CARDINAL HEALTH INC (CAH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAH - US14149Y1082 - Common Stock
208.48 USD
+3.03 (+1.47%)
208.65 USD
+0.17 (+0.08%)
We assign a fundamental rating of 5 out of 10 to CAH. CAH was compared to 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
In the past year CAH was profitable.
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 better Return On Assets (2.89%) than 63.37% of its industry peers.
With an excellent Return On Invested Capital value of 13.13%, CAH belongs to the best of the industry, outperforming 89.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAH is above the industry average of 9.21%.
| 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
CAH has a Profit Margin (0.68%) which is comparable to the rest of the industry.
CAH has a Operating Margin (1.15%) which is in line with its industry peers.
CAH's Operating Margin has been stable in the last couple of years.
CAH has a Gross Margin of 3.66%. This is in the lower half of the industry: CAH underperforms 78.22% of its industry peers.
CAH's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CAH is still creating some value.
CAH has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 4.91 indicates that CAH is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.91, CAH belongs to the best of the industry, outperforming 83.17% of the companies in the same industry.
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 80.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 4.91 |
ROIC/WACC1.51
WACC8.71%
2.3 Liquidity
A Current Ratio of 0.96 indicates that CAH may have some problems paying its short term obligations.
CAH has a worse Current ratio (0.96) than 72.28% of its industry peers.
A Quick Ratio of 0.52 indicates that CAH may have some problems paying its short term obligations.
The Quick ratio of CAH (0.52) is worse than 84.16% 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.
The Earnings Per Share has been growing by 8.62% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.44% 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)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
The Earnings Per Share is expected to grow by 13.04% on average over the next years. This is quite good.
CAH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.35% yearly.
EPS Next Y20.46%
EPS Next 2Y16.06%
EPS Next 3Y14.5%
EPS Next 5Y13.04%
Revenue Next Year15.07%
Revenue Next 2Y11.61%
Revenue Next 3Y9.87%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CAH is valuated rather expensively with a Price/Earnings ratio of 23.40.
Compared to the rest of the industry, the Price/Earnings ratio of CAH indicates a somewhat cheap valuation: CAH is cheaper than 63.37% of the companies listed in the same industry.
CAH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.78, which indicates a rather expensive current valuation of CAH.
CAH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAH is cheaper than 66.34% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. CAH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.4 | ||
| Fwd PE | 18.78 |
4.2 Price Multiples
CAH's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAH indicates a rather cheap valuation: CAH is cheaper than 83.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.13 | ||
| EV/EBITDA | 15.26 |
4.3 Compensation for Growth
CAH's 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 14.50% in the coming years.
PEG (NY)1.14
PEG (5Y)2.71
EPS Next 2Y16.06%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, CAH is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.60, CAH pays a better dividend. On top of this CAH pays more dividend than 85.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, CAH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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
5.3 Sustainability
31.03% 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.
DP31.03%
EPS Next 2Y16.06%
EPS Next 3Y14.5%
208.48
+3.03 (+1.47%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.75%
Inst Owner Change0%
Ins Owners0.22%
Ins Owner Change-0.49%
Market Cap49.53B
Revenue(TTM)234.31B
Net Income(TTM)1.59B
Analysts81.9
Price Target218.73 (4.92%)
Short Float %2.07%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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)1.92%
PT rev (3m)18.33%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)3.46%
EPS NY rev (1m)0%
EPS NY rev (3m)4.16%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)3.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.4 | ||
| Fwd PE | 18.78 | ||
| P/S | 0.21 | ||
| P/FCF | 11.13 | ||
| P/OCF | 9.87 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.26 |
EPS(TTM)8.91
EY4.27%
EPS(NY)11.1
Fwd EY5.32%
FCF(TTM)18.74
FCFY8.99%
OCF(TTM)21.12
OCFY10.13%
SpS986.15
BVpS-12.12
TBVpS-63.08
PEG (NY)1.14
PEG (5Y)2.71
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 | 4.91 |
F-Score6
WACC8.71%
ROIC/WACC1.51
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 Y20.46%
EPS Next 2Y16.06%
EPS Next 3Y14.5%
EPS Next 5Y13.04%
Revenue 1Y (TTM)4.44%
Revenue growth 3Y7.06%
Revenue growth 5Y7.8%
Sales Q2Q%22.44%
Revenue Next Year15.07%
Revenue Next 2Y11.61%
Revenue Next 3Y9.87%
Revenue Next 5Y9.35%
EBIT growth 1Y22.59%
EBIT growth 3Y13.98%
EBIT growth 5Y6.84%
EBIT Next Year40.32%
EBIT Next 3Y18.69%
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.
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.
How profitable is CARDINAL HEALTH INC (CAH) stock?
CARDINAL HEALTH INC (CAH) has a profitability rating of 4 / 10.
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 20.46% in the next year.
How sustainable is the dividend of CARDINAL HEALTH INC (CAH) stock?
The dividend rating of CARDINAL HEALTH INC (CAH) is 5 / 10 and the dividend payout ratio is 31.03%.