# Cardinal Health (CAH.US)

Canonical: https://gigainvestors.com/s/CAH

Analysis as of: 2026-10-16T07:27:12.876Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $253.71 per share; close as of 2026-10-15.

Estimated value: low $55.61 per share, central $63.27 per share, high $73.48 per share. Buy at or below the central value $63.27 per share. Valuation as of 2026-10-16T07:27:12.876Z; scenarios are not confidence intervals.

Expected annual return: 4.7% at the stated quote. About 4.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 2

- Operating margin variation: 3.43×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.02×

- FY2018: 0.00×

- FY2019: 0.01×

- FY2020: -0.03×

- FY2021: 0.00×

- FY2022: -0.00×

- FY2023: 0.00×

- FY2024: 0.01×

- FY2025: 0.01×

- FY2026: 0.01×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 24.0%

- ROIC, second-lowest year: -9.4%

- Typical minus recent gross margin: 0.3 pp

- Typical gross margin (annual median): 4.0%

- Recent gross margin (lower of latest and 3-year median): 3.7%

- Years with nonpositive capital: 7

- Capital spending / revenue: 0.2%

- ROIC including acquisitions, ten-year median: 13.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 45.9%

- FY2018: 2.0%

- FY2019: 46.5%

- FY2020: -37.8%

- FY2021: 5.5%

- FY2022: -9.4%

- FY2023: 22.0%

- FY2024: 36.8%

- FY2025: 25.9%

- FY2026: 29.0%

### economics: pass

- Owner earnings / net income, 5-yr: 1.36×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.8B

- Net income, five-year total: $3.5B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -2.7 pp

- Working capital / revenue, final three-year average: -2.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.67×

- FY2023: 1.64×

- FY2024: 1.23×

- FY2025: 1.16×

- FY2026: 1.18×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 45.9% vs 29.0%

- Per-share earnings: 4.03 to 6.45 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.3%

- Ordinary dilution, 5-year annual growth: -4.2%

- Market cap gain: $31B

- Cumulative retained earnings: -$3.0B

- Diluted shares, 10-year annual growth: -3.3%

- Diluted shares, 5-year annual growth: -4.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 6.1%

- Per-share value change: $2.43

- Per-share value, starting three-year median: $4.03

- Per-share value, ending three-year median: $6.45

- Buybacks concentrated in cheaper years (correlation): -0.28

- Average buyback yield: 3.6%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $11B

- Cumulative net income, 10 years: $3.3B

- ROIC, first three-year median: 45.9%

- ROIC, last three-year median: 29.0%

Chart: Earnings per share; fiscal year observations.

- FY2017: $4.03

- FY2018: $0.81

- FY2019: $4.53

- FY2020: -$12.60

- FY2021: $2.08

- FY2022: -$3.36

- FY2023: $1.26

- FY2024: $3.45

- FY2025: $6.45

- FY2026: $7.23

### accounting: pass

- Sloan accruals: -6.0%

- Receivables to sales index (DSRI): 0.91×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 7.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.02×

- Accounting red flags: 0

Chart: Sloan accruals; fiscal year observations.

- FY2017: 0.3%

- FY2018: -6.3%

- FY2019: -3.3%

- FY2020: -13.9%

- FY2021: -4.1%

- FY2022: -9.3%

- FY2023: -5.8%

- FY2024: -6.4%

- FY2025: -1.6%

- FY2026: -6.0%

## Holders

- [Mason Hawkins](https://gigainvestors.com/SE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 18.6% a year for ten years · sales +14.2%

Story as of 2026-10-16T09:58:27.190Z; price observation 2026-10-15.

Price needs cash profits to grow 18.6% a year for ten years

- 2025-05-02: Cardinal Health Lifts FY25 EPS Outlook, Sees Growth Despite Tariff Risks ([finance.yahoo.com](https://finance.yahoo.com/news/cardinal-health-lifts-fy25-eps-043902914.html))

- 2025-06-12: Cardinal Health Raises Full-Year Earnings Outlook, Issues Upbeat Preliminary 2026 Profit Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/cardinal-health-raises-full-earnings-142223902.html))

- 2025-10-30: CAH Q1 Earnings Beat Estimates, '26 EPS View Up, Stock Gains ([finance.yahoo.com](https://finance.yahoo.com/news/cah-q1-earnings-beat-estimates-142900344.html))

- 2026-02-05: Cardinal Health boosts annual profit forecast banking on surging demand for specialty drugs ([finance.yahoo.com](https://finance.yahoo.com/news/cardinal-health-boosts-annual-profit-125607323.html))

- 2026-04-30: Cardinal Health lifts annual profit forecast on strong demand for specialty drugs ([finance.yahoo.com](https://finance.yahoo.com/sectors/healthcare/articles/cardinal-health-lifts-annual-profit-111756708.html))

- 2026-10-01: Cardinal Health rises on extended CVS distribution deal ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/cardinal-health-rises-extended-cvs-201217977.html))

### Sales · FY2025–2026

sales +14.2%; source https://www.sec.gov/Archives/edgar/data/721371/000072137126000038/cah-20260630.htm; observed 2026-08-11.

