Cardinal Stock Buy Hold or Sell Recommendation

CAH
 Stock
  

USD 52.25  0.85  1.60%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Cardinal Health is 'Buy'. Macroaxis provides Cardinal Health buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CAH positions. The advice algorithm takes into account all of Cardinal Health's available fundamental, technical, and predictive indicators you will find on this site.
  
Refresh
The advice is provided from Cardinal Health's buy-and-hold perspective. Continue to Cardinal Health Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Cardinal and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Cardinal Health.

Execute Cardinal Health Buy or Sell Advice

The Cardinal recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Cardinal Health. Macroaxis does not own or have any residual interests in Cardinal Health or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Cardinal Health's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Cardinal HealthBuy Cardinal Health
Buy

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Cardinal Health has a Risk Adjusted Performance of (0.07), Jensen Alpha of 0.0463, Total Risk Alpha of 0.1381 and Treynor Ratio of (0.13)
Our advice module provides unbiased investment recommendation that can be used to complement current average analyst sentiment on Cardinal Health. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon. To make sure Cardinal Health is not overpriced, please confirm all Cardinal Health fundamentals, including its net income, book value per share, and the relationship between the revenue and total debt . Given that Cardinal Health has a price to earning of 13.71 X, we suggest you to validate Cardinal Health market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Cardinal Health Trading Alerts and Improvement Suggestions

Cardinal Health generated a negative expected return over the last 90 days
Over 90.0% of the company shares are held by institutions such as insurance companies
Latest headline from MacroaxisInsider: Payment of 9523 shares by Michael Kaufmann of Cardinal Health subject to Rule 16b-3

Cardinal Health current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Cardinal analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Cardinal analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price59.77
Target Median Price56.00
Target High Price74.00
Recommendation Mean2.80
Number Of Analyst Opinions13
Target Low Price51.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Cardinal Health Returns Distribution Density

The distribution of Cardinal Health's historical returns is an attempt to chart the future uncertainty of Cardinal Health's future price movements. The chart of the probability distribution of Cardinal Health stock daily returns describes the distribution of returns around its average expected value. We use Cardinal Health price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Cardinal Health returns is essential to provide solid investment advice for Cardinal Health stock.
Mean Return-0.08Value At Risk-2.97
Potential Upside2.88Standard Deviation1.70
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Cardinal Health historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Cardinal Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Cardinal Health is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Cardinal Health backward and forwards among themselves. Cardinal Health's institutional investor refers to the entity that pools money to purchase Cardinal Health's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Vanguard Group IncCommon Shares33.7 M1.9 B
Blackrock IncCommon Shares23.1 M1.3 B
State Street CorpCommon Shares21.8 M1.2 B
Price T Rowe Associates IncCommon Shares14.9 M844.8 M
Invesco LtdCommon Shares6.2 M350.7 M
Fmr LlcCommon SharesM337.9 M
Bank Of New York Mellon CorpCommon Shares5.4 M308.4 M
Note, although Cardinal Health's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Cardinal Health Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(384 M)(328 M)(375 M)(400 M)(360 M)(388.42 M)
Depreciation Amortization and Accretion1.03 B1,000 M913 M783 M900.45 M862.86 M
Net Cash Flow or Change in Cash and Cash Equivalents(5.12 B)768 M240 M636 M572.4 M617.59 M
Net Cash Flow Business Acquisitions and Disposals(5.28 B)681 M2 M(3 M)(3.45 M)(3.72 M)
Issuance Repayment of Debt Securities(1 B)(1.1 B)(1.4 B)(570 M)(513 M)(526.5 M)
Net Cash Flow from Financing(2.28 B)(2.29 B)(2.2 B)(1.32 B)(1.19 B)(1.22 B)
Net Cash Flow from Investing(5.61 B)338 M493 M(378 M)(434.7 M)(469.02 M)
Net Cash Flow Investment Acquisitions and Disposals56 M(15 M)866 M25 M28.75 M29.51 M
Net Cash Flow from Operations2.77 B2.72 B1.96 B2.43 B2.79 B2.74 B
Effect of Exchange Rate Changes on Cash4 M1,000 K(13 M)11 M12.65 M13.65 M

Cardinal Health Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Cardinal Health or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Cardinal Health stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Cardinal stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.046337
β
Beta against DOW0.72
σ
Overall volatility
1.75
Ir
Information ratio 0.06

Cardinal Health Volatility Alert

Cardinal Health exhibits very low volatility with skewness of 0.04 and kurtosis of 0.23. However, we advise investors to further study Cardinal Health technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cardinal Health's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cardinal Health's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Cardinal Health Implied Volatility

Cardinal Health's implied volatility exposes the market's sentiment of Cardinal Health stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Cardinal Health's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Cardinal Health stock will not fluctuate a lot when Cardinal Health's options are near their expiration.

