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Cencora Inc COR

Morningstar Rating
$236.24 +0.65 (0.28%)
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Company Report

Cencora Earnings: Starts 2024 on a Strong Foot With Robust Sales Growth and a Raised Outlook

Narrow-moat Cencora reported first-quarter results that were better than our expectations. Total sales were up 15.0% year over year thanks to a solid performance from the U.S. healthcare segment. On the backdrop of a strong start to the year, management raised its full-year sales guidance for the segment to 10%-12% growth from a previous 7%-10% growth, and the firm’s adjusted diluted EPS range to $13.25-$13.50 from $12.70-$13.00. After upping our near-term assumptions and baking in time value of money impacts, we raise our fair value estimate to $183 per share from $176.

Price vs Fair Value

COR is trading at a 29% premium.
Price
$235.60
Fair Value
$943.00
Uncertainty
Medium
1-Star Price
$228.19
5-Star Price
$442.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Cencora 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 have led to an emphasis on cost containment, pressuring Cencora's profitability.

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News

Trading Information

Previous Close Price
$235.59
Day Range
$235.99236.79
52-Week Range
$147.46239.79
Bid/Ask
$235.54 / $236.10
Market Cap
$47.07 Bil
Volume/Avg
28 / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
18.76
Price/Sales
0.18
Dividend Yield (Trailing)
0.84%
Dividend Yield (Forward)
0.87%
Total Yield
2.46%

Company Profile

Cencora is one of three domestic leading pharmaceutical wholesalers. It sources and distributes branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospital networks, and healthcare providers. It and McKesson and Cardinal Health constitute over 90% of the U.S. pharmaceutical wholesale industry. Cencora also provides commercialization services for manufacturers of pharmaceuticals and medical devices, global specialty drug logistics (World Courier), and animal health product distribution (MWI Animal Health). Cencora expanded its international presence in 2021 by purchasing Alliance Healthcare, one of the leading drug wholesalers in Europe.
Sector
Healthcare
Industry
Medical Distribution
Stock Style Box
Mid Core
Total Number of Employees
46,000

Competitors

Valuation

Metric
COR
MCK
CAH
Price/Earnings (Normalized)
18.7618.3416.37
Price/Book Value
51.54
Price/Sales
0.180.230.13
Price/Cash Flow
14.7215.0211.67
Price/Earnings
COR
MCK
CAH

Financial Strength

Metric
COR
MCK
CAH
Quick Ratio
0.480.480.43
Current Ratio
0.880.920.98
Interest Coverage
9.4114.7218.37
Quick Ratio
COR
MCK
CAH

Profitability

Metric
COR
MCK
CAH
Return on Assets (Normalized)
4.19%6.00%3.89%
Return on Equity (Normalized)
574.41%
Return on Invested Capital (Normalized)
48.08%66.76%89.85%
Return on Assets
COR
MCK
CAH
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