Cardinal Health, Inc.

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Cardinal Health, Inc. stock analysis CAH overview
Neutral 0

Evaluating Cardinal Health – Look Beyond Technicals to Fundamentals

📈 Cardinal Health shares rose 4.1% in today's evening session, trading at $212.79 per share.

📊 The stock gained 33.6% over the last year, outperforming the S&P 500 by 10.9%.

🏢 Cardinal Health operates as a large-cap healthcare services and products company based in Dublin, Ohio.

👥 The company employs 53,084 full-time workers across the United States and internationally.

💰 Cardinal Health has provided a dividend yield of 1.0% over the past 12 months.

⚠️ Despite positive cash flows and leverage, the firm's current ratio is 0.91, indicating insufficient current assets to cover liabilities.

📉 Gross margins for Cardinal Health are slimmer than those of its industry peers.

📊 The trailing twelve-month P/E ratio stands at 30.9, which is higher than the sector average of 22.94.

🔮 Based on EPS guidance of $11.98, the forward P/E ratio is calculated at 16.9.

📉 A PEG ratio of 2.48 suggests that the company's shares may be overvalued relative to growth rates.

👍 Analysts maintain an average "Buy" rating with a consensus target price of $245.27 per share.

🎯 Target prices from analysts range between $215.0 and $275.0 per share.

📉 Short interest is low at 3.7% of the company's total shares outstanding.

🏛️ Institutional investors own 89.9% of Cardinal Health's shares, while insider ownership is minimal at 0.26%.

🖤 BlackRock Inc. holds the largest stake with 12% of shares worth approximately $6.06 billion.

⚠️ The analysis includes a disclaimer that past performance and data are not reliable indicators of future price movements.

📉 Market Inference does not provide financial advice or recommend buying or selling any specific security.

Bullish Signals
  • Cardinal Health returned gains of 33.6% last year, significantly outperforming the S&P 500 index by 10.9%.
  • The company is experiencing growing revenues and increasing reinvestment in its business alongside positive EPS growth.
  • Financial statements display generally positive cash flows and healthy leverage levels.
  • Analysts have set an average target price of $245.27 per share, representing upside potential from the current trading price of $212.79.
  • The stock carries an average analyst rating of 'Buy' with a forward P/E ratio of 16.9 based on EPS guidance of $11.98.
Risk Factors
  • The company's current ratio is 0.91, meaning it does not have enough current assets to cover its current liabilities, which raises liquidity concerns.
Full Analysis
Cardinal Health (CAH) recently traded at $212.79 per share, reflecting a 4.1% gain during the evening session and a year-over-year return of 33.6%, outperforming the S&P 500 by 10.9%. The company operates as a healthcare services and products provider with over 53,000 employees, offering a 1.0% dividend yield over the last 12 months. While Cardinal Health demonstrates growing revenues, positive EPS growth, healthy leverage, and generally positive cash flows, it faces challenges including slimmer gross margins than peers and a current ratio of 0.91, indicating insufficient current assets to cover current liabilities. Valuation metrics show a trailing twelve-month P/E ratio of 30.9 versus a sector average of 22.94, with a forward P/E of 16.9 based on EPS guidance of $11.98. The PEG ratio stands at 2.48, suggesting the stock may be overvalued relative to its growth rate. Analyst consensus remains positive with an average buy rating and target prices ranging from $215.00 to $275.00, averaging $245.27 per share. Institutional ownership is high at 89.9%, led by Blackrock Inc. with a 12% stake, while insider ownership is minimal at 0.26%. The article concludes with standard disclaimers regarding educational purposes and market sentiment analysis for other tickers like COIN, LKNCY, and VIZIO, which are unrelated to Cardinal Health's fundamentals.