CARDINAL HEALTH INC (CAH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAH - US14149Y1082 - Common Stock
205.13 USD
-2.87 (-1.38%)
205.13 USD
0 (0%)
CAH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 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 valued too expensively and it also shows a decent growth rate.
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
CAH has a Return On Assets of 2.89%. This is in the better half of the industry: CAH outperforms 64.36% of its industry peers.
With an excellent Return On Invested Capital value of 13.13%, CAH belongs to the best of the industry, outperforming 91.09% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CAH is above the industry average of 9.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | N/A | ||
| ROIC | 13.13% |
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
With a Profit Margin value of 0.68%, CAH perfoms like the industry average, outperforming 53.47% of the companies in the same industry.
CAH's Operating Margin of 1.15% is in line compared to the rest of the industry. CAH outperforms 42.57% 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's Gross Margin of 3.66% is on the low side compared to the rest of the industry. CAH is outperformed by 79.21% of its industry peers.
In the last couple of years the Gross Margin of CAH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.15% | ||
| PM (TTM) | 0.68% | ||
| GM | 3.66% |
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.
Compared to 1 year ago, CAH has less shares outstanding
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 4.90. This indicates that CAH is financially healthy and has little risk of bankruptcy at the moment.
CAH has a Altman-Z score of 4.90. This is amongst the best in the industry. CAH outperforms 85.15% of its industry peers.
The Debt to FCF ratio of CAH is 2.03, which is a good value as it means it would take CAH, 2.03 years of fcf income to pay off all of its debts.
CAH has a better Debt to FCF ratio (2.03) than 82.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 4.9 |
ROIC/WACC1.56
WACC8.44%
2.3 Liquidity
CAH has a Current Ratio of 0.96. This is a bad value and indicates that CAH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CAH (0.96) is worse than 72.28% of its industry peers.
CAH has a Quick Ratio of 0.96. This is a bad value and indicates that CAH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CAH (0.52) is worse than 85.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
CAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.93%, which is quite good.
Measured over the past years, CAH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.62% on average per year.
The Revenue has been growing slightly by 4.44% in the past year.
CAH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.80% yearly.
EPS 1Y (TTM)16.93%
EPS 3Y17.65%
EPS 5Y8.62%
EPS Q2Q%35.64%
Revenue 1Y (TTM)4.44%
Revenue growth 3Y7.06%
Revenue growth 5Y7.8%
Sales Q2Q%22.44%
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 13.04% yearly.
Based on estimates for the next years, CAH will show a quite strong growth in Revenue. The Revenue will grow by 9.35% on average per year.
EPS Next Y18%
EPS Next 2Y15.43%
EPS Next 3Y15.12%
EPS Next 5Y13.04%
Revenue Next Year13.75%
Revenue Next 2Y11.01%
Revenue Next 3Y10.33%
Revenue Next 5Y9.35%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
CAH is valuated rather expensively with a Price/Earnings ratio of 23.02.
Based on the Price/Earnings ratio, CAH is valued a bit cheaper than 63.37% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.11. CAH is around the same levels.
With a Price/Forward Earnings ratio of 18.68, CAH is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CAH is valued a bit cheaper than the industry average as 62.38% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.21. CAH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.02 | ||
| Fwd PE | 18.68 |
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 cheaply inside the industry as 84.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.95 | ||
| EV/EBITDA | 15.22 |
4.3 Compensation for Growth
CAH's 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 15.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)2.67
EPS Next 2Y15.43%
EPS Next 3Y15.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, 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 2.47. CAH pays more dividend than 84.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, CAH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
31.03% 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.
DP31.03%
EPS Next 2Y15.43%
EPS Next 3Y15.12%
205.13
-2.87 (-1.38%)
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 Change3.53%
Ins Owners0.22%
Ins Owner Change-1.14%
Market Cap48.74B
Revenue(TTM)234.31B
Net Income(TTM)1.59B
Analysts80.91
Price Target214.62 (4.63%)
Short Float %3.4%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend2.05
Dividend Growth(5Y)1.25%
DP31.03%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.45%
Min EPS beat(2)1.06%
Max EPS beat(2)15.85%
EPS beat(4)4
Avg EPS beat(4)8.23%
Min EPS beat(4)1.06%
Max EPS beat(4)15.85%
EPS beat(8)8
Avg EPS beat(8)8.86%
EPS beat(12)12
Avg EPS beat(12)10.51%
EPS beat(16)14
Avg EPS beat(16)8.58%
Revenue beat(2)1
Avg Revenue beat(2)2.45%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)7.06%
Revenue beat(4)1
Avg Revenue beat(4)0.63%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)7.06%
Revenue beat(8)3
Avg Revenue beat(8)0.24%
Revenue beat(12)6
Avg Revenue beat(12)0.2%
Revenue beat(16)9
Avg Revenue beat(16)0.63%
PT rev (1m)16.1%
PT rev (3m)16.1%
EPS NQ rev (1m)3.4%
EPS NQ rev (3m)3.39%
EPS NY rev (1m)2.06%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)3.16%
Revenue NQ rev (3m)2.82%
Revenue NY rev (1m)2.19%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.02 | ||
| Fwd PE | 18.68 | ||
| P/S | 0.21 | ||
| P/FCF | 10.95 | ||
| P/OCF | 9.71 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.22 |
EPS(TTM)8.91
EY4.34%
EPS(NY)10.98
Fwd EY5.35%
FCF(TTM)18.74
FCFY9.13%
OCF(TTM)21.12
OCFY10.29%
SpS986.15
BVpS-12.12
TBVpS-63.08
PEG (NY)1.28
PEG (5Y)2.67
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | N/A | ||
| ROCE | 18.03% | ||
| ROIC | 13.13% | ||
| ROICexc | 18.95% | ||
| ROICexgc | N/A | ||
| OM | 1.15% | ||
| PM (TTM) | 0.68% | ||
| GM | 3.66% | ||
| FCFM | 1.9% |
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-Score6
Asset Turnover4.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.03 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 67.18% | ||
| Cap/Sales | 0.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 141.8% | ||
| Profit Quality | 279.12% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 4.9 |
F-Score6
WACC8.44%
ROIC/WACC1.56
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)16.93%
EPS 3Y17.65%
EPS 5Y8.62%
EPS Q2Q%35.64%
EPS Next Y18%
EPS Next 2Y15.43%
EPS Next 3Y15.12%
EPS Next 5Y13.04%
Revenue 1Y (TTM)4.44%
Revenue growth 3Y7.06%
Revenue growth 5Y7.8%
Sales Q2Q%22.44%
Revenue Next Year13.75%
Revenue Next 2Y11.01%
Revenue Next 3Y10.33%
Revenue Next 5Y9.35%
EBIT growth 1Y22.59%
EBIT growth 3Y13.98%
EBIT growth 5Y6.84%
EBIT Next Year32.48%
EBIT Next 3Y17.84%
EBIT Next 5YN/A
FCF growth 1Y56.43%
FCF growth 3Y-13.35%
FCF growth 5Y3.14%
OCF growth 1Y49.81%
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.
Can you provide the valuation status for CARDINAL HEALTH INC?
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 4 / 10.
How financially healthy is CARDINAL HEALTH INC?
The financial health rating of CARDINAL HEALTH INC (CAH) is 5 / 10.
What is the earnings growth outlook for CARDINAL HEALTH INC?
The Earnings per Share (EPS) of CARDINAL HEALTH INC (CAH) is expected to grow by 18% in the next year.