Cardinal Health
Market Cap
US$14.8b
Last Updated
2019/10/22 23:32 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.
Snowflake
Fundamentals
6 star dividend payer and good value.
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
Market Performance
7 Day Return
5.9%
CAH
3.9%
US Healthcare
0.07%
US Market
1 Year Return
-2.1%
CAH
-6.7%
US Healthcare
8.9%
US Market
Return vs Industry: CAH exceeded the US Healthcare industry which returned -6.7% over the past year.
Return vs Market: CAH underperformed the US Market which returned 8.9% over the past year.
Shareholder returns
| CAH | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.9% | 3.9% | 0.07% |
| 30 Day | 6.0% | 3.5% | -0.3% |
| 90 Day | 13.4% | -0.05% | -1.6% |
| 1 Year | 2.0%-2.1% | -5.1%-6.7% | 11.3%8.9% |
| 3 Year | -25.2%-32.3% | 37.0%30.6% | 46.3%36.8% |
| 5 Year | -25.8%-35.4% | 61.3%50.4% | 62.1%44.3% |
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
3 days ago | Simply Wall St
If You Had Bought Cardinal Health (NYSE:CAH) Stock Five Years Ago, You'd Be Sitting On A 33% Loss, Today2 weeks ago | Simply Wall St
Is Cardinal Health (NYSE:CAH) A Risky Investment?4 weeks ago | Simply Wall St
Is It Smart To Buy Cardinal Health, Inc. (NYSE:CAH) Before It Goes Ex-Dividend?Valuation
Is Cardinal Health undervalued compared to its fair value and its price relative to the market?
28.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CAH ($50.74) is trading below our estimate of fair value ($70.73)
Significantly Below Fair Value: CAH is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CAH is good value based on its PE Ratio (11.2x) compared to the Healthcare industry average (21x).
PE vs Market: CAH is good value based on its PE Ratio (11.2x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: CAH is poor value based on its PEG Ratio (9.2x)
Price to Book Ratio
PB vs Industry: CAH is good value based on its PB Ratio (2.4x) compared to the US Healthcare industry average (2.5x).
Next Steps
Future Growth
How is Cardinal Health forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
1.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAH's forecast earnings growth (1.2% per year) is below the savings rate (2.7%).
Earnings vs Market: CAH's earnings (1.2% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: CAH's earnings are forecast to grow, but not significantly.
Revenue vs Market: CAH's revenue (3.9% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: CAH's revenue (3.9% 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 high in 3 years time (23.3%)
Next Steps
Past Performance
How has Cardinal Health performed over the past 5 years?
-10.7%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: CAH's earnings have declined by -10.7% per year over the past 5 years.
Accelerating Growth: CAH's earnings growth over the past year (432.4%) exceeds its 5-year average (-10.7% per year).
Earnings vs Industry: CAH earnings growth over the past year (432.4%) exceeded the Healthcare industry 5.6%.
Return on Equity
High ROE: Whilst CAH's Return on Equity (21.56%) is high, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: CAH's Return on Assets is below or equal to the Healthcare industry average last year.
Return on Capital Employed
ROCE Improving: CAH's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Cardinal Health's financial position?
Financial Position Analysis
Short Term Liabilities: CAH's short term assets ($25.7B) exceeds its short term liabilities ($24.1B)
Long Term Liabilities: CAH's short term assets (25.7B) exceeds its long term liabilities (10.5B)
Debt to Equity History and Analysis
Debt Level: CAH's debt to equity ratio (126.9%) is considered high
Reducing Debt: CAH's debt to equity ratio has increased from 62.2% to 126.9% over the past 5 years.
Debt Coverage: CAH's debt is well covered by operating cash flow (33.9%).
Interest Coverage: CAH's interest payments on its debt are well covered by EBIT (6.1x coverage).
Balance Sheet
Inventory Level: CAH has a high level of physical assets or inventory.
Debt Coverage by Assets: CAH's debt is covered by short term assets (assets are 3.206350x debt).
Next Steps
Dividend
What is Cardinal Health's current dividend yield, its reliability and sustainability?
3.79%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: CAH's dividend (3.79%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: CAH's dividend (3.79%) is in the top 25% of dividend payers in the US market (3.68%)
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 (42%), 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 (42% payout ratio).
Next Steps
Management
What is the CEO of Cardinal Health's salary, the management and board of directors tenure and is there insider trading?
1.0yrs
Average management tenure
CEO
Mike Kaufmann (56yo)
1.8yrs
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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.
Management Age and Tenure
1.0yrs
Average Tenure
56yo
Average Age
Experienced Management: CAH's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Age and Tenure
5.1yrs
Average Tenure
65.5yo
Average Age
Experienced Board: CAH's board of directors are considered experienced (5.1 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Accounting Officer Senior VP & Chief Accounting Officer |
| Shares | 804 |
| Max Price | US$56.05 |
Ownership Breakdown
Management Team
Victor Crawford (57yo)
Chief Executive Officer of Pharmaceutical Segment
- Tenure: 0.9yrs
- Compensation: US$6.73m
Dave Evans (56yo)
Interim Chief Financial Officer
- Tenure: 0.08yrs
Mike Kaufmann (56yo)
CEO & Director
- Tenure: 1.8yrs
- Compensation: US$15.57m
Stuart Laws (56yo)
Senior VP & Chief Accounting Officer
- Tenure: 12.3yrs
Brian Rice (56yo)
Chief Information Officer
- Tenure: 0.7yrs
Ola Snow (52yo)
Chief Human Resources Officer
- Tenure: 1yrs
Jessica Mayer (50yo)
Chief Legal & Compliance Officer
- Tenure: 0.6yrs
- Compensation: US$2.97m
Michele A. Holcomb (51yo)
Executive Vice President of Strategy & Corporate Development
- Tenure: 2.8yrs
Lisa Capodici
Vice President of Investor Relations
- Tenure: 0yrs
Robert Rajalingam
Senior Vice President of Strategic Accounts & Enterprise Marketing
- Tenure: 0yrs
Board Members
Calvin Darden (69yo)
Independent Director
- Tenure: 13.9yrs
- Compensation: US$288.25k
Carrie Cox (61yo)
Independent Director
- Tenure: 9.8yrs
- Compensation: US$301.24k
Bruce Downey (72yo)
Independent Director
- Tenure: 10.2yrs
- Compensation: US$303.25k
Gregory Kenny (66yo)
Non-Executive Chairman
- Tenure: 0.9yrs
- Compensation: US$504.95k
Mike Losh (73yo)
Independent Director
- Tenure: 0.8yrs
- Compensation: US$238.98k
Pat Hemingway Hall (66yo)
Independent Director
- Tenure: 6.1yrs
- Compensation: US$287.99k
Mike Kaufmann (56yo)
CEO & Director
- Tenure: 1.8yrs
- Compensation: US$15.57m
Colleen Arnold (62yo)
Independent Director
- Tenure: 12.2yrs
- Compensation: US$278.25k
Nancy Killefer (65yo)
Independent Director
- Tenure: 4.1yrs
- Compensation: US$278.25k
Akhil Johri (58yo)
Independent Director
- Tenure: 1.7yrs
- Compensation: US$397.83k
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$14.837b
- Shares outstanding: 292.40m
- 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 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/22 23:32 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/06/30 |
| 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.