CAH

Cardinal HealthNYSE:CAH Stock Report

Market Cap

US$15.3b

7D

-0.5%

1Y

10.3%

Updated

18 Sep, 2021

Data

Company Financials +
CAH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance1/6
Financial Health4/6
Dividends5/6

CAH Overview

Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States, Canada, Europe, Asia, and internationally.

Cardinal Health Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cardinal Health
Historical stock prices
Current Share PriceUS$52.57
52 Week HighUS$44.65
52 Week LowUS$62.96
Beta1.05
1 Month Change2.02%
3 Month Change-6.21%
1 Year Change10.26%
3 Year Change-4.31%
5 Year Change-32.31%
Change since IPO1,328.99%

Recent News & Updates

Sep 08

Why Cardinal Health Is A Dividend Champion

CAH stock faltered after posting Q4/2021 results. Stock trades at a ~20% discount to fair value. Company is in transition.

Aug 21
These 4 Measures Indicate That Cardinal Health (NYSE:CAH) Is Using Debt Extensively

These 4 Measures Indicate That Cardinal Health (NYSE:CAH) Is Using Debt Extensively

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Aug 20

Cardinal Health: A Solid Business Got Even Cheaper

Cardinal Health reported mixed quarterly results and missed analysts’ expectations causing a steep drop for its share price. With a stable balance sheet, that is improving and close to a settlement about the opioid lawsuits, we can expect more consistency of Cardinal Health in the years to come. And even when assuming low growth rates, the stock is clearly undervalued.

Shareholder Returns

CAHUS HealthcareUS Market
7D-0.5%2.4%-0.6%
1Y10.3%33.0%33.8%

Return vs Industry: CAH underperformed the US Healthcare industry which returned 32.7% over the past year.

Return vs Market: CAH underperformed the US Market which returned 33.6% over the past year.

Price Volatility

Is CAH's price volatile compared to industry and market?
CAH volatility
CAH Beta1.05
Industry Beta0.87
Market Beta1

Stable Share Price: CAH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CAH's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197946,827Mike Kaufmannhttps://www.cardinalhealth.com

Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical.

Valuation

Is Cardinal Health undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAH ($52.57) is trading below our estimate of fair value ($152.81)

Significantly Below Fair Value: CAH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CAH is poor value based on its PE Ratio (25x) compared to the US Healthcare industry average (22.6x).

PE vs Market: CAH is poor value based on its PE Ratio (25x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CAH is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: CAH is overvalued based on its PB Ratio (8.5x) compared to the US Healthcare industry average (3.4x).


Future Growth

How is Cardinal Health forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAH's forecast earnings growth (10.1% per year) is above the savings rate (2%).

Earnings vs Market: CAH's earnings (10.1% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: CAH's earnings are forecast to grow, but not significantly.

Revenue vs Market: CAH's revenue (4.9% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: CAH's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CAH's Return on Equity is forecast to be very high in 3 years time (80.7%).


Past Performance

How has Cardinal Health performed over the past 5 years?

-34.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAH has a large one-off loss of $1.5B impacting its June 30 2021 financial results.

Growing Profit Margin: CAH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CAH's earnings have declined by 34.8% per year over the past 5 years.

Accelerating Growth: CAH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CAH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (32.2%).


Return on Equity

High ROE: Whilst CAH's Return on Equity (34.11%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Cardinal Health's financial position?


Financial Position Analysis

Short Term Liabilities: CAH's short term assets ($31.0B) exceed its short term liabilities ($27.6B).

Long Term Liabilities: CAH's short term assets ($31.0B) exceed its long term liabilities ($15.0B).


Debt to Equity History and Analysis

Debt Level: CAH's debt to equity ratio (344%) is considered high.

Reducing Debt: CAH's debt to equity ratio has increased from 83% to 344% over the past 5 years.

Debt Coverage: CAH's debt is well covered by operating cash flow (39.4%).

Interest Coverage: CAH's interest payments on its debt are well covered by EBIT (11.1x coverage).


Balance Sheet


Dividend

What is Cardinal Health current dividend yield, its reliability and sustainability?

3.73%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 18 2021Ex Dividend DateSep 30 2021Dividend Pay DateOct 15 202115 days from Ex DividendBuy in the next 11 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CAH's dividend (3.73%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: CAH's dividend (3.73%) is in the top 25% of dividend payers in the US market (3.6%)


Stability and Growth of Payments

Stable Dividend: CAH's dividends per share have been stable in the past 10 years.

Growing Dividend: CAH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93.1%), CAH's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CAH's dividends in 3 years are forecast to be well covered by earnings (31.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Mike Kaufmann (58 yo)

3.67yrs

Tenure

US$14,217,127

Compensation

Mr. Michael C. Kaufmann, also known as Mike, serves as Chief Executive Officer and Director of Cardinal Health, Inc. since January 1, 2018. Mr. Kaufmann served as the Chief Financial Officer at Cardinal He...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD14.22M) is about average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CAH's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: CAH's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cardinal Health, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Cardinal Health, Inc.
  • Ticker: CAH
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: US$15.269b
  • Shares outstanding: 290.44m
  • Website: https://www.cardinalhealth.com

Number of Employees


Location

  • Cardinal Health, Inc.
  • 7000 Cardinal Place
  • Dublin
  • Ohio
  • 43017
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 00:47
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.