CENCORA INC (COR) Stock Fundamental Analysis
NYSE:COR - New York Stock Exchange, Inc. - US03073E1055 - Common Stock - Currency: USD
Taking everything into account, COR scores 6 out of 10 in our fundamental rating. COR was compared to 102 industry peers in the Health Care Providers & Services industry. COR has only an average score on both its financial health and profitability. COR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
COR had positive earnings in the past year.
COR had a positive operating cash flow in the past year.
COR had positive earnings in 4 of the past 5 years.
In the past 5 years COR always reported a positive cash flow from operatings.
1.2 Ratios
COR has a Return On Assets (2.38%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 167.19%, COR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
COR has a better Return On Invested Capital (13.92%) than 89.22% of its industry peers.
COR had an Average Return On Invested Capital over the past 3 years of 16.51%. This is significantly above the industry average of 9.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 167.19% | ||
| ROIC | 13.92% |
ROA(3y)2.68%
ROA(5y)0.61%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.51%
ROIC(5y)15.55%
1.3 Margins
COR's Profit Margin of 0.55% is in line compared to the rest of the industry. COR outperforms 51.96% of its industry peers.
In the last couple of years the Profit Margin of COR has grown nicely.
COR has a Operating Margin of 1.03%. This is comparable to the rest of the industry: COR outperforms 42.16% of its industry peers.
In the last couple of years the Operating Margin of COR has remained more or less at the same level.
With a Gross Margin value of 3.29%, COR is not doing good in the industry: 81.37% of the companies in the same industry are doing better.
COR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.03% | ||
| PM (TTM) | 0.55% | ||
| GM | 3.29% |
OM growth 3Y-6.12%
OM growth 5Y-0.1%
PM growth 3Y-10.65%
PM growth 5Y1.52%
GM growth 3Y1.72%
GM growth 5Y3.69%
2. Health
2.1 Basic Checks
COR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for COR has been reduced compared to 1 year ago.
Compared to 5 years ago, COR has less shares outstanding
COR has a better debt/assets ratio than last year.
2.2 Solvency
COR has an Altman-Z score of 5.01. This indicates that COR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of COR (5.01) is better than 84.31% of its industry peers.
The Debt to FCF ratio of COR is 2.20, which is a good value as it means it would take COR, 2.20 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of COR (2.20) is better than 81.37% of its industry peers.
A Debt/Equity ratio of 7.00 is on the high side and indicates that COR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 7.00, COR is doing worse than 83.33% of the companies in the same industry.
Although COR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | 5.01 |
ROIC/WACC1.61
WACC8.66%
2.3 Liquidity
A Current Ratio of 0.87 indicates that COR may have some problems paying its short term obligations.
The Current ratio of COR (0.87) is worse than 75.49% of its industry peers.
A Quick Ratio of 0.52 indicates that COR may have some problems paying its short term obligations.
COR has a Quick ratio of 0.52. This is amonst the worse of the industry: COR underperforms 87.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
COR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.32%, which is quite good.
Measured over the past years, COR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.21% on average per year.
COR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.19%.
Measured over the past years, COR shows a quite strong growth in Revenue. The Revenue has been growing by 10.36% on average per year.
EPS 1Y (TTM)15.32%
EPS 3Y14.11%
EPS 5Y14.21%
EPS Q2Q%16.32%
Revenue 1Y (TTM)12.19%
Revenue growth 3Y11.16%
Revenue growth 5Y10.36%
Sales Q2Q%10.29%
3.2 Future
The Earnings Per Share is expected to grow by 11.27% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.39% on average over the next years.
EPS Next Y15.99%
EPS Next 2Y12.98%
EPS Next 3Y12.04%
EPS Next 5Y11.27%
Revenue Next Year9.89%
Revenue Next 2Y8.32%
Revenue Next 3Y7.85%
Revenue Next 5Y7.39%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
With a Price/Earnings ratio of 19.80, COR is valued on the expensive side.
Based on the Price/Earnings ratio, COR is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
COR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.35.
A Price/Forward Earnings ratio of 16.72 indicates a correct valuation of COR.
Based on the Price/Forward Earnings ratio, COR is valued a bit cheaper than the industry average as 67.65% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, COR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 16.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of COR is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of COR indicates a somewhat cheap valuation: COR is cheaper than 72.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.92 | ||
| EV/EBITDA | 14.77 |
4.3 Compensation for Growth
COR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
COR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as COR's earnings are expected to grow with 12.04% in the coming years.
