CARDINAL HEALTH INC (CAH) Fundamental Analysis & Valuation

NYSE:CAH • US14149Y1082

Current stock price

207.83 USD
-3.09 (-1.47%)
At close:
209 USD
+1.17 (+0.56%)
After Hours:

This CAH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. CAH Profitability Analysis

1.1 Basic Checks

  • CAH had positive earnings in the past year.
  • In the past year CAH had a positive cash flow from operations.
  • Of the past 5 years CAH 4 years were profitable.
  • In the past 5 years CAH always reported a positive cash flow from operatings.
CAH Yearly Net Income VS EBIT VS OCF VS FCFCAH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B

1.2 Ratios

  • CAH has a Return On Assets of 2.86%. This is in the better half of the industry: CAH outperforms 60.40% of its industry peers.
  • CAH's Return On Invested Capital of 14.50% is amongst the best of the industry. CAH outperforms 91.09% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CAH is significantly above the industry average of 8.86%.
  • The 3 year average ROIC (14.18%) for CAH is below the current ROIC(14.50%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.86%
ROE N/A
ROIC 14.5%
ROA(3y)1.81%
ROA(5y)0.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.18%
ROIC(5y)11.92%
CAH Yearly ROA, ROE, ROICCAH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 -200

1.3 Margins

  • The Profit Margin of CAH (0.68%) is comparable to the rest of the industry.
  • CAH's Operating Margin of 1.20% is on the low side compared to the rest of the industry. CAH is outperformed by 60.40% of its industry peers.
  • In the last couple of years the Operating Margin of CAH has remained more or less at the same level.
  • CAH has a Gross Margin of 3.70%. This is in the lower half of the industry: CAH underperforms 79.21% of its industry peers.
  • CAH's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 1.2%
PM (TTM) 0.68%
GM 3.7%
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%
CAH Yearly Profit, Operating, Gross MarginsCAH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 4

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5

2. CAH Health Analysis

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.
  • The number of shares outstanding for CAH has been reduced compared to 5 years ago.
  • The debt/assets ratio for CAH is higher compared to a year ago.
CAH Yearly Shares OutstandingCAH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
CAH Yearly Total Debt VS Total AssetsCAH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 4.81 indicates that CAH is not in any danger for bankruptcy at the moment.
  • CAH has a Altman-Z score of 4.81. This is amongst the best in the industry. CAH outperforms 84.16% of its industry peers.
  • CAH has a debt to FCF ratio of 1.64. This is a very positive value and a sign of high solvency as it would only need 1.64 years to pay back of all of its debts.
  • The Debt to FCF ratio of CAH (1.64) is better than 80.20% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 1.64
Altman-Z 4.81
ROIC/WACC1.74
WACC8.34%
CAH Yearly LT Debt VS Equity VS FCFCAH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 0.91 indicates that CAH may have some problems paying its short term obligations.
  • The Current ratio of CAH (0.91) is worse than 79.21% of its industry peers.
  • CAH has a Quick Ratio of 0.91. 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 (0.44) than 88.12% of its industry peers.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.44
CAH Yearly Current Assets VS Current LiabilitesCAH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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7

3. CAH Growth Analysis

3.1 Past

  • CAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.32%, which is quite impressive.
  • The Earnings Per Share has been growing by 8.62% on average over the past years. This is quite good.
  • CAH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.13%.
  • 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)24.32%
EPS 3Y17.65%
EPS 5Y8.62%
EPS Q2Q%36.27%
Revenue 1Y (TTM)10.13%
Revenue growth 3Y7.06%
Revenue growth 5Y7.8%
Sales Q2Q%18.75%

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 15.29% on average per year.
  • CAH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.81% yearly.
EPS Next Y26.31%
EPS Next 2Y19.12%
EPS Next 3Y16.66%
EPS Next 5Y15.29%
Revenue Next Year15.83%
Revenue Next 2Y12.36%
Revenue Next 3Y10.82%
Revenue Next 5Y9.81%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
CAH Yearly Revenue VS EstimatesCAH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 100B 200B 300B
CAH Yearly EPS VS EstimatesCAH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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5

4. CAH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.63, which indicates a rather expensive current valuation of CAH.
  • CAH's Price/Earnings ratio is a bit cheaper when compared to the industry. CAH is cheaper than 64.36% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, CAH is valued at the same level.
  • The Price/Forward Earnings ratio is 17.77, which indicates a rather expensive current valuation of CAH.
  • Based on the Price/Forward Earnings ratio, CAH is valued a bit cheaper than 64.36% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of CAH to the average of the S&P500 Index (22.42), we can say CAH is valued slightly cheaper.
Industry RankSector Rank
PE 21.63
Fwd PE 17.77
CAH Price Earnings VS Forward Price EarningsCAH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • CAH's Enterprise Value to EBITDA ratio is in line with the industry average.
  • CAH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CAH is cheaper than 82.18% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.88
EV/EBITDA 14.43
CAH Per share dataCAH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600 800 1K

4.3 Compensation for Growth

  • 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 16.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)2.51
EPS Next 2Y19.12%
EPS Next 3Y16.66%

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5

5. CAH Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.97%, CAH is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.50, CAH pays a better dividend. On top of this CAH pays more dividend than 85.15% of the companies listed in the same industry.
  • With a Dividend Yield of 0.97, CAH pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.97%

