CARDINAL HEALTH INC (CAH) Stock Fundamental Analysis
NYSE:CAH - New York Stock Exchange, Inc. - US14149Y1082 - Common Stock - Currency: USD
CAH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 103 industry peers in the Health Care Providers & Services industry. CAH has an average financial health and profitability rating. CAH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CAH was profitable.
CAH had a positive operating cash flow in the past year.
In multiple years CAH reported negative net income over the last 5 years.
Each year in the past 5 years CAH had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.12%, CAH is doing good in the industry, outperforming 66.02% of the companies in the same industry.
CAH's Return On Invested Capital of 14.33% is amongst the best of the industry. CAH outperforms 90.29% of its industry peers.
CAH had an Average Return On Invested Capital over the past 3 years of 14.10%. This is above the industry average of 9.71%.
The 3 year average ROIC (14.10%) for CAH is below the current ROIC(14.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | N/A | ||
| ROIC | 14.33% |
ROA(3y)0.12%
ROA(5y)-1.47%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.1%
ROIC(5y)11.81%
1.3 Margins
Looking at the Profit Margin, with a value of 0.70%, CAH is in line with its industry, outperforming 53.40% of the companies in the same industry.
CAH's Profit Margin has declined in the last couple of years.
CAH has a Operating Margin of 1.08%. This is comparable to the rest of the industry: CAH outperforms 43.69% of its industry peers.
CAH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 3.52%, CAH is not doing good in the industry: 81.55% of the companies in the same industry are doing better.
CAH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.08% | ||
| PM (TTM) | 0.7% | ||
| GM | 3.52% |
OM growth 3Y-5.37%
OM growth 5Y-5.42%
PM growth 3Y-0.04%
PM growth 5Y-16.7%
GM growth 3Y-7.81%
GM growth 5Y-6.99%
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.
CAH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CAH has a worse debt to assets ratio.
2.2 Solvency
CAH has an Altman-Z score of 5.04. This indicates that CAH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CAH (5.04) is better than 83.50% of its industry peers.
CAH has a debt to FCF ratio of 3.15. This is a good value and a sign of high solvency as CAH would need 3.15 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.15, CAH is in the better half of the industry, outperforming 76.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 5.04 |
ROIC/WACC1.72
WACC8.33%
2.3 Liquidity
A Current Ratio of 0.94 indicates that CAH may have some problems paying its short term obligations.
CAH has a worse Current ratio (0.94) than 73.79% of its industry peers.
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's Quick ratio of 0.50 is on the low side compared to the rest of the industry. CAH is outperformed by 89.32% 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 11.42%, which is quite good.
Measured over the past 5 years, CAH shows a small growth in Earnings Per Share. The EPS has been growing by 7.19% on average per year.
Looking at the last year, CAH shows a small growth in Revenue. The Revenue has grown by 0.77% in the last year.
Measured over the past years, CAH shows a quite strong growth in Revenue. The Revenue has been growing by 9.28% on average per year.
EPS 1Y (TTM)11.42%
EPS 3Y7.1%
EPS 5Y7.19%
EPS Q2Q%12.98%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y11.77%
Revenue growth 5Y9.28%
Sales Q2Q%-0.06%
3.2 Future
The Earnings Per Share is expected to grow by 11.98% on average over the next years. This is quite good.
CAH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.71% yearly.
EPS Next Y10.35%
EPS Next 2Y11.53%
EPS Next 3Y12.04%
EPS Next 5Y11.98%
Revenue Next Year-1.02%
Revenue Next 2Y4.8%
Revenue Next 3Y5.89%
Revenue Next 5Y6.71%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.00 indicates a rather expensive valuation of CAH.
Based on the Price/Earnings ratio, CAH is valued a bit cheaper than 68.93% of the companies in the same industry.
CAH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.15.
With a Price/Forward Earnings ratio of 18.08, CAH is valued on the expensive side.
CAH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAH is cheaper than 66.02% of the companies in the same industry.
CAH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 18.08 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CAH.
Based on the Price/Free Cash Flow ratio, CAH is valued a bit cheaper than 72.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.44 | ||
| EV/EBITDA | 14.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CAH's earnings are expected to grow with 12.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.03
PEG (5Y)2.92
EPS Next 2Y11.53%
EPS Next 3Y12.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.20%, CAH has a reasonable but not impressive dividend return.
