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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 1.12
CFN's Cash to Debt is ranked higher than
65% of the 291 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 1.78 vs. CFN: 1.12 )
CFN' s 10-Year Cash to Debt Range
Min: 0.56   Max: No Debt
Current: 1.12

Equity to Asset 0.62
CFN's Equity to Asset is ranked higher than
68% of the 285 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 0.63 vs. CFN: 0.62 )
CFN' s 10-Year Equity to Asset Range
Min: 0.59   Max: 0.65
Current: 0.62

0.59
0.65
Interest Coverage 8.14
CFN's Interest Coverage is ranked higher than
57% of the 190 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 22.61 vs. CFN: 8.14 )
CFN' s 10-Year Interest Coverage Range
Min: 4.29   Max: 10.82
Current: 8.14

4.29
10.82
F-Score: 7
Z-Score: 2.49
M-Score: -3.09
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating margin (%) 17.44
CFN's Operating margin (%) is ranked higher than
87% of the 283 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 9.96 vs. CFN: 17.44 )
CFN' s 10-Year Operating margin (%) Range
Min: 12.35   Max: 17.44
Current: 17.44

12.35
17.44
Net-margin (%) 10.85
CFN's Net-margin (%) is ranked higher than
83% of the 283 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 7.72 vs. CFN: 10.85 )
CFN' s 10-Year Net-margin (%) Range
Min: 5.74   Max: 15.8
Current: 10.85

5.74
15.8
ROE (%) 7.15
CFN's ROE (%) is ranked higher than
72% of the 279 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 8.68 vs. CFN: 7.15 )
CFN' s 10-Year ROE (%) Range
Min: 4.12   Max: 13.13
Current: 7.15

4.12
13.13
ROA (%) 4.50
CFN's ROA (%) is ranked higher than
74% of the 286 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 4.50 vs. CFN: 4.50 )
CFN' s 10-Year ROA (%) Range
Min: 2.44   Max: 7.96
Current: 4.5

2.44
7.96
ROC (Joel Greenblatt) (%) 77.09
CFN's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 284 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 22.38 vs. CFN: 77.09 )
CFN' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 38.5   Max: 77.09
Current: 77.09

38.5
77.09
Revenue Growth (%) 1.50
CFN's Revenue Growth (%) is ranked higher than
66% of the 248 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 5.50 vs. CFN: 1.50 )
CFN' s 10-Year Revenue Growth (%) Range
Min: 0   Max: 1.5
Current: 1.5

0
1.5
EBITDA Growth (%) 8.90
CFN's EBITDA Growth (%) is ranked higher than
76% of the 209 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 6.50 vs. CFN: 8.90 )
CFN' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 8.9
Current: 8.9

0
8.9
EPS Growth (%) 34.20
CFN's EPS Growth (%) is ranked higher than
91% of the 220 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 6.80 vs. CFN: 34.20 )
CFN' s 10-Year EPS Growth (%) Range
Min: 0   Max: 34.2
Current: 34.2

0
34.2
» CFN's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

CFN Guru Trades in Q2 2013

Steven Romick 4,794,400 sh (New)
Jeremy Grantham 16,956 sh (New)
Joel Greenblatt 180,890 sh (+53.73%)
Vanguard Health Care Fund 4,970,354 sh (+4.98%)
First Pacific Advisors 5,047,400 sh (+0.91%)
Chris Davis Sold Out
Paul Tudor Jones Sold Out
Lee Ainslie Sold Out
Diamond Hill Capital 67,262 sh (-1.13%)
Robert Olstein 174,000 sh (-5.95%)
Pioneer Investments 941,800 sh (-8.23%)
Steven Cohen 201,105 sh (-50.53%)
» More
Q3 2013

CFN Guru Trades in Q3 2013

Jim Simons 1,509,000 sh (New)
Paul Tudor Jones 100,000 sh (New)
Diamond Hill Capital 89,668 sh (+33.31%)
Joel Greenblatt 195,743 sh (+8.21%)
Jeremy Grantham 17,056 sh (+0.59%)
Vanguard Health Care Fund 4,970,354 sh (unchged)
Robert Olstein 163,000 sh (-6.32%)
Steven Romick 4,325,000 sh (-9.79%)
First Pacific Advisors 4,539,600 sh (-10.06%)
Pioneer Investments 648,830 sh (-31.11%)
Steven Cohen 54,815 sh (-72.74%)
» More
Q4 2013

CFN Guru Trades in Q4 2013

Steven Cohen 683,742 sh (+1147.36%)
Paul Tudor Jones 238,700 sh (+138.7%)
Robert Olstein 219,000 sh (+34.36%)
Diamond Hill Capital 98,438 sh (+9.78%)
Joel Greenblatt 205,291 sh (+4.88%)
First Pacific Advisors 4,551,800 sh (+0.27%)
Vanguard Health Care Fund 4,970,354 sh (unchged)
Steven Romick 4,325,000 sh (unchged)
Jeremy Grantham 14,556 sh (-14.66%)
Pioneer Investments 339,644 sh (-47.65%)
Jim Simons 487,600 sh (-67.69%)
» More
Q1 2014

