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Cardinal Health Inc CAH

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Stock XNYS Rating as of
$99.01 +0.17 (0.17%)
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Company Report

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

Keonhee Kim

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.

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Price vs Fair Value

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CAH is trading at a 426% premium.
Price
$99.01
Fair Value
$81.00
Uncertainty
Medium
1-Star Price
$878.20
5-Star Price
$55.10
Economic Moat
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Capital Allocation
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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.

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News

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Trading Information

Previous Close Price
$98.84
Day Range
$98.04–99.42
52-Week Range
$85.12–116.04
Bid/Ask
$69.00 / $99.99
Market Cap
$24.12 Bil
Volume/Avg
1.7 Mil / 2.0 Mil

Key Statistics

Price/Earnings (Normalized)
13.79
Price/Sales
0.11
Dividend Yield (Trailing)
2.02%
Dividend Yield (Forward)
2.04%
Total Yield
7.21%

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
Website
https://www.cardinalhealth.com

Competitors

Valuation

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Metric
CAH
MCK
COR
Price/Earnings (Normalized)
 13.7921.5618.09
Price/Book Value
 ——42.82
Price/Sales
 0.110.260.17
Price/Cash Flow
 10.2318.1114.45
Price/Earnings
CAH
MCK
COR

Financial Strength

Metric
CAH
MCK
COR
Quick Ratio
 0.430.500.50
Current Ratio
 0.980.920.89
Interest Coverage
 18.3715.579.10
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
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Medical Distribution Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
McKesson Corp
MCK
CsbvgqgrQvqchwm$76.9 Bil
 Cencora Inc
COR
TjlnknkwDfwcxp$45.8 Bil
 Shanghai Pharmaceuticals Holding Co Ltd Class H
SHPMF
—Wqcw$8.7 Bil
 Shanghai Pharmaceuticals Holding Co Ltd ADR repr Class H
SHPMY
—Frf$8.7 Bil
 Sinopharm Group Co Ltd
SHTDF
—Gcvcm$8.7 Bil
 Sinopharm Group Co Ltd ADR
SHTDY
—Fzlnq$8.7 Bil
 Amplifon SpA Az nom Post Frazionamento
AMFPF
—Mhrvv$8.4 Bil
 Medipal Holdings Corp ADR
MAHLY
—Mmrm$3.1 Bil
 Medipal Holdings Corp
MEPDF
—Rpqh$3.1 Bil

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