Cardinal Health, Inc. (CAH)

Cardinal Health's stock has shown a significant increase of 66.78% over the last year. Several financial institutions have upgraded their outlook for CAH and raised price targets, contributing to stock rebounds. The company reported strong third-quarter fiscal year 2025 results, raising its fiscal year 2025 non-GAAP EPS guidance to $8.05 to $8.15. The Board approved a new $3.5 billion share repurchase authorization expiring December 31, 2027, with plans to execute at least $2.0 billion of share repurchases over three years. The company maintains a consistent dividend yield and has a healthy payout ratio, and reported strong free cash flow. Members of Congress have engaged in CAH stock trading in the past six months, with five reported purchases and no sales.

Demand for Cardinal Health's core pharmaceutical distribution products generally exhibits minimal seasonality due to the inelastic nature of healthcare demand. However, there is specific seasonality in demand for certain medical products, particularly respiratory diagnostics. To address this, Cardinal Health launched an inventory reserve program in June 2022, allowing labs and health systems to pre-order respiratory diagnostics more accurately.

Cardinal Health, Inc. is an American multinational healthcare services and products company headquartered in Dublin, Ohio, operating primarily within the Healthcare sector, specifically in the Medical Distribution industry. It specializes in the distribution of pharmaceuticals and medical products, serving over 100,000 locations. The company's major products and services are categorized into two primary segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution (GMPD). The Pharmaceutical segment focuses on the distribution of branded and generic pharmaceuticals, specialty drugs, and over-the-counter healthcare products, and operates one of the largest networks of radiopharmacies in the U.S. The Medical segment involves the manufacturing, sourcing, and distribution of Cardinal Health branded medical, surgical, and laboratory products, and provides supply chain management and logistics solutions.

Cardinal Health has a significant global presence, with operations in over 30 countries and serving more than 100,000 healthcare locations worldwide. Its headquarters are in Dublin, Ohio, U.S., and its medical and surgical products are sold in the United States, Canada, Europe, Asia, and other international markets. In the U.S., Cardinal Health provides medical products to over 75% of hospitals. The company has been expanding its U.S. medical product distribution footprint, including opening new distribution centers in Central Ohio in 2023 and a new facility in Walton Hills, Ohio, anticipated to be fully operational in spring 2025.

Cardinal Health's brand reputation in the past year has continued to be influenced by its historical involvement in opioid litigation. Ongoing legal resolutions related to the opioid crisis can affect public perception and brand reputation. The company has also highlighted initiatives aimed at combating the opioid crisis.

Cardinal Health's stock ownership is a mix of institutional, retail, and individual investors. Approximately 64.41% to 89% of the company's stock is owned by institutional investors, including BlackRock, Inc., Vanguard Group Inc., and State Street Corp. Robert D. Walter, the company's founder, is the largest individual shareholder, owning 4.50 million shares, representing 1.89% of the company.