CFN Guru Trades in Q1 2014

Steven Romick 4,325,000 sh (unchged)
» More
» Details

Insider Trades

Latest Guru Trades with CFN

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Lee Ainslie 2013-06-30 Sold Out 0.67%$33.21 - $38.17 $ 38.59%0
Joel Greenblatt 2013-06-30 Add 53.73%0.1%$33.21 - $38.17 $ 38.59%180890
Joel Greenblatt 2013-03-31 Add 137.86%0.12%$28.58 - $34.99 $ 38.520%117665
Lee Ainslie 2012-12-31 Reduce -68.04%1.43%$26.54 - $29.05 $ 38.539%1811353
Joel Greenblatt 2012-12-31 Add 37.36%0.02%$26.54 - $29.05 $ 38.539%49469
Lee Ainslie 2012-09-30 Reduce -37.47%1.27%$24.01 - $28.63 $ 38.548%5666718
Joel Greenblatt 2012-09-30 Reduce -65.35%0.13%$24.01 - $28.63 $ 38.548%36014
John Keeley 2012-09-30 Sold Out 0.11%$24.01 - $28.63 $ 38.548%0
Lee Ainslie 2012-06-30 Add 6.35%0.2%$23.9 - $27.1 $ 38.552%9062564
Joel Greenblatt 2012-06-30 Add 379.76%0.16%$23.9 - $27.1 $ 38.552%103931
Dodge & Cox 2012-06-30 Sold Out 0.01%$23.9 - $27.1 $ 38.552%0
Lee Ainslie 2012-03-31 Add 8.9%0.26%$22.82 - $26.2 $ 38.567%8521463
Joel Greenblatt 2012-03-31 New Buy0.05%$22.82 - $26.2 $ 38.567%21663
John Keeley 2012-03-31 Add 30.15%0.02%$22.82 - $26.2 $ 38.567%186000
Lee Ainslie 2011-12-31 Add 122.58%1.54%$23.11 - $25.97 $ 38.557%7824682
Ray Dalio 2011-12-31 Sold Out 0.01%$23.11 - $25.97 $ 38.557%0
George Soros 2011-12-31 Sold Out 0.01%$23.11 - $25.97 $ 38.557%0
Dodge & Cox 2011-12-31 Reduce -24.19%$23.11 - $25.97 $ 38.557%183565
Lee Ainslie 2011-09-30 New Buy1.18%$22.26 - $28.14 $ 38.551%3515524
Dodge & Cox 2011-09-30 Reduce -84.91%0.04%$22.26 - $28.14 $ 38.551%242140
Ray Dalio 2011-09-30 Add 89.2%$22.26 - $28.14 $ 38.552%27150
George Soros 2011-09-30 Add 32.61%$22.26 - $28.14 $ 38.551%12200
Daniel Loeb 2011-06-30 Sold Out 0.85%$26.4 - $29.89 $ 38.536%0
Dodge & Cox 2011-06-30 Reduce -87.37%0.36%$26.4 - $29.89 $ 38.536%1604129
Vanguard Health Care Fund 2011-06-30 Add 20.07%0.1%$26.4 - $29.89 $ 38.536%4284654
John Keeley 2011-06-30 Add 23.69%0.02%$26.4 - $29.89 $ 38.536%188290
George Soros 2011-06-30 Reduce -67.03%0.01%$26.4 - $29.89 $ 38.536%9200
George Soros 2011-03-31 Reduce -42.59%0.01%$25.22 - $28.51 $ 38.543%27900
John Keeley 2011-03-31 Add 23.39%0.01%$25.22 - $28.51 $ 38.543%152230
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on CareFusion Corp

Crescent Fund's Steven Romick Comments on CareFusion - Jul 25, 2012

From the second quarter commentary of Crescent Fund's Steven Romick:

CareFusion We recently made an investment in CareFusion (CFN), a leading medical technology company serving hospitals in the United States and abroad. In this country, it has dominant market positions in a majority of its businesses. CFN's products and services are particularly attractive because they help lower hospitals' operating costs. With new, highly motivated and experienced management at the helm, we believe CFN could improve its R&D productivity and grow international sales at a faster rate. This should translate into better long-term EPS growth. Management's actions to date should increase the company's operating margin to a level more commensurate with its strong share position and in line with similarly positioned medical device companies. The company is trading at ~10x cash earnings and it has minimal net debt leverage, so we find CFN to be an attractive investment.
Check out Steven Romick latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 23.00
CFN's P/E(ttm) is ranked higher than
68% of the 201 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 23.30 vs. CFN: 23.00 )
CFN' s 10-Year P/E(ttm) Range
Min: 7.6   Max: 39.94
Current: 23

7.6
39.94
P/B 1.52
CFN's P/B is ranked higher than
86% of the 278 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 2.77 vs. CFN: 1.52 )
CFN' s 10-Year P/B Range
Min: 0.88   Max: 1.63
Current: 1.52

