Cardinal Health Inc. (NYSE:CAH) disclosed in a recent SEC filing that two of its board members, Steven K. Barg and Sujatha Chandrasekaran, have decided not to stand for re-election. The announcement, dated September 6, 2024, stated that both directors will continue to serve until the annual meeting of shareholders.
Barg and Chandrasekaran, who have been members of the Cardinal Health Board of Directors since 2022, have indicated that their departures are not due to any disagreements with the company regarding operations, policies, or practices. Their appointments were part of a cooperation agreement with Elliott Associates, L.P. and Elliott International, L.P., known collectively as Elliott.
During his tenure, Barg was part of the Business Review Committee, which concluded its work on July 15, 2024. He also serves on the Governance and Sustainability Committee. Chandrasekaran is a member of the Audit and Risk Oversight Committees. The company expressed gratitude for their contributions and service during their time on the board.
The information in this article is based on a press release statement from Cardinal Health Inc.
In other recent news, Cardinal Health announced plans to open a new distribution center in Walton Hills, Ohio, as part of its broader strategy to enhance infrastructure and supply chain resiliency.
The company also reported strong fiscal year 2024 performance with a 29% increase in earnings per share and an 11% rise in revenue to $227 billion, prompting several analyst upgrades from firms such as Deutsche Bank (ETR:DBKGn), TD Cowen, and Mizuho.
In addition to these recent developments, Cardinal Health revised its fiscal year 2025 EPS guidance upwards to between $7.55 and $7.70, reflecting confidence in its strategic progress. Despite challenges such as insulin pricing changes and slow biosimilar market penetration, the company's recent performance and future outlook suggest a trajectory of solid growth.
These developments are part of Cardinal Health's ongoing initiatives to modernize and expand its distribution capacity in the United States. The company's strategic investments and partnerships, such as the Averon joint venture with CVS Health (NYSE:CVS), are expected to drive future growth.
Cardinal Health also plans to generate at least $500 million in cash over the next two years and has increased its share repurchase expectation to $750 million for FY2025.
InvestingPro Insights
As Cardinal Health Inc. (NYSE:CAH) navigates through board changes and strategic expansions, it's important to consider the company's financial health and market performance. According to InvestingPro, Cardinal Health's management has been actively buying back shares, which could signal confidence in the company's future and an attempt to increase shareholder value (InvestingPro Tip #0).
The company also boasts a commendable track record of raising its dividend for 36 consecutive years, showcasing a commitment to returning value to shareholders (InvestingPro Tip #1). This is particularly noteworthy for investors looking for stable dividend-paying stocks. Cardinal Health's ability to maintain and grow its dividend payments could be a testament to its financial resilience and prudent cash flow management.
From a financial metrics standpoint, Cardinal Health's market capitalization stands at $27.48 billion, reflecting its substantial presence in the healthcare sector (InvestingPro Data). The company's price-to-earnings (P/E) ratio is currently at 32.35, suggesting that investors are willing to pay a premium for its earnings potential. However, the adjusted P/E ratio for the last twelve months as of Q4 2024 is lower at 17.08, indicating a more favorable valuation when considering near-term earnings growth (InvestingPro Data).
Furthermore, Cardinal Health's revenue growth over the last twelve months as of Q4 2024 was 10.66%, indicating a healthy increase in sales (InvestingPro Data). This aligns with the company's reported 11% rise in revenue to $227 billion for fiscal year 2024, as mentioned in the article. Such growth metrics may be of interest to investors looking for companies with strong and consistent revenue streams.
For readers interested in gaining a deeper understanding of Cardinal Health's performance and receiving additional insights, there are 18 more InvestingPro Tips available, which can provide a more comprehensive view of the company's financial health and market position.
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