CAH Gross Margin Analysis

Cardinal Health’s gross margin of 4.1% means that for every dollar of revenue, only about 4 cents remain after deducting the direct costs of producing or purchasing the goods it sells; the rest goes to those costs.

This figure is far below the Healthcare sector median of 69.8%, placing the company in the 8th percentile among its peers—indicating an exceptionally thin margin relative to the industry. Because historical values are limited to a single data point, the year-over-year change and quarter-over-quarter change are both listed as N/A, so there is no trend to assess from the available metric. The combination of a very low margin with no trend data implies elevated risk if the company cannot improve its pricing power or cost structure, but the absence of a deteriorating trend leaves room for stability. This metric contradicts a bullish view and instead highlights a fundamental weakness, yet the overall NEUTRAL verdict suggests that other factors—such as cash flow or revenue growth—offset this concern.

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