Cardinal Health CAH
Cardinal Health is a wholesale distributor of pharmaceutical products and medical devices, acting as an intermediary between manufacturers and healthcare providers (hospitals, pharmacies) in the United States. Cardinal Health shows 68.8% earnings growth and 112% cash conversion, with a forward P/E of 15.67 and a 9.32% FCF yield suggesting an attractive valuation, although its 1.33% operating margin and 3.84% gross margin reflect the low-margin nature of the distribution business.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Cardinal Health is a wholesale distributor of pharmaceutical products and medical devices, acting as an intermediary between manufacturers and healthcare providers (hospitals, pharmacies) in the United States. Cardinal Health shows 68.8% earnings growth and 112% cash conversion, with a forward P/E of 15.67 and a 9.32% FCF yield suggesting an attractive valuation, although its 1.33% operating margin and 3.84% gross margin reflect the low-margin nature of the distribution business.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.7 |
| Quality / Moat | 5.2 |
| Valuation | 6.2 |
| Growth | 7.7 |
| Dividend | 5.2 |
| Momentum | 9.3 |
| Risk & Context | 7.9 |
OVERALL SCORE: 6.3/10
Context and risks
The US pharmaceutical distribution business is subject to regulatory pressure on drug prices and intermediation margins, a structural sector risk not captured by financial metrics.
News considered in the analysis
- AbbVie vs. Johnson & Johnson: Which Healthcare Stock Is a Better Buy in 2026? — Listículo comparativo genérico sin información nueva sobre Cardinal Health.
- AbbVie vs. Pfizer: Which Healthcare Stock Makes Your Portfolio Healthier in 2026? — Listículo comparativo genérico sin información nueva sobre Cardinal Health.
- Cardinal Health (CAH) Stock Slides as Market Rises: Facts to Know Before You Trade — Ruido de mercado sin información fundamental nueva.
- McKesson (MCK) Lifted Its Guidance, Is The Stock Still 11% Undervalued? — Noticia sobre un competidor directo, pero sin impacto demostrable en los fundamentales de Cardinal Health.
- AbbVie vs. Novo Nordisk: Which Drug Giant Stock Is a Better Buy in 2026? — Listículo comparativo genérico sin información nueva sobre Cardinal Health.
Verdict: Hold or accumulate on dips; momentum is strong (9.28) and the forward valuation is reasonable, but the operating margin is very thin and the liquidity ratio is weak.
Main risk: The main risk is US regulatory pressure on drug prices, which could further compress the already very thin margins of pharmaceutical distribution.
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