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CAH

Cardinal Health NYSE:CAH Stock Report

Last Price

US$66.68

Market Cap

US$17.5b

7D

1.0%

1Y

33.3%

Updated

30 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$66.68
52 Week HighUS$72.28
52 Week LowUS$45.85
Beta0.79
1 Month Change-5.71%
3 Month Change25.57%
1 Year Change33.33%
3 Year Change44.74%
5 Year Change1.21%
Change since IPO1,712.54%

Recent News & Updates

Sep 29
Cardinal Health (NYSE:CAH) Is Paying Out A Dividend Of $0.4957

Cardinal Health (NYSE:CAH) Is Paying Out A Dividend Of $0.4957

Cardinal Health, Inc. ( NYSE:CAH ) will pay a dividend of $0.4957 on the 15th of October. This makes the dividend yield...

Sep 26

Cardinal Health: Aristocrat Heading For A Makeover

Summary Under activist pressure, Cardinal Health has changes at the top with a new business review committee put in place for the board of directors. Cardinal Health's mighty pharmaceutical sector outshines its troubled medical business. Fiscal 2023 guidance projects growth in pharmaceuticals offset by lingering challenges in medical. This is my second article focused on Cardinal Health (CAH) after "Cardinal Health: Healthcare Dividend Aristocrat - Second Look" ("Second Look"). Since that time, Cardinal Health has outperformed the S&P 500 by ~200 basis points. In this article I evaluate its likelihood of continuing to outperform. Cardinal Health is replacing its CEO of 5 years with its former CFO Cardinal Health is replacing CEO Mike Kaufmann, a Cardinal Health lifer. Kaufmann joined the company in 1990. In 2018 he transitioned from CFO to CEO. Kaufmann's replacement, Jason Hollar, joined Cardinal as CFO in 2020 and followed the well-worn path from CFO to CEO in 09/01/2022. In its 08/11/2022 release announcing the change, Cardinal Health noted that Hollar had: ...served as Cardinal Health's Chief Financial Officer since May 2020, leading financial activities across the enterprise, including financial strategy, capital deployment, treasury, tax, investor relations, risk management, accounting and reporting. During his tenure, he has helped Cardinal Health prioritize investments in growth businesses, strengthened the balance sheet, and returned capital to shareholders. Apparently the move was the result of activist pressure which had been building around the company. A mere few days after he took over as CEO, on 09/05/2022, Cardinal Health entered into a wide ranging agreement with activist investor Elliott Investment Management L.P. The deal, reported in an 09/05/2022 8-K, gives Elliot significant influence in the company as described with four designated independent directors on a 13-person board. Also noteworthy and likely of key significance in the future direction of the company is the establishment of: ...an advisory Business Review Committee (the "Business Review Committee") to address the matters contemplated by the Cooperation Agreement and the charter of the Business Review Committee. The Committee has three members: Jason M. Hollar, the Business Review Committee's chair and the Chief Executive Officer of the Company, the Investor Designee and Akhil Johri. The Business Review Committee, with the assistance of the Company's legal and financial advisors, will make recommendations to the full Board. Cardinal operates with a bifurcated business model Pharmaceutical Cardinal Health reports its earnings on a fiscal year basis ending 06/30. Accordingly its most recent 10-K is a Q4, 2022 report. In Second Look I explain that Cardinal Health divides its business into two segments, pharmaceutical and medical. Its resilience rests in its pharmaceutical business which is a reliable growth driver. Its medical sector has been problematic as discussed below. Its Q4, 2022 earnings presentation describes its fiscal 2022 pharmaceutical segment results as follows: seekingalpha.com Its outsized revenues of $165 billion, with a low single digit profit margin, are typical for a wholesale distributor model. The wholesale market accounts for some 92% of prescription drugs in the US. AmerisourceBergen (ABC), McKesson Corporation (MCK), and Cardinal make up an oligopoly controlling >90% of this large market. Cardinal is the smallest of the big three drug wholesalers in the US. Although it is the smallest of the big three wholesalers in terms of volume, it holds its own in terms of its share performance over a 1 year time frame but falls behind on a 5 year review. It is this five year metric, plus Cardinal's struggling medical segment, that likely drew attention of Elliot. Medical Cardinal's second segment is its medical sector. As shown by its results' slide from its Q4, 2022 earnings presentation below, fiscal year 2022 was pretty much of a downer: seekingalpha.com While its pharmaceutical sector showed the modest level of profits associated with a wholesale business model, Cardinal's medical segment showed a loss. Such a situation for a mature company reflects a failed business model. Its number one driver in terms of revenue was stated as its divestiture of Cordis. Cordis was a manufacturer and supplier of cardiology and endovascular devices which Cardinal acquired from Johnson & Johnson (JNJ) in 03/2015 in a deal valued at ~$2 billion. The deal closed towards the end of calendar 2015. Cardinal announced its closing in 10/2015 with enthused proclamations of how it would combine with Cardinal's other offerings: ...to offer high-quality, daily-use products; reliable, trackable inventory and logistics; and deep analytic capabilities that will result in a comprehensive offering for the entire episode of care. This multi-dimensional set of solutions will become increasingly important with emerging value-based payment models. Such was the dream. Things did not turn out that way. The reality of combining the businesses turned out to be entirely different. Initially Cardinal put a brave face on the situation, as for example CEO Barrett discussing Cordis during its fiscal Q1, 2018 earnings call: We also had to do some work in that integration with a third-party, which is the partner that sold us the product line. So that requires a lot of interfaces, moving parts and great disciplines. And I think we've, over the course of the year, honed that increasingly. By fiscal Q3, 2018 Cordis issues were no longer tolerable. CEO Kaufmann opened the call as follows: Let me start by saying we recognize that today's results did not meet your expectations or ours. The biggest variable driving these results was some unanticipated disappointing performance from our Cordis business which masked an otherwise better than expected quarter. During 50 subsequent mentions, the Cordis situation was laid bare with all its warts, including: tax issues coordination of inventory with product demand managing international operations

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.

