Cardinal Health provides pharmaceutical and medical products and services that help pharmacies, hospitals and other healthcare providers focus on patient care. The company was founded in 1979 and is based in Dublin, Ohio.
CAH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Cardinal Health Inc. To summarize, we found that Cardinal Health Inc ranked in the 42th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Cardinal Health Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 68. Its equity weight surpasses that of only 22.75% of free cash flow generating stocks in the Healthcare sector.
Cardinal Health Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -16. This coverage rate is greater than that of only 6.26% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DGX, HRC, ITGR, BDX, and PRSC can be thought of as valuation peers to CAH, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
After notching a roughly 18% gain in April and May, the S&P 500 has gained only about 2% since early June. Here are Barron’s picks for S&P 500 stocks with attractive, but not ultrahigh, dividend yields.
Why settle for an average dividend stock when you can hold a great one in your portfolio? A great dividend stock provides investors with a better yield than what they could typically earn from the average S&P 500 stock, has a solid track record of raising its payouts, and produces a sustainable dividend. Today, I'll look at whether medical distribution company Cardinal Health (NYSE: CAH) falls into the category of a great dividend stock and whether it belongs in your dividend empire.
DUBLIN, Ohio, July 2, 2020 /PRNewswire/ -- Cardinal Health (NYSE: CAH) plans to release fourth-quarter and year-end financial results for its fiscal year 2020 on August 6 prior to the opening of trading on the New York Stock Exchange. The company will webcast a discussion of these results…