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CAH

Cardinal Health NYSE:CAH Stock Report

Last Price

US$66.05

Market Cap

US$18.0b

7D

-1.2%

1Y

29.0%

Updated

24 Sep, 2022

Data

Company Financials +
CAH fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends4/6

CAH Stock 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$66.05
52 Week HighUS$72.28
52 Week LowUS$45.85
Beta0.79
1 Month Change-4.41%
3 Month Change21.30%
1 Year Change29.03%
3 Year Change38.85%
5 Year Change-1.30%
Change since IPO1,695.42%

Recent News & Updates

Sep 15

PayrHealth to collaborate with Cardinal Health

PayrHealth said it had collaboration with Cardinal Health (NYSE:CAH) to help specialty physician practices simplify payor contracting and maximize financial performance. The solutions will help practices achieve CAH's financial goals and will focus on rheumatology and ophthalmology practices, with plans to expand to other therapeutic areas in the future. "We look forward to combining our expertise in payor contracting with Cardinal Health's strong network to enable providers to better serve their patients," said Armando Cardoso, CEO at PayrHealth.

Sep 06

Cardinal Health in pact with activist investor Elliot for value creation measures

Healthcare distributor Cardinal Health, Inc. (NYSE:CAH) announced several initiatives for shareholder value creation and changes to the company's board on Tuesday with input from activist investor Elliott Investment Management L.P. Following a corporation agreement with Elliott, CAH has decided to accommodate the fund manager's Global Head of Engagement Steven Barg to the company's board of directors. The changes include the immediate appointment of four new independent directors, including Mr. Barg, to the board. However, with two current board members deciding to end their terms this fall, the CAH board will comprise 13 members. Mr. Barg and the company's Chief Executive Jason Hollar will be part of the board's newly formed Business Review Committee. Business Review Committee will make recommendations to the board after a review of CAH's strategy, portfolio, capital allocation, and operations to maximize the benefits for all stakeholders. More details on additional guidance and the board's conclusions are expected at the company's Investor Day scheduled for 1H 2023. CAH’s deal with Elliot comes at a time when the company shares are trailing the rival McKesson’s (MCK) for the past 12 months, as shown in this graph.

Shareholder Returns

CAHUS HealthcareUS Market
7D-1.2%-3.4%-5.2%
1Y29.0%6.1%-23.1%

Return vs Industry: CAH exceeded the US Healthcare industry which returned 6.1% over the past year.

Return vs Market: CAH exceeded the US Market which returned -23.1% over the past year.

Price Volatility

Is CAH's price volatile compared to industry and market?
CAH volatility
CAH Average Weekly Movement3.5%
Healthcare Industry Average Movement8.2%
Market Average Movement6.9%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.8%

Stable Share Price: CAH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CAH's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197946,035Jason Hollarhttps://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.

Cardinal Health Fundamentals Summary

How do Cardinal Health's earnings and revenue compare to its market cap?
CAH fundamental statistics
Market CapUS$18.00b
Earnings (TTM)-US$933.00m
Revenue (TTM)US$181.36b

0.1x

P/S Ratio

-19.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CAH income statement (TTM)
RevenueUS$181.36b
Cost of RevenueUS$174.82b
Gross ProfitUS$6.55b
Other ExpensesUS$7.48b
Earnings-US$933.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-3.42
Gross Margin3.61%
Net Profit Margin-0.51%
Debt/Equity Ratio-748.7%

How did CAH perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

-59%

Payout Ratio

Does CAH pay a reliable dividends?

See CAH dividend history and benchmarks
When do you need to buy CAH by to receive an upcoming dividend?
Cardinal Health dividend dates
Ex Dividend DateSep 30 2022
Dividend Pay DateOct 15 2022
Days until Ex dividend5 days
Days until Dividend pay date20 days

Does CAH pay a reliable dividends?

See CAH dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is CAH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CAH?

Other financial metrics that can be useful for relative valuation.

CAH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.1x
Enterprise Value/EBITDA8.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does CAH's PS Ratio compare to its peers?

CAH PS Ratio vs Peers
The above table shows the PS ratio for CAH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.4x
ABC AmerisourceBergen
0.1x5.2%US$28.4b
HSIC Henry Schein
0.7x3.4%US$9.2b
MCK McKesson
0.2x4.8%US$49.3b
CVET Covetrus
0.6x6.3%US$2.9b
CAH Cardinal Health
0.1x5.1%US$18.0b

Price-To-Sales vs Peers: CAH is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.4x).


Price to Earnings Ratio vs Industry

How does CAH's PE Ratio compare vs other companies in the US Healthcare Industry?

