Cardinal Health
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Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States and internationally. The last earnings update was 75 days ago. More info.
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CAH Share Price and Events
7 Day Returns
1 Year Returns
CAH Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Cardinal Health (CAH) | -1.4% | -5.3% | -5.7% | -26.1% | -46.8% | -34% |
| US Healthcare | -2.8% | -7.3% | -11.4% | -4.7% | 11.3% | 60.7% |
| US Market | -0.1% | 3.7% | 10.2% | 7.6% | 38.1% | 46.4% |
1 Year Return vs Industry and Market
- CAH underperformed the Healthcare industry which returned -4.7% over the past year.
- CAH underperformed the Market in United States of America which returned 7.6% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Cardinal Health
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Cardinal Health.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 16 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Healthcare Unlevered Beta | Simply Wall St/ S&P Global | 0.71 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.712 (1 + (1- 21%) (65.89%)) |
1.055 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.06 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.055 * 5.96%) |
9.02% |
Discounted Cash Flow Calculation for NYSE:CAH using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Cardinal Health is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.02%) |
|
|---|---|---|---|
| 2019 | 1,878.38 | Analyst x6 | 1,722.96 |
| 2020 | 1,805.93 | Analyst x6 | 1,519.45 |
| 2021 | 2,081.53 | Analyst x3 | 1,606.42 |
| 2022 | 2,151.00 | Analyst x1 | 1,522.68 |
| 2023 | 2,215.00 | Analyst x1 | 1,438.25 |
| 2024 | 2,278.63 | Est @ 2.87% | 1,357.14 |
| 2025 | 2,343.11 | Est @ 2.83% | 1,280.08 |
| 2026 | 2,408.71 | Est @ 2.8% | 1,207.04 |
| 2027 | 2,475.65 | Est @ 2.78% | 1,137.94 |
| 2028 | 2,544.08 | Est @ 2.76% | 1,072.64 |
| Present value of next 10 years cash flows | $13,864.60 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $2,544.08 × (1 + 2.73%) ÷ (9.02% – 2.73%) |
$41,547.82 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $41,547.82 ÷ (1 + 9.02%)10 |
$17,517.39 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $13,864.60 + $17,517.39 |
$31,382.00 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $31,382.00 / 298.02 |
$105.3 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $105.30 |
| Current discount | Discount to share price of
$46.08
= -1 x ($46.08 - $105.30) / $105.30 |
56.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Cardinal Health's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Cardinal Health's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Cardinal Health's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Cardinal Health's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $-0.13 |
| NYSE:CAH Share Price ** | NYSE (2019-04-23) in USD | $46.08 |
| United States of America Healthcare Industry PE Ratio | Median Figure of 53 Publicly-Listed Healthcare Companies | 20.85x |
| United States of America Market PE Ratio | Median Figure of 3,080 Publicly-Listed Companies | 18.03x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Cardinal Health.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:CAH Share Price ÷ EPS (both in USD) = 46.08 ÷ -0.13 |
-362.14x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Cardinal Health is loss making, we can't compare its value to the US Healthcare industry average.
- Cardinal Health is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does
Cardinal Health's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | -362.14x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts |
2.6%per year |
| United States of America Healthcare Industry PEG Ratio | Median Figure of 40 Publicly-Listed Healthcare Companies | 1.49x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.55x |
*Line of best fit is calculated by linear regression .
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to calculate PEG ratio for Cardinal Health, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Cardinal Health's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $20.28 |
| NYSE:CAH Share Price * | NYSE (2019-04-23) in USD | $46.08 |
| United States of America Healthcare Industry PB Ratio | Median Figure of 92 Publicly-Listed Healthcare Companies | 2.31x |
| United States of America Market PB Ratio | Median Figure of 5,185 Publicly-Listed Companies | 1.92x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:CAH Share Price ÷ Book Value per Share (both in USD) = 46.08 ÷ 20.28 |
2.27x |
* Primary Listing of Cardinal Health.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Cardinal Health is good value based on assets compared to the US Healthcare industry average.
