Cardinal Stock Story

CAH -  USA Stock  

USD 55.80  0.03  0.05%

Today we may see the proof that Agilent Technologies would recover slower from the current slip as its shares fell 0.7% to Cardinal Health's 0.62%. As many investors are getting excited about healthcare space, Cardinal Health and Agilent Technologies may be going in opposite directions. We are going to examine some of the competitive aspects of both Cardinal and Agilent.
Published over six months ago
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Will Cardinal Health (NYSE:CAH) shadow Agilent Technologies price jump?
By analyzing existing basic indicators between Cardinal Health and Agilent, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Agilent with a short position in Cardinal Health. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cardinal Health has an asset utilization ratio of 476.14 percent. This implies that the company is making $4.76 for each dollar of assets. An increasing asset utilization means that Cardinal Health is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Cardinal Health's Liquidity

Cardinal Health financial leverage refers to using borrowed capital as a funding source to finance Cardinal Health ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cardinal Health financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Cardinal Health's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Cardinal Health, but it might be worth checking our own buy vs. sell analysis

Payment of 3392 shares by Jason Hollar of Cardinal Health subject to Rule 16b-3

Legal trades by Cardinal Health insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Cardinal insider trading alert for payment of common shares by Jason Hollar, Chief Financial Officer, on 17th of May 2022. This event was filed by Cardinal Health Inc with SEC on 2022-05-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Cardinal Health Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Cardinal Health revenue. Based on the latest financial disclosure, Cardinal Health reported 162.47 B of revenue. This is much higher than that of the Healthcare sector and 103.82% higher than that of the Medical Distribution industry. The revenue for all United States stocks is significantly lower than that of the stock. As for Agilent Technologies we see revenue of 6.14 B, which is 92.3% lower than that of the Medical Distribution

162.5 B
CAH162.47 Billion92.19
Sector7.63 Billion4.33
A6.14 Billion3.48

Cardinal Health has 90 percent chance to finish above $48 in December

The total risk alpha is down to -0.93 as of today. Cardinal Health exhibits very low volatility with skewness of -7.22 and kurtosis of 56.29. 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.

Our Final Takeaway

While other companies in the medical distribution industry are either recovering or due for a correction, Cardinal Health may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Cardinal valuation and our trade advice on Cardinal Health is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Cardinal Health.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Cardinal Health. Please refer to our Terms of Use for any information regarding our disclosure principles.

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