Cardinal Health Fundamentals Vs Peers

Comparing Cardinal Health's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Cardinal Health's direct or indirect competition across all of the common fundamentals between Cardinal Health and the related equities. This way, we can detect undervalued stocks with similar characteristics as Cardinal Health or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Cardinal Health's fundamental indicators could also be used in its relative valuation, which is a method of valuing Cardinal Health by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Cardinal Health to competition
FundamentalsCardinal HealthPeer Average
Return On Equity37.35 %(0.31) %
Return On Asset2.62 %(0.14) %
Profit Margin0.32 %(1.27) %
Operating Margin1.50 %(5.51) %
Current Valuation18.57 B16.62 B
Shares Outstanding281.79 M571.82 M
Shares Owned by Insiders0.44 %10.09 %
Shares Owned by Institutions90.21 %39.21 %
Number of Shares Shorted7.43 M4.71 M
Price to Earning13.71 X28.72 X
Price to Book10.83 X9.51 X
Price to Sales0.09 X11.42 X
Revenue171.29 B9.43 B
Gross Profit6.97 B27.38 B
EBITDA2.56 B3.9 B
Net Income555 M570.98 M
Cash and Equivalents3.16 B2.7 B
Cash per Share11.41 X5.01 X
Total Debt5.64 B5.32 B
Debt to Equity5.63 %48.70 %
Current Ratio1.15 X2.16 X
Book Value Per Share4.91 X1.93 K
Cash Flow from Operations1.49 B971.22 M
Short Ratio2.69 X4.00 X
Earnings Per Share3.87 X3.12 X
Price to Earnings To Growth2.89 X4.89 X
Number of Employees44 K18.84 K
Beta0.92-0.15
Market Capitalization14.96 B19.03 B
Total Asset34.12 B29.47 B
Retained Earnings6.02 B9.33 B
Working Capital2.25 B1.48 B
Current Asset21.96 B9.34 B
   Payment of 9523 shares by Michael Kaufmann of Cardinal Health subject to Rule 16b-3 [view details]

Cardinal Health Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Cardinal . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution50567.98
Daily Balance Of Power(0.54)
Rate Of Daily Change0.98
Day Median Price52.11
Day Typical Price52.15
Market Facilitation Index0.0
Price Action Indicator(0.28)

About Cardinal Health Buy or Sell Advice

When is the right time to buy or sell Cardinal Health? Buying financial instruments such as Cardinal Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Cardinal Health investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables8.26 B9.1 B8.19 B7.29 B
Inventories13.2 B14.59 B13.13 B11.2 B

Use Investing Ideas to Build Portfolios

In addition to having Cardinal Health in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Alternative Energy Thematic Idea Now

Alternative Energy
Alternative Energy Theme
Large and mid-size companies, ETFs and funds that are either investing or directly involved in providing energy derived from sources not connected to fossil fuels, do not consume natural resources, and do not harm the environment. This includes wind power, nuclear and solar energy, biofuel, ethanol, hydrogen and others alternative sources of energy. The Alternative Energy theme has 38 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Alternative Energy Theme or any other thematic opportunities.
View All  Next Launch Alternative Energy
Continue to Cardinal Health Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Cardinal Health information on this page should be used as a complementary analysis to other Cardinal Health's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Complementary Tools for Cardinal Stock analysis

When running Cardinal Health price analysis, check to measure Cardinal Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cardinal Health is operating at the current time. Most of Cardinal Health's value examination focuses on studying past and present price action to predict the probability of Cardinal Health's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Cardinal Health's price. Additionally, you may evaluate how the addition of Cardinal Health to your portfolios can decrease your overall portfolio volatility.
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Is Cardinal Health's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cardinal Health. If investors know Cardinal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cardinal Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.92
Market Capitalization
14.5 B
Quarterly Revenue Growth YOY
0.14
Return On Assets
0.0253
Return On Equity
-1.73
The market value of Cardinal Health is measured differently than its book value, which is the value of Cardinal that is recorded on the company's balance sheet. Investors also form their own opinion of Cardinal Health's value that differs from its market value or its book value, called intrinsic value, which is Cardinal Health's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cardinal Health's market value can be influenced by many factors that don't directly affect Cardinal Health's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cardinal Health's value and its price as these two are different measures arrived at by different means. Investors typically determine Cardinal Health value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cardinal Health's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.