EVENTS:   The Roaring 2020s or a Rerun of the 1970s? - Edward Yardeni/Yardeni Research - 24 Mar 26   Best Equity Short Ideas Conference Call 13 - Thomas Chanos/Badger Consultants & Dr. Aaron Fletcher/Bios Research & Jonathan Telgener/Channel Dynamics & Ed Steele/Iron Blue Financials & John Zolidis/Quo Vadis Capital & Mark Hiley/The Analyst - 26 Mar 26     ROADSHOWS: Chinese Equity Ideas & Channel Checks Across 50 sub-sectors - Don Ma /Horizon Insights   •   London   23 - 27 Mar 26       Long Short European Equity Research - Harry Grist /The Analyst   •   New York   26 Mar 26       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   27 - 27 Mar 26      
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Cardinal Health (CAH)

Healthcare

Kailash Capital Research

The drug distributor possesses three of the most prized attributes of any stock 1) strong, predictable growth prospects; 2) low business risk; and 3) normalised FCF generation capability of >$2bn p.a.. CAH trades at only a 13.4x P/E multiple, a ~35% discount to the S&P 500 Index, while also trading at a substantial discount to Cencora and McKesson (avg. P/E 17x), despite having broadly similar growth prospects, cash-generating ability and balance sheet strength. If CAH shares were accorded a P/E multiple in line with the S&P 500, a very reasonable target, the stock would be trading ~50% higher than the current price.

Edition: 189

- 28 June, 2024