Cardinal Health
Market Cap
US$15.7b
Last Updated
2021/03/07 23:27 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. More Details
Rewards
Risk Analysis
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
| CAH | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.8% | 3.4% | -0.4% |
| 30 Day | -1.4% | 2.7% | -2.9% |
| 90 Day | -3.4% | 1.7% | 5.0% |
| 1 Year | 8.5%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
3 weeks ago | Simply Wall St
These 4 Measures Indicate That Cardinal Health (NYSE:CAH) Is Using Debt Reasonably Well1 month ago | Simply Wall St
Cardinal Health's (NYSE:CAH) Stock Price Has Reduced 30% In The Past Five Years1 month ago | Simply Wall St
We Think Cardinal Health's (NYSE:CAH) Statutory Profit Might Understate Its Earnings PotentialValuation
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
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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).
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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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.17yrs | US$14.22m | 0.082% $ 12.8m | |
| Chief Financial Officer | 0.83yr | US$4.10m | no data | |
| Chief Legal & Compliance Officer | 2yrs | US$2.91m | 0.0043% $ 675.5k | |
| Chief Executive Officer of Medical Segment | 1.58yrs | US$3.47m | 0.0052% $ 816.8k | |
| Chief Executive Officer of Pharmaceutical Segment | 2.33yrs | US$4.46m | 0.0049% $ 776.0k | |
| Senior VP & Chief Accounting Officer | 0.50yr | no data | 0.0021% $ 325.2k | |
| Chief Information Officer | 2.08yrs | no data | 0.0027% $ 424.1k | |
| Vice President of Investor Relations | 1.5yrs | no data | no data | |
| Chief Human Resources Officer | 2.42yrs | no data | 0.013% $ 2.0m | |
| Executive Vice President of Global Sourcing | no data | no data | no data | |
| Senior VP & General Manager of Innovative Delivery Solutions | no data | no data | no data | |
| Executive VP & Chief Strategy and Business Development Officer | no data | no data | 0.0050% $ 787.0k |
2.0yrs
Average Tenure
52yo
Average Age
Experienced Management: CAH's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.17yrs | US$14.22m | 0.082% $ 12.8m | |
| Independent Director | 15.33yrs | US$308.52k | 0.0026% $ 413.1k | |
| Independent Director | 11.25yrs | US$328.52k | 0.00015% $ 23.6k | |
| Independent Director | 1.5yrs | US$312.95k | 0.0014% $ 218.3k | |
| Independent Director | 1.5yrs | US$310.95k | 0.0014% $ 218.3k | |
| Independent Director | 11.58yrs | US$321.52k | 0.0036% $ 570.2k | |
| Independent Non-Executive Chairman | 2.33yrs | US$558.55k | no data | |
| Independent Director | 2.25yrs | US$323.52k | 0% $ 0 | |
| Independent Director | 7.5yrs | US$311.52k | 0.0037% $ 582.8k | |
| Independent Director | 0.67yr | US$3.00m | 0.0011% $ 179.1k | |
| Independent Director | 5.5yrs | US$296.52k | no data | |
| Independent Director | 3.08yrs | US$296.52k | no 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
| 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 |
| CAH | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 3 REP 1 NPV | AR | ARS | Sep 2000 | |
| C1AH34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM NPV | BR | BRL | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/07 23:27 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.