CAH's Dividend Yield is rather good when compared to the industry average which is at 2.37. CAH pays more dividend than 85.44% of the companies in the same industry.
With a Dividend Yield of 1.20, CAH pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
The dividend of CAH has a limited annual growth rate of 1.22%.
CAH has paid a dividend for at least 10 years, which is a reliable track record.
CAH has decreased its dividend recently.
Dividend Growth(5Y)1.22%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CAH pays out 31.84% of its income as dividend. This is a sustainable payout ratio.
CAH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.84%
EPS Next 2Y11.53%
EPS Next 3Y12.04%
168
+0.82 (+0.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.25%
Inst Owner Change-0.44%
Ins Owners0.26%
Ins Owner Change-0.02%
Market Cap40.10B
Analysts80
Price Target180.62 (7.51%)
Short Float %2.48%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Yearly Dividend2.02
Dividend Growth(5Y)1.22%
DP31.84%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.01%
Min EPS beat(2)7.37%
Max EPS beat(2)8.65%
EPS beat(4)4
Avg EPS beat(4)8.94%
Min EPS beat(4)4.62%
Max EPS beat(4)15.13%
EPS beat(8)8
Avg EPS beat(8)9.82%
EPS beat(12)11
Avg EPS beat(12)10.32%
EPS beat(16)13
Avg EPS beat(16)7.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)-0.55%
Revenue beat(4)2
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)1.7%
Revenue beat(8)3
Avg Revenue beat(8)-0.44%
Revenue beat(12)7
Avg Revenue beat(12)0.3%
Revenue beat(16)10
Avg Revenue beat(16)0.83%
PT rev (1m)12.12%
PT rev (3m)24.01%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)0.41%
EPS NY rev (3m)2.6%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 18.08 | ||
| P/S | 0.18 | ||
| P/FCF | 16.44 | ||
| P/OCF | 13.61 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.05 |
EPS(TTM)8
EY4.76%
EPS(NY)9.29
Fwd EY5.53%
FCF(TTM)10.22
FCFY6.08%
OCF(TTM)12.35
OCFY7.35%
SpS930.65
BVpS-12.35
TBVpS-58.5
PEG (NY)2.03
PEG (5Y)2.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | N/A | ||
| ROCE | 18.14% | ||
| ROIC | 14.33% | ||
| ROICexc | 19.15% | ||
| ROICexgc | N/A | ||
| OM | 1.08% | ||
| PM (TTM) | 0.7% | ||
| GM | 3.52% | ||
| FCFM | 1.1% |
ROA(3y)0.12%
ROA(5y)-1.47%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.1%
ROIC(5y)11.81%
ROICexc(3y)26.39%
ROICexc(5y)19.93%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.84%
ROCE(5y)14.95%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y54.01%
ROICexc growth 5Y31.18%
OM growth 3Y-5.37%
OM growth 5Y-5.42%
PM growth 3Y-0.04%
PM growth 5Y-16.7%
GM growth 3Y-7.81%
GM growth 5Y-6.99%
F-Score6
Asset Turnover4.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.15 | ||
| Debt/EBITDA | 2.26 | ||
| Cap/Depr | 66.23% | ||
| Cap/Sales | 0.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.17% | ||
| Profit Quality | 156.55% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.04 |
F-Score6
WACC8.33%
ROIC/WACC1.72
Cap/Depr(3y)65.8%
Cap/Depr(5y)57.91%
Cap/Sales(3y)0.22%
Cap/Sales(5y)0.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.42%
EPS 3Y7.1%
EPS 5Y7.19%
EPS Q2Q%12.98%
EPS Next Y10.35%
EPS Next 2Y11.53%
EPS Next 3Y12.04%
EPS Next 5Y11.98%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y11.77%
Revenue growth 5Y9.28%
Sales Q2Q%-0.06%
Revenue Next Year-1.02%
Revenue Next 2Y4.8%
Revenue Next 3Y5.89%
Revenue Next 5Y6.71%
EBIT growth 1Y13.93%
EBIT growth 3Y5.77%
EBIT growth 5Y3.35%
EBIT Next Year34.18%
EBIT Next 3Y17.14%
EBIT Next 5Y15.58%
FCF growth 1Y-46.96%
FCF growth 3Y19.19%
FCF growth 5Y6.31%
OCF growth 1Y-41.36%
OCF growth 3Y17.48%
OCF growth 5Y6.69%