CARDINAL HEALTH INC (CAH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CAH - US14149Y1082 - Common Stock
212.26 USD
-0.88 (-0.41%)
211.359 USD
-0.9 (-0.42%)
Taking everything into account, CAH scores 5 out of 10 in our fundamental rating. CAH was compared to 101 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
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.
Each year in the past 5 years CAH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.89%, CAH is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
The Return On Invested Capital of CAH (13.13%) is better than 91.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAH is above the industry average of 9.22%.
| 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
The Profit Margin of CAH (0.68%) is comparable to the rest of the industry.
With a Operating Margin value of 1.15%, CAH perfoms like the industry average, outperforming 42.57% of the companies in the same industry.
In the last couple of years the Operating Margin of CAH has remained more or less at the same level.
CAH has a worse Gross Margin (3.66%) than 79.21% 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
CAH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for CAH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.92 indicates that CAH is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.92, CAH belongs to the best of the industry, outperforming 84.16% 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's Debt to FCF ratio of 2.03 is amongst the best of the industry. CAH outperforms 82.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 4.92 |
ROIC/WACC1.55
WACC8.45%
2.3 Liquidity
A Current Ratio of 0.96 indicates that CAH may have some problems paying its short term obligations.
With a Current ratio value of 0.96, CAH is not doing good in the industry: 72.28% of the companies in the same industry are doing better.
CAH has a Quick Ratio of 0.96. 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 0.52. This is amonst the worse of the industry: CAH underperforms 85.15% 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.
CAH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.62% yearly.
Looking at the last year, CAH shows a small growth in Revenue. The Revenue has grown by 4.44% in the last year.
CAH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.80% yearly.
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
CAH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.04% yearly.
Based on estimates for the next years, CAH will show a quite strong growth in Revenue. The Revenue will grow by 9.35% on average per year.
EPS Next Y18%
EPS Next 2Y15.43%
EPS Next 3Y15.12%
EPS Next 5Y13.04%
Revenue Next Year13.75%
Revenue Next 2Y11.01%
Revenue Next 3Y10.33%
Revenue Next 5Y9.35%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.82, the valuation of CAH can be described as rather expensive.
63.37% of the companies in the same industry are more expensive than CAH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, CAH is valued at the same level.
CAH is valuated rather expensively with a Price/Forward Earnings ratio of 19.33.
Based on the Price/Forward Earnings ratio, CAH is valued a bit cheaper than the industry average as 62.38% of the companies are valued more expensively.
CAH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 19.33 |
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.
Based on the Price/Free Cash Flow ratio, CAH is valued cheaply inside the industry as 84.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.33 | ||
| EV/EBITDA | 15.51 |
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 15.12% in the coming years.
PEG (NY)1.32
PEG (5Y)2.76
EPS Next 2Y15.43%
EPS Next 3Y15.12%
5. Dividend
5.1 Amount
CAH has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 2.47, CAH pays a better dividend. On top of this CAH pays more dividend than 84.16% of the companies listed in the same industry.
With a Dividend Yield of 0.96, CAH pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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.
The dividend of CAH decreased 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.
The dividend of CAH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.03%
EPS Next 2Y15.43%
EPS Next 3Y15.12%
212.26
-0.88 (-0.41%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners88.78%
Inst Owner Change3.53%
Ins Owners0.22%
Ins Owner Change-1.14%
Market Cap50.43B
Revenue(TTM)234.31B
Net Income(TTM)1.59B
Analysts80.91
Price Target214.62 (1.11%)
Short Float %2.99%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)16.1%
PT rev (3m)16.1%
EPS NQ rev (1m)3.4%
EPS NQ rev (3m)3.39%
EPS NY rev (1m)2.06%
EPS NY rev (3m)2.04%
Revenue NQ rev (1m)3.16%
Revenue NQ rev (3m)2.82%
Revenue NY rev (1m)2.19%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 19.33 | ||
| P/S | 0.22 | ||
| P/FCF | 11.33 | ||
| P/OCF | 10.05 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.51 |
EPS(TTM)8.91
EY4.2%
EPS(NY)10.98
Fwd EY5.17%
FCF(TTM)18.74
FCFY8.83%
OCF(TTM)21.12
OCFY9.95%
SpS986.15
BVpS-12.12
TBVpS-63.08
PEG (NY)1.32
PEG (5Y)2.76
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 | 4.92 |
F-Score6
WACC8.45%
ROIC/WACC1.55
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 Y18%
EPS Next 2Y15.43%
EPS Next 3Y15.12%
EPS Next 5Y13.04%
Revenue 1Y (TTM)4.44%
Revenue growth 3Y7.06%
Revenue growth 5Y7.8%
Sales Q2Q%22.44%
Revenue Next Year13.75%
Revenue Next 2Y11.01%
Revenue Next 3Y10.33%
Revenue Next 5Y9.35%
EBIT growth 1Y22.59%
EBIT growth 3Y13.98%
EBIT growth 5Y6.84%
EBIT Next Year32.48%
EBIT Next 3Y17.84%
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.
Can you provide the valuation status for CARDINAL HEALTH INC?
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.
How financially healthy is CARDINAL HEALTH INC?
The financial health rating of CARDINAL HEALTH INC (CAH) is 5 / 10.
What is the earnings growth outlook for CARDINAL HEALTH INC?
The Earnings per Share (EPS) of CARDINAL HEALTH INC (CAH) is expected to grow by 18% in the next year.