$121.77
arrow_drop_up1.16%Is CAH a Buy or Sell based on AI Analysis?
Fundamental Analysis
Cardinal Health Inc, a healthcare company, has shown strong financial performance based on key fundamental indicators. With a market cap of $27.4B and a PE ratio of 44.7, the company's stock is priced at a reasonable valuation compared to its earnings potential. The company also boasts a healthy dividend yield of 1.77%, indicating a commitment to returning value to shareholders. Additionally, Cardinal Health has a strong return on assets of 2.79%, reflecting efficient use of its assets to generate profits. Furthermore, the company's revenue growth of 13.04% and net income of $262M demonstrate its ability to drive top-line growth while maintaining profitability. On the other hand, Cardinal Health's balance sheet shows some areas of concern, such as negative equity of -$3.45B and a current ratio of 0.98, suggesting potential liquidity challenges. The company also has a high debt level with liabilities of $50.02B, including debts of $4.72B. However, the company's free cash flow margin of 1.15% indicates that it is generating sufficient cash flow to cover its debt obligations. Overall, while Cardinal Health demonstrates strong revenue growth and profitability, investors may want to monitor the company's debt levels and liquidity position to ensure long-term financial stability.
Positive Development
Continued business growth and huge medical supplies market penetration: This suggests that Cardinal Health is growing and expanding in the healthcare market, which could lead to increased revenue and profitability. Strong stocks to buy: Cardinal Health has been identified as a strong buy stock by several financial platforms, indicating strong investor confidence in the company's future performance. New product launches and partnerships: The company's partnership with Quest Diagnostics and the launch of its new product, Nevro1, could lead to increased revenue and growth.
Negative Development
High debt-to-total asset ratio: The company's long-term debt is high compared to its total assets, which could indicate financial risk. Low operating margin: The company's operating margin is low, which could indicate inefficiencies in its operations. High payout ratio: The company's high payout ratio could indicate that it is paying out too much of its earnings in dividends, which could impact its ability to invest in the business.
Technical Analysis
Cardinal Health Inc (CAH) has a neutral technical rating, with one buy indicator (ATR) and four hold indicators (MACD, ADX, ROC, and STOCHRSI) for the month. There are also three sell indicators (RSI, CCI, and WILLR) signaling potential downside. The stock's current price is at $112.64, with a slight decrease of -0.64% from the previous close at $113.37. The seven days price change percent is at 2.72%, indicating some positive momentum in the short term. Furthermore, Cardinal Health Inc has a beta of 0.7, suggesting that the stock is less volatile compared to the market. The company's technical indicators are updated as of March 4, 2024, providing investors with up-to-date information for making informed decisions. Additionally, the stock sector is in healthcare, with a change of 28.55% over the past year, and the market sector has seen a change of 37.85% over the same period. Overall, investors may want to consider the technical indicators alongside other fundamental and market factors before making investment decisions in Cardinal Health Inc.
Conclusion and recommendation
Based on the data provided, Cardinal Health Inc (CAH) appears to be a moderately stable stock with a score of 71 and a relatively neutral technical rating. The company has a market capitalization of $27.4B and a dividend yield of 1.77%, indicating a consistent return for investors. Cardinal Health Inc also has a strong revenue growth of 13.04% and a net profit margin of 0.13%. However, it is important to note that the stock has seen a slight decrease in price, with a 0.64% decline in the past trading session. In conclusion, Cardinal Health Inc may be a suitable investment option for those seeking a steady income through dividends and a company with significant revenue growth. With a positive outlook for its future earnings and a solid market position in the healthcare sector, Cardinal Health Inc could potentially offer long-term growth opportunities for investors. However, it is essential for investors to closely monitor the stock's performance and consider factors such as market volatility and industry trends before making any investment decisions.