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
|Historical stock prices|
|Current Share Price||US$66.68|
|52 Week High||US$72.28|
|52 Week Low||US$45.85|
|1 Month Change||-5.71%|
|3 Month Change||25.57%|
|1 Year Change||33.33%|
|3 Year Change||44.74%|
|5 Year Change||1.21%|
|Change since IPO||1,712.54%|
Recent News & Updates
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...
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
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.
|CAH||US Healthcare||US Market|
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.
|CAH Average Weekly Movement||3.6%|
|Healthcare Industry Average Movement||8.0%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.8%|
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
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
|CAH fundamental statistics|
Is CAH overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CAH income statement (TTM)|
|Cost of Revenue||US$174.82b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Nov 04, 2022
|Earnings per share (EPS)||-3.56|
|Net Profit Margin||-0.51%|
How did CAH perform over the long term?See historical performance and comparison
3.0%Current Dividend Yield
Does CAH pay a reliable dividends?See CAH dividend history and benchmarks
|Cardinal Health dividend dates|
|Ex Dividend Date||Sep 30 2022|
|Dividend Pay Date||Oct 15 2022|
|Days until Ex dividend||2 days|
|Days until Dividend pay date||13 days|
Does CAH pay a reliable dividends?See CAH dividend history and benchmarks
Is CAH undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is CAH's n/a Ratio?|
Price to Sales Ratio vs Peers
How does CAH's PS Ratio compare to its peers?
|CAH PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
HSIC Henry Schein
CAH Cardinal Health
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.
|Current PS Ratio||0.1x|
|Fair PS Ratio||1x|
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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How is Cardinal Health forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Cardinal Health performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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.
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How is Cardinal Health's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
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).
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What is Cardinal Health current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Cardinal Health Dividend Yield vs Market|
|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.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jason Hollar (49 yo)
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|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||n/a||n/a|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||US$4m||US$700k|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||n/a||n/a|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||US$4m||US$124k|
Compensation vs Market: Jason's total compensation ($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.
Experienced Management: CAH's management team is considered experienced (3 years average tenure).
Experienced Board: CAH's board of directors are considered experienced (4.5 years average tenure).
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
|18 Nov 21||SellUS$491,700||Ola Snow||Individual||10,000||US$49.17|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||132,045||0.05%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Cardinal Health, Inc.'s employee growth, exchange listings and data sources
- 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
- Cardinal Health, Inc.
- 7000 Cardinal Place
- United States
|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|
|CAHD||BASE (Buenos Aires Stock Exchange)||CEDEAR EACH 3 REP 1 NPV||AR||USD||Sep 2000|
|C1AH34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH REPR 1 COM NPV||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/30 00:00|
|End of Day Share Price||2022/09/30 00:00|
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.