A Business at a Glance
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CARDINAL HEALTH INC
CAH
$55.2B
Mkt Cap
$228.03
+0.91%
CARDINAL HEALTH INC (CAH) has a current P/E ratio of 32.8, compared to its historical median P/E of 25.1. The stock is currently considered Fair based on its historical valuation range.
CARDINAL HEALTH INC (CAH) has a 5-year average return on invested capital (ROIC) of 5.0%. This is below average and may indicate limited pricing power.
CARDINAL HEALTH INC (CAH) has a market capitalization of $61.8B. It is classified as a large-cap stock.
Yes, CARDINAL HEALTH INC (CAH) pays a dividend with a trailing twelve-month yield of 0.80%. The company also returns capital through share buybacks, with a buyback yield of 1.83%.
Based on historical P/E analysis, CARDINAL HEALTH INC (CAH) appears fair. The current P/E of 32.8 is 31% above its historical median of 25.1. The estimated fair value CAGR (P/E method) is 11.6%.
CARDINAL HEALTH INC (CAH) operates in the Wholesale-Drugs, Proprietaries & Druggists' Sundries industry, within the Consumer Defensive sector.
CARDINAL HEALTH INC (CAH) reported annual revenue of $222.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
Cardinal Health is a global healthcare services and products company providing customized solutions across the pharmaceutical distribution, specialty pharmaceutical services, medical products manufacturing and distribution, and healthcare provider management segments. The company operates through five segments: Pharmaceutical and Specialty Solutions (Pharma), which distributes branded and generic pharmaceuticals to retailers, hospitals, and healthcare providers while providing specialty pharmaceutical distribution, pharmacy management, and data analytics services to manufacturers and providers; Global Medical Products and Distribution (GMPD), which manufactures and distributes Cardinal Health-branded medical, surgical, and laboratory products and provides supply chain services to healthcare facilities; Nuclear and Precision Health Solutions, which operates nuclear pharmacies and manufactures radiopharmaceuticals for imaging and therapeutic procedures; at-Home Solutions, which delivers medical supplies directly to patients and through distribution partners; and OptiFreight Logistics, which provides shipping and logistics optimization for healthcare providers. The company earns revenue through product distribution margins, manufacturer service fees and rebates, specialty pharmaceutical consulting and patient support services, branded medical product sales, and logistics services. Cardinal Health maintains prime vendor relationships with customers that streamline purchasing and reduce costs, operates a generic pharmaceutical sourcing venture with CVS Health called Red Oak Sourcing, and has built a multi-specialty managed service organization (MSO) platform through recent acquisitions including GI Alliance, Integrated Oncology Network, and Solaris Health. The company serves hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home across the United States, Canada, Europe, Asia, and other markets, with approximately 57,700 employees globally as of June 2025.
【Specialty-led growth acceleration】 Management expects continued strong demand and demographic trends to support the Pharmaceutical and Specialty Solutions segment, with specialty revenues anticipated to exceed $50 billion in fiscal 2026 and the MSO platforms positioned as meaningful growth drivers through the Specialty Alliance's multi-specialty platform. The company anticipates positive demand trends to persist into fiscal 2027, supported by strong ongoing operating performance and benefits from the annualization of the Solaris acquisition and continued synergy realization. In GMPD, successful execution of the multi-year improvement plan is on track, with management expressing confidence in the continued potential to unlock value in this business through operational efficiency and Cardinal Health brand growth. The company expects robust cash flow generation to continue, enabling disciplined capital allocation including baseline share repurchases, while the Nuclear and Precision Health Solutions and at-Home Solutions businesses are positioned to benefit from secular trends in theranostics and home healthcare delivery.
