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Cardinal Health, Inc. (CAH)

NYSE - NYSE Delayed Price. Currency in USD
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47.60-1.18 (-2.42%)
At close: 1:00PM EST
48.80 +1.20 (+2.52%)
Pre-Market: 05:21AM EST
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  • D
    Dana Point
    4% dividend, listed as undervalued, in the growing health care market, and it is still at a 52 week low. Don't understand.
  • D
    Dave
    Today from CFRA: We increase our price target by $4 to $60, representing 9.5x our FY 23 (Jun.) EPS estimate, a discount to its average 10-year forward P/E of 13.2x. We maintain our FY 22 adjusted EPS estimate of $5.90 and increase FY 23 by $0.02 to $6.30. CAH posts Sep-Q EPS of $1.29 vs. $1.51 (-14.6%), six cents short of the $1.35 consensus. The miss was driven by higher-than-expected costs, as Sep-Q sales rose 12.5% to $44.0B ($2.1B ahead of consensus). Gross margin contracted 70 bps to 3.7% (40 bps below consensus). CAH maintained prior FY 22 adjusted EPS guidance of $5.60-$5.90. CAH announced long-term segment profit targets of low to mid-single digit growth in the Pharma segment and mid to high-single digit growth in Medical. The company said it is also targeting to average a double-digit combined adjusted EPS growth and dividend yield. We continue to view CAH as attractively valued at current levels and think it will likely benefit from steadily growing product volumes longer-term from aging baby boomers.
  • D
    Dave
    From CFRA
    -- In August, we lifted our view on shares of CAH to
    Buy from Hold as we think CAH is attractive at
    current valuations. We see CAH set for better
    growth in its core business in FY 22 and in the
    long-run we think it will likely benefit from
    steadily growing product volumes as baby
    boomers drive higher health care utilization. We
    view the divestiture of the Cordis business,
    CAH’s global manufacturer of cardiology devices
    for $1B as positive. The transaction is slated to
    close in H1 FY 22. Since its 2015 acquisition,
    Cordis was a significant drag for the Medical
    segment, in our view, due to operational
    problems, inventory write-downs, and mounting
    litigation costs.
    ---Consolidation of health insurers, providers, and
    pharmacy benefit managers has been an
    ongoing trend since 2018. This trend could
    pressure CAH's operating margins, in our view,
    as larger customers are able to negotiate lower
    distribution fees.
    --- Our price target is $56, 8.9x our FY 23 EPS
    estimate, lower than CAH’s historical forward P/
    E average of 120x. Risks include a longer-thananticipated rebound in elective procedures due
    to new rising Covid-19 infections, severe
    generic price deflation and contract renewals on
    less favorable terms
  • B
    BuyMNKD
    $MNKD conversation
    MNKD partners with $NRXP on advancing possible life-saving Covid drug.
    •NRxP has partnered with MannKind Corporation (Nasdaq: $MNKD ) to develop a ZYESAMI inhaler for respiratory conditions.
    • NRx announced that it has signed an agreement with Cardinal Health (NYSE:
    $CAH ) to provide third-party logistics and distribution of ZYESAMI.
    Buy MNKD!
  • K
    Kevin
    When there is another market crash or major correction this is the type of stock I'll be loading up on. I'm trying to calculate the downside to this.
  • K
    Ken
    The market is erratic and noisy. All that matters here is profits and that the company return them via div or buy-back when the fwd PE is low. If the profit estimates are accurate.....this company doesn't even need to grow to do fine.
    Bullish
  • C
    Corey
    Going to take me years of dividends to make back the capital losses of CAH. When I'm at break-even, I'm out.
    Bearish
  • m
    mike
    What am I missing with this stock? Seems to be treading down incrementally daily.
    In at 800 shares at $52 average
  • A
    ANTHONY
    CAH has been in neutral mode but a down word motion with NO news . A lot of insider stuff is going on without our knowledge. When they share the news we will pop big . Hold on .
  • A
    Aaron
    Anyone else afraid to buy any dips in fear that it will dip more?
  • M
    Maneesh_D
    I am not sure if one can totally trust yahoo finance statistics. U have noticed more than few mistakes. This company is showing d/e ratio close to 375 and bv of around 6. Is anyone concerned about these or what am I missing. I like the dividend and company’s cash position with $11+ per share.
  • S
    Sam
    Such a good value... Maybe the insiders know what we don't... Insider sold a huge chunk at 49... Probably a dead stock.....
  • a
    andy1
    To much corruption in this company. CEO, CFO… directors, chairman, management don’t knows how to run business. Abuse investors money. Supervisors of most divisions are poorly trained. Act like dummy robot. They created so much things to do , it not related to the job, spent tens of millions dollars to travel to enjoying vacation under business cost.
  • R
    Rex
    Hesitate to buy until $42
    Bullish
  • C
    CA_Newby
    becoming a pattern. big sell off in the morning then slow crawl the rest of the day back near even.
  • W
    Wisdom of Crowds
    $CAH and $CVS will be huge winners.....profitable, low valuations, inflation hedges, aging populations, government spending in health care, Covid/vaccination tail winds. Good luck longs....
    Bullish
  • B
    Bobby
    At this price it's almost a 4% dividend,.great entry price!
  • I
    Info
    3.5% dividend, 30% payout ratio, forward PE of 9. Seems like an obvious buy, like CNC was on their ER.

    Opinions?
  • S
    Scott
    I'm considering initiating a position in CAH sometime over the next couple days, assuming it stays in the lower $50 range. If I buy, this will go in the more conservative portion of my IRA portfolio with plans to hold long term, reinvesting dividends along the way. Opinions, positive and negative, appreciated. Thank you!
  • A
    Anonymous
    One of the absolute worst healthcare stocks over the past 12 months. CAH has never recovered from last years $20 price drop.
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