Cardinal Health, Inc.

Valuation Analysis

About the Company

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 provides 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

Cardinal Health, Inc. Stock at a Glance

Cardinal Health, Inc. (CAH) is currently trading at $223.85 with a market capitalization of $52.4B. The trailing P/E ratio stands at 34.12x, with a forward P/E of 18.66x. The 52-week range spans from $137.75 to $233.60; the current price is 4.2% below the yearly high. Year-over-year revenue growth stands at +11.0%. The net profit margin stands at 0.62%.

💰 Dividend

Cardinal Health, Inc. pays an annual dividend of $2.05 per share, representing a yield of 0.92%. The payout ratio stands at 31.19%.

📊 Analyst Rating

15 analysts rate Cardinal Health, Inc. (CAH) on consensus: Strong Buy. The average price target is $245.27, implying +9.57% from the current price. Analyst price targets range from $215.00 to $275.00.

Cardinal Health, Inc.: The Investment Case in Detail

Cardinal Health, Inc. (CAH) operates in the Healthcare — specifically Medical Distribution — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 11% pace year-over-year, suggesting the business model continues to find new customers and pricing power.

The Bear Case

With a net margin of just 0.62%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

The PEG ratio at 1.39 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric.

What to Watch Next

• The forward P/E of 18.66x is meaningfully below the trailing 34.12x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

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