PEG (NY)1.24
PEG (5Y)1.39
EPS Next 2Y12.98%
EPS Next 3Y12.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, COR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.41, COR pays a better dividend. On top of this COR pays more dividend than 82.35% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, COR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
The dividend of COR has a limited annual growth rate of 5.42%.
COR has been paying a dividend for at least 10 years, so it has a reliable track record.
COR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.42%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
COR pays out 25.13% of its income as dividend. This is a sustainable payout ratio.
COR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP25.13%
EPS Next 2Y12.98%
EPS Next 3Y12.04%
293.66
-3.09 (-1.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.68%
Inst Owner Change-5.06%
Ins Owners0.23%
Ins Owner Change-5.07%
Market Cap56.92B
Analysts77.27
Price Target323.88 (10.29%)
Short Float %3.59%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend2.1
Dividend Growth(5Y)5.42%
DP25.13%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.99%
Min EPS beat(2)5.38%
Max EPS beat(2)6.6%
EPS beat(4)4
Avg EPS beat(4)4.36%
Min EPS beat(4)2.68%
Max EPS beat(4)6.6%
EPS beat(8)8
Avg EPS beat(8)4.43%
EPS beat(12)12
Avg EPS beat(12)3.64%
EPS beat(16)15
Avg EPS beat(16)3.53%
Revenue beat(2)1
Avg Revenue beat(2)0.82%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)2.93%
Revenue beat(4)3
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)2.93%
Revenue beat(8)6
Avg Revenue beat(8)1.1%
Revenue beat(12)9
Avg Revenue beat(12)1.06%
Revenue beat(16)11
Avg Revenue beat(16)0.91%
PT rev (1m)4.99%
PT rev (3m)14.19%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)0.06%
EPS NY rev (1m)0%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 16.72 | ||
| P/S | 0.18 | ||
| P/FCF | 15.92 | ||
| P/OCF | 13.85 | ||
| P/B | 56.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.77 |
EPS(TTM)14.83
EY5.05%
EPS(NY)17.56
Fwd EY5.98%
FCF(TTM)18.45
FCFY6.28%
OCF(TTM)21.21
OCFY7.22%
SpS1600.62
BVpS5.23
TBVpS-87.41
PEG (NY)1.24
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 167.19% | ||
| ROCE | 17.84% | ||
| ROIC | 13.92% | ||
| ROICexc | 15.65% | ||
| ROICexgc | N/A | ||
| OM | 1.03% | ||
| PM (TTM) | 0.55% | ||
| GM | 3.29% | ||
| FCFM | 1.15% |
ROA(3y)2.68%
ROA(5y)0.61%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.51%
ROIC(5y)15.55%
ROICexc(3y)21.56%
ROICexc(5y)21.55%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.17%
ROCE(5y)19.93%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y15.26%
ROICexc growth 5Y0.87%
OM growth 3Y-6.12%
OM growth 5Y-0.1%
PM growth 3Y-10.65%
PM growth 5Y1.52%
GM growth 3Y1.72%
GM growth 5Y3.69%
F-Score5
Asset Turnover4.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7 | ||
| Debt/FCF | 2.2 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 48.38% | ||
| Cap/Sales | 0.17% | ||
| Interest Coverage | 11.6 | ||
| Cash Conversion | 95.74% | ||
| Profit Quality | 211.14% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 5.01 |
F-Score5
WACC8.66%
ROIC/WACC1.61
Cap/Depr(3y)53.4%
Cap/Depr(5y)67.19%
Cap/Sales(3y)0.18%
Cap/Sales(5y)0.19%
Profit Quality(3y)175.45%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.32%
EPS 3Y14.11%
EPS 5Y14.21%
EPS Q2Q%16.32%
EPS Next Y15.99%
EPS Next 2Y12.98%
EPS Next 3Y12.04%
EPS Next 5Y11.27%
Revenue 1Y (TTM)12.19%
Revenue growth 3Y11.16%
Revenue growth 5Y10.36%
Sales Q2Q%10.29%
Revenue Next Year9.89%
Revenue Next 2Y8.32%
Revenue Next 3Y7.85%
Revenue Next 5Y7.39%
EBIT growth 1Y13.06%
EBIT growth 3Y4.36%
EBIT growth 5Y10.24%
EBIT Next Year28.2%
EBIT Next 3Y14.16%
EBIT Next 5Y5.18%
FCF growth 1Y46.11%
FCF growth 3Y10.42%
FCF growth 5Y8.07%
OCF growth 1Y41.13%
OCF growth 3Y9.35%
OCF growth 5Y8.25%