Cardinal HealthLTS:0HTG +1.41%83 3-Year ROIIC % is 1.49 as of Jun. 2025, which is 78% below its 10-year median of 6.85. 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 112 Medical Distribution companies, Cardinal Health ranks worse than 52.68% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Cardinal Health's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 1.49%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Cardinal Health's 3-Year ROIIC % or its related term are showing as below:
LTS:0HTG's 3-Year ROIIC % is ranked worse than 52.68% of 112
companies
in the Medical Distribution industry
Industry Median: 2.145
vs LTS:0HTG: 1.49
Cardinal Health (LTS:0HTG) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Cardinal Health 3-Year ROIIC % Related Terms
Cardinal Health 3-Year ROIIC % Historical Data
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The historical data trend for Cardinal Health's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Medical Distribution subindustry, Cardinal Health's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Cardinal Health's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Cardinal Health's 3-Year ROIIC % falls into.
Cardinal Health's 3-Year ROIIC % for the quarter that ended in Jun. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 1734.0696 (Jun. 2025) - 1648 (Jun. 2022) )
/
( 17299 (Jun. 2025) - 11523 (Jun. 2022) )
=
86.0696
/
5776
=
1.49%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Cardinal Health (LTS:0HTG) has a 3-Year ROIIC % of 1.49 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Cardinal Health and its competitors. This is 78% below median its historical median of 6.85. According to the industry distribution chart, Cardinal Health ranks #59 out of 112 companies in the Medical Distribution industry, placing it in the top 52.7%.
Is Cardinal Health's 3-Year ROIIC % too high?
Cardinal Health's current 3-Year ROIIC % of 1.49 is 78% below median its 10-year median of 6.85. The Medical Distribution industry median 3-Year ROIIC % is 2.15. Cardinal Health's value of 1.49 is 30.5% below this industry median. Based on the distribution chart, Cardinal Health ranks #59 out of 112 companies in the Medical Distribution industry, which is below the industry midpoint. 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 3-Year ROIIC % compare to COR and MCK?
According to the Medical Distribution industry distribution chart, Cardinal Health ranks #59 out of 112 companies for 3-Year ROIIC %. This places Cardinal Health in the lower half of its industry. The industry median 3-Year ROIIC % is 2.15. Cardinal Health's value of 1.49 is 30.5% below this benchmark. While the company's 10-year median is 6.85 vs. the industry median of 2.15, 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 3-Year ROIIC % for a Medical Distribution company?
The median 3-Year ROIIC % among Medical Distribution companies is 2.15, based on 112 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cardinal Health's current 3-Year ROIIC % of 1.49 is 30.5% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Cardinal Health and its competitors. For the Medical Distribution industry, the median 3-Year ROIIC % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cardinal Health's current 3-Year ROIIC % is 1.49, which is 78% below median its own 10-year median of 6.85. 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 3-Year ROIIC % is 1.49, which is 78% below median its 10-year median of 6.85 and 30.5% below the Medical Distribution industry median of 2.15. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Cardinal Health (LTS:0HTG), the current 3-Year ROIIC % is 1.49 as of Jun. 2025. 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:
3-Year ROIIC %: 1.49 (78% below median its 10-year median of 6.85)
GF Value™: $140.88 vs. price of $239.26 (69.8% above fair value)
Industry Position: 30.5% below the Medical Distribution median (#59 of 112)
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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