Skip to Content

Cardinal Health Inc CAH

Morningstar Rating
$111.90 −0.14 (0.12%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Cardinal Health Enjoys Boost From GLP-1s and Healthy Drug Utilization Rates; Expands Specialty

Cardinal Health is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With roughly $190 billion in annual U.S. drug distribution sales in fiscal 2023, the company supplies roughly one fourth of the overall market. Its two close competitors are Cencora and McKesson. Together, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the U.S. market.

Price vs Fair Value

CAH is trading within a range we consider fairly valued.
Price
$111.01
Fair Value
$31.00
Uncertainty
Medium
1-Star Price
$336.29
5-Star Price
$45.20
Economic Moat
Qndvwxf
Capital Allocation
Fpkdyttkr

Bulls Say, Bears Say

Bulls

Cardinal Health distributes pharmaceutical products to nearly one third of the industry, leading to substantial negotiation leverage with generic drug manufacturers.

Bears

Reimbursement pressures on pharmacy and provider customers has led to an emphasis on cost containment, pressuring Cardinal Health’s profitability.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if CAH is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$112.04
Day Range
$111.23112.53
52-Week Range
$72.52116.04
Bid/Ask
$111.00 / $113.43
Market Cap
$27.22 Bil
Volume/Avg
1.7 Mil / 2.4 Mil

Key Statistics

Price/Earnings (Normalized)
16.36
Price/Sales
0.13
Dividend Yield (Trailing)
1.79%
Dividend Yield (Forward)
1.79%
Total Yield
7.30%

Company Profile

Cardinal Health is one of three leading pharmaceutical wholesalers in the U.S., engaged in sourcing and distributing of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with Cencora and McKesson, the three comprise well over 90% of the U.S. pharmaceutical wholesale industry. Cardinal Health also supplies medical-surgical products and equipment to healthcare facilities in North America, Europe, and Asia.
Sector
Healthcare
Industry
Medical Distribution
Stock Style Box
Mid Core
Total Number of Employees
48,000

Competitors

Valuation

Metric
CAH
MCK
COR
Price/Earnings (Normalized)
16.3618.8819.35
Price/Book Value
53.16
Price/Sales
0.130.240.18
Price/Cash Flow
11.6615.4615.18
Price/Earnings
CAH
MCK
COR

Financial Strength

Metric
CAH
MCK
COR
Quick Ratio
0.430.480.48
Current Ratio
0.980.920.88
Interest Coverage
18.3714.729.41
Quick Ratio
CAH
MCK
COR

Profitability

Metric
CAH
MCK
COR
Return on Assets (Normalized)
3.89%6.00%4.19%
Return on Equity (Normalized)
574.41%
Return on Invested Capital (Normalized)
89.85%66.76%48.08%
Return on Assets
CAH
MCK
COR
See how this stock stacks up to its competitors with Morningstar Investor

Medical Distribution Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
MCK
McKesson CorpWphwksgVscsvt$70.5 Bil
COR
Cencora IncBvhwkqydcLzsypvd$48.4 Bil
AMFPF
Amplifon SpA Az nom Post FrazionamentoYrfgqss$8.2 Bil
SHTDF
Sinopharm Group Co LtdCbf$8.0 Bil
SHTDY
Sinopharm Group Co Ltd ADRZbyf$8.0 Bil
SHPMY
Shanghai Pharmaceuticals Holding Co Ltd ADR repr Class HDfp$7.9 Bil
SHPMF
Shanghai Pharmaceuticals Holding Co Ltd Class HYpfg$6.6 Bil
MAHLY
Medipal Holdings Corp ADRQzs$3.2 Bil
MEPDF
Medipal Holdings CorpWdqk$3.2 Bil

Sponsor Center