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Cardinal HealthLTS:0HTG -0.62%82 Return-on-Tangible-Asset is 3.66% as of Mar. 2026, which is 76% above its 10-year median of 2.08. GuruFocus rates LTS:0HTG with a GF Score™ of 82/100 and a GF Value™ of $141.01 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 118 Medical Distribution companies, Cardinal Health ranks better than 62.71% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Cardinal Health's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,596 Mil. Cardinal Health's average total tangible assets for the quarter that ended in Mar. 2026 was $43,548 Mil. Therefore, Cardinal Health's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 3.66%.
The historical rank and industry rank for Cardinal Health's Return-on-Tangible-Asset or its related term are showing as below:
LTS:0HTG'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -12.6 Med: 2.08 Max: 5.85
Current: 3.7
During the past 13 years, Cardinal Health's highest Return-on-Tangible-Asset was 5.85%. The lowest was -12.60%. And the median was 2.08%.
LTS:0HTG's Return-on-Tangible-Asset is ranked better than 62.71% of 118
companies
in the Medical Distribution industry
Industry Median: 2.305
vs LTS:0HTG: 3.70
Cardinal Health (LTS:0HTG) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Cardinal Health Return-on-Tangible-Asset Related Terms
Cardinal Health Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Cardinal Health's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Medical Distribution subindustry, Cardinal Health's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Cardinal Health's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Cardinal Health's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 3.66% mean?
Cardinal Health (LTS:0HTG) has a Return-on-Tangible-Asset of 3.66% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cardinal Health and its competitors. This is 76% above median its historical median of 2.08. According to the industry distribution chart, Cardinal Health ranks #44 out of 118 companies in the Medical Distribution industry, placing it in the top 37.3%.
Is Cardinal Health's Return-on-Tangible-Asset too high?
Cardinal Health's current Return-on-Tangible-Asset of 3.66% is 76% above median its 10-year median of 2.08. The Medical Distribution industry median Return-on-Tangible-Asset is 2.31. Cardinal Health's value of 3.66% is 58.8% above this industry median. Based on the distribution chart, Cardinal Health ranks #44 out of 118 companies in the Medical Distribution industry, which is above the industry midpoint. 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 Return-on-Tangible-Asset compare to COR and MCK?
According to the Medical Distribution industry distribution chart, Cardinal Health ranks #44 out of 118 companies for Return-on-Tangible-Asset. This puts Cardinal Health in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.31. Cardinal Health's value of 3.66% is 58.8% above this benchmark. While the company's 10-year median is 2.08 vs. the industry median of 2.31, Cardinal Health has consistently been above 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 Return-on-Tangible-Asset for a Medical Distribution company?
The median Return-on-Tangible-Asset among Medical Distribution companies is 2.31, based on 118 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cardinal Health's current Return-on-Tangible-Asset of 3.66% is 58.8% above 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cardinal Health and its competitors. For the Medical Distribution industry, the median Return-on-Tangible-Asset is 2.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cardinal Health's current Return-on-Tangible-Asset is 3.66%, which is 76% above median its own 10-year median of 2.08. 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 $141.01, compared to a current price of $233.82 — trading 65.8% above its estimated fair value. The current Return-on-Tangible-Asset is 3.66%, which is 76% above median its 10-year median of 2.08 and 58.8% above the Medical Distribution industry median of 2.31. Cardinal Health's overall GF Score™ is 82/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Cardinal Health (LTS:0HTG), the current Return-on-Tangible-Asset is 3.66% 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 $233.82 is trading 65.8% above its estimated GF Value™ of $141.01.
GuruFocus considers Cardinal Health to be Significantly Overvalued.
Key valuation signals for LTS:0HTG:
Return-on-Tangible-Asset: 3.66% (76% above median its 10-year median of 2.08)
GF Value™: $141.01 vs. price of $233.82 (65.8% above fair value)
Industry Position: 58.8% above the Medical Distribution median (#44 of 118)
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
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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