NYSE:CAH

Stock Analysis Report

Executive Summary

Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States and internationally.


Snowflake Analysis

Reasonable growth potential average dividend payer.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.2%

CAH

11.6%

US Healthcare

9.4%

US Market


1 Year Return

7.8%

CAH

7.2%

US Healthcare

-6.8%

US Market

Return vs Industry: CAH exceeded the US Healthcare industry which returned -1.9% over the past year.

Return vs Market: CAH exceeded the US Market which returned -10% over the past year.


Shareholder returns

CAHIndustryMarket
7 Day8.2%11.6%9.4%
30 Day3.7%-4.2%-3.9%
90 Day-0.4%-11.5%-16.5%
1 Year12.2%7.8%8.6%7.2%-4.8%-6.8%
3 Year-31.1%-38.1%29.7%23.9%23.4%15.2%
5 Year-34.7%-43.7%34.8%25.6%41.3%25.7%

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

Valuation

Is Cardinal Health undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAH ($47.88) is trading below our estimate of fair value ($123.92)

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


Price To Earnings Ratio

PE vs Industry: CAH is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: CAH is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CAH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CAH is overvalued based on its PB Ratio (14x) compared to the US Healthcare industry average (2.4x).


Next Steps

Future Growth

How is Cardinal Health forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

58.2%

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 (1.7%).

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's is expected to become profitable in the next 3 years.

Revenue vs Market: CAH's revenue (4.3% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: CAH's revenue (4.3% 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 (95.2%).


Next Steps

Past Performance

How has Cardinal Health performed over the past 5 years?

-45.4%

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 -45.4% 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 (14%).


Return on Equity

High ROE: CAH has a negative Return on Equity (-420.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cardinal Health's financial position?


Financial Position Analysis

Short Term Liabilities: CAH's short term assets ($25.7B) exceed its short term liabilities ($24.9B).

Long Term Liabilities: CAH's short term assets ($25.7B) exceed its long term liabilities ($15.2B).


Debt to Equity History and Analysis

Debt Level: CAH's debt to equity ratio (790.3%) is considered high.

Reducing Debt: CAH's debt to equity ratio has increased from 65.2% to 790.3% over the past 5 years.

Debt Coverage: CAH's debt is well covered by operating cash flow (25.6%).

Interest Coverage: CAH is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CAH's dividend (4.02%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: CAH's dividend (4.02%) is low compared to the top 25% of dividend payers in the US market (5.46%).


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


Future Payout to Shareholders

Future Dividend Coverage: CAH's dividends in 3 years are forecast to be well covered by earnings (39.9% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Mike Kaufmann (56yo)

2.25s

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's total compensation ($USD15.57M) is above average for companies of similar size in the US market ($USD11.79M).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Kaufmann
CEO & Director2.25yrsUS$15.57m0.063% $9.2m
Jessica Mayer
Chief Legal & Compliance Officer1.08yrsUS$2.97m0.011% $1.6m
Victor Crawford
Chief Executive Officer of Pharmaceutical Segment1.42yrsUS$6.73m0.016% $2.4m
David Evans
Interim Chief Financial Officer0.58yrno datano data
Stuart Laws
Senior VP & Chief Accounting Officer12.83yrsno data0.0016% $232.5k
Brian Rice
Chief Information Officer1.17yrsno data0.0071% $1.0m
Kevin Moran
Vice President of Investor Relations0.58yrno datano data
Michele A. Holcomb
Executive Vice President of Strategy & Corporate Development3.25yrsno data0.0032% $472.3k
Ola Snow
Chief Human Resources Officer1.5yrsno data0.0096% $1.4m
Craig Cowman
Executive Vice President of Global Sourcingno datano datano data

1.4yrs

Average Tenure

56yo

Average Age

Experienced Management: CAH's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Kaufmann
CEO & Director2.25yrsUS$15.57m0.063% $9.2m
Calvin Darden
Independent Director14.42yrsUS$288.25k0.00039% $57.4k
Carrie Cox
Independent Director10.33yrsUS$301.24k0.00015% $22.1k
Bruce Downey
Independent Director10.67yrsUS$303.25k0.0037% $537.1k
Gregory Kenny
Non-Executive Chairman1.42yrsUS$504.95kno data
J. Losh
Independent Director1.33yrsUS$238.98kno data
Patricia Hemingway Hall
Independent Director6.58yrsUS$287.99k0.0015% $216.3k
Colleen Arnold
Independent Director12.67yrsUS$278.25kno data
Nancy Killefer
Independent Director4.58yrsUS$278.25kno data
Akhil Johri
Independent Director2.17yrsUS$397.83kno data

5.6yrs

Average Tenure

65.5yo

Average Age

Experienced Board: CAH's board of directors are considered experienced (5.6 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.


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$14.715b
  • Shares outstanding: 291.78m
  • 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
CLHBRSE (Berne Stock Exchange)YesClass A Common SharesCHCHFAug 1983
C1AH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM NPVBRBRLJan 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, pharmacies, ambulatory surgery centers, clinical laboratories, and physician offices. The company operates through two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. It also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; and offers pharmacy management services to hospitals, as well as medication therapy management and patient outcomes services to hospitals, other healthcare providers, and payers. In addition, this segment repackages generic pharmaceuticals and over-the-counter healthcare products. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products. It also provides incontinence, wound care, enteral feeding, urology, operating room supply, electrode and needle, syringe, and sharps disposal products. In addition, this segment distributes a range of national brand products, including medical, surgical, and laboratory products; and provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers. Cardinal Health, Inc. was founded in 1979 and is headquartered in Dublin, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 07:18
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.