| Metric | Target | Period |
|---|---|---|
| Pharma segment revenue growth | 15%–17% | FY2026 |
| Pharma segment profit growth | 22%–23% | FY2026 |
| Specialty revenue | exceed $50 billion | FY2026 |
| GMPD segment revenue growth | 1%–3% | FY2026 |
| GMPD segment profit | $150 million | FY2026 |
| Other growth businesses revenue growth | 26%–28% | FY2026 |
| Other growth businesses profit growth | 36%–38% | FY2026 |
| Adjusted free cash flow | $3.3 billion–$3.7 billion | FY2026 |
Pharma segment revenue growth (FY2026): “we are increasing our pharma revenue guidance to 15%- 17% growth”
Pharma segment profit growth (FY2026): “we are pleased to raise and narrow our profit growth outlook to 22%-23%”
Specialty revenue (FY2026): “we continue to expect our specialty revenue to exceed $50 billion in fiscal 2026”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 244.7B | 222.6B | 226.8B | 205.0B | 181.3B | 162.5B |
| Net Income | 1.7B | 1.6B | 852M | 330M | -938M | 611M |
| EPS | $6.13 | $6.45 | $3.45 | $1.26 | $-3.37 | $2.08 |
| Free Cash Flow | 5.5B | 1.9B | 3.3B | 2.4B | 2.8B | 2.0B |
| ROIC | 55.3% | 3.5% | 2.0% | 1.0% | -1.1% | 19.4% |
| Gross Margin | 3.7% | 3.7% | 3.3% | 3.4% | 3.6% | 4.2% |
| Debt/Equity | 0.00 | -3.07 | -1.58 | -1.59 | -7.50 | 3.48 |
| Dividends/Share | $1.83 | $2.02 | $2.00 | $1.98 | $1.96 | $1.94 |
| Operating Income | 2.5B | 2.3B | 1.2B | 752M | -607M | 472M |
| Operating Margin | 1.0% | 1.0% | 0.5% | 0.4% | -0.3% | 0.3% |
| ROE | 0.0% | -52.1% | -27.6% | -18.0% | -173.4% | 34.1% |
| Shares Outstanding | 271M | 242M | 247M | 262M | 278M | 294M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 91.1B | 102.5B | 121.5B | 130.0B | 136.8B | 145.5B | 152.9B | 162.5B | 181.3B | 205.0B | 226.8B | 222.6B | 244.7B |
| Gross Margin | 5.7% | 5.6% | 5.4% | 5.0% | 5.2% | 4.7% | 4.5% | 4.2% | 3.6% | 3.4% | 3.3% | 3.7% | 3.7% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 3.0B | 3.2B | 3.6B | 3.8B | 4.6B | 4.5B | 4.6B | 4.5B | 4.5B | 4.8B | 5.0B | 5.4B | 5.8B |
| EBIT | 1.9B | 2.2B | 2.5B | 2.1B | 98M | 2.1B | -4.1B | 472M | -607M | 752M | 1.2B | 2.3B | 2.5B |
| Op. Margin | 2.1% | 2.1% | 2.0% | 1.6% | 0.1% | 1.4% | -2.7% | 0.3% | -0.3% | 0.4% | 0.5% | 1.0% | 1.0% |
| Net Income | 1.2B | 1.2B | 1.4B | 1.3B | 256M | 1.4B | -3.7B | 611M | -938M | 330M | 852M | 1.6B | 1.7B |
| Net Margin | 1.3% | 1.2% | 1.2% | 1.0% | 0.2% | 0.9% | -2.4% | 0.4% | -0.5% | 0.2% | 0.4% | 0.7% | 0.7% |
| Non-Recurring | 860M | 873M | 46M | 74M | 1.6B | 125M | 701M | 112M | 2.2B | 1.3B | 850M | 106M | 96M |
| Returns on Capital | |||||||||||||
| ROIC | 15.4% | 18.9% | 17.9% | 13.5% | 0.8% | 12.6% | -32.9% | 19.4% | -1.1% | 1.0% | 2.0% | 3.5% | 55.3% |
