Cencora, Inc. (COR) stock analysis

P/E above its 5-year median

Cencora's P/E of 26.0 is above its own 5-year median of 24.3.

P/E above the industry

Cencora's P/E of 26.0 is above the Wholesale Trade-non-durable Goods median of 22.6.

EV/EBITDA above its 5-year median

Cencora's EV/EBITDA of 18.6 is above its 5-year median of 18.5.

P/B above the industry

Cencora's price-to-book of 21.88 is above the Wholesale Trade-non-durable Goods median of 1.69.

Trading above fair value

The share price of $349.88 is above our fair value estimate of $286.64.

Margin of safety under 20%

The price is 22.1% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 10.4% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -0.3% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 5.1% over the last twelve months; the Wholesale Trade-non-durable Goods median is -5.1%.

Guidance lowered

Cencora lowered its 2026 Other outlook on Aug 5, 2026.

Gross margin improving

Gross margin was 4.0% over the last twelve months, against 3.5% a year earlier.

Return on equity over 15%

Return on equity was 104% over the last twelve months and averaged 7583% over five years.

Return on capital over 10%

Return on invested capital was 22.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Cencora's return on equity of 104% is above the Wholesale Trade-non-durable Goods median of -6.0%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 0.8% over the last twelve months, against a 5-year average of 0.6%.

Net margin above the industry

Cencora's net margin of 0.8% is above the Wholesale Trade-non-durable Goods median of -13.1%.

High debt

Debt is 384% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 41.1% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.93 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.69; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Cencora paid dividends worth 0.7% of the share price over the last twelve months.

Yield below Treasuries

The 0.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Cencora yields 0.7%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 17.8% of net income.

Covered by free cash flow

Dividends take 11.5% of free cash flow.