Cardinal Z Score

CAH
 Stock
  

USD 53.10  0.83  1.59%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Continue to Cardinal Health Piotroski F Score and Cardinal Health Valuation analysis.
  
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Cardinal Health Return on Invested Capital is most likely to slightly decrease in the upcoming years. The last year's value of Return on Invested Capital was reported at 0.0423. The current Market Capitalization is estimated to increase to about 15.8 B, while Capital Expenditure is projected to decrease to (388.4 M). Cardinal Health Net Income to Non Controlling Interests is most likely to decrease significantly in the upcoming years. The last year's value of Net Income to Non Controlling Interests was reported at 900,000. The current Operating Income is estimated to increase to about 689.4 M, while Direct Expenses is projected to decrease to roughly 122.3 B.

Cardinal Z Score Analysis

Cardinal Health's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2019 2020 2021 2022 (projected)
Interest Expense238 M180 M207 M214.47 M
Gross Profit6.87 B6.78 B7.79 B7.54 B
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current Cardinal Health Z Score

    
  6.2  
Most of Cardinal Health's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Cardinal Health is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

Cardinal Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for Cardinal Health is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Cardinal Health's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Cardinal Health's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Cardinal Health's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

In accordance with the company's disclosures, Cardinal Health has a Z Score of 6.2. This is 8.15% lower than that of the Healthcare sector and 11.31% higher than that of the Medical Distribution industry. The z score for all United States stocks is 28.9% higher than that of the company.

Cardinal Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Cardinal Health's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Cardinal Health could also be used in its relative valuation, which is a method of valuing Cardinal Health by comparing valuation metrics of similar companies.
Cardinal Health is currently under evaluation in z score category among related companies.

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

Cardinal Health Institutional Holders

Institutional Holdings refers to the ownership stake in Cardinal Health that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Cardinal Health's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Cardinal Health's value.
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

Cardinal Fundamentals

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. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products operates nuclear pharmacies and radiopharmaceutical manufacturing facilities repackages generic pharmaceuticals and over-the-counter healthcare products and offers medication therapy management and patient outcomes services to hospitals, other healthcare providers, and payers, as well as provides pharmacy management services to hospitals. The Medical segment 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 compressions incontinences nutritional delivery products wound care products single-use surgical drapes, gowns, and apparels fluid suction and collection systems urology products operating room supply products and electrode product lines. The segment also 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. It has a collaboration agreement with Journey Biosciences, Inc. Cardinal Health, Inc. was founded in 1979 and is headquartered in Dublin, Ohio.

Cardinal Health Investors Sentiment

The influence of Cardinal Health's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Cardinal. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Cardinal Health Implied Volatility

    
  26.81  
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.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Cardinal Health in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Cardinal Health's short interest history, or implied volatility extrapolated from Cardinal Health options trading.

Current Sentiment - CAH

Cardinal Health Investor Sentiment

Greater number of Macroaxis users are currently bullish on Cardinal Health. What is your opinion about investing in Cardinal Health? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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 Piotroski F Score and Cardinal Health Valuation 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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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.
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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.