CARDINAL HEALTH INC (CAH) Fundamental Analysis & Valuation

NYSE:CAH • US14149Y1082

Current stock price

202.82 USD
-2.79 (-1.36%)
At close:
203 USD
+0.18 (+0.09%)
After Hours:

This CAH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. CAH Profitability Analysis

1.1 Basic Checks

  • In the past year CAH was profitable.
  • CAH had a positive operating cash flow in the past year.
  • Of the past 5 years CAH 4 years were profitable.
  • CAH had a positive operating cash flow in each of the past 5 years.
CAH Yearly Net Income VS EBIT VS OCF VS FCFCAH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B

1.2 Ratios

  • With a decent Return On Assets value of 2.86%, CAH is doing good in the industry, outperforming 61.00% of the companies in the same industry.
  • CAH has a Return On Invested Capital of 14.50%. This is amongst the best in the industry. CAH outperforms 92.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CAH is significantly above the industry average of 8.40%.
  • The 3 year average ROIC (14.18%) for CAH is below the current ROIC(14.50%), indicating increased profibility in the last year.
Industry RankSector 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%
CAH Yearly ROA, ROE, ROICCAH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 -200

1.3 Margins

  • CAH has a Profit Margin of 0.68%. This is comparable to the rest of the industry: CAH outperforms 52.00% of its industry peers.
  • The Operating Margin of CAH (1.20%) is worse than 60.00% 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 3.70% is on the low side compared to the rest of the industry. CAH is outperformed by 77.00% of its industry peers.
  • CAH's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
CAH Yearly Profit, Operating, Gross MarginsCAH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 4

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4

2. CAH Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAH is creating some value.
  • Compared to 1 year ago, CAH has less shares outstanding
  • The number of shares outstanding for CAH has been reduced compared to 5 years ago.
  • Compared to 1 year ago, CAH has a worse debt to assets ratio.
CAH Yearly Shares OutstandingCAH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
CAH Yearly Total Debt VS Total AssetsCAH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • CAH has an Altman-Z score of 4.81. This indicates that CAH is financially healthy and has little risk of bankruptcy at the moment.
  • CAH has a better Altman-Z score (4.81) than 84.00% of its industry peers.
  • CAH has a debt to FCF ratio of 1.64. This is a very positive value and a sign of high solvency as it would only need 1.64 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.64, CAH is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 1.64
Altman-Z 4.81
ROIC/WACC1.67
WACC8.68%
CAH Yearly LT Debt VS Equity VS FCFCAH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 0.91 indicates that CAH may have some problems paying its short term obligations.
  • The Current ratio of CAH (0.91) is worse than 77.00% of its industry peers.
  • 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.
  • CAH has a worse Quick ratio (0.44) than 90.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.44
CAH Yearly Current Assets VS Current LiabilitesCAH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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7

3. CAH Growth Analysis

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%.
  • 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)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

  • The Earnings Per Share is expected to grow by 15.31% 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 9.93% on average per year.
EPS Next Y26.31%
EPS Next 2Y19.12%
EPS Next 3Y16.66%
EPS Next 5Y15.31%
Revenue Next Year15.82%
Revenue Next 2Y12.39%
Revenue Next 3Y10.84%
Revenue Next 5Y9.93%

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.
CAH Yearly Revenue VS EstimatesCAH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 100B 200B 300B
CAH Yearly EPS VS EstimatesCAH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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5

4. CAH Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 21.11, the valuation of CAH can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of CAH indicates a somewhat cheap valuation: CAH is cheaper than 68.00% of the companies listed in the same industry.
  • CAH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 17.35, the valuation of CAH can be described as rather expensive.
  • 66.00% of the companies in the same industry are more expensive than CAH, based on the Price/Forward Earnings ratio.
  • CAH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.11
Fwd PE 17.35
CAH Price Earnings VS Forward Price EarningsCAH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • CAH's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, CAH is valued cheaper than 86.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.67
EV/EBITDA 14.29
CAH Per share dataCAH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600 800 1K

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • CAH's earnings are expected to grow with 16.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)2.45
EPS Next 2Y19.12%
EPS Next 3Y16.66%

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5

5. CAH Dividend Analysis

5.1 Amount

  • CAH has a yearly dividend return of 1.00%, which is pretty low.
  • CAH's Dividend Yield is rather good when compared to the industry average which is at 0.46. CAH pays more dividend than 85.00% 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 RankSector Rank
Dividend Yield 1%

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
CAH Yearly Dividends per shareCAH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 29.78% 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.
DP29.78%
EPS Next 2Y19.12%
EPS Next 3Y16.66%
CAH Yearly Income VS Free CF VS DividendCAH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B
CAH Dividend Payout.CAH Dividend Payout, showing the Payout Ratio.CAH Dividend Payout.PayoutRetained Earnings

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CAH Fundamentals: All Metrics, Ratios and Statistics

CARDINAL HEALTH INC

NYSE:CAH (4/29/2026, 8:04:00 PM)

After market: 203 +0.18 (+0.09%)

202.82

-2.79 (-1.36%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Industry Strength46.58
Industry Growth8.07
Earnings (Last)02-05
Earnings (Next)04-30
Inst Owners90.43%
Inst Owner Change0.25%
Ins Owners0.19%
Ins Owner Change0.14%
Market Cap47.73B
Revenue(TTM)244.67B
Net Income(TTM)1.66B
Analysts83.64
Price Target254.83 (25.64%)
Short Float %2.51%
Short Ratio3.57
Dividend
Industry RankSector Rank
Dividend Yield 1%
Yearly Dividend2.05
Dividend Growth(5Y)1.25%
DP29.78%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-01
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)1.05%
PT rev (3m)12.78%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)2.3%
EPS NY rev (1m)0%
EPS NY rev (3m)4.11%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.49%
Valuation
Industry RankSector Rank
PE 21.11
Fwd PE 17.35
P/S 0.2
P/FCF 8.67
P/OCF 7.82
P/B N/A
P/tB N/A
EV/EBITDA 14.29
EPS(TTM)9.61
EY4.74%
EPS(NY)11.69
Fwd EY5.77%
FCF(TTM)23.4
FCFY11.54%
OCF(TTM)25.93
OCFY12.79%
SpS1039.75
BVpS-12.26
TBVpS-71.66
PEG (NY)0.8
PEG (5Y)2.45
Graham Number0 (-100%)
Profitability
Industry RankSector 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 RankSector 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 4.81
F-Score7
WACC8.68%
ROIC/WACC1.67
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 Y26.31%
EPS Next 2Y19.12%
EPS Next 3Y16.66%
EPS Next 5Y15.31%
Revenue 1Y (TTM)10.13%
Revenue growth 3Y7.06%
Revenue growth 5Y7.8%
Sales Q2Q%18.75%
Revenue Next Year15.82%
Revenue Next 2Y12.39%
Revenue Next 3Y10.84%
Revenue Next 5Y9.93%
EBIT growth 1Y29.74%
EBIT growth 3Y13.98%
EBIT growth 5Y6.84%
EBIT Next Year44.89%
EBIT Next 3Y20.16%
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 Fundamental Analysis 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.


Can you provide the profitability details for CARDINAL HEALTH INC?

CARDINAL HEALTH INC (CAH) has a profitability rating of 5 / 10.


Can you provide the PE and PB ratios for CAH stock?

The Price/Earnings (PE) ratio for CARDINAL HEALTH INC (CAH) is 21.11 and the Price/Book (PB) ratio is -16.55.


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 26.31% in the next year.