Value checks
We assess Cardinal Health's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check) Cardinal Health has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Cardinal Health's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
- Cardinal Health's earnings growth is positive but not above the United States of America market average.
- Cardinal Health's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:CAH Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts | 2.6% |
| NYSE:CAH Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts | 4.2% |
| United States of America Healthcare Industry Earnings Growth Rate | Market Cap Weighted Average | 13.2% |
| United States of America Healthcare Industry Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.5% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 16 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | 169,549 | 2,670 | 1,057 | 1 |
| 2022-06-30 | 165,025 | 2,258 | 992 | 2 |
| 2021-06-30 | 158,087 | 2,174 | 1,071 | 10 |
| 2020-06-30 | 150,616 | 2,175 | 1,163 | 16 |
| 2019-06-30 | 144,850 | 2,202 | 1,248 | 16 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 141,935 | 2,044 | -39 |
| 2018-09-30 | 139,381 | 1,952 | 734 |
| 2018-06-30 | 136,809 | 2,768 | 256 |
| 2018-03-31 | 134,426 | 2,938 | 1,696 |
| 2017-12-31 | 132,614 | 1,986 | 1,823 |
| 2017-09-30 | 130,578 | 2,261 | 1,094 |
| 2017-06-30 | 129,976 | 1,184 | 1,288 |
| 2017-03-31 | 128,394 | 1,101 | 1,346 |
| 2016-12-31 | 127,236 | 2,218 | 1,351 |
| 2016-09-30 | 125,530 | 3,127 | 1,353 |
| 2016-06-30 | 121,546 | 2,971 | 1,427 |
| 2016-03-31 | 117,710 | 3,198 | 1,387 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 16 Analyst Estimates (S&P Global) | See Below |
All data from Cardinal Health Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-06-30 | 4.44 | 4.44 | 4.44 | 1.00 |
| 2022-06-30 | 3.86 | 3.86 | 3.86 | 1.00 |
| 2021-06-30 | 3.81 | 4.05 | 3.38 | 4.00 |
| 2020-06-30 | 3.90 | 5.39 | 2.98 | 6.00 |
| 2019-06-30 | 4.23 | 5.41 | 3.21 | 6.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | -0.13 |
| 2018-09-30 | 2.37 |
| 2018-06-30 | 0.82 |
| 2018-03-31 | 5.40 |
| 2017-12-31 | 5.79 |
| 2017-09-30 | 3.46 |
| 2017-06-30 | 4.06 |
| 2017-03-31 | 4.21 |
| 2016-12-31 | 4.20 |
| 2016-09-30 | 4.16 |
| 2016-06-30 | 4.36 |
| 2016-03-31 | 4.22 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Cardinal Health's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Cardinal Health has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Cardinal Health performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Cardinal Health does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
- Unable to compare Cardinal Health's 1-year earnings growth to the 5-year average as it is not currently profitable.
- Unable to compare Cardinal Health's 1-year growth to the US Healthcare industry average as it is not currently profitable.
