CAH

Healthcare

Cardinal Health, Inc. · Medical - Distribution · $47B

UQS Score — Balanced Preset
47.2
Below Average

Cardinal Health, Inc. scores 47.2/100 using the Balanced preset.

UQS vs Healthcare Sector
CAH
47.2
Sector avg
32.4
Quality
Weak
Moat
Weak
Growth
Good
Risk
Neutral
Valuation
Good

What is Cardinal Health, Inc.?

Cardinal Health is a large-cap integrated healthcare services and products company serving hospitals, pharmacies, surgery centers, and patients across the United States and internationally. It operates through two core segments: Pharmaceutical and Medical.

Cardinal Health generates revenue by distributing branded, generic, and specialty pharmaceuticals to healthcare providers and pharmacies, while also manufacturing and sourcing medical and surgical products under its own brand. Its Pharmaceutical segment includes nuclear pharmacy operations and specialty drug services, while the Medical segment covers a broad range of disposable clinical supplies. The company essentially acts as a critical supply-chain link between manufacturers and the point of care.

Founded in 1983 and headquartered in Dublin, Ohio, Cardinal Health has grown into one of the largest healthcare distribution networks in the country.

  • Pharmaceutical distribution — branded, generic, and specialty drugs
  • Nuclear pharmacy and radiopharmaceutical manufacturing
  • Cardinal Health branded medical and surgical supplies
  • Pharmacy management services for hospitals
  • Medication therapy management and patient outcomes programs

Is CAH a Good Stock to Buy?

UQS Score rates CAH as Below Average overall, reflecting meaningful structural challenges alongside some brighter spots.

The Growth and Valuation pillars both register as Good, suggesting the business is expanding at a reasonable pace relative to its sector peers and that the current price does not appear stretched. Risk lands at Neutral, meaning the balance sheet and earnings stability are neither a standout concern nor a clear advantage.

Both the Quality and Moat pillars score as Weak — the two areas that matter most for long-term compounding. Thin distribution margins and limited pricing power are persistent headwinds in this industry.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does CAH pay dividends?

Yes — Cardinal Health, Inc. pays a dividend.

Cardinal Health pays a regular dividend, consistent with its profile as a mature, large-cap healthcare company generating steady cash flows. The dividend reflects management's commitment to returning capital to shareholders even as the business navigates margin pressure in its distribution operations. Income-focused investors often monitor CAH alongside other large healthcare distributors for yield consistency.

When does CAH report earnings?

Cardinal Health reports earnings on a quarterly cadence, typical for US-listed large-cap equities.

Revenue trends have been driven primarily by pharmaceutical distribution volume, while the Medical segment has faced ongoing cost and supply-chain normalization pressures. Growth in specialty pharmaceuticals has been a notable contributor to the top line in recent periods.

For the most recent quarter's results and guidance, visit Cardinal Health's investor relations page directly.

CAH Price History

+310.1% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Cardinal Health, Inc.?

$
Today it would be worth
$37,662
That's a +277% total return, or +30.4% annualized.

Based on Cardinal Health, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

CAH Long-term Outlook

The UQS Growth pillar registers as Good, pointing to a business that continues to expand its pharmaceutical distribution volumes and specialty drug capabilities. However, the Weak Quality and Moat scores temper the long-term outlook — sustained margin improvement remains a challenge in a low-margin distribution model. The Neutral Risk profile suggests no immediate financial distress, but the path to meaningfully stronger returns on capital is not straightforward.

Growth drivers

  • Expanding specialty pharmaceutical distribution and services
  • Growing demand for nuclear pharmacy and radiopharmaceutical products
  • Increased outsourcing of medical supply procurement by health systems

Key risks

  • Persistent margin compression in pharmaceutical distribution
  • Competitive pricing pressure from MCK and COR in core distribution
  • Regulatory and reimbursement changes affecting pharmaceutical volumes

CAH vs Peers

Cardinal Health competes in a concentrated healthcare distribution and services market alongside a small number of large, entrenched players.

CORSimilar UQS
Cencora, Inc.

Cencora focuses heavily on specialty and oncology drug distribution, giving it a differentiated mix compared to Cardinal's broader pharmaceutical and medical product portfolio.

MCKCAH scores lower
McKesson Corporation

McKesson is the largest US pharmaceutical distributor by volume and has been expanding aggressively into oncology and technology-enabled healthcare services.

HSICCAH scores higher
Henry Schein, Inc.

Henry Schein targets dental and medical practitioners rather than large health systems, giving it a distinct customer base and product mix relative to Cardinal Health.

Frequently Asked Questions

What does Cardinal Health do?

Cardinal Health distributes pharmaceutical and medical products to hospitals, pharmacies, surgery centers, and other healthcare providers. It also manufactures its own branded medical and surgical supplies and operates nuclear pharmacies. The company acts as a supply-chain intermediary between product manufacturers and the point of care.

