Cardinal Health Inc
CAH
Wholesale-Drugs, Proprietaries & Druggists' Sundries
Mkt Cap
$26.43BPE
169.45Debt
$4.678BCash
$3.854BEV
$27.26BFCF
$2.858BP/E Ratio
169.45Debt
$4.678BCash
$3.854BEV
$27.26BFCF
$2.858BCardinal Health, Inc. operates as an integrated healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and offers medication therapy management and patient outcomes services to hospitals, other healthcare providers, and payers, as well as provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.
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DCF
Discounted Cash Flow Valuation of Cardinal Health Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $2.858B | $2.884B | $2.91B | $2.936B | $2.962B | $2.989B | $3.016B | $3.043B | $3.07B | $3.098B | $3.126B | $31.26B |
| DCF | $2.508B | $2.2B | $1.93B | $1.694B | $1.486B | $1.304B | $1.144B | $1.004B | $880.6M | $772.6M | $7.726B | |
| Value | $22.65B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth -15%
Earnings Stability -16%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 06-2015 | 06-2016 | 06-2017 | 06-2018 | 06-2019 | 06-2020 | 06-2021 | 06-2022 | 06-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 1.2% | 1.2% | 0.99% | 0.19% | 0.94% | -2.4% | 0.38% | -0.51% | 0.13% | 0.074% |
| ROA | 7.2% | 7.2% | 5.3% | 0.32% | 5% | -8.7% | 1.1% | -1.4% | 1.7% | 1.3% |
| ROE | 19% | 22% | 19% | 4.2% | 22% | -210% | 34% | 130% | -9.2% | -4.5% |
What is the average Net Margin?
The average Net Margin over the past 5 years is -0.22%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -0.05%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is -0.31%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.07%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is -3.91%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +14.44%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 06-2015 | 06-2016 | 06-2017 | 06-2018 | 06-2019 | 06-2020 | 06-2021 | 06-2022 | 06-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 2.45 | 2.21 | 13.04 | 3.78 | 3.35 | 4.27 | 3.07 | 1.94 | 1.99 | 1.64 |
| Debt Equity | 0.88 | 0.84 | 1.52 | 1.49 | 1.27 | 3.78 | 3.48 | -7.53 | -1.65 | -1.34 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 20% | 100% | -380% | - | - | - | -380% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.64.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.41.
What is the Graham’s Stability?
Graham’s Stability measure stands at -3.81.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 06-2016 | 06-2018 | 06-2020 | 06-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 7.8% | 8.4% | 10% | 13% | -0.34% |
| Net Income | -22% | 0.39% | - | - | 76% |
| Stockholders Equity | - | - | - | - | -5.2% |
| FCF | -0.87% | -0.22% | 14% | -14% | -0.35% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +8.43%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -0.34%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +0.39%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +75.89%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -5.21%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -0.22%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -0.35%.