Earnings and Revenue History
All data from Cardinal Health Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 141,935.00 | -39.00 | 4,622.00 | |
| 2018-09-30 | 139,381.00 | 734.00 | 4,689.00 | |
| 2018-06-30 | 136,809.00 | 256.00 | 4,596.00 | |
| 2018-03-31 | 134,426.00 | 1,696.00 | 4,308.00 | |
| 2017-12-31 | 132,614.00 | 1,823.00 | 4,137.00 | |
| 2017-09-30 | 130,578.00 | 1,094.00 | 3,917.00 | |
| 2017-06-30 | 129,976.00 | 1,288.00 | 3,775.00 | |
| 2017-03-31 | 128,394.00 | 1,346.00 | 3,762.00 | |
| 2016-12-31 | 127,236.00 | 1,351.00 | 3,715.00 | |
| 2016-09-30 | 125,530.00 | 1,353.00 | 3,726.00 | |
| 2016-06-30 | 121,546.00 | 1,427.00 | 3,648.00 | |
| 2016-03-31 | 117,710.00 | 1,387.00 | 3,525.00 | |
| 2015-12-31 | 112,423.00 | 1,366.00 | 3,414.00 | |
| 2015-09-30 | 106,516.00 | 1,329.00 | 3,307.00 | |
| 2015-06-30 | 102,531.00 | 1,212.00 | 3,240.00 | |
| 2015-03-31 | 97,877.00 | 1,154.00 | 3,188.00 | |
| 2014-12-31 | 93,928.00 | 1,104.00 | 3,121.00 | |
| 2014-09-30 | 90,631.00 | 1,089.00 | 3,071.00 | |
| 2014-06-30 | 91,084.00 | 1,163.00 | 3,028.00 | |
| 2014-03-31 | 93,610.00 | 343.00 | 3,009.00 | |
| 2013-12-31 | 96,735.00 | 374.00 | 2,984.00 | |
| 2013-09-30 | 99,727.00 | 403.00 | 2,917.00 | |
| 2013-06-30 | 101,093.00 | 335.00 | 2,875.00 | |
| 2013-03-31 | 102,437.00 | 1,157.00 | 2,810.00 | |
| 2012-12-31 | 104,803.00 | 1,144.00 | 2,782.00 | |
| 2012-09-30 | 106,649.00 | 1,105.00 | 2,723.00 | |
| 2012-06-30 | 107,552.00 | 1,070.00 | 2,677.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- It is difficult to establish if Cardinal Health has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
- Cardinal Health used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.
- It is difficult to establish if Cardinal Health improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
Past performance checks
We assess Cardinal Health's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Cardinal Health has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Cardinal Health's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Cardinal Health's finances.
The net worth of a company is the difference between its assets and liabilities.
- Cardinal Health is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Cardinal Health's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Cardinal Health Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 6,043.00 | 9,049.00 | 2,182.00 |
| 2018-09-30 | 5,913.00 | 9,001.00 | 2,045.00 |
| 2018-06-30 | 6,071.00 | 9,091.00 | 1,763.00 |
| 2018-03-31 | 7,550.00 | 9,578.00 | 2,175.00 |
| 2017-12-31 | 7,632.00 | 9,759.00 | 1,249.00 |
| 2017-09-30 | 6,707.00 | 10,003.00 | 1,181.00 |
| 2017-06-30 | 6,946.00 | 10,416.00 | 6,879.00 |
| 2017-03-31 | 6,782.00 | 5,461.00 | 1,368.00 |
| 2016-12-31 | 6,456.00 | 5,462.00 | 1,881.00 |
| 2016-09-30 | 6,647.00 | 5,532.00 | 2,001.00 |
| 2016-06-30 | 6,688.00 | 5,549.00 | 2,357.00 |
| 2016-03-31 | 6,847.00 | 5,546.00 | 2,598.00 |
| 2015-12-31 | 6,848.00 | 5,525.00 | 2,324.00 |
| 2015-09-30 | 6,646.40 | 5,550.00 | 2,974.00 |
| 2015-06-30 | 6,256.00 | 5,493.00 | 4,616.00 |
| 2015-03-31 | 6,369.00 | 4,003.00 | 3,183.00 |
| 2014-12-31 | 6,100.00 | 3,976.00 | 2,881.00 |
| 2014-09-30 | 6,256.00 | 4,007.00 | 2,469.00 |
| 2014-06-30 | 6,401.00 | 3,978.00 | 2,875.00 |
| 2014-03-31 | 6,532.00 | 3,920.00 | 3,041.00 |
| 2013-12-31 | 6,589.00 | 3,934.00 | 2,741.00 |
| 2013-09-30 | 6,297.00 | 3,883.00 | 2,753.00 |
| 2013-06-30 | 5,975.00 | 3,865.00 | 1,901.00 |
| 2013-03-31 | 6,830.00 | 4,160.00 | 2,305.00 |
| 2012-12-31 | 6,542.00 | 2,897.00 | 2,255.00 |
| 2012-09-30 | 6,281.00 | 2,879.00 | 2,488.00 |
| 2012-06-30 | 6,244.00 | 2,894.00 | 2,346.00 |
- Cardinal Health's level of debt (149.7%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (59.7% vs 149.7% today).
