It was a successful Q3 2023 for Cardinal Health, with a solid overall performance and an all-around beat. The Pharma business demonstrated resilience and growth, benefiting from its critical role in the pharmaceutical supply chain and a solid customer base. The company’s underlying fundamentals remained stable, with consistent market dynamics in the generics program and broad-based strength in pharmaceutical demand across categories and trade classes. The Pharma team is focused on leveraging this growth in core distribution operations and specialty services to meet the rising demand for specialty products. In the Medical segment, progress was made with the second consecutive quarter of positive segment profit. However, efforts are still underway to drive more predictable financial performance in line with the segment’s potential. Cardinal Health is working towards to inflation mitigation and growth initiatives to achieve its target of at least $650 million in segment profit by fiscal 2025. Furthermore, they collaborated with Signify Health to provide clinical and medication management services at home through its Outcomes division. The company is operating with urgency, focusing on executing the Medical improvement plan, building on the growth of the Pharmaceutical segment, and maximizing shareholder value. We give Cardinal Health a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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