CARDINAL HEALTH INC (CAH) Stock Fundamental Analysis
NYSE:CAH • US14149Y1082
220.79 USD
+5.73 (+2.66%)
At close: Feb 13, 2026
220.79 USD
0 (0%)
After Hours: 2/13/2026, 8:04:00 PM
Taking everything into account, CAH scores 5 out of 10 in our fundamental rating. CAH was compared to 102 industry peers in the Health Care Providers & Services industry. CAH has only an average score on both its financial health and profitability. CAH is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes CAH very considerable for growth investing!
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.
- CAH had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years CAH had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of CAH (2.86%) is better than 62.75% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.50%, CAH belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
- CAH had an Average Return On Invested Capital over the past 3 years of 14.18%. This is significantly above the industry average of 8.98%.
- The last Return On Invested Capital (14.50%) for CAH is above the 3 year average (14.18%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- CAH's Profit Margin of 0.68% is in line compared to the rest of the industry. CAH outperforms 50.98% of its industry peers.
- Looking at the Operating Margin, with a value of 1.20%, CAH is in line with its industry, outperforming 41.18% of the companies in the same industry.
- In the last couple of years the Operating Margin of CAH has remained more or less at the same level.
- The Gross Margin of CAH (3.70%) is worse than 79.41% of its industry peers.
- CAH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- CAH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- CAH has less shares outstanding than it did 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.
2.2 Solvency
- An Altman-Z score of 4.84 indicates that CAH is not in any danger for bankruptcy at the moment.
- CAH has a better Altman-Z score (4.84) than 81.37% of its industry peers.
- The Debt to FCF ratio of CAH is 1.64, which is an excellent value as it means it would take CAH, only 1.64 years of fcf income to pay off all of its debts.
- CAH has a better Debt to FCF ratio (1.64) than 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 4.84 |
ROIC/WACC1.77
WACC8.2%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that CAH may have some problems paying its short term obligations.
- With a Current ratio value of 0.91, CAH is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
- 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.
- Looking at the Quick ratio, with a value of 0.44, CAH is doing worse than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.44 |
3. Growth
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%.
- CAH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.80% yearly.
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 14.46% on average per year.
- CAH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.66% yearly.
EPS Next Y22.63%
EPS Next 2Y17.64%
EPS Next 3Y15.65%
EPS Next 5Y14.46%
Revenue Next Year15.45%
Revenue Next 2Y12.32%
Revenue Next 3Y10.71%
Revenue Next 5Y9.66%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 22.98 indicates a rather expensive valuation of CAH.
- Compared to the rest of the industry, the Price/Earnings ratio of CAH indicates a somewhat cheap valuation: CAH is cheaper than 65.69% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of CAH to the average of the S&P500 Index (27.19), we can say CAH is valued inline with the index average.
- A Price/Forward Earnings ratio of 19.36 indicates a rather expensive valuation of CAH.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CAH indicates a somewhat cheap valuation: CAH is cheaper than 61.76% of the companies listed in the same industry.
- CAH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 19.36 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAH is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, CAH is valued cheaply inside the industry as 86.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.44 | ||
| EV/EBITDA | 15.23 |
4.3 Compensation for Growth
- CAH's 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 15.65% in the coming years.
PEG (NY)1.02
PEG (5Y)2.67
EPS Next 2Y17.64%
EPS Next 3Y15.65%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.95%, CAH is not a good candidate for dividend investing.
- CAH's Dividend Yield is rather good when compared to the industry average which is at 0.48. CAH pays more dividend than 85.29% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, CAH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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.
- The dividend of CAH decreased recently.
Dividend Growth(5Y)1.25%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 29.78% of the earnings are spent on dividend by CAH. This is a low number and sustainable payout ratio.
- The dividend of CAH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.78%
EPS Next 2Y17.64%
EPS Next 3Y15.65%
220.79
+5.73 (+2.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)04-29 2026-04-29/bmo
Inst Owners90.75%
Inst Owner Change2.37%
Ins Owners0.22%
Ins Owner Change-11.79%
Market Cap51.96B
Revenue(TTM)244.67B
Net Income(TTM)1.66B
Analysts83.64
Price Target238.45 (8%)
Short Float %2.15%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend2.05
Dividend Growth(5Y)1.25%
DP29.78%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-02 2026-01-02 (0.5107)
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)9.01%
PT rev (3m)28.69%
EPS NQ rev (1m)2.21%
EPS NQ rev (3m)2.25%
EPS NY rev (1m)1.8%
EPS NY rev (3m)3.92%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 19.36 | ||
| P/S | 0.21 | ||
| P/FCF | 9.44 | ||
| P/OCF | 8.51 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.23 |
EPS(TTM)9.61
EY4.35%
EPS(NY)11.4
Fwd EY5.17%
FCF(TTM)23.4
FCFY10.6%
OCF(TTM)25.93
OCFY11.75%
SpS1039.75
BVpS-12.26
TBVpS-71.66
PEG (NY)1.02
PEG (5Y)2.67
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.84 |
F-Score7
WACC8.2%
ROIC/WACC1.77
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 Y22.63%
EPS Next 2Y17.64%
EPS Next 3Y15.65%
EPS Next 5Y14.46%
Revenue 1Y (TTM)10.13%
Revenue growth 3Y7.06%
Revenue growth 5Y7.8%
Sales Q2Q%18.75%
Revenue Next Year15.45%
Revenue Next 2Y12.32%
Revenue Next 3Y10.71%
Revenue Next 5Y9.66%
EBIT growth 1Y29.74%
EBIT growth 3Y13.98%
EBIT growth 5Y6.84%
EBIT Next Year41.95%
EBIT Next 3Y19.16%
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 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 22.63% 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%.