| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 1/6 |
| Financial Health | 4/6 |
| Dividends | 5/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$52.57 |
| 52 Week High | US$44.65 |
| 52 Week Low | US$62.96 |
| Beta | 1.05 |
| 1 Month Change | 2.02% |
| 3 Month Change | -6.21% |
| 1 Year Change | 10.26% |
| 3 Year Change | -4.31% |
| 5 Year Change | -32.31% |
| Change since IPO | 1,328.99% |
Recent News & Updates
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.
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...
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
| CAH | US Healthcare | US Market | |
|---|---|---|---|
| 7D | -0.5% | 2.4% | -0.6% |
| 1Y | 10.3% | 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
| CAH volatility | |
|---|---|
| CAH Beta | 1.05 |
| Industry Beta | 0.87 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1979 | 46,827 | Mike Kaufmann | https://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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 00:47 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.