Cardinal Piotroski F Score

CAH
 Stock
  

USD 53.10  0.83  1.59%   

This module uses fundamental data of Cardinal Health to approximate its Piotroski F score. Cardinal Health F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Cardinal Health. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Cardinal Health financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Continue to Cardinal Health Altman Z Score, Cardinal Health Correlation, Cardinal Health Valuation, as well as analyze Cardinal Health Alpha and Beta and Cardinal Health Hype Analysis.
  
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Cardinal Health Long Term Debt to Equity is most likely to increase slightly in the upcoming years. The last year's value of Long Term Debt to Equity was reported at 2.70. The current Debt to Equity Ratio is estimated to increase to 29.55, while Debt Current is projected to decrease to roughly 858.8 M. Cardinal Health Inventory Turnover is most likely to slightly decrease in the upcoming years. The last year's value of Inventory Turnover was reported at 12.88. The current Accounts Payable Turnover is estimated to increase to 9.05, while Calculated Tax Rate is projected to decrease to (105.60) .
At this time, it appears that Cardinal Health's Piotroski F Score is Strong. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
7.0
Piotroski F Score - Strong
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsIncreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)ImprovingFocus
5
Asset Turnover GrowthIncreaseFocus
6
Current Ratio ChangeIncreaseFocus
7
Long Term Debt Over Assets ChangeHigher LeverageFocus
8
Change In Outstending SharesIncreaseFocus
9
Change in Gross MarginIncreaseFocus

Cardinal Health Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Cardinal Health is to make sure Cardinal is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Cardinal Health's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Cardinal Health's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares274.2 M262.8 M
Sufficiently Up
Decreasing
Slightly volatile
Weighted Average Shares Diluted276.3 M264.6 M
Sufficiently Up
Decreasing
Slightly volatile
Net Cash Flow from Operations2.7 B2.8 B
Sufficiently Down
Increasing
Slightly volatile
Total Assets46.4 B51.1 B
Moderately Down
Increasing
Slightly volatile
Total Liabilities42.1 B49.1 B
Fairly Down
Increasing
Slightly volatile
Current Assets31.9 B35.7 B
Moderately Down
Increasing
Slightly volatile
Current Liabilities28 B31.8 B
Fairly Down
Increasing
Slightly volatile
Total Debt7.2 B7.2 B
Slightly Up
Increasing
Slightly volatile
Return on Average Assets0.01560.0126
Fairly Up
Decreasing
Slightly volatile
Gross Margin0.04040.0378
Notably Up
Decreasing
Slightly volatile
Asset Turnover3.373.35
Slightly Up
Decreasing
Slightly volatile

Cardinal Health F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Cardinal Health's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Cardinal Health in a much-optimized way.

About Cardinal Health Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Weighted Average Shares

274.2 Million

Share
Cardinal Health Weighted Average Shares is most likely to decrease significantly in the upcoming years. The last year's value of Weighted Average Shares was reported at 262.8 Million

Cardinal Health Current Valuation Drivers

We derive many important indicators used in calculating different scores of Cardinal Health from analyzing Cardinal Health's financial statements. These drivers represent accounts that assess Cardinal Health's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Cardinal Health's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee5.1 K27.54 K(122.86 K)12.92 K14.86 K15.33 K
Revenue Per Employee2.73 M2.94 M5.08 M3.43 M3.09 M2.99 M
Average Assets41.46 B40.56 B40.53 B43.69 B50.25 B45.4 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA1.13 B3.04 B(2.62 B)1.28 B1.16 B1.34 B
Earnings Before Interest Taxes and Depreciation Amortization USD1.13 B3.04 B(2.62 B)1.28 B1.16 B1.34 B
Earnings before Tax(231 M)1.75 B(3.77 B)322 M289.8 M297.43 M
Average Equity6.97 B6.13 B1.22 B1.74 B1.57 B1.61 B
Enterprise Value22.57 B19.68 B20.17 B19.8 B22.77 B24.67 B
Free Cash Flow2.38 B2.39 B1.58 B2.03 B2.33 B2.27 B
Invested Capital12.08 B10.55 B9.88 B9.56 B11 B10.9 B
Invested Capital Average13.04 B11.14 B10.64 B10.64 B12.23 B11.48 B
Market Capitalization15.17 B14.04 B15.24 B16.56 B14.91 B15.83 B
Tangible Asset Value27.72 B29.16 B29.49 B34.36 B39.51 B35.5 B
Working Capital1.66 B1.64 B2.33 B3.42 B3.08 B2.97 B

About Cardinal Health Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Cardinal Health's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Cardinal Health using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Cardinal Health based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. Cardinal Health, Inc. was founded in 1979 and is headquartered in Dublin, Ohio. Cardinal Health operates under Medical Distribution classification in the United States and is traded on New York Stock Exchange. It employs 44000 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Cardinal Health without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Cardinal Health

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cardinal Health position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cardinal Health will appreciate offsetting losses from the drop in the long position's value.

Cardinal Health Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Cardinal Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cardinal Health when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cardinal Health - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cardinal Health to buy it.
The correlation of Cardinal Health is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cardinal Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cardinal Health moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cardinal Health can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Cardinal Health Altman Z Score, Cardinal Health Correlation, Cardinal Health Valuation, as well as analyze Cardinal Health Alpha and Beta and Cardinal Health Hype Analysis. 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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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.