- Debt is well covered by operating cash flow (22.6%, greater than 20% of total debt).
- Cardinal Health is making a loss, therefore interest payments are not well covered by earnings.
Financial health checks
We assess Cardinal Health's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Cardinal Health has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Cardinal Health's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Cardinal Health
shares you are expected to receive
$83
in your first year as a dividend.
Dividend Amount
- Cardinal Health's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
- Cardinal Health's dividend is above the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 16 Analyst Estimates (S&P Global) | See Below |
| United States of America Healthcare Industry Average Dividend Yield | Market Cap Weighted Average of 21 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2008 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-06-30 | ||
| 2022-06-30 | ||
| 2021-06-30 | 2.16 | 5.00 |
| 2020-06-30 | 2.03 | 9.00 |
| 2019-06-30 | 1.95 | 9.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-07 | 1.905 | 3.822 |
| 2018-08-08 | 1.905 | 3.726 |
| 2018-05-09 | 1.905 | 3.683 |
| 2018-02-07 | 1.850 | 2.867 |
| 2017-11-08 | 1.850 | 2.924 |
| 2017-08-09 | 1.850 | 2.806 |
| 2017-05-03 | 1.850 | 2.467 |
| 2017-02-02 | 1.796 | 2.268 |
| 2016-11-03 | 1.796 | 2.482 |
| 2016-08-08 | 1.796 | 2.322 |
| 2016-05-04 | 1.796 | 2.263 |
| 2016-02-02 | 1.548 | 1.895 |
| 2015-11-04 | 1.548 | 1.808 |
| 2015-08-06 | 1.548 | 1.896 |
| 2015-05-06 | 1.548 | 1.787 |
| 2015-02-03 | 1.370 | 1.552 |
| 2014-11-05 | 1.370 | 1.681 |
| 2014-08-06 | 1.370 | 1.833 |
| 2014-05-07 | 1.370 | 1.978 |
| 2014-02-05 | 1.210 | 1.741 |
| 2013-11-06 | 1.210 | 1.839 |
| 2013-08-07 | 1.210 | 2.274 |
| 2013-05-02 | 1.210 | 2.519 |
| 2013-02-06 | 1.100 | 2.482 |
| 2012-08-08 | 0.950 | 2.327 |
| 2012-05-02 | 0.950 | 2.270 |
| 2012-02-08 | 0.860 | 2.058 |
| 2011-11-02 | 0.860 | 2.054 |
| 2011-08-03 | 0.860 | 2.063 |
| 2011-05-04 | 0.860 | 1.920 |
| 2011-02-01 | 0.780 | 1.869 |
| 2010-11-03 | 0.780 | 2.058 |
| 2010-08-04 | 0.780 | 2.414 |
| 2010-05-05 | 0.780 | 2.276 |
| 2010-02-03 | 0.700 | 2.002 |
| 2009-11-04 | 0.700 | 2.185 |
| 2009-08-05 | 0.700 | 2.411 |
| 2009-05-06 | 0.700 | 2.172 |
| 2009-04-24 | 0.560 | 1.629 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Cardinal Health's earnings are
paid
to the shareholders as a dividend.
- The company is paying a dividend however it is incurring a loss.
- Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
Income/ dividend checks
We assess Cardinal Health's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Cardinal Health afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Cardinal Health has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $8,423,580 |
| AGE | 55 |
| TENURE AS CEO | 1.3 years |
CEO Bio
Mr. Michael C. Kaufmann, also known as Mike, has been the Chief Executive Officer and Director of Cardinal Health, Inc. since January 1, 2018. Mr. Kaufmann served as the Chief Financial Officer at Cardinal Health, Inc. from November 11, 2014 to January 1, 2018. Mr. Kaufmann served as the Chief Executive Officer of Pharmaceutical Segment at Cardinal Health, Inc. from August 31, 2009 to November 11, 2014. Mr. Kaufmann served as the Group President of Healthcare Supply Chain Services for Pharmaceutical Segment of Cardinal Health since March 2008. He served as the Group President of Healthcare Supply Chain Services of Medical of Cardinal Health Inc. since April 2008 until August 2009 and also served as its Group President of Healthcare Supply Chain Services since February 19, 2007. Mr. Kaufmann served as an Executive Vice President of Finance and Chief Financial Officer of Healthcare Supply Chain Services at Cardinal Health Inc. He has been with Healthcare Supply Chain Services of Cardinal Health Inc., for 17 years and served in positions of increasing responsibility in general management and finance, including leading Cardinal Health's pharmaceutical repackaging business, sales and marketing for retail pharmaceutical distribution and pharmaceutical procurement. He worked with Arthur Andersen. Mr. Kaufmann has been a Director of National Association of Chain Drug Stores since April 2009. He has been an Independent Director at MSC Industrial Direct Co. Inc. since September 24, 2015. He serves as a Director of The Healthcare Distribution Management Association. He is a Certified Public Accountant from Americas Institute of Certified Public Accountant. Mr. Kaufmann graduated from Ohio Northern University with a Degree in Accounting and Management/Bachelor's degree in Business Administration.
CEO Compensation
- Mike's compensation has increased whilst company is loss making.
- Mike's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Cardinal Health management team in years:
- The average tenure for the Cardinal Health management team is less than 2 years, this suggests a new team.
Management Team
Mike Kaufmann
CEO & Director
$8M
55
1.3 yrs
Jorge Gomez
Chief Financial Officer
$2M
50
1.3 yrs
Jon Giacomin
Chief Executive Officer of Medical Segment
$5M
53
4.4 yrs
Stuart Laws
Senior VP & Chief Accounting Officer
55
11.8 yrs
Brian Rice
Chief Information Officer
55
0.2 yrs
Lisa Capodici
Vice President of Investor Relations
Jessica Mayer
Chief Legal & Compliance Officer
0.3 yrs
Michele A. Holcomb
Executive Vice President of Strategy & Corporate Development
50
2.3 yrs
Robert Rajalingam
Senior Vice President of Strategic Accounts & Enterprise Marketing
Ola Snow
Chief Human Resources Officer
0.5 yrs
Board of Directors Tenure
Average tenure and age of the Cardinal Health board of directors in years:
- The tenure for the Cardinal Health board of directors is about average.
Board of Directors
Gregory Kenny
Non-Executive Chairman
$327K
65
0.4 yrs
Mike Kaufmann
CEO & Director
$8M
55
1.3 yrs
Mike Losh
Independent Director
$21K
72
0.3 yrs
Carrie Cox
Independent Director
$264K
60
9.3 yrs
Calvin Darden
Independent Director
$267K
68
13.4 yrs
Colleen Arnold
Independent Director
$260K
61
11.7 yrs
Bruce Downey
Independent Director
$269K
71
9.7 yrs
Pat Hemingway Hall
Independent Director
$260K
65
5.6 yrs
Nancy Killefer
Independent Director
$260K
64
3.6 yrs
Akhil Johri
Director
$40K
57
1.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 13. Nov 18 | Sell | Stuart Laws | Individual | 12. Nov 18 | 13. Nov 18 | -804 | $56.05 | $-44,662 | ||
| 21. Aug 18 | Sell | Jon Giacomin | Individual | 20. Aug 18 | 20. Aug 18 | -2,890 | $51.95 | $-150,136 | ||
Management checks
We assess Cardinal Health's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Cardinal Health has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Imagine Owning Cardinal Health (NYSE:CAH) And Wondering If The 38% Share Price Slide Is Justified
(NYSE:CAH) shareholders have had that experience, with the share price dropping 38% in three years, versus a market return of about 49%. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over the three years that the share price declined, Cardinal Health's earnings per share (EPS) dropped significantly, falling to a loss.
