NYSE:CAH

Stock Analysis Report

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Executive Summary

Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States and internationally. More Details


Snowflake Analysis

Established dividend payer with adequate balance sheet.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CAH's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

3.8%

CAH

3.4%

US Healthcare

-0.4%

US Market


1 Year Return

4.3%

CAH

21.6%

US Healthcare

36.2%

US Market

Return vs Industry: CAH underperformed the US Healthcare industry which returned 21.6% over the past year.

Return vs Market: CAH underperformed the US Market which returned 36.2% over the past year.


Shareholder returns

CAHIndustryMarket
7 Day3.8%3.4%-0.4%
30 Day-1.4%2.7%-2.9%
90 Day-3.4%1.7%5.0%
1 Year8.5%4.3%23.2%21.6%39.1%36.2%
3 Year-15.6%-24.8%41.8%36.1%48.4%39.0%
5 Year-24.9%-36.2%80.1%67.0%116.5%92.4%

Long-Term 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

Valuation

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

11.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CAH ($53.49) is trading above our estimate of fair value ($45.29)

Significantly Below Fair Value: CAH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CAH is good value based on its PE Ratio (11.3x) compared to the US Healthcare industry average (23.3x).

PE vs Market: CAH is good value based on its PE Ratio (11.3x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: CAH is poor value based on its PEG Ratio (18.3x)


Price to Book Ratio

PB vs Industry: CAH is overvalued based on its PB Ratio (8x) compared to the US Healthcare industry average (3.3x).


Next Steps

Future Growth

How is Cardinal Health forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAH's forecast earnings growth (0.6% per year) is below the savings rate (2%).

Earnings vs Market: CAH's earnings (0.6% per year) are forecast to grow slower than the US market (19.2% per year).

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

Revenue vs Market: CAH's revenue (4.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CAH's revenue (4.5% 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 (63.5%).


Next Steps

Past Performance

How has Cardinal Health performed over the past 5 years?

-47.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAH has a large one-off loss of $659.0M impacting its December 31 2020 financial results.

Growing Profit Margin: CAH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CAH's earnings have declined by 47.1% 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 (16.5%).


Return on Equity

High ROE: Whilst CAH's Return on Equity (70.13%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Cardinal Health's financial position?


Financial Position Analysis

Short Term Liabilities: CAH's short term assets ($30.1B) exceed its short term liabilities ($25.8B).

Long Term Liabilities: CAH's short term assets ($30.1B) exceed its long term liabilities ($17.0B).


Debt to Equity History and Analysis

Debt Level: CAH's debt to equity ratio (316.7%) is considered high.

Reducing Debt: CAH's debt to equity ratio has increased from 80.7% to 316.7% over the past 5 years.

Debt Coverage: CAH's debt is well covered by operating cash flow (54.4%).

Interest Coverage: CAH's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.63%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CAH's dividend (3.63%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: CAH's dividend (3.63%) is low compared to the top 25% of dividend payers in the US market (3.64%).


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 reasonably low payout ratio (41%), CAH's dividend payments are 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 (29.9% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Mike Kaufmann (57 yo)

3.17yrs

Tenure

US$14,217,127

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 ($USD14.22M) is above average for companies of similar size in the US market ($USD10.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Kaufmann
CEO & Director3.17yrsUS$14.22m0.082%
$ 12.8m
Jason Hollar
Chief Financial Officer0.83yrUS$4.10mno data
Jessica Mayer
Chief Legal & Compliance Officer2yrsUS$2.91m0.0043%
$ 675.5k
Stephen Mason
Chief Executive Officer of Medical Segment1.58yrsUS$3.47m0.0052%
$ 816.8k
Victor Crawford
Chief Executive Officer of Pharmaceutical Segment2.33yrsUS$4.46m0.0049%
$ 776.0k
Patricia English
Senior VP & Chief Accounting Officer0.50yrno data0.0021%
$ 325.2k
Brian Rice
Chief Information Officer2.08yrsno data0.0027%
$ 424.1k
Kevin Moran
Vice President of Investor Relations1.5yrsno datano data
Ola Snow
Chief Human Resources Officer2.42yrsno data0.013%
$ 2.0m
Craig Cowman
Executive Vice President of Global Sourcingno datano datano data
G. Ellis
Senior VP & General Manager of Innovative Delivery Solutionsno datano datano data
Michele A. Holcomb
Executive VP & Chief Strategy and Business Development Officerno datano data0.0050%
$ 787.0k

2.0yrs

Average Tenure

52yo

Average Age

Experienced Management: CAH's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Kaufmann
CEO & Director3.17yrsUS$14.22m0.082%
$ 12.8m
Calvin Darden
Independent Director15.33yrsUS$308.52k0.0026%
$ 413.1k
Carrie Cox
Independent Director11.25yrsUS$328.52k0.00015%
$ 23.6k
Dean Scarborough
Independent Director1.5yrsUS$312.95k0.0014%
$ 218.3k
John Weiland
Independent Director1.5yrsUS$310.95k0.0014%
$ 218.3k
Bruce Downey
Independent Director11.58yrsUS$321.52k0.0036%
$ 570.2k
Gregory Kenny
Independent Non-Executive Chairman2.33yrsUS$558.55kno data
John Losh
Independent Director2.25yrsUS$323.52k0%
$ 0
Patricia Hemingway Hall
Independent Director7.5yrsUS$311.52k0.0037%
$ 582.8k
David Evans
Independent Director0.67yrUS$3.00m0.0011%
$ 179.1k
Nancy Killefer
Independent Director5.5yrsUS$296.52kno data
Akhil Johri
Independent Director3.08yrsUS$296.52kno data

3.1yrs

Average Tenure

66yo

Average Age

Experienced Board: CAH's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CAH insiders have only sold shares 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 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$15.708b
  • Shares outstanding: 293.67m
  • Website: https://www.cardinalhealth.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAHNYSE (New York Stock Exchange)YesClass A Common SharesUSUSDAug 1983
CLHDB (Deutsche Boerse AG)YesClass A Common SharesDEEURAug 1983
CAH *BMV (Bolsa Mexicana de Valores)YesClass A Common SharesMXMXNAug 1983
0HTGLSE (London Stock Exchange)YesClass A Common SharesGBUSDAug 1983
CAHBASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REP 1 NPVARARSSep 2000
C1AH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM NPVBRBRLJan 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, pharma...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 23:27
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.