Cardinal Health (CAH) Earnings Growth Surpasses Average, Raises Questions About Premium Valuation

Simply Wall St.11-02

Cardinal Health (CAH) booked another strong year of profit growth, with earnings rising 24.6%, well above its five-year average of 18% per year. Net profit margins also ticked higher to 0.7%, up from ...

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Net profit margins also ticked higher to 0.7%, up from ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/healthcare/nyse-cah/cardinal-health/news/cardinal-health-cah-earnings-growth-surpasses-average-raises\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Cardinal Health (CAH) Earnings Growth Surpasses Average, Raises Questions About Premium Valuation</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCardinal Health (CAH) Earnings Growth Surpasses Average, Raises Questions About Premium Valuation\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-02 00:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/healthcare/nyse-cah/cardinal-health/news/cardinal-health-cah-earnings-growth-surpasses-average-raises><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cardinal Health (CAH) booked another strong year of profit growth, with earnings rising 24.6%, well above its five-year average of 18% per year. Net profit margins also ticked higher to 0.7%, up from ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/healthcare/nyse-cah/cardinal-health/news/cardinal-health-cah-earnings-growth-surpasses-average-raises\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CAH","symbol_name":"卡地纳健康","start_time":0,"source_url":"https://simplywall.st/stocks/us/healthcare/nyse-cah/cardinal-health/news/cardinal-health-cah-earnings-growth-surpasses-average-raises","article_id":"2580056476","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/172207-main-header/1585186855368"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/healthcare/nyse-cah/cardinal-health/news/cardinal-health-cah-earnings-growth-surpasses-average-raises","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2580056476","pubTimestamp":1762015474,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Cardinal Health (CAH) booked another strong year of profit growth, with earnings rising 24.6%, well above its five-year average of 18% per year. Net profit margins also ticked higher to 0.7%, up from 0.6% a year ago, while the forecast calls for 10.7% annual earnings growth. With the stock trading at 28.4x earnings, above its peer and industry averages, investors are left weighing steady profit gains against a premium valuation and modest revenue growth forecasts.\nSee our full analysis for...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"CAH":"卡地纳健康"},"translate_title":"康德乐(CAH)盈利增长超过平均水平，引发对溢价估值的质疑","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CAH":1.5},"content_text":"Cardinal Health (CAH) booked another strong year of profit growth, with earnings rising 24.6%, well above its five-year average of 18% per year. Net profit margins also ticked higher to 0.7%, up from 0.6% a year ago, while the forecast calls for 10.7% annual earnings growth. With the stock trading at 28.4x earnings, above its peer and industry averages, investors are left weighing steady profit gains against a premium valuation and modest revenue growth forecasts. See our full analysis for Cardinal Health. Next, we will see how the just-reported numbers stack up against the main market narratives. Expect a few surprises as stories and data go head-to-head. See what the community is saying about Cardinal Health NYSE:CAH Earnings & Revenue History as at Nov 2025 AdvertisementMargins Crossing the 0.7% Mark  Net profit margins edged up to 0.7%, gaining ground versus last year’s 0.6%. Forecast margins are only expected to rise modestly to 0.8% over the next three years. According to the analysts' consensus view, Cardinal Health’s push to boost automation, streamline its generic drug portfolio, and expand higher-margin specialty businesses aligns with the anticipated uptick in profitability.\n     Efficiency efforts, such as portfolio optimization and new distribution centers, should help shore up margins and free cash flow. This is consistent with the company’s latest improvement. Despite these moves, consensus notes that ongoing regulatory and reimbursement risk could still challenge whether margin gains can persist over the long run.    Curious how analysts reconcile Cardinal Health's margin progress with possible industry headwinds? 📊 Read the full Cardinal Health Consensus Narrative. Share Count Set to Shrink  Analysts forecast Cardinal Health's shares outstanding will drop by roughly 1.33% per year over the next three years, supporting the company's future EPS growth potential. The consensus narrative points to ongoing share repurchases as a foundation for higher per-share earnings, but questions remain about how much impact this will have if top-line growth stays below the overall healthcare market.\n     Bulls emphasize that buybacks can accelerate EPS gains, particularly when paired with rising margins. However, others in the consensus warn that declining share count alone cannot offset competitive and reimbursement risks that weigh on the growth outlook.    Valuation: Premium Price, Deep Discount  Cardinal Health trades at a price-to-earnings ratio of 28.4x, noticeably above both its peer average (25.6x) and the broader US healthcare industry (21.7x). Its stock sits at $190.77, well below both the analyst price target of $194.86 and the DCF fair value of $586.25. The analysts' consensus view notes this disconnect. While Cardinal looks expensive on a PE basis versus competitors, the “deep discount” to DCF models and analyst targets suggests the market may be underappreciating the company’s resilient profit resume.\n     Consensus flags that for the current price to catch up to targets, Cardinal would need to hit $2.2 billion in earnings and maintain a mid-20x PE by 2028. However, higher sector growth rates elsewhere could mean elevated multiples are harder to justify, especially if future profit expansion falls short of forecasts.     Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Cardinal Health on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. Spot opportunities or risks others might miss? Put your perspective into action and build your version of the story in just a few minutes. Do it your way A great starting point for your Cardinal Health research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. See What Else Is Out There While Cardinal Health’s earnings have jumped, modest revenue growth and a high price-to-earnings ratio raise concerns about long-term value and upside. If you are looking for stocks trading at more attractive valuations with greater potential for upside, check out these 832 undervalued stocks based on cash flows that may offer better opportunities right now.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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