CARDINAL HEALTH INC (CAH) Stock Fundamental Analysis
USA - NYSE:CAH - US14149Y1082 - Common Stock
203.67 USD
+5.68 (+2.87%)
161.522 USD
-42.15 (-20.69%)
Overall CAH gets a fundamental rating of 5 out of 10. We evaluated CAH against 100 industry peers in the Health Care Providers & Services industry. CAH has only an average score on both its financial health and profitability. CAH has a decent growth rate and is not valued too expensively.
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.
CAH had positive earnings in 4 of the past 5 years.
CAH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAH has a Return On Assets of 2.89%. This is in the better half of the industry: CAH outperforms 61.00% of its industry peers.
CAH's Return On Invested Capital of 13.13% is amongst the best of the industry. CAH outperforms 90.00% of its industry peers.
CAH had an Average Return On Invested Capital over the past 3 years of 14.18%. This is above the industry average of 9.42%.
| 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's Profit Margin of 0.68% is in line compared to the rest of the industry. CAH outperforms 51.00% of its industry peers.
CAH has a Operating Margin (1.15%) which is comparable to the rest of the industry.
CAH's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 3.66%, CAH is not doing good in the industry: 79.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CAH has declined.
| 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.
The number of shares outstanding for CAH has been reduced compared to 1 year ago.
The number of shares outstanding for CAH has been reduced compared to 5 years ago.
The debt/assets ratio for CAH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.88 indicates that CAH is not in any danger for bankruptcy at the moment.
CAH has a Altman-Z score of 4.88. This is in the better half of the industry: CAH outperforms 80.00% of its industry peers.
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 83.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 4.88 |
ROIC/WACC1.48
WACC8.85%
2.3 Liquidity
CAH has a Current 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.
Looking at the Current ratio, with a value of 0.96, CAH is doing worse than 74.00% of the companies in the same industry.
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 88.00% 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.
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 Y18%
EPS Next 2Y15.43%
EPS Next 3Y14.61%
EPS Next 5Y13.04%
Revenue Next Year13.75%
Revenue Next 2Y11.01%
Revenue Next 3Y9.88%
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
A Price/Earnings ratio of 22.86 indicates a rather expensive valuation of CAH.
62.00% 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 25.83, CAH is valued at the same level.
The Price/Forward Earnings ratio is 18.55, which indicates a rather expensive current valuation of CAH.
64.00% of the companies in the same industry are more expensive than CAH, based on the Price/Forward Earnings ratio.
CAH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 18.55 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CAH.
Based on the Price/Free Cash Flow ratio, CAH is valued cheaply inside the industry as 84.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.87 | ||
| EV/EBITDA | 14.55 |
4.3 Compensation for Growth
CAH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CAH's earnings are expected to grow with 14.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)2.65
EPS Next 2Y15.43%
EPS Next 3Y14.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.03%, CAH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.54, CAH pays a better dividend. On top of this CAH pays more dividend than 84.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, CAH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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.
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 3Y14.61%
203.67
+5.68 (+2.87%)
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 Change-0.1%
Ins Owners0.22%
Ins Owner Change-1.59%
Market Cap48.39B
Revenue(TTM)234.31B
Net Income(TTM)1.59B
Analysts80.91
Price Target185.28 (-9.03%)
Short Float %2.79%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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)0.24%
PT rev (3m)2.21%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-0.37%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)2.14%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | 18.55 | ||
| P/S | 0.21 | ||
| P/FCF | 10.87 | ||
| P/OCF | 9.64 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.55 |
EPS(TTM)8.91
EY4.37%
EPS(NY)10.98
Fwd EY5.39%
FCF(TTM)18.74
FCFY9.2%
OCF(TTM)21.12
OCFY10.37%
SpS986.24
BVpS-12.12
TBVpS-63.09
PEG (NY)1.27
PEG (5Y)2.65
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 | 4.88 |
F-Score6
WACC8.85%
ROIC/WACC1.48
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 3Y14.61%
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 3Y9.88%
Revenue Next 5Y9.35%
EBIT growth 1Y22.59%
EBIT growth 3Y13.98%
EBIT growth 5Y6.84%
EBIT Next Year32.48%
EBIT Next 3Y16.76%
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 4 / 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.