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

6 star 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

-0.7%

CAH

-0.04%

US Healthcare

-0.6%

US Market


1 Year Return

-12.8%

CAH

-9.1%

US Healthcare

0.7%

US Market

CAH underperformed the Healthcare industry which returned -9.1% over the past year.

CAH underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

CAHIndustryMarket
7 Day-0.7%-0.04%-0.6%
30 Day9.4%1.0%2.9%
90 Day7.1%-1.5%1.3%
1 Year-9.3%-12.8%-7.7%-9.1%2.9%0.7%
3 Year-32.2%-38.3%29.6%24.3%44.6%35.2%
5 Year-27.8%-36.7%66.1%56.2%61.9%44.2%

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

4 weeks ago | Simply Wall St

An Intrinsic Calculation For Cardinal Health, Inc. (NYSE:CAH) Suggests It's 36% Undervalued

Valuation

Is Cardinal Health undervalued based on future cash flows and its price relative to the stock market?

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cardinal Health's share price is below the future cash flow value, and at a moderate discount (> 20%).

Cardinal Health's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Cardinal Health is good value based on earnings compared to the US Healthcare industry average.

Cardinal Health is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Cardinal Health is poor value based on expected growth next year.


Price Based on Value of Assets

Cardinal Health is good value based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Cardinal Health expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cardinal Health's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).

Cardinal Health's earnings are expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

Cardinal Health's revenue growth is positive but not above the United States of America market average.

Cardinal Health's earnings growth is positive but not above the United States of America market average.

Cardinal Health's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Cardinal Health is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Cardinal Health's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Cardinal Health's 1-year earnings growth exceeds its 5-year average (432.4% vs -10.7%)

Cardinal Health's earnings growth has exceeded the US Healthcare industry average in the past year (432.4% vs 5.6%).


Return on Equity

Whilst Cardinal Health has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Cardinal Health used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Cardinal Health's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cardinal Health's financial position?


Financial Position Analysis

Cardinal Health is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cardinal Health's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Cardinal Health's level of debt (126.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (62.2% vs 126.9% today).

Debt is well covered by operating cash flow (33.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.2x debt.


Next Steps

Dividend

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

4.48%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Cardinal Health before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Cardinal Health's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Cardinal Health's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

What is the CEO of Cardinal Health's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Mike Kaufmann (56yo)

1.7yrs

Tenure

US$8,423,580

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 and also serves as its Interim Chief Financial Officer since Au ...


CEO Compensation Analysis

Mike's remuneration is about average for companies of similar size in United States of America.

Mike's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.3yrs

Average Tenure

54yo

Average Age

The average tenure for the Cardinal Health management team is less than 2 years, this suggests a new team.


Board Age and Tenure

5.0yrs

Average Tenure

65.5yo

Average Age

The tenure for the Cardinal Health board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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

  • Mike Kaufmann (56yo)

    CEO, Interim CFO & Director

    • Tenure: 1.7yrs
    • Compensation: US$8.42m
  • Stuart Laws (56yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 12.3yrs
  • Brian Rice (56yo)

    Chief Information Officer

    • Tenure: 0.6yrs
  • Ola Snow (52yo)

    Chief Human Resources Officer

    • Tenure: 0.9yrs
  • Craig Cowman

    Executive Vice President of Global Sourcing

    • Tenure: 0yrs
  • G. Ellis

    Senior VP & General Manager of Innovative Delivery Solutions

    • Tenure: 0yrs
  • Jessica Mayer (50yo)

    Chief Legal & Compliance Officer

    • Tenure: 0.5yrs
  • Michele A. Holcomb (51yo)

    Executive Vice President of Strategy & Corporate Development

    • Tenure: 2.7yrs
  • 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: 13.8yrs
    • Compensation: US$266.58k
  • Carrie Cox (61yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$263.58k
  • Bruce Downey (72yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$269.01k
  • Gregory Kenny (66yo)

    Non-Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: US$326.58k
  • Mike Losh (73yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$20.51k
  • Pat Hemingway Hall (66yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$259.98k
  • Mike Kaufmann (56yo)

    CEO, Interim CFO & Director

    • Tenure: 1.7yrs
    • Compensation: US$8.42m
  • Colleen Arnold (62yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$259.98k
  • Nancy Killefer (65yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$259.98k
  • Akhil Johri (58yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$39.72k

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$14.003b
  • 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 Analysis2019/09/21 23:33
End of Day Share Price2019/09/20 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.