5.2 History

  • The dividend of CAH has a limited annual growth rate of 1.25%.
  • CAH has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of CAH decreased recently.
Dividend Growth(5Y)1.25%
Div Incr Years1
Div Non Decr Years1
CAH Yearly Dividends per shareCAH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • CAH pays out 29.78% 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.
DP29.78%
EPS Next 2Y19.12%
EPS Next 3Y16.66%
CAH Yearly Income VS Free CF VS DividendCAH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B
CAH Dividend Payout.CAH Dividend Payout, showing the Payout Ratio.CAH Dividend Payout.PayoutRetained Earnings

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CAH Fundamentals: All Metrics, Ratios and Statistics

CARDINAL HEALTH INC

NYSE:CAH (3/20/2026, 8:04:00 PM)

After market: 209 +1.17 (+0.56%)

207.83

-3.09 (-1.47%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners90.52%
Inst Owner Change0.88%
Ins Owners0.22%
Ins Owner Change0.12%
Market Cap48.91B
Revenue(TTM)244.67B
Net Income(TTM)1.66B
Analysts83.64
Price Target252.17 (21.33%)
Short Float %2.13%
Short Ratio2.86
Dividend
Industry RankSector Rank
Dividend Yield 0.97%
Yearly Dividend2.05
Dividend Growth(5Y)1.25%
DP29.78%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-01
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.64%
Min EPS beat(2)9.42%
Max EPS beat(2)15.85%
EPS beat(4)4
Avg EPS beat(4)8.42%
Min EPS beat(4)1.06%
Max EPS beat(4)15.85%
EPS beat(8)8
Avg EPS beat(8)8.46%
EPS beat(12)12
Avg EPS beat(12)10.06%
EPS beat(16)14
Avg EPS beat(16)9.02%
Revenue beat(2)2
Avg Revenue beat(2)4.22%
Min Revenue beat(2)1.38%
Max Revenue beat(2)7.06%
Revenue beat(4)2
Avg Revenue beat(4)1.11%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)7.06%
Revenue beat(8)4
Avg Revenue beat(8)0.45%
Revenue beat(12)6
Avg Revenue beat(12)0.28%
Revenue beat(16)10
Avg Revenue beat(16)0.79%
PT rev (1m)5.75%
PT rev (3m)16.32%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)3%
EPS NY rev (3m)4.86%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.67%
Valuation
Industry RankSector Rank
PE 21.63
Fwd PE 17.77
P/S 0.2
P/FCF 8.88
P/OCF 8.01
P/B N/A
P/tB N/A
EV/EBITDA 14.43
EPS(TTM)9.61
EY4.62%
EPS(NY)11.69
Fwd EY5.63%
FCF(TTM)23.4
FCFY11.26%
OCF(TTM)25.93
OCFY12.48%
SpS1039.75
BVpS-12.26
TBVpS-71.66
PEG (NY)0.82
PEG (5Y)2.51
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 2.86%
ROE N/A
ROCE 19.91%
ROIC 14.5%
ROICexc 17.86%
ROICexgc N/A
OM 1.2%
PM (TTM) 0.68%
GM 3.7%
FCFM 2.25%
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover4.21
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 1.64
Debt/EBITDA 2.18
Cap/Depr 67.61%
Cap/Sales 0.24%
Interest Coverage 250
Cash Conversion 159.64%
Profit Quality 331.29%
Current Ratio 0.91
Quick Ratio 0.44
Altman-Z 4.81
F-Score7
WACC8.34%
ROIC/WACC1.74
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)24.32%
EPS 3Y17.65%
EPS 5Y8.62%
EPS Q2Q%36.27%
EPS Next Y26.31%
EPS Next 2Y19.12%
EPS Next 3Y16.66%
EPS Next 5Y15.29%
Revenue 1Y (TTM)10.13%
Revenue growth 3Y7.06%
Revenue growth 5Y7.8%
Sales Q2Q%18.75%
Revenue Next Year15.83%
Revenue Next 2Y12.36%
Revenue Next 3Y10.82%
Revenue Next 5Y9.81%
EBIT growth 1Y29.74%
EBIT growth 3Y13.98%
EBIT growth 5Y6.84%
EBIT Next Year44.08%
EBIT Next 3Y20.02%
EBIT Next 5Y20.36%
FCF growth 1Y60.71%
FCF growth 3Y-13.35%
FCF growth 5Y3.14%
OCF growth 1Y54.19%
OCF growth 3Y-9.47%
OCF growth 5Y4.11%

CARDINAL HEALTH INC / CAH Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for CARDINAL HEALTH INC?

ChartMill assigns a fundamental rating of 5 / 10 to CAH.


What is the valuation status for CAH stock?

ChartMill assigns a valuation rating of 5 / 10 to CARDINAL HEALTH INC (CAH). This can be considered as Fairly Valued.


How profitable is CARDINAL HEALTH INC (CAH) stock?

CARDINAL HEALTH INC (CAH) has a profitability rating of 5 / 10.


What is the expected EPS growth for CARDINAL HEALTH INC (CAH) stock?

The Earnings per Share (EPS) of CARDINAL HEALTH INC (CAH) is expected to grow by 26.31% in the next year.


How sustainable is the dividend of CARDINAL HEALTH INC (CAH) stock?

The dividend rating of CARDINAL HEALTH INC (CAH) is 5 / 10 and the dividend payout ratio is 29.78%.