Cardinal HealthLTS:0HTG +0.19%83 Gross Margin % is 4.10% as of Mar. 2026, which is 5% below its 10-year median of 4.33. GuruFocus rates LTS:0HTG with a GF Score™ of 83/100 and a GF Value™ of $140.72 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 116 Medical Distribution companies, Cardinal Health ranks worse than 94.83% on this metric.
Cardinal Health Inc gross margin has been in long-term decline. The average rate of decline per year is -5%.
The historical rank and industry rank for Cardinal Health's Gross Margin % or its related term are showing as below:
LTS:0HTG'
s Gross Margin % Range Over the Past 10 Years
Min: 3.27 Med: 4.33 Max: 5.38
Current: 3.76
During the past 13 years, the highestGross Margin % of Cardinal Health was 5.38%. The lowest was 3.27%. And the median was 4.33%.
LTS:0HTG's Gross Margin % is ranked worse than 94.83% of 116
companies
in the Medical Distribution industry
Industry Median: 14.9
vs LTS:0HTG: 3.76
Cardinal Health had a gross margin of 4.10% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Cardinal Health was -5.00% per year.
Cardinal Health (LTS:0HTG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Cardinal Health had a gross margin of 4.10% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Cardinal Health Gross Margin % Related Terms
Cardinal Health Gross Margin % Historical Data
* Premium members only.
The historical data trend for Cardinal Health's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0HTG vs COR, MCK, HSIC: Gross Margin % Comparison
For the Medical Distribution subindustry, Cardinal Health's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cardinal Health Gross Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Cardinal Health's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cardinal Health's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Cardinal Health (LTS:0HTG) has a Gross Margin % of 4.10% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Cardinal Health and its competitors. This is near median its historical median of 4.33. Over the past decade, Cardinal Health's Gross Margin % has ranged from 3.27 to 5.38. According to the industry distribution chart, Cardinal Health ranks #110 out of 116 companies in the Medical Distribution industry, placing it in the top 94.8%.
Is Cardinal Health's Gross Margin % too high?
Cardinal Health's current Gross Margin % of 4.10% is near median its 10-year median of 4.33. Over the past 10 years, this metric has ranged from a low of 3.27 to a high of 5.38. The Medical Distribution industry median Gross Margin % is 14.90. Cardinal Health's value of 4.10% is 72.5% below this industry median. Based on the distribution chart, Cardinal Health ranks #110 out of 116 companies in the Medical Distribution industry, which is in the bottom quartile relative to peers. Overall, Cardinal Health has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cardinal Health's Gross Margin % compare to COR and MCK?
According to the Medical Distribution industry distribution chart, Cardinal Health ranks #110 out of 116 companies for Gross Margin %. This places Cardinal Health in the lower half of its industry. The industry median Gross Margin % is 14.90. Cardinal Health's value of 4.10% is 72.5% below this benchmark. Historically, Cardinal Health's own Gross Margin % has ranged from 3.27 to 5.38 over the past decade. While the company's 10-year median is 4.33 vs. the industry median of 14.90, Cardinal Health has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Medical Distribution company?
The median Gross Margin % among Medical Distribution companies is 14.90, based on 116 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cardinal Health's current Gross Margin % of 4.10% is 72.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Cardinal Health and its competitors. For the Medical Distribution industry, the median Gross Margin % is 14.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cardinal Health's current Gross Margin % is 4.10%, which is near median its own 10-year median of 4.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cardinal Health stock overvalued right now?
Based on GuruFocus' analysis, Cardinal Health (LTS:0HTG) is currently considered Significantly Overvalued. The stock's GF Value™ is $140.72, compared to a current price of $238.69 — trading 69.6% above its estimated fair value. The current Gross Margin % is 4.10%, which is near median its 10-year median of 4.33 and 72.5% below the Medical Distribution industry median of 14.90. Cardinal Health's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Cardinal Health (LTS:0HTG), the current Gross Margin % is 4.10% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cardinal Health (LTS:0HTG) Overvalued in 2026?
Based on GuruFocus' analysis, Cardinal Health stock appears to be overvalued.
The current stock price of $238.69 is trading 69.6% above its estimated GF Value™ of $140.72.
GuruFocus considers Cardinal Health to be Significantly Overvalued.
Key valuation signals for LTS:0HTG:
Gross Margin %: 4.10% (near median its 10-year median of 4.33)
GF Value™: $140.72 vs. price of $238.69 (69.6% above fair value)
Industry Position: 72.5% below the Medical Distribution median (#110 of 116)
No single metric tells the full story. See the LTS:0HTG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cardinal Health is one of three leading pharmaceutical wholesalers in the US, engaged in sourcing and distributing of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospital networks, and healthcare providers. Cardinal, Cencora, and McKesson hold well over 90% of the US pharmaceutical wholesale industry. Cardinal Health also supplies medical-surgical products and equipment to healthcare facilities in North America, Europe, and Asia.
83GF Score
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