CAH (Cardinal Health Inc) vs S&P 500 Comparison

CAH

S&P 500

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CAH

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

CAH

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

CAH

MCK

COR

0HF3

HSIC

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Cardinal Health Inc
Glance View

Economic Moat

None

Market Cap

29.7B USD

Industry

Health Care

Cardinal Health Inc., a formidable player in the healthcare sector, operates with the intricacy and precision of a well-orchestrated symphony. At its core, the company thrives on the distribution of pharmaceuticals and medical products, deftly weaving through the complexities of the healthcare supply chain. Cardinal Health serves as a lifeline connecting manufacturers on one end to healthcare providers and pharmacies on the other, ensuring that vital medications and supplies reach those in need efficiently. With a robust logistics network and sophisticated information systems, the company navigates a sprawling array of over 46,000 products, delivering them with diligence to hospitals, clinics, and retail pharmacies across the globe. In its pursuit of business ingenuity, Cardinal Health has expanded its horizons beyond distribution. The company ventures into the vibrant realm of medical and surgical products, offering an array of services that cater to clinical laboratories, ambulatory surgery centers, and more. This diversification not only amplifies its revenue streams but also aligns with its strategic goal of building a comprehensive healthcare ecosystem. Cardinal Health earns its income by capitalizing on a combination of service fees, margins from product sales, and a spectrum of value-added solutions. This intricate blend allows the company to maintain a competitive edge in an era where healthcare demands are ever-evolving and cost-efficiency is paramount. This finely tuned business model is what enables Cardinal Health to sustain its economic vitality and continue its transformative impact on healthcare delivery.

View CAH Analysis

CAH Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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DE	M	McKesson Europe AG XHAM:CLS1	Add

US		Mckesson Corp NYSE:MCK	Select
US		Cencora Inc NYSE:COR	Select
US	A	Amerisourcebergen Corp LSE:0HF3	Select
US		Henry Schein Inc NASDAQ:HSIC	Select
KR		Celltrion Healthcare Co Ltd KOSDAQ:091990	Select
CN		Sinopharm Group Co Ltd HKEX:1099	Select
CN		Shanghai Pharmaceuticals Holding Co Ltd SSE:601607	Select
CN		Huadong Medicine Co Ltd SZSE:000963	Select
IT		Amplifon SpA MIL:AMP	Select
DE	M	McKesson Europe AG XHAM:CLS1	Select

US		Mckesson Corp NYSE:MCK	Add
US		Cencora Inc NYSE:COR	Add
US	A	Amerisourcebergen Corp LSE:0HF3	Add
US		Henry Schein Inc NASDAQ:HSIC	Add
KR		Celltrion Healthcare Co Ltd KOSDAQ:091990	Add
CN		Sinopharm Group Co Ltd HKEX:1099	Add
CN		Shanghai Pharmaceuticals Holding Co Ltd SSE:601607	Add
CN		Huadong Medicine Co Ltd SZSE:000963	Add
IT		Amplifon SpA MIL:AMP	Add
DE	M	McKesson Europe AG XHAM:CLS1	Add

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CAH

vs

S&P 500

Stocks Performance
CAH vs S&P 500

Performance Gap
CAH vs S&P 500

Performance By Year
CAH vs S&P 500

Competitors Performance
Cardinal Health Inc vs Peers

Cardinal Health Inc
Glance View

Company

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CAH vs S&P 500

Stocks Performance CAH vs S&P 500

Performance Gap CAH vs S&P 500

Performance By Year CAH vs S&P 500

Competitors Performance Cardinal Health Inc vs Peers

Cardinal Health Inc Glance View

Company

Help

Tools

Stocks

CAH

vs

S&P 500

Stocks Performance
CAH vs S&P 500

Performance Gap
CAH vs S&P 500

Performance By Year
CAH vs S&P 500

Competitors Performance
Cardinal Health Inc vs Peers

Cardinal Health Inc
Glance View