Skip to Content

Cardinal Health Inc CAH

Morningstar Rating
$95.02 +1.26 (1.35%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Cardinal's Loss of Optum Contract Drags Near-Term Sales but Underlying Trend and Demand Look Solid

Cardinal Health is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With roughly $190 billion in annual US 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 US market.

Price vs Fair Value

CAH is trading at a 648% premium.
Price
$93.74
Fair Value
$44.00
Uncertainty
Medium
1-Star Price
$431.70
5-Star Price
$53.60
Economic Moat
Ppbdqm
Capital Allocation
Tfgtjwnr

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
$93.76
Day Range
$94.1895.48
52-Week Range
$85.12116.03
Bid/Ask
$94.96 / $95.04
Market Cap
$23.13 Bil
Volume/Avg
534,763 / 2.1 Mil

Key Statistics

Price/Earnings (Normalized)
13.06
Price/Sales
0.11
Dividend Yield (Trailing)
2.14%
Dividend Yield (Forward)
2.16%
Total Yield
7.62%

Company Profile

Cardinal Health is one of three leading pharmaceutical wholesalers in the us, 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 us 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)
13.0621.0917.28
Price/Book Value
40.90
Price/Sales
0.110.250.16
Price/Cash Flow
9.6917.7113.80
Price/Earnings
CAH
MCK
COR

Financial Strength

Metric
CAH
MCK
COR
Quick Ratio
0.420.500.50
Current Ratio
0.980.920.89
Interest Coverage
14.2315.579.10
Quick Ratio
CAH
MCK
COR

Profitability

Metric
CAH
MCK
COR
Return on Assets (Normalized)
4.01%5.63%4.19%
Return on Equity (Normalized)
373.63%
Return on Invested Capital (Normalized)
97.71%64.13%47.73%
Return on Assets
CAH
MCK
COR
See how this stock stacks up to its competitors with Morningstar Investor

Medical Distribution Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
McKesson Corp
MCK
RxcylnbfVvqxdxg$75.0 Bil
Cencora Inc
COR
NlxfxfdgcWqgtqw$43.8 Bil
Shanghai Pharmaceuticals Holding Co Ltd Class H
SHPMF
Hmxgk$8.8 Bil
Shanghai Pharmaceuticals Holding Co Ltd ADR repr Class H
SHPMY
Nggqwkn$8.8 Bil
Sinopharm Group Co Ltd ADR
SHTDY
Btxww$7.8 Bil
Sinopharm Group Co Ltd
SHTDF
Nnfcsv$7.8 Bil
Amplifon SpA Az nom Post Frazionamento
AMFPF
Ydjtrn$7.6 Bil
Medipal Holdings Corp ADR
MAHLY
Ynfp$3.4 Bil
Medipal Holdings Corp
MEPDF
Rpvr$3.4 Bil

Sponsor Center