ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cardinal Health's annualized net income for the quarter that ended in Mar. 2026 was $1,596 Mil. Cardinal Health's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $-2,858 Mil. Therefore, Cardinal Health's annualized ROE % for the quarter that ended in Mar. 2026 was Negative Equity%.
The historical rank and industry rank for Cardinal Health's ROE % or its related term are showing as below:
LTS:0HTG'
s ROE % Range Over the Past 10 Years
Min: -173.38 Med: 19.28 Max: 34.13
Current: Negative Equity
During the past 13 years, Cardinal Health's highest ROE % was 34.13%. The lowest was -173.38%. And the median was 19.28%.
LTS:0HTG's ROE % is ranked better than 99.12% of 113
companies
in the Medical Distribution industry
Industry Median: 7.1
vs LTS:0HTG: Negative Equity
Cardinal Health (LTS:0HTG) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Cardinal Health ROE % Related Terms
Cardinal Health ROE % Historical Data
* Premium members only.
The historical data trend for Cardinal Health's ROE % 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.
For the Medical Distribution subindustry, Cardinal Health's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Cardinal Health's ROE % distribution charts can be found below:
* The bar in red indicates where Cardinal Health's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.
Cardinal Health (LTS:0HTG) has a ROE % of Negative Equity% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Cardinal Health and its competitors. According to the industry distribution chart, Cardinal Health ranks #1 out of 113 companies in the Medical Distribution industry, placing it in the top 0.90000000000001%.
Is Cardinal Health's ROE % too high?
Cardinal Health's current ROE % is Negative Equity%. Based on the distribution chart, Cardinal Health ranks #1 out of 113 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 ROE % compare to COR and MCK?
According to the Medical Distribution industry distribution chart, Cardinal Health ranks #1 out of 113 companies for ROE %. This places Cardinal Health in the top 1% of its industry — outperforming the majority of peers. The industry median ROE % is 7.10. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Medical Distribution company?
The median ROE % among Medical Distribution companies is 7.10, based on 113 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Cardinal Health and its competitors. For the Medical Distribution industry, the median ROE % is 7.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cardinal Health's current ROE % is Negative Equity%. 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 ROE % is Negative Equity%. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Cardinal Health (LTS:0HTG), the current ROE % is Negative Equity% 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:
ROE %: Negative Equity%
GF Value™: $140.72 vs. price of $238.69 (69.6% 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.
83GF Score
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