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Cardinal Health Inc - Stock Quote CAH

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Morningstar's Cardinal Health Inc Stock Analysis

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Cardinal Health Reports Mixed Fiscal 3Q Results; Raising Our FVE to $52

Dylan Finley, CFA Equity Analyst

Analyst Note

| Dylan Finley, CFA |

While we continue to be pleased with the solid performance of Cardinal Health's core pharmaceutical distribution business (comprising around 90% of total company revenue, or 85% of operating profit), inflationary pressures appear poised to continue to pressure margin in the company's underperforming medical products business. Nonetheless, we remain reassured by the company's recent revamp of its IT infrastructure in its pharm distribution operations, and by management's expectations for the company to recognize the benefits from this conversion in fiscal 2023 and see low- to mid-single-digit operating profit growth. Accordingly, we are raising our fair value estimate to $52 per share, from $50.

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Cardinal Health Inc's Company Profile

Business Description

Cardinal Health is a leading pharmaceutical wholesaler, engaged in the sourcing and distribution of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with AmerisourceBergen and McKesson, the three compose well over 90% of the U.S. pharmaceutical wholesale industry. Cardinal Health also supplies medical-surgical products and equipment to healthcare facilities in North America, Europe, and Asia.

7000 Cardinal Place
Dublin, OH, 43017
T +1 614 757-5000
Sector Healthcare
Industry Medical Distribution
Most Recent Earnings Mar 31, 2022
Fiscal Year End Jun 30, 2022
Stock Type Slow Growth
Employees 47,300

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