CARDINAL HEALTH INC (CAH) Stock Fundamental Analysis
NYSE:CAH - New York Stock Exchange, Inc. - US14149Y1082 - Common Stock - Currency: USD
Overall CAH gets a fundamental rating of 4 out of 10. We evaluated CAH against 102 industry peers in the Health Care Providers & Services industry. CAH has an average financial health and profitability rating. CAH is not valued too expensively and it also shows a decent growth rate. Finally CAH also has an excellent dividend rating.
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.
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 has a better Return On Assets (3.12%) than 64.71% of its industry peers.
CAH's Return On Invested Capital of 14.33% is amongst the best of the industry. CAH outperforms 89.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAH is above the industry average of 9.53%.
The 3 year average ROIC (14.10%) for CAH is below the current ROIC(14.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | N/A | ||
| ROIC | 14.33% |
ROA(3y)0.12%
ROA(5y)-1.47%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.1%
ROIC(5y)11.81%
1.3 Margins
CAH's Profit Margin of 0.70% is in line compared to the rest of the industry. CAH outperforms 52.94% of its industry peers.
In the last couple of years the Profit Margin of CAH has declined.
With a Operating Margin value of 1.08%, CAH perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
In the last couple of years the Operating Margin of CAH has declined.
CAH's Gross Margin of 3.52% is on the low side compared to the rest of the industry. CAH is outperformed by 81.37% of its industry peers.
CAH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.08% | ||
| PM (TTM) | 0.7% | ||
| GM | 3.52% |
OM growth 3Y-5.37%
OM growth 5Y-5.42%
PM growth 3Y-0.04%
PM growth 5Y-16.7%
GM growth 3Y-7.81%
GM growth 5Y-6.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CAH is 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 5.01. This indicates that CAH is financially healthy and has little risk of bankruptcy at the moment.
CAH has a Altman-Z score of 5.01. This is amongst the best in the industry. CAH outperforms 85.29% of its industry peers.
The Debt to FCF ratio of CAH is 3.15, which is a good value as it means it would take CAH, 3.15 years of fcf income to pay off all of its debts.
CAH's Debt to FCF ratio of 3.15 is fine compared to the rest of the industry. CAH outperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 5.01 |
ROIC/WACC1.69
WACC8.46%
2.3 Liquidity
A Current Ratio of 0.94 indicates that CAH may have some problems paying its short term obligations.
CAH's Current ratio of 0.94 is on the low side compared to the rest of the industry. CAH is outperformed by 75.49% of its industry peers.
A Quick Ratio of 0.50 indicates that CAH may have some problems paying its short term obligations.
With a Quick ratio value of 0.50, CAH is not doing good in the industry: 89.22% of the companies in the same industry are doing better.
| 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 11.42% over the past year.
Measured over the past 5 years, CAH shows a small growth in Earnings Per Share. The EPS has been growing by 7.19% on average per year.
CAH shows a small growth in Revenue. In the last year, the Revenue has grown by 0.77%.
Measured over the past years, CAH shows a quite strong growth in Revenue. The Revenue has been growing by 9.28% on average per year.
EPS 1Y (TTM)11.42%
EPS 3Y7.1%
EPS 5Y7.19%
EPS Q2Q%12.98%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y11.77%
Revenue growth 5Y9.28%
Sales Q2Q%-0.06%
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 9.94% yearly.
Based on estimates for the next years, CAH will show a small growth in Revenue. The Revenue will grow by 5.92% on average per year.
EPS Next Y9.91%
EPS Next 2Y10.78%
EPS Next 3Y10.98%
EPS Next 5Y9.94%
Revenue Next Year-1.1%
Revenue Next 2Y3.96%
Revenue Next 3Y5.07%
Revenue Next 5Y5.92%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.16, which indicates a rather expensive current valuation of CAH.
Based on the Price/Earnings ratio, CAH is valued a bit cheaper than 71.57% of the companies in the same industry.
CAH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.72, which indicates a correct valuation of CAH.
Based on the Price/Forward Earnings ratio, CAH is valued a bit cheaper than the industry average as 68.63% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CAH to the average of the S&P500 Index (21.94), we can say CAH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 16.72 |
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.
