NYSE:CAH
$34.91
(3/12 6:40PM)
-0.2%
| Open | $35.14 |
Mkt Cap | $12.6 Billion |
| High | $35.28 |
52Wk High | $35.72 |
| Low | $34.75 |
52Wk Low | $20.80 |
| Volume | 2.3 Million |
Avg Vol 10D | 3.6 Million |
Ockham's Rating/Recommendation Summary
Rating specific information requires Premium Access.
Buy Now
or
Learn More about Ockham's Features and Services.
CAH Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, CAH the high and low end of the Price to Sales per share ratios are 0.30x and 0.21x respectively.
Notice that CAH's current Price to Sales per share ratio is 0.13x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $34.91, CAH is 51% below where we would expect to see it. This will beneficially factor into our final analysis of CAH as it is not often that this stock sinks to these levels.
CAH Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. CAH is below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for CAH to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 14.23 and a 9.56 low over the same period.
So what does a Cash Earnings ratio below the historical norm mean for CAH? Generally, CAH's investors have paid slightly higher stock prices for this level of Cash Earnings, which bodes well as a return to historical norms is statistically likely. However, it is never a guarantee that history gives us proper direction, particularly in fluctuating market cycles. So by utilizing a long term view and incorporating other areas of analysis (like Sales, Dividends, and management analysis), each investor can gain a more complete view of CAH. Remember, that the average Cash Earnings level for CAH has been 11.89, so the current Cash Earnings level of 11.41 is a positive in our view, but by no means is it overwhelming.
CAH Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from CAH against the historic high and low levels over an available data range. Because CAH has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In CAH’s case, the estimated annual dividend is $0.70 producing a current dividend yield of 2.01%. The highest dividend yield from CAH in recent history was 3.37% while the lowest dividend yield was 0.14%. CAH has shown confidence by hiking up the dividend yield to 14.53% above the historical median.
Squawk On The Street: Discussion of Analysts and Cardinal Health, Incorporated
Analysts' opinions can often carry a lot of weight, especially when they make major news and are covered on Squawk On The Street.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, CAH has been less covered in the news compared to the rest of our universe of stocks. We consider CAH as Undervalued at the current price of $32.79. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The Motley Fool CAPS data suggests that investors believe Cardinal Health, Incorporated will beat the market in the foreseeable future.
“… CARDINAL HEALTH upgraded to outperform and the firm raised its price target on the health care company from $31 to $39 and first energy downgraded to neutral from buy at bank of ... …”
See More News on CAH from Countdown to the Closing Bell
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on CAH from Countdown to the Closing Bell.
Based on our methodology, Cardinal Health, Incorporated should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; CAH has received less coverage from the financial media in business television and blogs.
“… Liz: the reason we're putting up CARDINAL HEALTH you were spun off from that and your numbers were affected the second quarter while the top line group 5%. …”
RazorWire has Detected News About CAH on Power Lunch
News has broken via the television and viral blogs regarding CAH, so investors should take an interest in learning what was said.
Based on our methodology, Cardinal Health, Incorporated should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; CAH has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… you've had to digest some charges having to do with your split from CARDINAL HEALTH. Are those now all behind you? > > …”
Power Lunch Discusses Higher Prices and Cardinal Health, Incorporated
Stick with it or dump it? Power Lunch discusses what an abnormally high price means for CAH's investors. Take note of Ockham's valaution on the stock as well.
Based on our methodology, Cardinal Health, Incorporated should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; CAH has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… >>> first ten minutes of trading, stocks that hit 52-week highs. Boeing, CARDINAL HEALTH, genworth financial, h.J. Heinz …”
Yearly Highs and CAH Recently Discussed on Squawk On The Street
Stick with it or dump it? Squawk On The Street discusses what an abnormally high price means for CAH's investors. Take note of Ockham's valaution on the stock as well.
Based on our methodology, Cardinal Health, Incorporated should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; CAH has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… There are five new 52-week highs this morning -- boeing, CARDINAL HEALTH, and pines among them. Simon? > > let's check on where we stand with the markets. …”
Cardinal Health, Incorporated Was Talked About by Mad Money
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on CAH from Mad Money.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Cardinal Health, Incorporated has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on CAH, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… We also have great partners like henry shine or CARDINAL HEALTH, who are helping through their own sales forces roll out our system. …”
It's Been a Month or More Since Power Lunch Discussed Cardinal Health, Incorporated
There has not been much to report from CAH in the last few weeks at least, but Power Lunch talked about the stock recently.
Based on our methodology, Cardinal Health, Incorporated should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; CAH has received less coverage from the financial media in business television and blogs.
“… Abc amerisourcebergen, a competitor and CARDINAL HEALTH also weaker here today. Mckesson with a big 3% giveback which is unusual for this stock. Dennis, back to you. > > …”
CAH's Back in the News After More than a Month on Squawk On The Street
After a month of relative quiet from CAH, they have appeared back in the news.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Cardinal Health, Incorporated has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on CAH, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… It's a health care distributer, competes with CARDINAL HEALTH for example but you don't see this stock having a big giveback like that too often. …”
Focus on Costs: CAH on Street Smart With Carol Massar and Matt Miller
The best run companies in the world always have their costs in check. Recently, CAH was mentioned in regards to costs on Street Smart With Carol Massar and Matt Miller.
The Motley Fool CAPS data suggests that investors believe Cardinal Health, Incorporated will beat the market in the foreseeable future. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Cardinal Health, Incorporated has been talked about more than normal recently. Please be aware that CAH is trading off $2.57 today, and is clearly being affected by the latest news. We consider CAH as Undervalued at the current price of $32.93. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… CARDINAL HEALTH considering selling as many as 35. 9 million shares and units. Using the most and today since the insurer said it will pour $65 billion in fourth quarter costs, ... …”
Cardinal Health, Incorporated Was Talked About by Power Lunch
News has broken via the television and viral blogs regarding CAH, so investors should take an interest in learning what was said.
As for Ockham's rating, we currently have our most bullish stance of Greatly Undervalued on this stock as it is currently trading well below the price we would expect given the fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. In comparison to the other stocks that we follow, Cardinal Health, Incorporated has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… CARDINAL HEALTH and pfizer. Brian roberts is poised to start running one of the biggest media conglomerates in the world. …”