Cardinal HealthLTS:0HTG +1.41%83 ROC (Joel Greenblatt) % is 67.94% as of Mar. 2026, which is 67% above its 10-year median of 40.58. GuruFocus rates LTS:0HTG with a GF Score™ of 83/100 and a GF Value™ of $140.88 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 118 Medical Distribution companies, Cardinal Health ranks better than 93.22% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Cardinal Health's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 67.94%.
The historical rank and industry rank for Cardinal Health's ROC (Joel Greenblatt) % or its related term are showing as below:
LTS:0HTG'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -149.68 Med: 40.58 Max: 123.88
Current: 82.89
During the past 13 years, Cardinal Health's highest ROC (Joel Greenblatt) % was 123.88%. The lowest was -149.68%. And the median was 40.58%.
LTS:0HTG's ROC (Joel Greenblatt) % is ranked better than 93.22% of 118
companies
in the Medical Distribution industry
Industry Median: 15.345
vs LTS:0HTG: 82.89
Cardinal Health's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Cardinal Health (LTS:0HTG) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Cardinal Health ROC (Joel Greenblatt) % Related Terms
Cardinal Health ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Cardinal Health's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Medical Distribution subindustry, Cardinal Health's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Cardinal Health's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Cardinal Health's ROC (Joel Greenblatt) % falls into.
Cardinal Health ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 67.94% mean?
Cardinal Health (LTS:0HTG) has a ROC (Joel Greenblatt) % of 67.94% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Cardinal Health and its competitors. This is 67% above median its historical median of 40.58. According to the industry distribution chart, Cardinal Health ranks #8 out of 118 companies in the Medical Distribution industry, placing it in the top 6.8%.
Is Cardinal Health's ROC (Joel Greenblatt) % too high?
Cardinal Health's current ROC (Joel Greenblatt) % of 67.94% is 67% above median its 10-year median of 40.58. The Medical Distribution industry median ROC (Joel Greenblatt) % is 15.35. Cardinal Health's value of 67.94% is 342.8% above this industry median. Based on the distribution chart, Cardinal Health ranks #8 out of 118 companies in the Medical Distribution industry, which is in the top quartile — a strong position 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 ROC (Joel Greenblatt) % compare to COR and MCK?
According to the Medical Distribution industry distribution chart, Cardinal Health ranks #8 out of 118 companies for ROC (Joel Greenblatt) %. This places Cardinal Health in the top 7% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 15.35. Cardinal Health's value of 67.94% is 342.8% above this benchmark. While the company's 10-year median is 40.58 vs. the industry median of 15.35, 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 ROC (Joel Greenblatt) % for a Medical Distribution company?
The median ROC (Joel Greenblatt) % among Medical Distribution companies is 15.35, based on 118 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cardinal Health's current ROC (Joel Greenblatt) % of 67.94% is 342.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Cardinal Health and its competitors. For the Medical Distribution industry, the median ROC (Joel Greenblatt) % is 15.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cardinal Health's current ROC (Joel Greenblatt) % is 67.94%, which is 67% above median its own 10-year median of 40.58. 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 $140.88, compared to a current price of $239.26 — trading 69.8% above its estimated fair value. The current ROC (Joel Greenblatt) % is 67.94%, which is 67% above median its 10-year median of 40.58 and 342.8% above the Medical Distribution industry median of 15.35. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Cardinal Health (LTS:0HTG), the current ROC (Joel Greenblatt) % is 67.94% 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 $239.26 is trading 69.8% above its estimated GF Value™ of $140.88.
GuruFocus considers Cardinal Health to be Significantly Overvalued.
Key valuation signals for LTS:0HTG:
ROC (Joel Greenblatt) %: 67.94% (67% above median its 10-year median of 40.58)
GF Value™: $140.88 vs. price of $239.26 (69.8% above fair value)
Industry Position: 342.8% above the Medical Distribution median (#8 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.
83GF Score
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