CENCORA INC (COR) Stock Fundamental Analysis
NYSE:COR - New York Stock Exchange, Inc. - US03073E1055 - Common Stock - Currency: USD
Overall COR gets a fundamental rating of 6 out of 10. We evaluated COR against 103 industry peers in the Health Care Providers & Services industry. COR has an excellent profitability rating, but there are some minor concerns on its financial health. COR is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years COR 4 years were profitable.
In the past 5 years COR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.38%, COR is in the better half of the industry, outperforming 61.16% of the companies in the same industry.
COR has a better Return On Equity (167.19%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 13.92%, COR belongs to the best of the industry, outperforming 89.32% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for COR is significantly above the industry average of 9.55%.
| 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
With a Profit Margin value of 0.55%, COR perfoms like the industry average, outperforming 52.43% of the companies in the same industry.
COR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 1.03%, COR is in line with its industry, outperforming 41.75% of the companies in the same industry.
In the last couple of years the Operating Margin of COR has remained more or less at the same level.
Looking at the Gross Margin, with a value of 3.29%, COR is doing worse than 81.55% of the companies in the same industry.
In the last couple of years the Gross Margin of COR has grown nicely.
| 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.
Compared to 1 year ago, COR has less shares outstanding
COR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, COR has an improved debt to assets ratio.
2.2 Solvency
COR has an Altman-Z score of 4.99. This indicates that COR is financially healthy and has little risk of bankruptcy at the moment.
COR's Altman-Z score of 4.99 is amongst the best of the industry. COR outperforms 83.50% 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.
COR's Debt to FCF ratio of 2.20 is amongst the best of the industry. COR outperforms 81.55% 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.
With a Debt to Equity ratio value of 7.00, COR is not doing good in the industry: 84.47% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for COR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | 4.99 |
ROIC/WACC1.63
WACC8.53%
2.3 Liquidity
A Current Ratio of 0.87 indicates that COR may have some problems paying its short term obligations.
COR's Current ratio of 0.87 is on the low side compared to the rest of the industry. COR is outperformed by 76.70% 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 worse Quick ratio (0.52) than 88.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.32% over the past year.
The Earnings Per Share has been growing by 14.21% on average over the past years. This is quite good.
The Revenue has grown by 12.19% in the past year. This is quite good.
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
COR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.27% yearly.
Based on estimates for the next years, COR will show a small growth in Revenue. The Revenue will grow by 7.39% on average per year.
EPS Next Y16.05%
EPS Next 2Y13.03%
EPS Next 3Y12.1%
EPS Next 5Y11.27%
Revenue Next Year9.87%
Revenue Next 2Y8.32%
Revenue Next 3Y7.87%
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
A Price/Earnings ratio of 19.80 indicates a rather expensive valuation of COR.
67.96% of the companies in the same industry are more expensive than COR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of COR to the average of the S&P500 Index (27.24), we can say COR is valued slightly cheaper.
COR is valuated correctly with a Price/Forward Earnings ratio of 16.70.
68.93% of the companies in the same industry are more expensive than COR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of COR to the average of the S&P500 Index (36.42), we can say COR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 16.7 |
4.2 Price Multiples
COR's Enterprise Value to EBITDA is on the same level as the industry average.
COR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. COR is cheaper than 67.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.92 | ||
| EV/EBITDA | 14.39 |
4.3 Compensation for Growth
COR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of COR may justify a higher PE ratio.
A more expensive valuation may be justified as COR's earnings are expected to grow with 12.10% in the coming years.
PEG (NY)1.23
PEG (5Y)1.39
EPS Next 2Y13.03%
EPS Next 3Y12.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, COR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.98, COR pays a better dividend. On top of this COR pays more dividend than 81.55% 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 | 0.77% |
5.2 History
The dividend of COR has a limited annual growth rate of 5.42%.
COR has paid a dividend for at least 10 years, which is 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.
The dividend of COR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.13%
EPS Next 2Y13.03%
EPS Next 3Y12.1%
293.64
+5.29 (+1.83%)
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 Change0%
Ins Owners0.23%
Ins Owner Change-5.96%
Market Cap56.91B
Analysts78.18
Price Target333.94 (13.72%)
Short Float %3.88%
Short Ratio5.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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)1.64%
PT rev (3m)9.2%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)0.01%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.44%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 16.7 | ||
| P/S | 0.18 | ||
| P/FCF | 15.92 | ||
| P/OCF | 13.85 | ||
| P/B | 56.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.39 |
EPS(TTM)14.83
EY5.05%
EPS(NY)17.58
Fwd EY5.99%
FCF(TTM)18.45
FCFY6.28%
OCF(TTM)21.21
OCFY7.22%
SpS1600.62
BVpS5.23
TBVpS-87.41
PEG (NY)1.23
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 | 4.99 |
F-Score5
WACC8.53%
ROIC/WACC1.63
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 Y16.05%
EPS Next 2Y13.03%
EPS Next 3Y12.1%
EPS Next 5Y11.27%
Revenue 1Y (TTM)12.19%
Revenue growth 3Y11.16%
Revenue growth 5Y10.36%
Sales Q2Q%10.29%
Revenue Next Year9.87%
Revenue Next 2Y8.32%
Revenue Next 3Y7.87%
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%