- FY2017: $130B 

- FY2018: $137B 

- FY2019: $146B 

- FY2020: $153B 

- FY2021: $162B 

- FY2022: $181B 

- FY2023: $205B 

- FY2024: $227B 

- FY2025: $223B 

- FY2026: $254B 

### Gross margin · FY2026

gross margin 3.8%; source https://www.sec.gov/Archives/edgar/data/721371/000072137126000038/cah-20260630.htm; observed 2026-08-11.

- FY2017: 5.0% 

- FY2018: 5.2% 

- FY2019: 4.7% 

- FY2020: 4.5% 

- FY2021: 4.2% 

- FY2022: 3.6% 

- FY2023: 3.4% 

- FY2024: 3.3% 

- FY2025: 3.7% 

- FY2026: 3.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical distribution; annual sales are USD 254.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/721371/000072137126000038/cah-20260630.htm (filed 2026-08-11); FY2026: revenue 254248000000; grossProfit 9774000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CAH.US: Cardinal Health, Inc. operates as a healthcare services and products company in the United States and internationally. It operates in two segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution. The company offers customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. It distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The company also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; pharmacy management services to hospitals; operates pharmacies, including pharmacies in community health centers; and repackages generic pharmaceuticals and over-the-counter healthcare products. In addition, it manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compression, incontinence, nutritional delivery, and wound care products; single-use surgical drapes, gowns, and apparel products; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. Further, the company distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile and non-sterile procedure kits. Additionally, it manufactures, prepares, and delivers radiopharmaceuticals; and optimizes direct shipments through integrated technology solutions. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.

### Why customers stay

Margins ranged from 3.3% to 3.8% during 2024–26; it earns 24% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-11); FY2024: grossProfit / revenue = 3.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-11); FY2025: grossProfit / revenue = 3.7%.

- Source: https://www.sec.gov/Archives/edgar/data/721371/000072137126000038/cah-20260630.htm (filed 2026-08-11); FY2026: grossProfit / revenue = 3.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-11); 10-year return on capital observations [[2017,0.45949764931395615],[2018,0.019935910274384138],[2019,0.4654731457800511],[2020,-0.37802662307333024],[2021,0.05549024218198918],[2022,-0.09409929356357928],[2023,0.22037871956717764],[2024,0.36845999229912746],[2025,0.25882708416902545],[2026,0.29006283485390943]]; median 0.23960290186810154. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 4% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/721371/000072137126000038/cah-20260630.htm (filed 2026-08-11); Gross margin observations: [[2021,0.04171924144595518],[2022,0.03575879906908],[2023,0.03360832085238]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 1.4 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-11); FY2017: growth capex 0; upkeep 387000000; owner earnings 1618000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-11); FY2018: growth capex 0; upkeep 384000000; owner earnings 904000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-11); FY2019: growth capex 0; upkeep 328000000; owner earnings 2035000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-11); FY2021: growth capex 0; upkeep 400000000; owner earnings 994000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-11); FY2023: growth capex 0; upkeep 481000000; owner earnings 541000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-11); FY2024: growth capex 0; upkeep 511000000; owner earnings 1051000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-11); FY2025: growth capex 0; upkeep 547000000; owner earnings 1804000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/721371/000072137126000038/cah-20260630.htm (filed 2026-08-11); FY2026: growth capex 0; upkeep 649000000; owner earnings 2021000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-11); Dividend observations: [[2017,577000000],[2018,581000000],[2019,577000000],[2020,569000000],[2021,573000000],[2022,559000000],[2023,525000000],[2024,499000000],[2025,494000000],[2026,491000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/721371/000072137126000038/cah-20260630.htm (filed 2026-08-11); FY2026: cash repurchases 1358000000 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CAH.US SharesStats.PercentInsiders = 0.281 percentage points; cache date 2026-10-16.

### What could break it

"Our sales and credit concentration is significant." (SEC filing, Aug 2026)

- Source: https://www.sec.gov/Archives/edgar/data/721371/000072137126000038/cah-20260630.htm (filed 2026-08-11); Our sales and credit concentration is significant.

### What the price says

The price assumes cash profits grow 18.6% yearly over ten years; actual growth was 5.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-11); Ten-year compound average after fade. Initial solved rate 0.2566769242915662. Price 253.71; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 4.857575757575757 → FY2026 8.527426160337553. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $68.69 per share