| ROE | 18.8% | 19.2% | 22.3% | 19.3% | 4.0% | 22.0% | -91.1% | 34.1% | -173.4% | -18.0% | -27.6% | -52.1% | 0.0% |
| ROA | 4.5% | 4.3% | 4.4% | 3.5% | 0.6% | 3.4% | -9.0% | 1.4% | -2.1% | 0.8% | 1.9% | 3.2% | 2.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 2.5B | 2.5B | 3.0B | 1.2B | 2.8B | 2.7B | 2.0B | 2.4B | 3.2B | 2.8B | 3.8B | 2.4B | 6.1B |
| Free Cash Flow | 2.3B | 2.2B | 2.5B | 797M | 2.4B | 2.4B | 1.6B | 2.0B | 2.8B | 2.4B | 3.3B | 1.9B | 5.5B |
| Owner Earnings | 2.0B | 2.0B | 2.2B | 371M | 1.7B | 1.6B | 957M | 1.6B | 2.4B | 2.1B | 2.9B | 1.4B | 4.9B |
| CapEx | 249M | 300M | 465M | 387M | 384M | 328M | 375M | 400M | 387M | 481M | 511M | 547M | 597M |
| Maint. CapEx | 459M | 451M | 641M | 717M | 1.0B | 1.0B | 913M | 783M | 692M | 692M | 710M | 790M | 883M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 459M | 451M | 641M | 717M | 1.0B | 1.0B | 913M | 783M | 692M | 692M | 710M | 790M | 883M |
| CapEx/OCF | 9.9% | 11.8% | 15.7% | 32.7% | 13.9% | 12.0% | 19.1% | 16.5% | 12.4% | 16.9% | 13.6% | 22.8% | 9.8% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 415M | 460M | 512M | 577M | 581M | 577M | 569M | 573M | 559M | 525M | 499M | 494M | 495M |
| Dividend Yield | 2.7% | 2.3% | 2.5% | 3.1% | 3.6% | 4.7% | 4.6% | 4.1% | 4.1% | 2.9% | 2.1% | 1.7% | 0.8% |
| Share Buybacks | 673M | 1.0B | 651M | 600M | 550M | 600M | 350M | 200M | 1.0B | 2.0B | 750M | 765M | 1.1B |
| Buyback Yield | 3.8% | 4.8% | 3.5% | 3.1% | 4.3% | 5.1% | 2.7% | 1.3% | 7.2% | 8.5% | 3.2% | 1.9% | 1.8% |
| Stock-Based Comp | 96M | 110M | 111M | 96M | 85M | 82M | 90M | 89M | 81M | 96M | 121M | 244M | 364M |
| Debt Repayment | 2.0M | 1.2B | 6.0M | 310M | 954M | 1.1B | 1.4B | 570M | 885M | 579M | 783M | 445M | 445M |
| Balance Sheet | |||||||||||||
| Net Debt | 1.0B | 785M | 3.1B | 4.3B | 7.3B | 5.5B | 4.0B | 2.8B | 598M | 625M | -241M | 4.7B | 6.2B |
| Cash & Equiv. | 2.9B | 4.6B | 2.4B | 6.9B | 1.8B | 2.5B | 2.8B | 3.4B | 4.7B | 4.1B | 5.1B | 3.9B | 2.8B |
| Long-Term Debt | 3.2B | 5.2B | 5.0B | 9.1B | 8.0B | 7.6B | 6.8B | 5.4B | 4.7B | 3.9B | 4.7B | 8.0B | 8.3B |
| Debt/Equity | 0.62 | 0.88 | 0.85 | 1.65 | 1.49 | 1.27 | 3.79 | 3.48 | -7.50 | -1.59 | -1.58 | -3.07 | 0.00 |
| Interest Coverage | 14.2 | 15.3 | 13.8 | 10.5 | 0.3 | 7.0 | -17.2 | 2.6 | -4.1 | 9.0 | 24.4 | 10.6 | 8.0 |
| Equity | 6.4B | 6.3B | 6.6B | 6.8B | 6.1B | 6.3B | 1.8B | 1.8B | -709M | -3.0B | -3.2B | -2.8B | -2.9B |
| Total Assets | 26.0B | 30.1B | 34.1B | 40.1B | 40.0B | 41.0B | 40.8B | 44.5B | 43.9B | 43.3B | 45.1B | 53.1B | 58.1B |
| Total Liabilities | 19.6B | 23.9B | 27.6B | 33.3B | 33.9B | 34.6B | 39.0B | 42.7B | 44.6B | 46.3B | 48.3B | 55.9B | 9.1B |
| Intangibles | 992M | 948M | 2.3B | 2.0B | 3.9B | 3.4B | 2.9B | 2.1B | 1.8B | 1.5B | 1.7B | 2.5B | 2.4B |
