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

Fundamentals

Established 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

11.2%

CAH

5.8%

US Healthcare

1.8%

US Market


1 Year Return

-4.1%

CAH

-6.5%

US Healthcare

7.3%

US Market

Return vs Industry: CAH exceeded the US Healthcare industry which returned -6.5% over the past year.

Return vs Market: CAH underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

CAHIndustryMarket
7 Day11.2%5.8%1.8%
30 Day6.1%2.5%-0.7%
90 Day13.8%-1.8%0.06%
1 Year-0.1%-4.1%-5.0%-6.5%9.7%7.3%
3 Year-25.2%-32.2%33.9%28.6%46.3%36.9%
5 Year-23.2%-33.0%65.6%55.8%64.5%46.5%

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?

27.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CAH ($51.21) is trading below our estimate of fair value ($70.39)

Significantly Undervalued: 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 (11.3x) compared to the Healthcare industry average (20.4x).

PE vs Market: CAH is good value based on its PE Ratio (11.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CAH is poor value based on its PEG Ratio (10.9x)


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 15 analysts?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAH's forecast earnings growth (1% per year) is below the savings rate (2.7%).

Earnings vs Market: CAH's earnings (1% per year) are forecast to grow slower than the US market (14.6% 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 (7.3% 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

High 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 5.3%.


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?

3.76%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.5%markettop25%3.7%industryaverage1.6%forecastin3Years4.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CAH's dividend (3.76%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CAH's dividend (3.76%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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

SellUS$44,66213 Nov 18
Stuart Laws
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Chief Accounting Officer
Shares804
Max PriceUS$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$14.974b
  • 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

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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:33
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.