Cardinal Health Net Income vs. EBITDA

CAH Stock  USD 120.42  1.16  0.95%   
Considering the key profitability indicators obtained from Cardinal Health's historical financial statements, Cardinal Health is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Cardinal Health's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1989-06-30
Previous Quarter
236 M
Current Value
416 M
Quarterly Volatility
504 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
The Cardinal Health's current Price To Sales Ratio is estimated to increase to 0.21. The Cardinal Health's current Days Sales Outstanding is estimated to increase to 26.71. As of now, Cardinal Health's Change To Netincome is increasing as compared to previous years.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.06810.0327
Way Up
Slightly volatile
Operating Profit Margin0.030.0055
Way Up
Pretty Stable
For Cardinal Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cardinal Health to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cardinal Health utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cardinal Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cardinal Health over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Cardinal Stock please use our How to Invest in Cardinal Health guide.
Is Health Care Providers & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cardinal Health. If investors know Cardinal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cardinal Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
48.135
Dividend Share
2.012
Earnings Share
5.2
Revenue Per Share
921.782
Quarterly Revenue Growth
(0.04)
The market value of Cardinal Health is measured differently than its book value, which is the value of Cardinal that is recorded on the company's balance sheet. Investors also form their own opinion of Cardinal Health's value that differs from its market value or its book value, called intrinsic value, which is Cardinal Health's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cardinal Health's market value can be influenced by many factors that don't directly affect Cardinal Health's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cardinal Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cardinal Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cardinal Health's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Cardinal Health EBITDA vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cardinal Health's current stock value. Our valuation model uses many indicators to compare Cardinal Health value to that of its competitors to determine the firm's financial worth.
Cardinal Health is rated second in net income category among its peers. It also is rated second in ebitda category among its peers totaling about  2.32  of EBITDA per Net Income. As of now, Cardinal Health's Net Income is decreasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cardinal Health's earnings, one of the primary drivers of an investment's value.

Cardinal Health's Earnings Breakdown by Geography

Cardinal EBITDA vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Cardinal Health

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
852 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Cardinal Health

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
1.98 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Cardinal EBITDA Comparison

Cardinal Health is currently under evaluation in ebitda category among its peers.

Cardinal Health Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cardinal Health, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cardinal Health will eventually generate negative long term returns. The profitability progress is the general direction of Cardinal Health's change in net profit over the period of time. It can combine multiple indicators of Cardinal Health, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-167 M-158.7 M
Operating Income1.2 B1.3 B
Income Before Tax1.2 B883.2 M
Total Other Income Expense Net-42 M-44.1 M
Net Income852 M636.6 M
Income Tax Expense348 M341.6 M
Net Income Applicable To Common Shares234.9 M223.2 M
Net Income From Continuing Ops853 M895.6 M
Non Operating Income Net Other3.6 M3.8 M
Interest Income83.7 M79.5 M
Net Interest Income-51 M-53.5 M
Change To Netincome1.6 B1.7 B
Net Income Per Share 3.48  0.42 
Income Quality 4.42  3.17 
Net Income Per E B T 0.71  0.62 

Cardinal Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Cardinal Health. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cardinal Health position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cardinal Health's important profitability drivers and their relationship over time.

Use Cardinal Health in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cardinal Health position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cardinal Health will appreciate offsetting losses from the drop in the long position's value.

Cardinal Health Pair Trading

Cardinal Health Pair Trading Analysis

The ability to find closely correlated positions to Cardinal Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cardinal Health when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cardinal Health - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cardinal Health to buy it.
The correlation of Cardinal Health is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cardinal Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cardinal Health moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cardinal Health can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Cardinal Health position

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Cryptocurrency Theme
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When determining whether Cardinal Health offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cardinal Health's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cardinal Health Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cardinal Health Stock:
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For more detail on how to invest in Cardinal Stock please use our How to Invest in Cardinal Health guide.
You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
To fully project Cardinal Health's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cardinal Health at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cardinal Health's income statement, its balance sheet, and the statement of cash flows.
Potential Cardinal Health investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Cardinal Health investors may work on each financial statement separately, they are all related. The changes in Cardinal Health's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cardinal Health's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.