| Retained Earnings | 4.8B | 5.5B | 6.4B | 5.0B | 4.6B | 5.4B | 1.2B | 1.2B | -280M | -642M | -286M | 783M | 1.5B |
| Working Capital | 2.8B | 4.5B | 2.3B | 7.1B | 1.7B | 1.6B | 2.3B | 3.4B | 2.4B | -3.0M | -756M | -2.5B | -4.1B |
| Current Assets | 17.9B | 21.8B | 22.0B | 28.3B | 24.6B | 25.7B | 25.9B | 31.0B | 32.9B | 33.7B | 34.9B | 36.4B | 39.2B |
| Current Liabilities | 15.1B | 17.2B | 19.7B | 21.2B | 22.9B | 24.1B | 23.6B | 27.6B | 30.6B | 33.7B | 35.6B | 38.9B | 43.3B |
| Per Share Data | |||||||||||||
| EPS | 3.38 | 3.62 | 4.32 | 4.03 | 0.81 | 4.53 | -12.61 | 2.08 | -3.37 | 1.26 | 3.45 | 6.45 | 6.13 |
| Owner EPS | 5.71 | 5.90 | 6.72 | 1.16 | 5.22 | 5.45 | 3.27 | 5.30 | 8.63 | 7.85 | 11.87 | 5.63 | 17.92 |
| Book Value | 18.56 | 18.64 | 19.84 | 21.30 | 19.17 | 21.03 | 6.10 | 6.10 | -2.55 | -11.29 | -13.01 | -11.49 | -10.64 |
| Cash Flow/Share | 7.32 | 7.57 | 8.99 | 3.70 | 8.76 | 9.05 | 6.69 | 8.27 | 11.41 | 10.86 | 15.23 | 9.90 | 9.39 |
| Dividends/Share | 1.21 | 1.37 | 1.55 | 1.80 | 1.85 | 1.91 | 1.92 | 1.94 | 1.96 | 1.98 | 2.00 | 2.02 | 1.83 |
| Shares Out. | 345.0M | 335.6M | 330.3M | 319.6M | 316.0M | 300.9M | 293.1M | 293.8M | 278.3M | 261.9M | 247.0M | 242.0M | 271.0M |
| Valuation | |||||||||||||
| P/E Ratio | 15.0 | 17.6 | 13.2 | 15.2 | 49.5 | 8.7 | N/A | 24.6 | N/A | 71.0 | 27.8 | 25.7 | 37.2 |
| P/FCF | 7.7 | 9.6 | 7.5 | 24.5 | 5.3 | 4.9 | 8.0 | 7.4 | 5.0 | 9.9 | 7.3 | 21.7 | 11.2 |
| EV/EBIT | 8.8 | 8.3 | 8.2 | 8.3 | 195.4 | 7.4 | N/A | 32.4 | N/A | 27.6 | 15.2 | 18.2 | 26.9 |
| Price/Book | 2.7 | 3.4 | 2.9 | 2.9 | 2.1 | 1.9 | 7.1 | 8.4 | N/A | N/A | N/A | N/A | N/A |
| Price/Sales | 0.2 | 0.2 | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.3 |
| FCF Yield | 13.0% | 10.5% | 13.3% | 4.1% | 18.8% | 20.2% | 12.4% | 13.5% | 20.1% | 10.1% | 13.7% | 4.6% | 8.9% |
| Market Cap | 17.5B | 21.4B | 18.8B | 19.6B | 12.7B | 11.8B | 12.8B | 15.0B | 13.9B | 23.4B | 23.6B | 40.1B | 61.8B |
| Avg. Price | 45.06 | 60.04 | 61.88 | 58.92 | 50.81 | 40.62 | 42.57 | 47.75 | 48.82 | 70.23 | 96.45 | 122.01 | 228.03 |
| Year-End Price | 50.67 | 63.83 | 57.02 | 61.19 | 40.07 | 39.37 | 43.52 | 51.14 | 49.84 | 89.49 | 95.75 | 165.72 | 228.03 |
CARDINAL HEALTH INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
CARDINAL HEALTH INC trades at 32.8x trailing earnings, compared to its 15-year median P/E of 25.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 9.7x vs a median of 7.5x. The company's 5-year average ROIC is 5.0% with a gross margin of 3.6%. Total shareholder yield (dividends + buybacks) is 2.6%. At current prices, the estimated annualized return to fair value is +9.4%.
CARDINAL HEALTH INC (CAH) has a net profit margin of 0.7%. This is a modest margin.
