B
Analysts80.91
Price Target184.85 (21.42%)
Short Float %3.2%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend2.05
Dividend Growth(5Y)1.25%
DP31.65%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.21%
Min EPS beat(2)1.06%
Max EPS beat(2)7.37%
EPS beat(4)4
Avg EPS beat(4)8.05%
Min EPS beat(4)1.06%
Max EPS beat(4)15.13%
EPS beat(8)8
Avg EPS beat(8)9.62%
EPS beat(12)12
Avg EPS beat(12)11.37%
EPS beat(16)13
Avg EPS beat(16)7.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)-1.84%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)1.7%
Revenue beat(8)2
Avg Revenue beat(8)-0.76%
Revenue beat(12)6
Avg Revenue beat(12)-0.23%
Revenue beat(16)9
Avg Revenue beat(16)0.43%
PT rev (1m)1.97%
PT rev (3m)13.77%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)1.2%
EPS NY rev (1m)2.16%
EPS NY rev (3m)3.96%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.48 | ||
| Fwd PE | 15.98 | ||
| P/S | 0.16 | ||
| P/FCF | 19.65 | ||
| P/OCF | 15.17 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.53 |
EPS(TTM)8.24
EY5.41%
EPS(NY)9.53
Fwd EY6.26%
FCF(TTM)7.75
FCFY5.09%
OCF(TTM)10.04
OCFY6.59%
SpS932.11
BVpS-11.65
TBVpS-62.64
PEG (NY)1.18
PEG (5Y)2.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | N/A | ||
| ROCE | 17.46% | ||
| ROIC | 12.72% | ||
| ROICexc | 17.48% | ||
| ROICexgc | N/A | ||
| OM | 1.12% | ||
| PM (TTM) | 0.7% | ||
| GM | 3.67% | ||
| FCFM | 0.83% |
ROA(3y)1.81%
ROA(5y)0.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.18%
ROIC(5y)11.92%
ROICexc(3y)25.43%
ROICexc(5y)20.07%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.47%
ROCE(5y)16.36%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y7.19%
ROICexc growth 5Y14.1%
OM growth 3Y6.46%
OM growth 5Y-0.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.56%
GM growth 5Y-3.96%
F-Score6
Asset Turnover4.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.61 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 69.24% | ||
| Cap/Sales | 0.25% | ||
| Interest Coverage | 7.88 | ||
| Cash Conversion | 73.24% | ||
| Profit Quality | 118.51% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 4.7 |
F-Score6
WACC8.31%
ROIC/WACC1.53
Cap/Depr(3y)70.24%
Cap/Depr(5y)63.55%
Cap/Sales(3y)0.24%
Cap/Sales(5y)0.23%
Profit Quality(3y)467.85%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.31%
EPS 3Y17.65%
EPS 5Y8.62%
EPS Q2Q%13.04%
EPS Next Y15.65%
EPS Next 2Y14.09%
EPS Next 3Y13.21%
EPS Next 5Y12.25%
Revenue 1Y (TTM)-1.82%
Revenue growth 3Y7.06%
Revenue growth 5Y7.8%
Sales Q2Q%0.49%
Revenue Next Year11.35%
Revenue Next 2Y9.61%
Revenue Next 3Y8.77%
Revenue Next 5Y8.5%
EBIT growth 1Y16.25%
EBIT growth 3Y13.98%
EBIT growth 5Y6.84%
EBIT Next Year31.99%
EBIT Next 3Y15.91%
EBIT Next 5YN/A
FCF growth 1Y-43.09%
FCF growth 3Y-13.35%
FCF growth 5Y3.14%
OCF growth 1Y-36.28%
OCF growth 3Y-9.47%
OCF growth 5Y4.11%