About Cardinal Health, Inc.
Cardinal Health, Inc. operates as a healthcare services and products company in the United States and internationally. It operates in two segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution. The company offers customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. It distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The company also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; pharmacy management services to hospitals; operates pharmacies, including pharmacies in community health centers; and repackages generic pharmaceuticals and over-the-counter healthcare products. In addition, it 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; compression, incontinence, nutritional delivery, and wound care products; single-use surgical drapes, gowns, and apparel products; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. Further, the company 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. Additionally, it manufactures, prepares, and delivers radiopharmaceuticals; and optimizes direct shipments through integrated technology solutions. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.
Cardinal Health, Inc. (CAH) is a Healthcare company in the Medical Distribution industry with a market capitalisation of $53B. The stock trades at 31.13x trailing earnings and yields 0.91%.
- Sector
- Healthcare
- Industry
- Medical Distribution
- Market cap
- $53B
- P/E ratio
- 31.13
- EPS (TTM)
- $7.23
- Revenue (TTM)
- $254.2B
- Free cash flow
- $4.5B
- Profit margin
- 0.7%
- Dividend yield
- 0.91%
- Shares outstanding
- 232.6M
Financial health: Weak4.4/10
3 strengths, 4 concerns. Weakest points: current ratio, return on equity, gross margin and 1 more.
- Current ratio: 0.88 (Concern, benchmark > 1.5) — Short-term assets cover only 0.88x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has deteriorated over the last 4 years.
- Return on equity: -59.5% (Concern, benchmark > 15%) — Earns -59.5% on shareholder equity, well short of the > 15% mark.
- Gross margin: 3.8% (Concern, benchmark > 40%) — Keeps 3.8% of revenue after the direct cost of sales, well short of the > 40% mark.
- Net margin: 0.7% (Concern, benchmark > 10%) — Turns 0.7% of revenue into profit, well short of the > 10% mark.
- Free cash flow: $4.5B (Strong, benchmark positive) — Generated $4.5B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 14.2% (Strong, benchmark > 10%) — Revenue changed 14.2% year on year, comfortably past the > 10% mark.
- Earnings growth: 9.8% (Watch, benchmark > 10%) — Earnings changed 9.8% year on year, short of the > 10% mark.
- Payout ratio: 28.6% (Strong, benchmark < 60%) — Pays out 28.6% of earnings as dividends, leaving room to keep paying.