Cardinal Health
Market Cap
US$16.5b
Last Updated
2020/06/04 02:22 UTC
Data Sources
Company Financials +
Executive Summary
Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential average dividend payer.
Similar Companies
Share Price & News
How has Cardinal Health's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CAH's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.1%
CAH
1.7%
US Healthcare
2.4%
US Market
1 Year Return
32.3%
CAH
20.6%
US Healthcare
9.2%
US Market
Return vs Industry: CAH exceeded the US Healthcare industry which returned 21.3% over the past year.
Return vs Market: CAH exceeded the US Market which returned 9.3% over the past year.
Shareholder returns
| CAH | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.1% | 1.7% | 2.4% |
| 30 Day | 19.3% | 8.8% | 10.2% |
| 90 Day | 10.4% | 4.8% | 3.4% |
| 1 Year | 37.7%32.3% | 22.2%20.6% | 11.6%9.2% |
| 3 Year | -15.4%-24.0% | 36.9%30.8% | 33.7%24.9% |
| 5 Year | -26.7%-36.9% | 46.4%36.4% | 59.7%41.8% |
Price Volatility Vs. Market
How volatile is Cardinal Health's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Here's Why Cardinal Health (NYSE:CAH) Has A Meaningful Debt Burden2 months ago | Simply Wall St
Dividend Investors: Don't Be Too Quick To Buy Cardinal Health, Inc. (NYSE:CAH) For Its Upcoming Dividend2 months ago | Simply Wall St
Does Cardinal Health, Inc. (NYSE:CAH) Have A Place In Your Dividend Portfolio?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 ($55.77) is trading below our estimate of fair value ($124.31)
Significantly Below Fair Value: CAH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CAH is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.
PE vs Market: CAH is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CAH's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CAH is overvalued based on its PB Ratio (13.5x) compared to the US Healthcare industry average (2.8x).
Next Steps
Future Growth
How is Cardinal Health forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
65.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: CAH is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: CAH's is expected to become profitable in the next 3 years.
Revenue vs Market: CAH's revenue (4.1% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: CAH's revenue (4.1% 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 (97.4%).
Next Steps
Past Performance
How has Cardinal Health performed over the past 5 years?
-55.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CAH is currently unprofitable.
Growing Profit Margin: CAH is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CAH is unprofitable, and losses have increased over the past 5 years at a rate of -55.3% per year.
Accelerating Growth: Unable to compare CAH's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CAH is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (10.5%).
Return on Equity
High ROE: CAH has a negative Return on Equity (-344.53%), as it is currently unprofitable.
Next Steps
Financial Health
How is Cardinal Health's financial position?
Financial Position Analysis
Short Term Liabilities: CAH's short term assets ($25.8B) exceed its short term liabilities ($24.7B).
Long Term Liabilities: CAH's short term assets ($25.8B) exceed its long term liabilities ($15.3B).
Debt to Equity History and Analysis
Debt Level: CAH's debt to equity ratio (601%) is considered high.
Reducing Debt: CAH's debt to equity ratio has increased from 63.4% to 601% over the past 5 years.
Debt Coverage: CAH's debt is well covered by operating cash flow (30.7%).
Interest Coverage: CAH is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Cardinal Health's current dividend yield, its reliability and sustainability?
3.43%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: CAH's dividend (3.49%) is higher than the bottom 25% of dividend payers in the US market (1.69%).
High Dividend: CAH's dividend (3.49%) is low compared to the top 25% of dividend payers in the US market (4.55%).
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: CAH is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: CAH's dividends in 3 years are forecast to be well covered by earnings (39.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Mike Kaufmann (56yo)
2.42yrs
Tenure
US$15,571,004
Compensation
Mr. Michael C. Kaufmann, also known as Mike, has been the Chief Executive Officer and Director of Cardinal Health, Inc. since January 1, 2018. Mr. Kaufmann served as the Chief Financial Officer at Cardinal ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD15.57M) is above average for companies of similar size in the US market ($USD11.64M).
Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.42yrs | US$15.57m | 0.063% $10.3m | |
| Chief Legal & Compliance Officer | 1.25yrs | US$2.97m | 0.011% $1.8m | |
| Chief Executive Officer of Pharmaceutical Segment | 1.58yrs | US$6.73m | 0.016% $2.7m | |
| Chief Financial Officer | 0.083yr | no data | 0.0070% $1.2m | |
| Senior VP & Chief Accounting Officer | 13yrs | no data | 0.0016% $261.2k | |
| Chief Information Officer | 1.33yrs | no data | 0.0071% $1.2m | |
| Vice President of Investor Relations | 0.75yr | no data | no data | |
| Executive Vice President of Strategy & Corporate Development | 3.42yrs | no data | 0.0032% $529.0k | |
| Chief Human Resources Officer | 1.67yrs | no data | 0.0096% $1.6m | |
| Executive Vice President of Global Sourcing | no data | no data | no data |
1.6yrs
Average Tenure
54yo
Average Age
Experienced Management: CAH's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.42yrs | US$15.57m | 0.063% $10.3m | |
| Independent Director | 14.58yrs | US$288.25k | 0.00039% $64.5k | |
| Independent Director | 10.5yrs | US$301.24k | 0.00015% $24.8k | |
| Independent Director | 10.83yrs | US$303.25k | 0.0037% $603.4k | |
| Independent Non-Executive Chairman | 1.58yrs | US$504.95k | no data | |
| Independent Director | 1.5yrs | US$238.98k | no data | |
| Independent Director | 6.75yrs | US$287.99k | 0.0015% $243.0k | |
| Independent Director | 12.83yrs | US$278.25k | no data | |
| Independent Director | 4.75yrs | US$278.25k | no data | |
| Independent Director | 2.33yrs | US$397.83k | no data |
5.8yrs
Average Tenure
66yo
Average Age
Experienced Board: CAH's board of directors are considered experienced (5.8 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Cardinal Health, Inc.'s company bio, 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$16.532b
- Shares outstanding: 291.99m
- Website: https://www.cardinalhealth.com
Number of Employees
Location
- Cardinal Health, Inc.
- 7000 Cardinal Place
- Dublin
- Ohio
- 43017
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CAH | NYSE (New York Stock Exchange) | Yes | Class A Common Shares | US | USD | Aug 1983 |
| CLH | DB (Deutsche Boerse AG) | Yes | Class A Common Shares | DE | EUR | Aug 1983 |
| CAH * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Shares | MX | MXN | Aug 1983 |
| 0HTG | LSE (London Stock Exchange) | Yes | Class A Common Shares | GB | USD | Aug 1983 |
| C1AH34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM NPV | BR | BRL | Jan 2020 |
Biography
Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States and internationally. It provides customized solutions 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 pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; and offers pharmacy management services to hospitals, as well as medication therapy management and patient outcomes services to hospitals, other healthcare providers, and payers. In addition, this segment 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 provides incontinence, wound care, enteral feeding, urology, operating room supply, electrode and needle, syringe, and sharps disposal products. In addition, this segment distributes a range of national brand products, including medical, surgical, and laboratory products; and 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/04 02:22 |
| End of Day Share Price | 2020/06/03 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/06/30 |
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.