CAH - Embedded Expectations Analysis - 2019 06 04
Cardinal Health, Inc. (CAH:USA) currently trades at historical lows relative toUAFRS-based (Uniform) Earnings, with an 11.0x Uniform P/E, implying bearish expectations for the firm. Additionally, management may be concerned about their generics business performance, cost structure, and strategic partnerships.
Specifically, management may be concerned about the underperformance in their generics business, their data and analytics investments, and their ability to deliver on operational commitments and capital allocation strategies. Moreover, they may be exaggerating improvements to their cost structure, their ability to streamline and maximize efficiency in manufacturing and distribution operations, and the strength of relationships with independent pharmacy customers and strategic partners. Also, they may lack confidence in their ability to improve Medical Solution business service, sustain growth in their national brand distribution and services, and manage interest expense.
Cardinal Health is a healthcare services and products company providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices. The company's segments include: Pharmaceutical and Medical. The company's Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical and over-the-counter healthcare and consumer products in the United States. The company's Medical segment manufactures, sources and distributes Cardinal Health branded medical, surgical and laboratory products, which are sold in the United States, Canada, Europe, Asia and other markets.
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