Does CAH pay dividends?

Yes, Cardinal Health pays a regular dividend. The company has maintained a dividend program consistent with its position as a mature, cash-generative large-cap business. Investors seeking income from the healthcare sector often include CAH in their screening. For current yield and payment details, check Cardinal Health's investor relations page.

When does CAH report earnings?

Cardinal Health reports on a quarterly cadence, as is standard for US-listed large-cap companies. Specific upcoming report dates are not covered by our data source. For confirmed dates, visit the company's investor relations page or a financial calendar service.

Is CAH a good stock to buy?

UQS Score rates CAH as Below Average overall. The Growth and Valuation pillars are Good, but the Quality and Moat pillars are both Weak — a combination that warrants caution for investors prioritizing durable competitive advantages. The full pillar breakdown is available to UQS Pro members.

Is CAH overvalued?

The UQS Valuation pillar for CAH is rated Good, suggesting the stock does not appear significantly overpriced relative to its fundamentals and sector peers. That said, valuation alone does not determine investment quality — the Weak Moat and Quality scores are important context when assessing whether the price reflects the full picture.

How does CAH compare to its competitors?

Cardinal Health operates alongside Cencora and McKesson in the large pharmaceutical distribution space, and competes more broadly with Henry Schein in medical products. All three major distributors operate on thin margins, but differ in their specialty drug exposure, technology investments, and customer mix. UQS Pro members can view side-by-side pillar comparisons.

What is CAH's market cap bracket?

Cardinal Health is classified as a large-cap company, reflecting its scale as one of the major healthcare distribution networks in the United States. Large-cap status generally implies greater liquidity and institutional coverage compared to smaller peers in the sector.

Who founded Cardinal Health?

Cardinal Health was founded in 1983. Founding details and leadership history are widely available through the company's official website and public filings. The company has grown substantially through acquisitions and organic expansion since its early years as a regional drug distributor.

Is CAH a long-term quality investment?

From a long-term quality perspective, CAH's Weak scores in both Quality and Moat are meaningful flags. These pillars assess factors like return on capital and competitive durability — areas where Cardinal Health faces structural headwinds inherent to low-margin distribution. The Good Growth score offers some offset, but long-term compounding typically requires stronger moat characteristics.

What is the main competitive advantage of Cardinal Health?

Cardinal Health's primary advantage lies in its scale and logistics infrastructure — operating one of the largest pharmaceutical distribution networks in the US creates switching costs for health system customers. However, the UQS Moat pillar rates this advantage as Weak, reflecting that scale alone has not translated into strong pricing power or above-average returns on capital.

What sector does CAH belong to?

Cardinal Health belongs to the Healthcare sector, specifically within healthcare distribution and services. It serves as a critical intermediary in the US healthcare supply chain, connecting pharmaceutical manufacturers and medical product suppliers with hospitals, pharmacies, and clinical providers.

Is CAH a growth stock or value stock?

Based on UQS pillar labels, CAH shows Good Growth and Good Valuation — a profile that sits between classic growth and deep value. It is not a high-multiple growth stock, nor is it a distressed value play. Investors often categorize large healthcare distributors as steady, moderate-growth businesses rather than either extreme.

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Pro Analysis

CAH — Score History

40455055Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 25 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202647.031.738.064.047.464.20.0
May 21, 202647.031.738.064.047.464.70.0
May 19, 202647.031.738.064.047.464.6-0.1
May 16, 202647.131.738.064.047.465.4-0.1
May 15, 202647.231.738.064.047.465.5-0.2
May 14, 202647.431.738.064.047.466.8-0.1
May 12, 202647.531.738.064.047.467.4+0.1
May 11, 202647.431.738.064.047.467.2+0.7
May 10, 202646.730.538.064.047.464.50.0
May 8, 202646.730.538.064.047.464.7-0.5

CAH — Pillar Breakdown

Quality

31.7/100 (25%)

Cardinal Health, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Moderate

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

64.0/100 (20%)

Cardinal Health, Inc. demonstrates healthy growth trends across revenue and earnings.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

47.4/100 (15%)

Cardinal Health, Inc. has some risk factors including moderate leverage or solvency concerns.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageModerate

Earnings capacity relative to interest payments.

Valuation

65.8/100 (15%)

Cardinal Health, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowModerate

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorWeak

Enterprise value multiple relative to sector median.

Moat

38/100 (25%)

Cardinal Health, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for CAH.

Score Composition

Quality
31.7×25%7.9
Growth
64.0×20%12.8
Risk
47.4×15%7.1
Valuation
65.8×15%9.9
Moat
38.0×25%9.5
Total
47.2Below Average

Financial Data

More Stock Analysis

How is the CAH UQS Score Calculated?

The UQS (Unified Quality Score) for Cardinal Health, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Cardinal Health, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Cardinal Health, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.