0.88
1.63
P/S 2.38
CFN's P/S is ranked higher than
63% of the 295 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 2.63 vs. CFN: 2.38 )
CFN' s 10-Year P/S Range
Min: 1.13   Max: 2.55
Current: 2.38

1.13
2.55
PFCF 15.34
CFN's PFCF is ranked higher than
90% of the 163 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 27.00 vs. CFN: 15.34 )
CFN' s 10-Year PFCF Range
Min: 5.26   Max: 35.57
Current: 15.34

5.26
35.57
EV-to-EBIT 13.69
CFN's EV-to-EBIT is ranked higher than
80% of the 235 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 18.39 vs. CFN: 13.69 )
CFN' s 10-Year EV-to-EBIT Range
Min: 8.3   Max: 15.1
Current: 13.69

8.3
15.1
PEG 3.09
CFN's PEG is ranked higher than
61% of the 135 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 2.25 vs. CFN: 3.09 )
CFN' s 10-Year PEG Range
Min: 0.94   Max: 2.77
Current: 3.09

0.94
2.77
Shiller P/E 24.02
CFN's Shiller P/E is ranked higher than
73% of the 126 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 25.28 vs. CFN: 24.02 )
CFN' s 10-Year Shiller P/E Range
Min: 23.96   Max: 25.84
Current: 24.02

23.96
25.84

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 7.86
CFN's Price/Tangible Book is ranked lower than
63% of the 227 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 4.80 vs. CFN: 7.86 )
CFN' s 10-Year Price/Tangible Book Range
Min: 3.95   Max: 8.13
Current: 7.86

3.95
8.13
Price/DCF (Projected) 0.84
CFN's Price/DCF (Projected) is ranked higher than
95% of the 146 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 1.50 vs. CFN: 0.84 )
CFN' s 10-Year Price/DCF (Projected) Range
Min: 0.79   Max: 0.87
Current: 0.84

0.79
0.87
Price/Median PS Value 1.42
CFN's Price/Median PS Value is ranked lower than
53% of the 264 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 1.10 vs. CFN: 1.42 )
CFN' s 10-Year Price/Median PS Value Range
Min: 0.8   Max: 1.47
Current: 1.42

0.8
1.47
Price/Peter Lynch Fair Value 2.58
CFN's Price/Peter Lynch Fair Value is ranked higher than
67% of the 80 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 2.20 vs. CFN: 2.58 )
CFN' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.97   Max: 2.67
Current: 2.58

0.97
2.67
Price/Graham Number 2.77
CFN's Price/Graham Number is ranked lower than
52% of the 159 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 2.20 vs. CFN: 2.77 )
CFN' s 10-Year Price/Graham Number Range
Min: 1.68   Max: 3.23
Current: 2.77

1.68
3.23
Earnings Yield (Greenblatt) 7.30
CFN's Earnings Yield (Greenblatt) is ranked higher than
79% of the 226 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 5.40 vs. CFN: 7.30 )
CFN' s 10-Year Earnings Yield (Greenblatt) Range
Min: 6.6   Max: 12.1
Current: 7.3

6.6
12.1
Forward Rate of Return (Yacktman) 13.54
CFN's Forward Rate of Return (Yacktman) is ranked higher than
88% of the 217 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 3.47 vs. CFN: 13.54 )
CFN' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 14.1   Max: 27.1
Current: 13.54

14.1
27.1

Business Description

Industry: Medical Instruments & Equipment » Medical Instruments & Supplies
Compare: » details
Traded in other countries:TCF.Germany
CareFusion Corp., a Delaware corporation was incorporated on January 14, 2009. The Company is a medical technology company that offers products and services in the areas of medication management, infection prevention, operating room effectiveness, respiratory care and surveillance and analytics. Its main product brands include Alaris intravenous ('IV') infusion systems; Pyxis automated medication dispensing and supply management systems; AVEA, Vela and LTV Series respiratory ventilators; ChloraPrep skin antiseptic products; MaxGuard, MaxPlus and SmartSite needle-free IV infusion disposable sets and accessories; V. Mueller and Snowden-Pencer open surgical and laparoscopic instrumentation; AirLife nebulizers, ventilator circuits and other disposables used for providing respiratory therapy; Jaeger and SensorMedics cardiopulmonary diagnostic equipment; and MedMined software and surveillance services. The Company's main competitors in its Medical Systems segment include Baxter International; B. Braun; Fresenius Kabi; Hospira; Omnicell; McKesson; Dräger; and MAQUET. The Company's competitors in its Procedural Solutions segment include 3M; ICU Medical; Becton, Dickinson; Baxter International; B. Braun; Hospira; Smiths Medical; CR Bard; Integra Life Sciences; and Teleflex. The Company's medical devices sold in the United States are subject to the Federal Food, Drug and Cosmetic Act, as implemented and enforced by the United States Food and Drug Administration.

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