Simply Wall St - – Full articleWhy Income Investors Should Have Cardinal Health, Inc. (NYSE:CAH) In Their Portfolio
Over the past 10 years, the US$15b market cap company has been growing its dividend payments, from $0.56 to $1.91. … Currently yielding 3.8%, let's take a closer look at Cardinal Health's dividend profile. … View our latest analysis for Cardinal Health?
Simply Wall St - – Full articleWhy We’re Not Impressed By Cardinal Health, Inc.’s (NYSE:CAH) 11% ROCE
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.
Simply Wall St - – Full articleDon't Sell Cardinal Health, Inc. (NYSE:CAH) Before You Read This
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … How Do I Calculate Cardinal Health's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWith A Return On Equity Of 12%, Has Cardinal Health, Inc.'s (NYSE:CAH) Management Done Well?
By way of learning-by-doing, we'll look at ROE to gain a better understanding of Cardinal Health, Inc. … Our data shows Cardinal Health has a return on equity of 12% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhat Is Cardinal Health Inc's (NYSE:CAH) Share Price Doing?
Cardinal Health Inc (NYSE:CAH). … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s examine Cardinal Health’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Simply Wall St - – Full articleHow Does Cardinal Health Inc (NYSE:CAH) Fare As A Dividend Stock?
Over the past 10 years Cardinal Health Inc (NYSE:CAH) has been paying dividends to shareholders. … Let's dig deeper into whether Cardinal Health should have a place in your portfolio. … See our latest analysis for Cardinal Health
Simply Wall St - – Full articleWhy We Think Cardinal Health Inc (NYSE:CAH) Could Be Worth Looking At
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Cardinal Health Inc (NYSE:CAH) due to its excellent fundamentals in more than one area. … that has been able to sustain great financial health over the past
Simply Wall St - – Full articleIs There An Opportunity With Cardinal Health Inc's (NYSE:CAH) 38.05% Undervaluation?
by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model
Simply Wall St - – Full articleIs Cardinal Health Inc (NYSE:CAH) Undervalued?
saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $55.16 and falling to the lows of $48.4. … A question to answer is whether Cardinal Health's current trading price of $51.9 reflective of the actual value of the? … Let’s take a look at Cardinal Health’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleCompany Info
Description
Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States and internationally. It provides medical products and pharmaceuticals, and solutions that enhance supply chain efficiency for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, and physician offices. The company operates through two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. It also provides services to support the development, marketing, and distribution of specialty pharmaceutical products, as well as pharmacy management, and medication therapy management and patient outcomes services to hospitals, other healthcare providers, and payers; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; and repackages generic pharmaceuticals and over-the-counter healthcare products. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products. It also distributes a range of national brand products; and medical products to patients’ homes, as well as provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers. Cardinal Health, Inc. was founded in 1979 and is headquartered in Dublin, Ohio.
Details
| Name: | Cardinal Health, Inc. |
| CAH | |
| Exchange: | NYSE |
| Founded: | 1979 |
| $13,732,607,370 | |
| 298,016,653 | |
| Website: | http://www.cardinalhealth.com |
| Address: |
Cardinal Health, Inc. 7000 Cardinal Place, Dublin, Ohio, 43017, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | CAH | Class A Common Shares | New York Stock Exchange | US | USD | 04. Aug 1983 | |
| DB | CLH | Class A Common Shares | Deutsche Boerse AG | DE | EUR | 04. Aug 1983 | |
| LSE | 0HTG | Class A Common Shares | London Stock Exchange | GB | USD | 04. Aug 1983 | |
| BMV | CAH * | Class A Common Shares | Bolsa Mexicana de Valores | MX | MXN | 04. Aug 1983 |
Number of employees
Current staff
Industry
| Health Care Distributors | |
| Healthcare |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/23 23:33 |
| End of day share price update: | 2019/04/23 00:00 |
| Last estimates confirmation: | 2019/04/23 |
| Last earnings filing: | 2019/02/07 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/06/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
