(CAH) Cardinal Health - NYSE
Sector: Healthcare | Industry: Medical Distribution | Exchange: NYSE (USA) | Market Cap: 51.797m USD | Total Return: 39.4% in 12m
Avg Turnover: 406M
EPS Trend: 92.9%
Qual. Beats: -1
Rev. Trend: 90.7%
Qual. Beats: 0
Warnings
Altman Z'' -0.13 < 1.0 - financial distress zone
Extended 1w
Tailwinds
Confidence
Cardinal Health, Inc. (CAH) is a global healthcare services provider operating through two primary segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution. The company functions as a critical intermediary in the healthcare supply chain, distributing branded and generic pharmaceuticals, over-the-counter products, and medical-surgical supplies to hospitals, pharmacies, and clinical laboratories.
The business model relies on high-volume, low-margin distribution, where profitability is driven by scale and supply chain efficiency. As a member of the Big Three pharmaceutical distributors in the United States, Cardinal Health benefits from an oligopolistic market structure that services the vast majority of domestic prescription drug volume.
In addition to distribution, the company manufactures its own branded medical products, including surgical apparel, wound care, and fluid management systems. It also operates specialized business units for radiopharmaceuticals and pharmacy management services. For a deeper look into the companys valuation metrics, consider reviewing the data on ValueRay.
Headquartered in Dublin, Ohio, Cardinal Health supports integrated healthcare delivery by providing logistics, technology solutions, and sterile procedure kit assembly. The company’s infrastructure is essential for the daily operations of ambulatory surgery centers and physician offices worldwide.
- Pharmaceutical distribution volume and drug pricing trends drive consistent segment revenue growth
- Expansion of high-margin specialty medicine services improves consolidated operating profit margins
- Generic drug price deflation and brand-to-generic conversion cycles impact distribution profitability
- Medical segment restructuring and supply chain efficiency initiatives influence long-term earnings potential
| 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 (3.04b): 1.64 < 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: 6.38 > 6 (EBIT TTM 2.19b / 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 2.19b / 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 15, 2026, the stock is trading at USD 223.85 with a total of 2,198,409 shares traded.
Over the past week, the price has changed by +8.82%,
over one month by +15.16%,
over three months by +3.13% and
over the past year by +39.39%.
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 | 9.6% |
P/E Trailing = 33.7649
P/E Forward = 18.2149
P/S = 0.2066
P/B = 16.0657
P/EG = 1.3393
Revenue TTM = 251b USD
EBIT TTM = 2.19b USD
EBITDA TTM = 3.04b 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 = 56.8b USD (51.8b + Debt 8.92b - CCE 3.94b)
Interest Coverage Ratio = 6.38 (Ebit TTM 2.19b / Interest Expense TTM 343.0m)
EV/FCF = 12.93x (Enterprise Value 56.8b / FCF TTM 4.39b)
FCF Yield = 7.74% (FCF TTM 4.39b / Enterprise Value 56.8b)
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 = 1.00 (Enterprise Value 56.8b / Total Assets 56.7b)
Interest Expense / Debt = 3.85% (Interest Expense 343.0m / Debt 8.92b)
Taxrate = 22.75% (456.0m / 2.00b)
NOPAT = 1.69b (EBIT 2.19b * (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 = 1.64 (Net Debt 4.98b / EBITDA 3.04b)
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 = 40.15% (EBIT 2.19b / Capital Employed (Equity -2.80b + L.T.Debt 8.24b))
RoIC = 14.77% (NOPAT 1.69b / Invested Capital 11.4b)
WACC = 5.73% (E(51.8b)/V(60.7b) * Re(6.21%) + D(8.92b)/V(60.7b) * Rd(3.85%) * (1-Tc(0.23)))
Discount Rate = 6.21% (= 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%