CARDINAL HEALTH INC (CAH)
US14149Y1082 - Common Stock
CAH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 116 industry peers in the Health Care Providers & Services industry. CAH has only an average score on both its financial health and profitability. CAH is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make CAH a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
CAH had positive earnings in the past year.
In the past year CAH had a positive cash flow from operations.
In multiple years CAH reported negative net income over the last 5 years.
CAH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAH's Return On Assets of 1.37% is fine compared to the rest of the industry. CAH outperforms 62.93% of its industry peers.
CAH has a Return On Invested Capital of 19.39%. This is amongst the best in the industry. CAH outperforms 97.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAH is above the industry average of 8.64%.
The last Return On Invested Capital (19.39%) for CAH is above the 3 year average (10.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | N/A | ||
| ROIC | 19.39% |
ROA(3y)-0.05%
ROA(5y)-1.18%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.97%
ROIC(5y)9.93%
1.3 Margins
CAH's Profit Margin of 0.30% is fine compared to the rest of the industry. CAH outperforms 61.21% of its industry peers.
CAH's Profit Margin has declined in the last couple of years.
CAH has a Operating Margin (0.94%) which is in line with its industry peers.
CAH's Operating Margin has declined in the last couple of years.
CAH has a worse Gross Margin (3.34%) than 84.48% of its industry peers.
CAH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.94% | ||
| PM (TTM) | 0.3% | ||
| GM | 3.34% |
OM growth 3Y-9.48%
OM growth 5Y-10.06%
PM growth 3YN/A
PM growth 5Y-7.41%
GM growth 3Y-9.22%
GM growth 5Y-8.53%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CAH is creating 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 an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.07 indicates that CAH is not in any danger for bankruptcy at the moment.
CAH has a Altman-Z score of 5.07. This is amongst the best in the industry. CAH outperforms 89.66% of its industry peers.
The Debt to FCF ratio of CAH is 1.38, which is an excellent value as it means it would take CAH, only 1.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.38, CAH belongs to the top of the industry, outperforming 87.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 5.07 |
ROIC/WACC2.33
WACC8.32%
2.3 Liquidity
A Current Ratio of 0.98 indicates that CAH may have some problems paying its short term obligations.
With a Current ratio value of 0.98, CAH is not doing good in the industry: 73.28% 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's Quick ratio of 0.50 is on the low side compared to the rest of the industry. CAH is outperformed by 88.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| 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 36.25%, which is quite impressive.
Measured over the past 5 years, CAH shows a small growth in Earnings Per Share. The EPS has been growing by 3.05% on average per year.
Looking at the last year, CAH shows a quite strong growth in Revenue. The Revenue has grown by 11.99% in the last year.
The Revenue has been growing by 8.43% on average over the past years. This is quite good.
EPS 1Y (TTM)36.25%
EPS 3Y2.16%
EPS 5Y3.05%
EPS growth Q2Q37.88%
Revenue 1Y (TTM)11.99%
Revenue growth 3Y10.26%
Revenue growth 5Y8.43%
Revenue growth Q2Q11.61%
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 8.81% yearly.
Based on estimates for the next years, CAH will show a quite strong growth in Revenue. The Revenue will grow by 8.11% on average per year.
EPS Next Y26.84%
EPS Next 2Y17.98%
EPS Next 3Y14.84%
EPS Next 5Y8.81%
Revenue Next Year11.08%
Revenue Next 2Y9.77%
Revenue Next 3Y9.07%
Revenue Next 5Y8.11%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.57, the valuation of CAH can be described as correct.
82.76% of the companies in the same industry are more expensive than CAH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CAH to the average of the S&P500 Index (24.83), we can say CAH is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.17, which indicates a correct valuation of CAH.
85.34% of the companies in the same industry are more expensive than CAH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, CAH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
CAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CAH is cheaper than 79.31% of the companies in the same industry.
90.52% of the companies in the same industry are more expensive than CAH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.57 | ||
| EV/EBITDA | 9.53 |
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.
A more expensive valuation may be justified as CAH's earnings are expected to grow with 14.84% in the coming years.
PEG (NY)0.58
PEG (5Y)5.11
EPS Next 2Y17.98%
EPS Next 3Y14.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.86%, 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 2.69. CAH pays more dividend than 91.38% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, CAH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of CAH has a limited annual growth rate of 1.51%.
CAH has been paying a dividend for at least 10 years, so it has a reliable track record.
CAH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.51%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
79.66% of the earnings are spent on dividend by CAH. This is not a sustainable payout ratio.
The dividend of CAH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP79.66%
EPS Next 2Y17.98%
EPS Next 3Y14.84%
CARDINAL HEALTH INC
NYSE:CAH (4/17/2024, 7:04:00 PM)
After market: 106.52 0 (0%)106.52
-0.65 (-0.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 13.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.58
PEG (5Y)5.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.94% | ||
| PM (TTM) | 0.3% | ||
| GM | 3.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover4.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)36.25%
EPS 3Y2.16%
EPS 5Y
EPS growth Q2Q
EPS Next Y26.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.99%
Revenue growth 3Y10.26%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y