Cardinal Health, Inc. [CAH] is following upward trend in the market concluded with the last trading session. The shares of the Services sector company has a current value of $48.28 after CAH shares went up by 1.72% during the last trading session. One of the reasons why Services stocks may go bullish is increased momentum in the press.
Cardinal Health, Inc. [NYSE:CAH]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Cardinal Health, Inc. [CAH], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in June. On average, stock market experts give CAH an Hold rating. Its stock price has been found in the range of 42.01 to 58.31. This is compared to its latest closing price of $47.46.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Cardinal Health, Inc. [CAH] is sitting at 3.05. This is compared to 1 month ago, when its average rating was 3.05.
For the quarter ending in Mar-19 Cardinal Health, Inc. [CAH] generated $35.23 billion in sales. That’s 0.09% higher than the average estimate of $35.2 billion as provided by Wall Street analysts. The three indicators above suggest that the company is performing better than market experts expected, boosting its appeal as a solid investment.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Thu 8 Aug (In 28 Days).
Fundamental Analysis of Cardinal Health, Inc. [CAH]
Now let’s turn to look at profitability: with a current Operating Margin for Cardinal Health, Inc. [CAH] sitting at +1.85 and its Gross Margin at +4.83, this company’s Net Margin is now 0.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 15.64, and its Return on Invested Capital has reached -1.90%. Its Return on Equity is 3.98, and its Return on Assets is 0.64. These metrics suggest that this Cardinal Health, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Cardinal Health, Inc. [CAH] has generated a Total Debt to Total Equity ratio of 148.75. Similarly, its Total Debt to Total Capital is 59.80, while its Total Debt to Total Assets stands at 22.56. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 132.23, and its Long-Term Debt to Total Capital is 53.16. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 6.08 and its Total Debt to EBITDA Value is 2.53. The Enterprise Value to Sales for this firm is now 0.15, and its Total Debt to Enterprise Value stands at 0.40. Cardinal Health, Inc. [CAH] has a Price to Book Ratio of 2.49, a Price to Cash Flow Ratio of 5.56 and P/E Ratio of 467.38. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Cardinal Health, Inc. [CAH] earns $2,725,259 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 17.18 and its Total Asset Turnover is 3.42. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.53 and its Current Ratio is 1.07. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Cardinal Health, Inc. [CAH] has 298.00M shares outstanding, amounting to a total market cap of $14.14B. Its stock price has been found in the range of 42.01 to 58.31. At its current price, it has moved down by -17.21% from its 52-week high, and it has moved up 14.91% from its 52-week low.
This stock’s Relative Strength Index (RSI) is at 63.98. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Cardinal Health, Inc. [CAH] a Reliable Buy?
Cardinal Health, Inc. [CAH] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.