Cardinal HealthFRA:CLH +0.16%81 Net Margin % is 0.65% as of Mar. 2026, which is 71% above its 10-year median of 0.38. GuruFocus rates FRA:CLH with a GF Score™ of 81/100 and a GF Value™ of €119.66 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 119 Medical Distribution companies, Cardinal Health ranks worse than 70.59% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Cardinal Health's Net Income for the
three
months ended in Mar. 2026 was €345 Mil. Cardinal Health's Revenue for the
three
months ended in Mar. 2026 was €52,713 Mil. Therefore, Cardinal Health's net margin for the quarter that ended in Mar. 2026 was 0.65%.
The historical rank and industry rank for Cardinal Health's Net Margin % or its related term are showing as below:
FRA:CLH'
s Net Margin % Range Over the Past 10 Years
Min: -2.42 Med: 0.38 Max: 1.17
Current: 0.62
FRA:CLH's Net Margin % is ranked worse than 70.59% of 119
companies
in the Medical Distribution industry
Industry Median: 1.53
vs FRA:CLH: 0.62
Cardinal Health (FRA:CLH) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Cardinal Health Net Margin % Related Terms
Cardinal Health Net Margin % Historical Data
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The historical data trend for Cardinal Health's Net 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.
FRA:CLH vs COR, HSIC, MCK: Net Margin % Comparison
For the Medical Distribution subindustry, Cardinal Health's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Cardinal Health's Net Margin % distribution charts can be found below:
* The bar in red indicates where Cardinal Health's Net 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.
Cardinal Health (FRA:CLH) has a Net Margin % of 0.65% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Cardinal Health and its competitors. This is 71% above median its historical median of 0.38. According to the industry distribution chart, Cardinal Health ranks #84 out of 119 companies in the Medical Distribution industry, placing it in the top 70.6%.
Is Cardinal Health's Net Margin % too high?
Cardinal Health's current Net Margin % of 0.65% is 71% above median its 10-year median of 0.38. The Medical Distribution industry median Net Margin % is 1.53. Cardinal Health's value of 0.65% is 57.5% below this industry median. Based on the distribution chart, Cardinal Health ranks #84 out of 119 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, Cardinal Health has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cardinal Health's Net Margin % compare to COR and HSIC?
According to the Medical Distribution industry distribution chart, Cardinal Health ranks #84 out of 119 companies for Net Margin %. This places Cardinal Health in the lower half of its industry. The industry median Net Margin % is 1.53. Cardinal Health's value of 0.65% is 57.5% below this benchmark. While the company's 10-year median is 0.38 vs. the industry median of 1.53, 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 Net Margin % for a Medical Distribution company?
The median Net Margin % among Medical Distribution companies is 1.53, based on 119 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cardinal Health's current Net Margin % of 0.65% is 57.5% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Cardinal Health and its competitors. For the Medical Distribution industry, the median Net Margin % is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cardinal Health's current Net Margin % is 0.65%, which is 71% above median its own 10-year median of 0.38. 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 (FRA:CLH) is currently considered Significantly Overvalued. The stock's GF Value™ is €119.66, compared to a current price of €193.25 — trading 61.5% above its estimated fair value. The current Net Margin % is 0.65%, which is 71% above median its 10-year median of 0.38 and 57.5% below the Medical Distribution industry median of 1.53. Cardinal Health's overall GF Score™ is 81/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Cardinal Health (FRA:CLH), the current Net Margin % is 0.65% 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 (FRA:CLH) Overvalued in 2026?
Based on GuruFocus' analysis, Cardinal Health stock appears to be overvalued.
The current stock price of €193.25 is trading 61.5% above its estimated GF Value™ of €119.66.
GuruFocus considers Cardinal Health to be Significantly Overvalued.
Key valuation signals for FRA:CLH:
Net Margin %: 0.65% (71% above median its 10-year median of 0.38)
GF Value™: €119.66 vs. price of €193.25 (61.5% above fair value)
Industry Position: 57.5% below the Medical Distribution median (#84 of 119)
No single metric tells the full story. See the FRA:CLH 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.
81GF Score
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