77.45% 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 | 15.18 | ||
| EV/EBITDA | 13.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.93
PEG (5Y)2.67
EPS Next 2Y10.78%
EPS Next 3Y10.98%
5. Dividend
5.1 Amount
CAH has a Yearly Dividend Yield of 1.30%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.46, CAH pays a better dividend. On top of this CAH pays more dividend than 86.27% of the companies listed in the same industry.
With a Dividend Yield of 1.30, CAH pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of CAH has a limited annual growth rate of 1.22%.
CAH has been paying a dividend for at least 10 years, so it has a reliable track record.
CAH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.22%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
31.84% 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.
DP31.84%
EPS Next 2Y10.78%
EPS Next 3Y10.98%
153.31
-1.46 (-0.94%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners88.83%
Inst Owner Change0.18%
Ins Owners0.26%
Ins Owner Change-0.08%
Market Cap37.04B
Analysts80
Price Target161.1 (5.08%)
Short Float %2.21%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend2.02
Dividend Growth(5Y)1.22%
DP31.84%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.01%
Min EPS beat(2)7.37%
Max EPS beat(2)8.65%
EPS beat(4)4
Avg EPS beat(4)8.94%
Min EPS beat(4)4.62%
Max EPS beat(4)15.13%
EPS beat(8)8
Avg EPS beat(8)9.82%
EPS beat(12)11
Avg EPS beat(12)10.32%
EPS beat(16)13
Avg EPS beat(16)7.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)-0.55%
Revenue beat(4)2
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)1.7%
Revenue beat(8)3
Avg Revenue beat(8)-0.44%
Revenue beat(12)7
Avg Revenue beat(12)0.3%
Revenue beat(16)10
Avg Revenue beat(16)0.83%
PT rev (1m)10.16%
PT rev (3m)16.49%
EPS NQ rev (1m)-1.34%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)2.18%
EPS NY rev (3m)2.2%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 16.72 | ||
| P/S | 0.17 | ||
| P/FCF | 15.18 | ||
| P/OCF | 12.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.2 |
EPS(TTM)8
EY5.22%
EPS(NY)9.17
Fwd EY5.98%
FCF(TTM)10.1
FCFY6.59%
OCF(TTM)12.2
OCFY7.96%
SpS919.51
BVpS-12.2
TBVpS-57.8
PEG (NY)1.93
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | N/A | ||
| ROCE | 18.14% | ||
| ROIC | 14.33% | ||
| ROICexc | 19.15% | ||
| ROICexgc | N/A | ||
| OM | 1.08% | ||
| PM (TTM) | 0.7% | ||
| GM | 3.52% | ||
| FCFM | 1.1% |
ROA(3y)0.12%
ROA(5y)-1.47%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.1%
ROIC(5y)11.81%
ROICexc(3y)26.39%
ROICexc(5y)19.93%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.84%
ROCE(5y)14.95%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y54.01%
ROICexc growth 5Y31.18%
OM growth 3Y-5.37%
OM growth 5Y-5.42%
PM growth 3Y-0.04%
PM growth 5Y-16.7%
GM growth 3Y-7.81%
GM growth 5Y-6.99%
F-Score6
Asset Turnover4.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.15 | ||
| Debt/EBITDA | 2.26 | ||
| Cap/Depr | 66.23% | ||
| Cap/Sales | 0.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.17% | ||
| Profit Quality | 156.55% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.01 |
F-Score6
WACC8.46%
ROIC/WACC1.69
Cap/Depr(3y)65.8%
Cap/Depr(5y)57.91%
Cap/Sales(3y)0.22%
Cap/Sales(5y)0.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.42%
EPS 3Y7.1%
EPS 5Y7.19%
EPS Q2Q%12.98%
EPS Next Y9.91%
EPS Next 2Y10.78%
EPS Next 3Y10.98%
EPS Next 5Y9.94%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y11.77%
Revenue growth 5Y9.28%
Sales Q2Q%-0.06%
Revenue Next Year-1.1%
Revenue Next 2Y3.96%
Revenue Next 3Y5.07%
Revenue Next 5Y5.92%
EBIT growth 1Y13.93%
EBIT growth 3Y5.77%
EBIT growth 5Y3.35%
EBIT Next Year34.72%
EBIT Next 3Y17.11%
EBIT Next 5YN/A
FCF growth 1Y-46.96%
FCF growth 3Y19.19%
FCF growth 5Y6.31%
OCF growth 1Y-41.36%
OCF growth 3Y17.48%
OCF growth 5Y6.69%