Cardinal Health Stock Underperforms Against Competitors on Tuesday
November 18, 2023
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On Tuesday, Cardinal Health ($NYSE:CAH) Inc.’s stock did not perform as well as its competitors. Cardinal Health is a healthcare services and products company that serves patients, healthcare providers, and manufacturers worldwide. Its portfolio includes medical-surgical products and services, pharmaceutical distribution and health IT solutions. The company has had to deal with competition from larger players in the industry and the challenges of operating in an ever-changing healthcare landscape.
Despite these difficulties, Cardinal Health remains committed to providing quality healthcare solutions and services to its customers. Although Tuesday’s performance was a disappointment for Cardinal Health investors, the company is continuing to focus on the long-term and make strategic moves to increase its competitive edge. Investors are hoping that Cardinal Health can find a way to reverse its underperformance on Tuesday and improve its stock price in the near future.
Price History
The stock opened at $104.3, but closed at $102.9, representing a drop of 1.9% from its prior closing price of 104.9. Many investors are cautious about the company’s performance in the near future given the current market conditions. In the short term, it may be difficult for CARDINAL HEALTH to reclaim the gains it made earlier in the year, but investors may be able to capitalize on any potential opportunities should the stock correct itself in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cardinal Health. More…
| Total Revenues | Net Income | Net Margin |
| 210.17k | 156 | 0.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cardinal Health. More…
| Operations | Investing | Financing |
| 3.36k | -447 | -2.55k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cardinal Health. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 43.71k | 47.2k | -14.17 |
Key Ratios Snapshot
Some of the financial key ratios for Cardinal Health are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.8% | 2.5% | 0.3% |
| FCF Margin | ROE | ROA |
| 1.4% | -11.5% | 0.8% |
Analysis
At GoodWhale, we conducted an analysis of CARDINAL HEALTH‘s financials and were pleased to find that it was a strong and healthy company. According to the Star Chart, CARDINAL HEALTH has a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable of safely riding out any crisis without the risk of bankruptcy. Moreover, CARDINAL HEALTH has been rated as being strong in assets and medium in dividend, growth, and profitability. This classification of ‘rhino’ suggests that CARDINAL HEALTH has achieved moderate revenue or earnings growth. Given these positive financials, this type of company may be attractive to a variety of investors. Those who are looking for long-term stability, such as pension funds, may benefit from CARDINAL HEALTH’s ability to weather downturns in the economy. Meanwhile, those investors who are looking for more growth opportunities may be interested in its potential for further earnings expansion. Additionally, investors who are looking for dividend yields may find satisfaction in its regular income payouts. More…
Peers
Its competitors are AmerisourceBergen Corp, McKesson Corp, and Sigma Healthcare Ltd.
– AmerisourceBergen Corp ($NYSE:ABC)
AmerisourceBergen Corp is a drug wholesaler that was founded in 1985. The company has a market cap of 32.4B as of 2022 and a return on equity of 417.0%. AmerisourceBergen Corp distributes prescription drugs and other healthcare products and services to healthcare providers and pharmaceutical companies. The company operates in two segments, Pharmaceutical Distribution and Other.
– McKesson Corp ($NYSE:MCK)
McKesson Corp is a healthcare services and information technology company. It has a market cap of 55.96B as of 2022 and a Return on Equity of -74.43%. The company provides a range of services and products to healthcare providers, payers, and consumers. These services and products include prescription drugs, medical supplies, and software and technology solutions.
– Sigma Healthcare Ltd ($ASX:SIG)
Sigma Healthcare Ltd is a pharmaceutical company with a market cap of 683.23M as of 2022 and a ROE of 0.46%. The company manufactures and distributes a range of prescription and over-the-counter medicines, medical devices, and other healthcare products.
Summary
Cardinal Health Inc. (NYSE:CAH) stock saw a decline on Tuesday compared to its competitors. Analysts attribute this to a decrease in demand for its products, weaker-than-expected earnings, and a decrease in its market share. Investors should closely monitor the company’s financial performance and watch for potential regulatory changes that could have an impact on its business.
Factors such as product innovation, cost optimization, and strategic acquisitions can also drive the stock in the long run. Overall, Cardinal Health is likely to remain a relatively safe but low-growth stock for investors who are looking for a defensive investment.
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