CARDINAL HEALTH INC (CAH) Stock Fundamental Analysis
NYSE:CAH - US14149Y1082 - Common Stock
151.57 USD
-1.38 (-0.9%)
151.65 USD
+0.08 (+0.05%)
We assign a fundamental rating of 4 out of 10 to CAH. CAH was compared to 104 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of CAH get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year CAH had a positive cash flow from operations.
Of the past 5 years CAH 4 years were profitable.
In the past 5 years CAH always reported a positive cash flow from operatings.
1.2 Ratios
CAH has a Return On Assets of 2.94%. This is in the better half of the industry: CAH outperforms 65.38% of its industry peers.
CAH has a Return On Invested Capital of 12.72%. This is amongst the best in the industry. CAH outperforms 88.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAH is above the industry average of 9.61%.
| 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
CAH has a Profit Margin (0.70%) which is in line with its industry peers.
CAH's Operating Margin of 1.12% is in line compared to the rest of the industry. CAH outperforms 45.19% of its industry peers.
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 (3.67%) is worse than 78.85% of its industry peers.
CAH's Gross Margin has declined in the last couple of years.
| 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.
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.
CAH has a worse debt/assets ratio than last year.
2.2 Solvency
CAH has an Altman-Z score of 4.70. This indicates that CAH is financially healthy and has little risk of bankruptcy at the moment.
CAH has a Altman-Z score of 4.70. This is amongst the best in the industry. CAH outperforms 82.69% of its industry peers.
The Debt to FCF ratio of CAH is 4.61, which is a neutral value as it means it would take CAH, 4.61 years of fcf income to pay off all of its debts.
CAH has a better Debt to FCF ratio (4.61) than 72.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 4.7 |
ROIC/WACC1.58
WACC8.05%
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.
CAH has a worse Current ratio (0.94) than 72.12% 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.
The Quick ratio of CAH (0.50) is worse than 89.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.31% over the past year.
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 decreased by -1.82% in the past year.
Measured over the past years, CAH shows a small growth in Revenue. The Revenue has been growing by 7.80% on average per year.
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
The Earnings Per Share is expected to grow by 12.25% on average over the next years. This is quite good.
Based on estimates for the next years, CAH will show a quite strong growth in Revenue. The Revenue will grow by 8.50% on average per year.
EPS Next Y13.2%
EPS Next 2Y13.19%
EPS Next 3Y13.21%
EPS Next 5Y12.25%
Revenue Next Year11.62%
Revenue Next 2Y9.59%
Revenue Next 3Y8.86%
Revenue Next 5Y8.5%
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
A Price/Earnings ratio of 18.39 indicates a rather expensive valuation of CAH.
CAH's Price/Earnings ratio is a bit cheaper when compared to the industry. CAH is cheaper than 74.04% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, CAH is valued a bit cheaper.
CAH is valuated correctly with a Price/Forward Earnings ratio of 16.25.
Based on the Price/Forward Earnings ratio, CAH is valued a bit cheaper than 74.04% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.91, CAH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 16.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAH is valued a bit cheaper than the industry average as 60.58% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CAH is valued a bit cheaper than the industry average as 67.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.56 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
The 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 13.21% in the coming years.
PEG (NY)1.39
PEG (5Y)2.13
EPS Next 2Y13.19%
EPS Next 3Y13.21%
5. Dividend
5.1 Amount
CAH has a Yearly Dividend Yield of 1.37%.
CAH's Dividend Yield is rather good when compared to the industry average which is at 2.90. CAH pays more dividend than 86.54% of the companies in the same industry.
With a Dividend Yield of 1.37, CAH pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of CAH has a limited annual growth rate of 1.25%.
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)1.25%
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.
The dividend of CAH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.65%
EPS Next 2Y13.19%
EPS Next 3Y13.21%
151.57
-1.38 (-0.9%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.07%
Inst Owner Change-3.25%
Ins Owners0.25%
Ins Owner Change14.67%
Market Cap36.19B
Analysts80.91
Price Target181.28 (19.6%)
Short Float %2.35%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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)0.36%
PT rev (3m)12.53%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)0%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.2%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.39 | ||
| Fwd PE | 16.25 | ||
| P/S | 0.16 | ||
| P/FCF | 19.56 | ||
| P/OCF | 15.1 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.48 |
EPS(TTM)8.24
EY5.44%
EPS(NY)9.33
Fwd EY6.15%
FCF(TTM)7.75
FCFY5.11%
OCF(TTM)10.04
OCFY6.62%
SpS932.11
BVpS-11.65
TBVpS-62.64
PEG (NY)1.39
PEG (5Y)2.13
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
WACC8.05%
ROIC/WACC1.58
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 Y13.2%
EPS Next 2Y13.19%
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 Year11.62%
Revenue Next 2Y9.59%
Revenue Next 3Y8.86%
Revenue Next 5Y8.5%
EBIT growth 1Y16.25%
EBIT growth 3Y13.98%
EBIT growth 5Y6.84%
EBIT Next Year31.99%
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%