The share price of Cardinal Health, Inc. [NYSE: CAH] inclined by $55.44, presently trading at $56.62. The company’s shares saw 38.00% gains compared to the lowest price in the period of the last 52 weeks, set at $41.03 recorded on 02/25/20. The last few days have been benevolent to the share price as CAH fall by -4.84% during the last week, even though the stock is still down by -6.69% compared to -2.87 of all time high it touched on 02/20/20. However, the stock had a strong performance during the past 3 months, roughly gaining 3.01%, while additionally gaining 1.58% during the last 12 months. Cardinal Health, Inc. is said to have a 12-month price target set at $58.43. That means that the stock has a strong potential to acquire 1.81% increase from the current trading price.
Cardinal Health, Inc. [NYSE:CAH]: Analyst Rating and Earnings
Its stock price has been found in the range of 41.03 to 60.69. This is compared to its latest closing price of $55.44.
Keep on the lookout for this organization’s next scheduled financial results, which are expected to be made public on 04/30/2020.
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 +1.25 and its Gross Margin at +4.33, this company’s Net Margin is now -2.80%. 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 12.36, and its Return on Invested Capital has reached 11.70%. Its Return on Equity is 22.01, and its Return on Assets is 3.37. 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 126.91. Similarly, its Total Debt to Total Capital is 55.93, while its Total Debt to Total Assets stands at 19.61. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 6.19, and its Long-Term Debt to Total Capital is 119.77.
What about valuation? This company’s Enterprise Value to EBITDA is 8.16 and its Total Debt to EBITDA Value is 2.86. The Enterprise Value to Sales for this firm is now 0.15, and its Total Debt to Enterprise Value stands at 0.41. Cardinal Health, Inc. [CAH] has a Price to Book Ratio of 2.23, a Price to Cash Flow Ratio of 5.21.
Shifting the focus to workforce efficiency, Cardinal Health, Inc. [CAH] earns $2,940,040 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 17.87 and its Total Asset Turnover is 3.60. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.54 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 295.20M shares outstanding, amounting to a total market cap of $16.37B. Its stock price has been found in the range of 41.03 to 60.69. At its current price, it has moved down by -6.70% from its 52-week high, and it has moved up 38.00% from its 52-week low.
This stock’s Beta value is currently 1.44, which indicates that it is 2.78% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 50.87. 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.