CARDINAL HEALTH INC (CAH) generated $1.9 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CARDINAL HEALTH INC (CAH) reported earnings per share (EPS) of $6.45 in its most recent fiscal year.
CARDINAL HEALTH INC (CAH) has a return on equity (ROE) of -52.1%. A negative ROE may indicate losses or negative equity.
CARDINAL HEALTH INC (CAH) has a 5-year average gross margin of 3.6%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 18 years of financial data for CARDINAL HEALTH INC (CAH), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CARDINAL HEALTH INC (CAH) has a book value per share of $-11.49, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong demand and demographic trends to support the Pharmaceutical and Specialty Solutions segment, with specialty revenues anticipated to exceed $50 billion in fiscal 2026 and the MSO platforms positioned as meaningful growth drivers through the Specialty Alliance's multi-specialty platform. The company anticipates positive demand trends to persist into fiscal 2027, supported by strong ongoing operating performance and benefits from the annualization of the Solaris acquisition and continued synergy realization. In GMPD, successful execution of the multi-year improvement plan is on track, with management expressing confidence in the continued potential to unlock value in this business through operational efficiency and Cardinal Health brand growth. The company expects robust cash flow generation to continue, enabling disciplined capital allocation including baseline share repurchases, while the Nuclear and Precision Health Solutions and at-Home Solutions businesses are positioned to benefit from secular trends in theranostics and home healthcare delivery.
Based on recent SEC filings and earnings calls, CARDINAL HEALTH INC (CAH) has provided the following forward guidance: Pharma segment revenue growth: 15%–17% (FY2026); Pharma segment profit growth: 22%–23% (FY2026); Specialty revenue: exceed $50 billion (FY2026); GMPD segment revenue growth: 1%–3% (FY2026); GMPD segment profit: $150 million (FY2026), plus 3 additional metrics.
GMPD segment revenue growth (FY2026): “we are reiterating our revenue outlook of 1%-3% growth”
GMPD segment profit (FY2026): “holding our profit guidance to $150 million”
Other growth businesses revenue growth (FY2026): “revenue guidance is unchanged, projecting the full year between 26%-28% growth”
Other growth businesses profit growth (FY2026): “we are increasing our profit growth guidance to a range of 36%-38%”
Adjusted free cash flow (FY2026): “we are raising and narrowing our full year adjusted free cash flow guidance to a range of $3.3 billion-$3.7 billion”