- 2016-11: $71.01 per share

- 2016-12: $71.97 per share

- 2017-01: $74.96 per share

- 2017-02: $81.37 per share

- 2017-03: $81.55 per share

- 2017-04: $72.59 per share

- 2017-05: $74.29 per share

- 2017-06: $77.92 per share

- 2017-07: $77.26 per share

- 2017-08: $67.46 per share

- 2017-09: $66.92 per share

- 2017-10: $61.90 per share

- 2017-11: $59.19 per share

- 2017-12: $61.27 per share

- 2018-01: $71.79 per share

- 2018-02: $69.21 per share

- 2018-03: $62.68 per share

- 2018-04: $64.17 per share

- 2018-05: $52.09 per share

- 2018-06: $48.83 per share

- 2018-07: $49.95 per share

- 2018-08: $52.19 per share

- 2018-09: $54.00 per share

- 2018-10: $50.60 per share

- 2018-11: $54.83 per share

- 2018-12: $44.60 per share

- 2019-01: $49.97 per share

- 2019-02: $54.34 per share

- 2019-03: $48.15 per share

- 2019-04: $48.71 per share

- 2019-05: $42.07 per share

- 2019-06: $47.10 per share

- 2019-07: $45.73 per share

- 2019-08: $43.13 per share

- 2019-09: $47.19 per share

- 2019-10: $49.45 per share

- 2019-11: $55.03 per share

- 2019-12: $50.58 per share

- 2020-01: $51.21 per share

- 2020-02: $52.12 per share

- 2020-03: $47.94 per share

- 2020-04: $49.48 per share

- 2020-05: $54.69 per share

- 2020-06: $52.19 per share

- 2020-07: $54.62 per share

- 2020-08: $50.76 per share

- 2020-09: $46.95 per share

- 2020-10: $45.79 per share

- 2020-11: $54.59 per share

- 2020-12: $53.56 per share

- 2021-01: $53.73 per share

- 2021-02: $51.52 per share

- 2021-03: $60.75 per share

- 2021-04: $60.34 per share

- 2021-05: $56.07 per share

- 2021-06: $57.09 per share

- 2021-07: $59.38 per share

- 2021-08: $52.49 per share

- 2021-09: $49.46 per share

- 2021-10: $47.81 per share

- 2021-11: $46.23 per share

- 2021-12: $51.49 per share

- 2022-01: $51.57 per share

- 2022-02: $54.01 per share

- 2022-03: $56.70 per share

- 2022-04: $58.05 per share

- 2022-05: $56.32 per share

- 2022-06: $52.27 per share

- 2022-07: $59.56 per share

- 2022-08: $70.72 per share

- 2022-09: $66.68 per share

- 2022-10: $75.90 per share

- 2022-11: $80.17 per share

- 2022-12: $76.87 per share

- 2023-01: $77.25 per share

- 2023-02: $75.71 per share

- 2023-03: $75.50 per share

- 2023-04: $82.10 per share

- 2023-05: $82.30 per share

- 2023-06: $94.57 per share

- 2023-07: $91.47 per share

- 2023-08: $87.33 per share

- 2023-09: $86.82 per share

- 2023-10: $91.00 per share

- 2023-11: $107.08 per share

- 2023-12: $100.80 per share

- 2024-01: $109.19 per share

- 2024-02: $111.98 per share

- 2024-03: $111.90 per share

- 2024-04: $103.04 per share

- 2024-05: $99.27 per share

- 2024-06: $98.32 per share

- 2024-07: $100.83 per share

- 2024-08: $112.72 per share

- 2024-09: $110.52 per share

- 2024-10: $108.52 per share

- 2024-11: $122.24 per share

- 2024-12: $118.27 per share

- 2025-01: $123.66 per share

- 2025-02: $129.48 per share

- 2025-03: $137.77 per share

- 2025-04: $141.29 per share

- 2025-05: $154.44 per share

- 2025-06: $168.00 per share

- 2025-07: $155.22 per share

- 2025-08: $148.78 per share

- 2025-09: $156.96 per share

- 2025-10: $190.77 per share

- 2025-11: $212.26 per share

- 2025-12: $205.50 per share

- 2026-01: $214.88 per share

- 2026-02: $229.23 per share

- 2026-03: $211.31 per share

- 2026-04: $192.88 per share

- 2026-05: $196.80 per share

- 2026-06: $237.56 per share

- 2026-07: $230.03 per share

- 2026-08: $234.62 per share

- 2026-09: $222.50 per share

- 2026-10: $239.72 per share

## Annual estimated value (USD per share)

- FY2017: low $71.92 per share, central $80.00 per share, high $90.74 per share

- FY2018: low $62.61 per share, central $71.24 per share, high $82.73 per share

- FY2019: low $69.70 per share, central $79.31 per share, high $92.10 per share

- FY2020: low $71.01 per share, central $80.81 per share, high $93.84 per share

- FY2021: low $40.45 per share, central $45.95 per share, high $53.28 per share

- FY2022: low $43.46 per share, central $49.45 per share, high $57.43 per share

- FY2023: low $22.57 per share, central $25.68 per share, high $29.82 per share

- FY2024: low $26.49 per share, central $30.14 per share, high $35.01 per share

- FY2025: low $46.58 per share, central $53.00 per share, high $61.55 per share

- FY2026: low $54.33 per share, central $61.82 per share, high $71.79 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/721371/000072137126000038/cah-20260630.htm); period 2026-06-30, filed 2026-08-11.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.