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Cardinal Health

NYSE:CAH
Snowflake Description

Established dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CAH
NYSE
$14B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

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
-1.4%
NYSE:CAH
-2.8%
US Healthcare
-0.1%
US Market
1 Year Returns
-26.1%
NYSE:CAH
-4.7%
US Healthcare
7.6%
US Market
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.
Price Volatility
CAH
Industry
5yr Volatility vs Market

Value

 Is Cardinal Health undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cardinal Health.

NYSE:CAH Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:CAH
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.

NYSE:CAH DCF 1st Stage: Next 10 year cash flow forecast
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
NYSE:CAH DCF 2nd Stage: Terminal Value
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
NYSE:CAH Total Equity Value
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
NYSE:CAH Discount to Share Price
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
Amount off the current price Cardinal Health is available for.
Intrinsic value
>50%
Share price is $46.08 vs Future cash flow value of $105.3
Current Discount Checks
For Cardinal Health to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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?
Raw Data
NYSE:CAH PE (Price to Earnings) Ratio Data Sources
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.

NYSE:CAH PE (Price to Earnings) Ratio Calculation
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?
Raw Data
NYSE:CAH PEG (Price to Earnings to Growth) Ratio Data Sources
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?
Raw Data
NYSE:CAH PB (Price to Book) Ratio Data Sources
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
NYSE:CAH PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess Cardinal Health's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. 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

 How is Cardinal Health expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

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!
Annual Growth Rate
2.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cardinal Health expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:CAH Future Growth Rates Data Sources
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
Raw Data
NYSE:CAH Analysts Growth Expectations Data Sources
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 numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CAH Future Estimates Data
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
NYSE:CAH Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Cardinal Health's earnings are expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
  • Cardinal Health's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CAH 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.

NYSE:CAH Future Estimates Data
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
NYSE:CAH Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cardinal Health is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Cardinal Health's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Cardinal Health's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Cardinal Health's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cardinal Health Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CAH Past Revenue, Cash Flow and Net Income Data
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.
X
Past performance checks
We assess Cardinal Health's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Cardinal Health's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Cardinal Health Company Filings, last reported 3 months ago.

NYSE:CAH Past Debt and Equity Data
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.
X
Financial health checks
We assess Cardinal Health's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cardinal Health has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
4.13%
Current annual income from Cardinal Health dividends. Estimated to be 4.4% next year.
If you bought $2,000 of Cardinal Health shares you are expected to receive $83 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NYSE:CAH Annualized Past and Future Dividends
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.

NYSE:CAH Future Dividends Estimate Data
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
NYSE:CAH Past Annualized Dividends Data
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.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Cardinal Health's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Cardinal Health's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Kaufmann
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:

1.3
Average Tenure
54
Average Age
  • The average tenure for the Cardinal Health management team is less than 2 years, this suggests a new team.
Management Team

Mike Kaufmann

TITLE
CEO & Director
COMPENSATION
$8M
AGE
55
TENURE
1.3 yrs

Jorge Gomez

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
50
TENURE
1.3 yrs

Jon Giacomin

TITLE
Chief Executive Officer of Medical Segment
COMPENSATION
$5M
AGE
53
TENURE
4.4 yrs

Stuart Laws

TITLE
Senior VP & Chief Accounting Officer
AGE
55
TENURE
11.8 yrs

Brian Rice

TITLE
Chief Information Officer
AGE
55
TENURE
0.2 yrs

Lisa Capodici

TITLE
Vice President of Investor Relations

Jessica Mayer

TITLE
Chief Legal & Compliance Officer
TENURE
0.3 yrs

Michele A. Holcomb

TITLE
Executive Vice President of Strategy & Corporate Development
AGE
50
TENURE
2.3 yrs

Robert Rajalingam

TITLE
Senior Vice President of Strategic Accounts & Enterprise Marketing

Ola Snow

TITLE
Chief Human Resources Officer
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the Cardinal Health board of directors in years:

4.6
Average Tenure
64.5
Average Age
  • The tenure for the Cardinal Health board of directors is about average.
Board of Directors

Gregory Kenny

TITLE
Non-Executive Chairman
COMPENSATION
$327K
AGE
65
TENURE
0.4 yrs

Mike Kaufmann

TITLE
CEO & Director
COMPENSATION
$8M
AGE
55
TENURE
1.3 yrs

Mike Losh

TITLE
Independent Director
COMPENSATION
$21K
AGE
72
TENURE
0.3 yrs

Carrie Cox

TITLE
Independent Director
COMPENSATION
$264K
AGE
60
TENURE
9.3 yrs

Calvin Darden

TITLE
Independent Director
COMPENSATION
$267K
AGE
68
TENURE
13.4 yrs

Colleen Arnold

TITLE
Independent Director
COMPENSATION
$260K
AGE
61
TENURE
11.7 yrs

Bruce Downey

TITLE
Independent Director
COMPENSATION
$269K
AGE
71
TENURE
9.7 yrs

Pat Hemingway Hall

TITLE
Independent Director
COMPENSATION
$260K
AGE
65
TENURE
5.6 yrs

Nancy Killefer

TITLE
Independent Director
COMPENSATION
$260K
AGE
64
TENURE
3.6 yrs

Akhil Johri

TITLE
Director
COMPENSATION
$40K
AGE
57
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) 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
X
Management checks
We assess Cardinal Health's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Why 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 -

Why 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 -

Don'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 -

With 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 -

What 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 -

How 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 -

Why 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 -

Is 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 -

Is 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 -

Company 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
Staff numbers
50,200
Cardinal Health employees.
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.