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Is this Large Market Cap Stock target price reasonable for Cardinal Health, Inc. (NYSE:CAH)?

The company in question is, Cardinal Health, Inc. (NYSE:CAH) currently with a stock price of 78.66 (-1.65% today). The market cap for Cardinal Health, Inc. is 26095.08, and is in the sector Services, and Drugs Wholesale industry. The target price for Cardinal Health, Inc. is 93.86. Currently Cardinal Health, Inc. is trading with a P/E of 18.51, and a forward P/E of 12.73. Average volume for Cardinal Health, Inc. is 2029.19 and so far today it is 96759.

Performance in the last year for Cardinal Health, Inc. has been -4.02%. For EPS growth, Cardinal Health, Inc. has seen a growth of 19.50%, and is looking to grow in the next year to 11.46%. More long term stats show that EPS growth has been 9.60% over the last five years and could be 11.33% for the next five years. Cardinal Health, Inc. has seen sales growth quarter over quarter at 13.90%, with EPS growth quarter over quarter at 15.40%. The 20-day simple moving average is -3.90%, with the 200-day simple moving average coming to -3.16%.

Since the IPO date for Cardinal Health, Inc. on the 12/31/1987, Cardinal Health, Inc. has seen performance year to date to be -9.44%. With Cardinal Health, Inc. trading at 78.66, the dividend yield is 2.25%, and the EPS is 4.32.

So could Cardinal Health, Inc., be undervalued? Well as said before P/E is 18.51. The PEG is 1.63, P/S is 0.21 and the P/B is at 3.95. The P/cash is 11.08, with P/free cash flow at 13.09.

Cardinal Health, Inc. ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 0.6. This is with long term debt/equity at 0.76, and total debt/equity at 0.85.

In terms of margins, Cardinal Health, Inc. has a gross margin of 5.40%, an operating margin of 2.00% and a profit margin of 1.20%.Payout ratio for Cardinal Health, Inc. is 35.50%. Return on assets come to 4.30% with return on investment coming to 13.30%.

Insider ownership for Cardinal Health, Inc., is at 0.30% and institutional ownership comes to 89.20%. Outstanding shares are at 326.27. While shares float is 317.77. The float short is currently 2.22%, and short ratio is 3.47.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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