Price-To-Sales vs Industry: CAH is good value based on its Price-To-Sales Ratio (0.1x) compared to the US Healthcare industry average (1.2x)


Price to Sales Ratio vs Fair Ratio

What is CAH's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CAH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.1x
Fair PS Ratio1x

Price-To-Sales vs Fair Ratio: CAH is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (1x).


Share Price vs Fair Value

What is the Fair Price of CAH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CAH ($66.05) is trading below our estimate of fair value ($166.68)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


29.9%

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 (1.9%).

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 is expected to become profitable in the next 3 years.

Revenue vs Market: CAH's revenue (5.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CAH's revenue (5.1% 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 (4247.1%).


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Past Performance

How has Cardinal Health performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-17.6%

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 17.6% 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 (3.2%).


Return on Equity

High ROE: CAH's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Discover strong past performing companies

Financial Health

How is Cardinal Health's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CAH has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CAH has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CAH has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CAH's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: CAH's debt is well covered by operating cash flow (59.1%).

Interest Coverage: CAH's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.00%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 25 2022Ex Dividend DateSep 30 2022Dividend Pay DateOct 15 202215 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CAH's dividend (3%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: CAH's dividend (3%) is low compared to the top 25% of dividend payers in the US market (4.57%).


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.


Earnings Payout to Shareholders

Earnings Coverage: CAH is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (19.8%), CAH's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.0yrs

Average management tenure


CEO

Jason Hollar (49 yo)

no data

Tenure

US$3,950,860

Compensation

Mr. Jason M. Hollar has been Chief Executive Officer of Cardinal Health, Inc. since September 01, 2022. He serves as Director at Cardinal Health, Inc. from August 11, 2022 and had been Chief Financial Offi...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD3.95M) is below average for companies of similar size in the US market ($USD13.05M).

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


Leadership Team

Experienced Management: CAH's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: CAH's board of directors are considered experienced (4.6 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

NYSE:CAH Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
18 Nov 21SellUS$491,700Ola SnowIndividual10,000US$49.17

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 59.61% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.33%
The Vanguard Group, Inc.
33,604,357$2.2b-0.39%0.05%
10.62%
BlackRock, Inc.
28,946,151$1.9b27.05%0.05%
7.48%
State Street Global Advisors, Inc.
20,370,803$1.3b-6.57%0.07%
4.35%
T. Rowe Price Group, Inc.
11,843,165$782.2m-20.51%0.09%
2.02%
BNY Mellon Asset Management
5,509,885$363.9m2.49%0.08%
1.95%
Geode Capital Management, LLC
5,310,281$350.7m-2.02%0.05%
1.85%
Amundi Asset Management
5,044,068$333.2m879.99%0.1%
1.84%
Invesco Capital Management LLC
5,013,573$331.1m-11.59%0.26%
1.7%
FMR LLC
4,620,396$305.2m-0.4%0.03%
1.29%
Northern Trust Global Investments
3,503,868$231.4m-4.45%0.05%
1.22%
American Century Investment Management Inc
3,325,652$219.7m-29.23%0.16%
1.09%
Norges Bank Investment Management
2,977,510$196.7m0%0.03%
1.07%
Morgan Stanley, Investment Banking and Brokerage Investments
2,926,492$193.3m35.17%0.04%
1.06%
Pzena Investment Management, Inc.
2,895,642$191.3m-2.61%0.59%
1.06%
Millennium Management LLC
2,876,940$190.0m172.93%0.25%
1.03%
Federated Hermes, Inc.
2,808,710$185.5m1.84%0.56%
1%
ProShare Advisors LLC
2,733,764$180.6m-11.76%0.6%
0.99%
UBS Asset Management
2,707,824$178.9m-0.16%0.03%
0.93%
LSV Asset Management
2,524,352$166.7m-0.33%0.34%
0.89%
Dimensional Fund Advisors LP
2,433,653$160.7m-0.81%0.04%
0.88%
Arrowstreet Capital, Limited Partnership
2,406,150$158.9m5.64%0.23%
0.86%
Legal & General Investment Management Limited
2,352,350$155.4m-1.71%0.05%
0.73%
Pacific Investment Management Company LLC
1,997,395$131.9m-3.26%0.62%
0.68%
Charles Schwab Investment Management, Inc.
1,857,154$122.7m-4.15%0.03%
0.68%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
1,851,760$122.3m-12.42%0.04%

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
  • Implied Market Cap: US$17.999b
  • Shares outstanding: 272.51m
  • 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 NPV (USD)ARARSSep 2000
CAHDBASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REP 1 NPV (USD)ARUSDSep 2000
C1AH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM NPVBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.