Cardinal Health, Inc.


SKU: CAH Category:


This is our first report on Cardinal Health, one of the largest wholesalers within the healthcare domain in the U.S. The company delivered a mixed result in the last quarter surpassing revenue expectations of Wall Street but missing out on earnings. Cardinal delivered higher than its expectations in its Pharma segment despite managing industry-wide inflationary headwinds. However, indirect expenses have been on the rise as a result of inflationary supply chain costs as well as other operating expenses like a higher cost for supporting Pharma sales growth. Its generic program, which includes Red Oak has had a robust performance off-late. Another key factor driving the recent top-line growth is incremental inflation in its products. Cardinal’s management has consistent overall product and distribution volumes, including PPE. Upstream and Specialty, the company’s third-party logistics business, has been continuing its strong growth with over double the launches compared to the previous quarter. It also remains well positioned in biosimilars. In rheumatology, Cardinal closed its recent tuck-in acquisition of Bendcare GPO and continues to be on expansion mode. The company has a robust service offering in Specialty as well. We initiate coverage on the stock of Cardinal Health with a ‘Hold’ rating.

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
⦁ Disclosures

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