CARDINAL HEALTH INC (CAH) Stock Fundamental Analysis
USA - NYSE:CAH - US14149Y1082 - Common Stock
154.46 USD
-4 (-2.52%)
154.47 USD
+0.01 (+0.01%)
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
In the past year CAH was profitable.
CAH had a positive operating cash flow in the past year.
CAH had positive earnings in 4 of the past 5 years.
In the past 5 years CAH always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.94%, CAH is doing good in the industry, outperforming 64.36% of the companies in the same industry.
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 9.20%.
| 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
The Profit Margin of CAH (0.70%) is comparable to the rest of the industry.
CAH has a Operating Margin (1.12%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CAH has remained more or less at the same level.
With a Gross Margin value of 3.67%, CAH is not doing good in the industry: 78.22% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAH is still creating some value.
CAH has less shares outstanding than it did 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
An Altman-Z score of 4.70 indicates that CAH is not in any danger for bankruptcy at the moment.
CAH has a better Altman-Z score (4.70) than 79.21% of its industry peers.
CAH has a debt to FCF ratio of 4.61. This is a neutral value as CAH would need 4.61 years to pay back of all of its debts.
CAH has a Debt to FCF ratio of 4.61. This is in the better half of the industry: CAH outperforms 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 4.7 |
ROIC/WACC1.46
WACC8.72%
2.3 Liquidity
CAH has a Current 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.
With a Current ratio value of 0.94, CAH is not doing good in the industry: 76.24% of the companies in the same industry are doing better.
A Quick Ratio of 0.50 indicates that CAH may have some problems paying its short term obligations.
CAH has a Quick ratio of 0.50. This is amonst the worse of the industry: CAH underperforms 89.11% 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%.
CAH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.80% yearly.
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
CAH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.25% yearly.
The Revenue is expected to grow by 8.50% on average over the next years. This is quite good.
EPS Next Y15.65%
EPS Next 2Y14.1%
EPS Next 3Y13.21%
EPS Next 5Y12.25%
Revenue Next Year11.35%
Revenue Next 2Y9.61%
Revenue Next 3Y8.86%
Revenue Next 5Y8.5%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 18.75, CAH is valued on the expensive side.
Based on the Price/Earnings ratio, CAH is valued a bit cheaper than the industry average as 72.28% of the companies are valued more expensively.
CAH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
A Price/Forward Earnings ratio of 16.21 indicates a correct valuation of CAH.
73.27% of the companies in the same industry are more expensive than CAH, based on the Price/Forward Earnings ratio.
CAH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 16.21 |
4.2 Price Multiples
CAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAH is cheaper than 61.39% of the companies in the same industry.
CAH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CAH is cheaper than 65.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.84 | ||
| EV/EBITDA | 12.63 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CAH's earnings are expected to grow with 13.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)2.17
EPS Next 2Y14.1%
EPS Next 3Y13.21%
5. Dividend
5.1 Amount
CAH has a Yearly Dividend Yield of 1.29%.
Compared to an average industry Dividend Yield of 2.45, CAH pays a better dividend. On top of this CAH pays more dividend than 86.14% of the companies listed in the same industry.
With a Dividend Yield of 1.29, CAH pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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
31.65% of the earnings are spent on dividend by CAH. This is a low number and sustainable payout ratio.
CAH's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.65%
EPS Next 2Y14.1%
EPS Next 3Y13.21%
154.46
-4 (-2.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners88.78%
Inst Owner Change0%
Ins Owners0.22%
Ins Owner Change-1.59%
Market Cap36.70B
Analysts80.91
Price Target184.85 (19.67%)
Short Float %2.97%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)0%
PT rev (3m)2.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)0%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 16.21 | ||
| P/S | 0.16 | ||
| P/FCF | 19.84 | ||
| P/OCF | 15.31 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.63 |
EPS(TTM)8.24
EY5.33%
EPS(NY)9.53
Fwd EY6.17%
FCF(TTM)7.79
FCFY5.04%
OCF(TTM)10.09
OCFY6.53%
SpS936.85
BVpS-11.71
TBVpS-62.96
PEG (NY)1.2
PEG (5Y)2.17
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
WACC8.72%
ROIC/WACC1.46
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 2Y14.1%
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 3Y8.86%
Revenue Next 5Y8.5%
EBIT growth 1Y16.25%
EBIT growth 3Y13.98%
EBIT growth 5Y6.84%
EBIT Next Year32.48%
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%