CAH – Market expectations are for fading Uniform ROA, but management is excited about supply chain agreements, payments, and reinvestments

• Cardinal Health, Inc. (CAH:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 13.3x Uniform P/E, implying bearish expectations for the firm. However, management is excited about agreements with manufacturers, payments, and reinvesting in the business
• Specifically, management generated excitement markers when talking about contingent margin agreements with manufacturers and their ability to receive fair payment for the value they provide. Additionally, management generated an excitement marker when talking about reinvesting in the business, and is confident their acquisition of naviHealth is not yet reflected in Medical segment performance