COR Cencora, Inc. - Fundamental Analysis
NEUTRAL
COR Stock | Fundamental Analysis & Investment Insights
NYSE
•
Healthcare
•
Medical Distribution
Current Price
$361.94
Analyst Target
$382.07
+5.6% Upside
52W High
$369.0
52W Low
$223.92
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
Cencora (COR) trades at a premium valuation with strong 5-year price performance (+271.1%) and solid earnings growth (YoY EPS +15.0%), supported by consistent quarterly beats (22 of 25 quarters) and improving margins. However, its profitability metrics remain weak relative to peers—particularly gross margin (3.51%) and operating margin (1.14%)—while elevated leverage (Debt/Equity 4.38) and deteriorating liquidity (Current Ratio 0.90) raise structural concerns. The stock is priced for perfection with a P/E of 45.47, well above the sector average of 36.87, despite lower-than-peer revenue growth (5.9% vs 10.5%). Notably, recent insider selling totaling $18.51M over the past six months contrasts with a bullish analyst consensus, creating a mixed signal that tempers enthusiasm.
Key Strengths
Consistent earnings outperformance: 22 of 25 quarters beat estimates, with an average surprise of 4.53% over the last four quarters
Strong long-term price momentum: +271.1% return over 5 years, significantly outperforming most healthcare peers
High ROE of 123.75% suggests efficient use of equity capital, likely amplified by high financial leverage
Forward P/E of 22.12 implies meaningful de-rating from current P/E of 45.47, potentially pricing in near-term normalization
Dividend policy is sustainable with a low payout ratio of 27.64% and current yield of 0.66%
Key Risks
Extremely high leverage with Debt/Equity of 4.38, more than triple the sector average of 1.18, increasing refinancing and interest rate risk
Deteriorating liquidity: Current Ratio of 0.90 and Quick Ratio of 0.51 indicate potential near-term solvency pressure
Very low profitability: Gross margin of 3.51% and operating margin of 1.14% are far below sector averages of 14.05% and ~20%, respectively
Rich current valuation: P/E of 45.47 is 23% above sector average and not justified by growth or margin profile
Recent insider selling: $18.51M in net sales by executives, including multiple CEO and officer transactions, signals caution at current levels
AI Fair Value Estimate
Based on comprehensive analysis
$382.07
+5.6% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare COR against industry averages and similar companies
Insider Trading & Analyst Ratings
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