(CAH) Cardinal Health - NYSE
Sector: Healthcare | Industry: Medical Distribution | Exchange: NYSE (USA) | Market Cap: 52.427m USD | Total Return: 37.3% in 12m
Avg Turnover: 458M
EPS Trend: 92.9%
Qual. Beats: -1
Rev. Trend: 90.7%
Qual. Beats: 0
Warnings
Altman Z'' -0.13 < 1.0 - financial distress zone
Tailwinds
Confidence
Cardinal Health is a major U.S.-based healthcare services and products company that operates in two core segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution. The company serves a broad customer base including hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and home-based patients, offering branded and generic pharmaceuticals, specialty drugs, over-the-counter products, and a wide range of medical, surgical, and laboratory supplies.
In addition to distribution, Cardinal Health provides value-added services such as pharmacy management for hospitals, retail pharmacy operations (including those in community health centers), repackaging of generic drugs, radiopharmaceutical manufacturing, and the assembly of sterile and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.
As a healthcare distributor, Cardinal Health operates within a highly concentrated industry historically dominated by a small number of large wholesalers, which typically compete on scale, logistics efficiency, and the depth of value-added services offered to providers and manufacturers. The drug distribution business is characterized by high volume and relatively thin margins, with profitability often tied to the mix of generic versus branded pharmaceutical sales and growth in higher-margin specialty pharmaceuticals and services.
- GLP-1 obesity drug volumes boost pharmaceutical segment revenue
- OptumRx distribution contract renewal terms shape revenue outlook
- Medical segment margins face pressure from hospital utilization trends
| Net Income: 1.56b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 2.86 > 1.0 |
| NWC/Revenue: -1.57% < 20% (prev -0.93%; Δ -0.64% < -1%) |
| CFO/TA 0.09 > 3% & CFO 5.01b > Net Income 1.56b |
| Net Debt (4.98b) to EBITDA (3.03b): 1.65 < 3 |
| Current Ratio: 0.91 > 1.5 & < 3 |
| Outstanding Shares: last quarter (236.0m) vs 12m ago -2.07% < -2% |
| Gross Margin: 3.68% > 18% (prev 3.52%; Δ 0.16% > 0.5%) |
| Asset Turnover: 470.2% > 50% (prev 445.4%; Δ 24.85% > 0%) |
| Interest Coverage Ratio: 6.33 > 6 (EBIT TTM 2.17b / Interest Expense TTM 343.0m) |
| A: -0.07 (Total Current Assets 38.1b - Total Current Liabilities 42.0b) / Total Assets 56.7b |
| B: 0.03 (Retained Earnings 1.73b / Total Assets 56.7b) |
| C: 0.04 (EBIT TTM 2.17b / Avg Total Assets 53.3b) |
| D: -0.05 (Book Value of Equity -2.83b / Total Liabilities 59.4b) |
| Altman-Z'' = -0.13 = B |
| DSRI: 0.96 (Receivables 13.6b/12.7b, Revenue 251b/222b) |
| GMI: 0.96 (GM 3.52% / 3.68%) |
| AQI: 1.09 (AQ_t 0.28 / AQ_t-1 0.25) |
| SGI: 1.13 (Revenue 251b / 222b) |
| TATA: -0.06 (NI 1.56b - CFO 5.01b) / TA 56.7b) |
| Beneish M = -2.96 (Cap -4..+1) = A |
As of June 20, 2026, the stock is trading at USD 221.77 with a total of 4,196,100 shares traded.
Over the past week, the price has changed by +0.28%,
over one month by +10.68%,
over three months by +5.40% and
over the past year by +37.25%.
Cardinal Health has received a consensus analysts rating of 4.12. Therefore, it is recommended to buy CAH.
- StrongBuy: 9
- Buy: 2
- Hold: 5
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 245.3 | 10.6% |
P/E Trailing = 34.1235
P/E Forward = 18.8679
P/S = 0.2091
P/B = 16.0657
P/EG = 1.3861
Revenue TTM = 251b USD
EBIT TTM = 2.17b USD
EBITDA TTM = 3.03b USD
Long Term Debt = 8.24b USD (from longTermDebt, last quarter)
Short Term Debt = 671.0m USD (from shortTermDebt, last quarter)
Debt = 8.92b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.98b USD (calculated: Debt 8.92b - CCE 3.94b)
Enterprise Value = 57.4b USD (52.4b + Debt 8.92b - CCE 3.94b)
Interest Coverage Ratio = 6.33 (Ebit TTM 2.17b / Interest Expense TTM 343.0m)
EV/FCF = 13.07x (Enterprise Value 57.4b / FCF TTM 4.39b)
FCF Yield = 7.65% (FCF TTM 4.39b / Enterprise Value 57.4b)
FCF Margin = 1.75% (FCF TTM 4.39b / Revenue TTM 251b)
Net Margin = 0.62% (Net Income TTM 1.56b / Revenue TTM 251b)
Gross Margin = 3.68% ((Revenue TTM 251b - Cost of Revenue TTM 241b) / Revenue TTM)
Gross Margin QoQ = 4.10% (prev 3.38%)
Tobins Q-Ratio = 1.01 (Enterprise Value 57.4b / Total Assets 56.7b)
Interest Expense / Debt = 3.85% (Interest Expense 343.0m / Debt 8.92b)
Taxrate = 22.75% (456.0m / 2.00b)
NOPAT = 1.68b (EBIT 2.17b * (1 - 22.75%))
Current Ratio = 0.91 (Total Current Assets 38.1b / Total Current Liabilities 42.0b)
Debt / Equity = -3.15 (negative equity) (Debt 8.92b / totalStockholderEquity, last quarter -2.83b)
Debt / EBITDA = 1.65 (Net Debt 4.98b / EBITDA 3.03b)
Debt / FCF = 1.13 (Net Debt 4.98b / FCF TTM 4.39b)
Total Stockholder Equity = -2.80b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.93% (Net Income 1.56b / Total Assets 56.7b)
RoE = -55.72% (negative equity) (Net Income TTM 1.56b / Total Stockholder Equity -2.80b)
RoCE = 39.86% (EBIT 2.17b / Capital Employed (Equity -2.80b + L.T.Debt 8.24b))
RoIC = 14.67% (NOPAT 1.68b / Invested Capital 11.4b)
WACC = 5.71% (E(52.4b)/V(61.3b) * Re(6.18%) + D(8.92b)/V(61.3b) * Rd(3.85%) * (1-Tc(0.23)))
Discount Rate = 6.18% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -96.61 | Cagr: -1.83%
[DCF] Terminal Value 77.97% ; FCFF base≈3.61b ; Y1≈4.14b ; Y5≈6.09b
[DCF] Fair Price = 370.2 (EV 91.7b - Net Debt 4.98b = Equity 86.7b / Shares 234.2m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 92.89 | EPS CAGR: 12.64% | SUE: -4.0 | # QB: -1
Revenue Correlation: 90.74 | Revenue CAGR: 5.93% | SUE: -0.73 | # QB: 0
EPS next Quarter (2026-09-30): EPS=2.87 | Chg30d=+0.05% | Revisions=+60% | Analysts=8
EPS current Year (2026-06-30): EPS=10.77 | Chg30d=-0.00% | Revisions=+79% | GrowthEPS=+30.7% | GrowthRev=+15.0%
EPS next Year (2027-06-30): EPS=12.00 | Chg30d=+0.16% | Revisions=+79% | GrowthEPS=+11.4% | GrowthRev=+8.3%
[Analyst] Revisions Ratio: +79%