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Cardinal Health has the Financial Strength Rank of 7.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Cardinal Health's Interest Coverage for the quarter that ended in Jun. 2026 was 10.30.
Cardinal Health's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.03.
As of today, Cardinal Health's Altman Z-Score is 5.06.
Cardinal Health (LTS:0HTG) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Cardinal Health has the Financial Strength Rank of 7.
Cardinal Health Financial Strength Related Terms
LTS:0HTG vs COR, HSIC, MCK: Financial Strength Comparison
For the Medical Distribution subindustry, Cardinal Health's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Cardinal Health's Financial Strength distribution charts can be found below:
* The bar in red indicates where Cardinal Health's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Cardinal Health has a Z-score of 5.06, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 5.06 is strong.
* 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 (LTS:0HTG) has a Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Cardinal Health and its competitors. This is near median its historical median of 7.00. Over the past decade, Cardinal Health's Financial Strength has ranged from 6.00 to 8.00.
Is Cardinal Health's Financial Strength too high?
Cardinal Health's current Financial Strength of 7 is near median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 8.00. Overall, Cardinal Health has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cardinal Health's Financial Strength compare to COR and HSIC?
Cardinal Health's Financial Strength of 7 can be compared against companies in the Medical Distribution industry. Historically, Cardinal Health's own Financial Strength has ranged from 6.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Medical Distribution company?
A good Financial Strength depends on the Medical Distribution industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Cardinal Health and its competitors. Cardinal Health's current Financial Strength is 7, which is near median its own 10-year median of 7.00. 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 $152.11, compared to a current price of $229.09 — trading 50.6% above its estimated fair value. The current Financial Strength is 7, which is near median its 10-year median of 7.00. Cardinal Health's overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Cardinal Health (LTS:0HTG), the current Financial Strength is 7 as of Jun. 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 $229.09 is trading 50.6% above its estimated GF Value™ of $152.11.
GuruFocus considers Cardinal Health to be Significantly Overvalued.
Key valuation signals for LTS:0HTG:
Financial Strength: 7 (near median its 10-year median of 7.00)
GF Value™: $152.11 vs. price of $229.09 (50.6% above fair value)
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.
82GF Score
Get the complete analysis for LTS:0HTG
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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