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 103 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.
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
Looking at the Return On Assets, with a value of 3.12%, CAH is in the better half of the industry, outperforming 66.99% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.33%, CAH belongs to the best of the industry, outperforming 90.29% of the companies in the same industry.
CAH had an Average Return On Invested Capital over the past 3 years of 14.10%. This is above the industry average of 9.68%.
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 has a Profit Margin of 0.70%. This is comparable to the rest of the industry: CAH outperforms 53.40% of its industry peers.
CAH's Profit Margin has declined in the last couple of years.
CAH has a Operating Margin (1.08%) which is in line with its industry peers.
CAH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 3.52%, CAH is doing worse than 81.55% of the companies in the same industry.
In the last couple of years the Gross Margin of CAH has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAH is still 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.
CAH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.01 indicates that CAH is not in any danger for bankruptcy at the moment.
CAH has a Altman-Z score of 5.01. This is amongst the best in the industry. CAH outperforms 83.50% 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 has a better Debt to FCF ratio (3.15) than 75.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 5.01 |
ROIC/WACC1.6
WACC8.97%
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.
The Current ratio of CAH (0.94) is worse than 73.79% 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.
CAH has a Quick ratio of 0.50. This is amonst the worse of the industry: CAH underperforms 89.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| 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 11.42%, which is quite good.
CAH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.19% yearly.
Looking at the last year, CAH shows a small growth in Revenue. The Revenue has grown by 0.77% in the last year.
The Revenue has been growing by 9.28% on average over the past years. This is quite good.
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 11.98% yearly.
The Revenue is expected to grow by 6.71% on average over the next years.
EPS Next Y10.78%
EPS Next 2Y11.74%
EPS Next 3Y12.22%
EPS Next 5Y11.98%
Revenue Next Year-1.02%
Revenue Next 2Y4.96%
Revenue Next 3Y5.92%
Revenue Next 5Y6.71%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.40, which indicates a rather expensive current valuation of CAH.
Compared to the rest of the industry, the Price/Earnings ratio of CAH indicates a somewhat cheap valuation: CAH is cheaper than 68.93% of the companies listed in the same industry.
CAH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.64 indicates a correct valuation of CAH.
Based on the Price/Forward Earnings ratio, CAH is valued a bit cheaper than the industry average as 66.02% of the companies are valued more expensively.
CAH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 16.64 |
4.2 Price Multiples
CAH's Enterprise Value to EBITDA ratio is in line with the industry average.
CAH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CAH is cheaper than 69.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.19 | ||
| EV/EBITDA | 13.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CAH does not grow enough to justify the current Price/Earnings ratio.
CAH's earnings are expected to grow with 12.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.8
PEG (5Y)2.7
EPS Next 2Y11.74%
EPS Next 3Y12.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.29%, CAH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.62, CAH pays a better dividend. On top of this CAH pays more dividend than 86.41% of the companies listed in the same industry.
With a Dividend Yield of 1.29, CAH pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
The dividend of CAH has a limited annual growth rate of 1.22%.
CAH has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CAH decreased recently.
Dividend Growth(5Y)1.22%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
31.84% 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.
DP31.84%
EPS Next 2Y11.74%
EPS Next 3Y12.22%
155.22
-2.68 (-1.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.25%
Inst Owner Change-0.44%
Ins Owners0.26%
Ins Owner Change-0.73%
Market Cap37.05B
Analysts80.91
Price Target181.28 (16.79%)
Short Float %2.39%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend2.02
Dividend Growth(5Y)1.22%
DP31.84%
Div Incr Years1
Div Non Decr Years1
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)0.36%
PT rev (3m)21.96%
EPS NQ rev (1m)3.82%
EPS NQ rev (3m)2.46%
EPS NY rev (1m)0.38%
EPS NY rev (3m)2.98%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 16.64 | ||
| P/S | 0.17 | ||
| P/FCF | 15.19 | ||
| P/OCF | 12.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.29 |
EPS(TTM)8
EY5.15%
EPS(NY)9.33
Fwd EY6.01%
FCF(TTM)10.22
FCFY6.58%
OCF(TTM)12.35
OCFY7.95%
SpS930.65
BVpS-12.35
TBVpS-58.5
PEG (NY)1.8
PEG (5Y)2.7
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
WACC8.97%
ROIC/WACC1.6
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 Y10.78%
EPS Next 2Y11.74%
EPS Next 3Y12.22%
EPS Next 5Y11.98%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y11.77%
Revenue growth 5Y9.28%
Sales Q2Q%-0.06%
Revenue Next Year-1.02%
Revenue Next 2Y4.96%
Revenue Next 3Y5.92%
Revenue Next 5Y6.71%
EBIT growth 1Y13.93%
EBIT growth 3Y5.77%
EBIT growth 5Y3.35%
EBIT Next Year34.18%
EBIT Next 3Y17.14%
EBIT Next 5Y15.58%
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%