Shareholder Returns

CAHUS HealthcareUS Market
7D1.0%-1.3%-2.5%
1Y33.3%7.6%-23.2%

Return vs Industry: CAH exceeded the US Healthcare industry which returned 9.1% over the past year.

Return vs Market: CAH exceeded the US Market which returned -21.5% over the past year.

Price Volatility

Is CAH's price volatile compared to industry and market?
CAH volatility
CAH Average Weekly Movement3.6%
Healthcare Industry Average Movement8.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
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$17.47b
Earnings (TTM)-US$933.00m
Revenue (TTM)US$181.36b

0.1x

P/S Ratio

-18.7x

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

Nov 04, 2022

Earnings per share (EPS)-3.56
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 dividend1 day
Days until Dividend pay date14 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/EBITDA7.9x
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
0.1x5.1%US$28.0b
HSIC Henry Schein
0.7x3.4%US$9.0b
MCK McKesson
0.2x4.7%US$48.8b
CVET Covetrus
0.6x6.3%US$2.9b
CAH Cardinal Health
0.1x5.1%US$17.5b

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 (1.3x)


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 ($66.68) is trading below our estimate of fair value ($172.58)

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%).


Discover growth companies

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


2.97%

Current Dividend Yield

Dividend Yield vs Market

Cardinal Health Dividend Yield vs Market
How does Cardinal Health dividend yield compare to the market?
SegmentDividend Yield
Company (Cardinal Health)3.0%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Healthcare)1.4%
Analyst forecast in 3 Years (Cardinal Health)3.2%

Notable Dividend: CAH's dividend (2.97%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: CAH's dividend (2.97%) is low compared to the top 25% of dividend payers in the US market (4.7%).


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%), 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)

0.083yr

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

Jason Hollar's Compensation vs Cardinal Health Earnings
How has Jason Hollar's remuneration changed compared to Cardinal Health's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-US$933m

Mar 31 2022n/an/a

-US$955m

Dec 31 2021n/an/a

US$555m

Sep 30 2021n/an/a

US$1b

Jun 30 2021US$4mUS$700k

US$611m

Mar 31 2021n/an/a

US$1b

Dec 31 2020n/an/a

US$1b

Sep 30 2020n/an/a

US$973m

Jun 30 2020US$4mUS$124k

-US$4b

Compensation vs Market: Jason's total compensation ($USD3.95M) is below average for companies of similar size in the US market ($USD13.04M).

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 (4.5 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

What is the ownership structure of CAH?
Owner TypeNumber of SharesOwnership Percentage
State or Government132,0450.05%
Individual Insiders1,014,0350.4%
General Public28,199,00110.3%
Institutions243,167,28389.2%

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$1.4b-6.57%0.08%
4.35%
T. Rowe Price Group, Inc.
11,843,165$789.7m-20.51%0.09%
2.02%
BNY Mellon Asset Management
5,509,885$367.4m2.49%0.08%
1.95%
Geode Capital Management, LLC
5,310,281$354.1m-2.02%0.05%
1.85%
Amundi Asset Management
5,044,068$336.3m879.99%0.1%
1.84%
Invesco Capital Management LLC
5,013,573$334.3m-11.59%0.26%
1.7%
FMR LLC
4,620,396$308.1m-0.4%0.03%
1.29%
Northern Trust Global Investments
3,503,868$233.6m-4.45%0.05%
1.22%
American Century Investment Management Inc
3,325,652$221.8m-29.23%0.17%
1.09%
Norges Bank Investment Management
2,977,510$198.5m0%0.03%
1.07%
Morgan Stanley, Investment Banking and Brokerage Investments
2,926,492$195.1m35.17%0.04%
1.06%
Pzena Investment Management, Inc.
2,895,642$193.1m-2.61%0.62%
1.06%
Millennium Management LLC
2,876,940$191.8m172.93%0.26%
1.03%
Federated Hermes, Inc.
2,808,710$187.3m1.84%0.58%
1%
ProShare Advisors LLC
2,733,764$182.3m-11.76%0.61%
0.99%
UBS Asset Management
2,707,824$180.6m-0.16%0.04%
0.93%
LSV Asset Management
2,524,352$168.3m-0.33%0.35%
0.89%
Dimensional Fund Advisors LP
2,433,653$162.3m-0.81%0.04%
0.88%
Arrowstreet Capital, Limited Partnership
2,406,150$160.4m5.64%0.24%
0.86%
Legal & General Investment Management Limited
2,352,350$156.9m-1.71%0.05%
0.73%
Pacific Investment Management Company LLC
1,997,395$133.2m-3.26%0.63%
0.68%
Charles Schwab Investment Management, Inc.
1,857,154$123.8m-4.15%0.03%
0.68%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
1,851,760$123.5m-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$17.471b
  • Shares outstanding: 262.01m
  • 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 NPVARARSSep 2000
CAHDBASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REP 1 NPVARUSDSep 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 Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 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.