Search Results

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

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 16, 2025
Market cap
$70.85B
P/E
45.47
ROE
123.8%
Profit margin
0.5%
Debt/Equity
4.38
Dividend yield
0.66%

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 analysis across 5 key categories

Overall
60
Moderate
Value
48
Future
66
Past
75
Health
40
Dividend
70
AI Verdict
Cencora presents a dichotomy: strong earnings execution and price momentum support upside, but stretched valuation, weak core margins, and aggressive leverage constrain appeal relative to higher-quality healthcare peers like CI and MCK. The stock appears fairly valued at best, with limited margin of safety despite a $382 target implying 5.6% upside.
Key drivers: Consistent earnings beat rate and positive surprises, Elevated valuation relative to growth and profitability profile, Deteriorating balance sheet liquidity and high debt burden
Confidence
65%
Value
48/100

Cencora's valuation multiples are outliers in the healthcare sector—P/E 45.47 vs. average 36.87—despite slower revenue growth (5.9% vs 10.5%) and weaker profitability, making it appear overvalued on both earnings and book value bases.

Positives
  • Forward P/E of 22.12 is more reasonable and suggests earnings growth expectations are priced in
  • Price/Sales of 0.22 is low, typical for a high-volume, low-margin distributor
Watchpoints
  • Current P/E of 45.47 is unjustifiably high given subpar revenue growth and margins
  • Price/Book of 40.17 is extreme and suggests asset-light model or accounting anomalies
Future
66/100

While long-term earnings growth and price momentum (1Y +50.2%) are strong, the recent Q/Q EPS decline and subpar revenue growth relative to peers like MCK (+10.1%) suggest future acceleration is not guaranteed.

Positives
  • Year-over-year EPS growth of +15.0% indicates underlying earnings power
  • Analyst target price of $382.07 implies 5.6% upside, suggesting continued confidence in forward trajectory
Watchpoints
  • Q/Q EPS declined -4.0%, signaling potential near-term softness
  • Revenue growth of 5.9% lags peer average of 10.5%, limiting top-line momentum
Past
75/100

Cencora has delivered impressive earnings predictability and shareholder returns over the past five years (+271.1%), but its profitability metrics have not improved meaningfully, with gross and operating margins remaining thin across cycles.

Positives
  • Exceptional earnings consistency: 22 of 25 quarters beat estimates, with multiple double-digit surprises
  • 5-year share price return of +271.1% reflects strong investor confidence and execution
Watchpoints
  • Profit margins have remained stubbornly low despite revenue scale, indicating structural cost or pricing challenges
  • ROA of 3.26% is weak despite high ROE, suggesting leverage-driven returns rather than operational efficiency
Health
40/100

Cencora’s financial health is a major concern—its Debt/Equity ratio is more than triple the sector average (4.38 vs 1.18), and its liquidity ratios are below 1.0, suggesting potential strain in meeting obligations, unlike healthier peers like CI (0.81) or BMY (2.74).

Positives
  • Operating cash flow and free cash flow data unavailable, but dividend payout ratio of 27.64% suggests some cash generation capacity
  • ROIC not available, but ROE of 123.75% indicates capital is being leveraged aggressively
Watchpoints
  • Debt/Equity ratio of 4.38 is dangerously high, especially in a rate-sensitive sector
  • Current and Quick Ratios of 0.90 and 0.51 indicate inadequate short-term liquidity, increasing default risk
Dividend
70/100

The dividend appears safe with a low payout ratio, but the lack of yield history and weak cash flow transparency limits confidence in long-term growth potential, especially amid high leverage.

Positives
  • Dividend payout ratio of 27.64% is conservative and sustainable given earnings coverage
  • Current yield of 0.66% provides modest income with room for growth
Watchpoints
  • Lack of 5-year average yield data limits visibility into dividend growth history
  • Dividend policy may be constrained by high debt and low cash flow visibility

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$361.94
Analyst Target
$382.07
Upside/Downside
+5.6%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for COR and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
COR
Cencora, Inc.
Primary
+271.1% +143.6% +50.2% +25.1% +13.4% +0.5%
CI
The Cigna Group
Peer
+34.3% -6.9% -15.2% -15.2% -8.5% +1.9%
IDXX
IDEXX Laboratories, Inc.
Peer
+51.5% +58.8% +62.9% +33.2% +7.9% -2.6%
BDX
Becton, Dickinson and Company
Peer
-11.8% -8.6% -13.2% +11.3% +3.4% +8.6%
ZTS
Zoetis Inc.
Peer
-23.5% -16.7% -29.9% -25.4% -14.7% +0.5%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
45.47
Forward P/E
22.12
PEG Ratio
N/A
P/B Ratio
40.17
P/S Ratio
0.22
EV/Revenue
0.23
EV/EBITDA
15.32
Market Cap
$70.85B

Profitability

Profit margins and return metrics

Profit Margin 0.48%
Operating Margin 1.14%
Gross Margin 3.51%
ROE 123.75%
ROA 3.26%

Growth

Revenue and earnings growth rates

Revenue Growth +5.9%
Earnings Growth N/A
Q/Q Revenue Growth N/A
Q/Q Earnings Growth N/A

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
4.38
High debt
Current Ratio
0.9
Weak
Quick Ratio
0.51
Poor
Cash/Share
$22.47

Quarterly Earnings History

EPS performance vs analyst estimates

2026-02-04
$N/A
2025-11-05
$3.84
+1.4% surprise
2025-08-06
$4.0
+4.2% surprise
2025-05-07
$4.42
+7.9% surprise

Healthcare Sector Comparison

Comparing COR against 23 companies in the Healthcare sector (10 bullish, 13 neutral, 0 bearish)
P/E Ratio
45.47
This Stock
vs
37.07
Sector Avg
+22.7% (Expensive)
Return on Equity (ROE)
123.75%
This Stock
vs
37.85%
Sector Avg
+227.0% (Excellent)
Profit Margin
0.48%
This Stock
vs
13.56%
Sector Avg
-96.4% (Weaker)
Debt to Equity
4.38
This Stock
vs
1.21
Sector Avg
+263.8% (Higher)
Revenue Growth
5.9%
This Stock
vs
11.02%
Sector Avg
-46.4% (Slower)
Current Ratio
0.9
This Stock
vs
1.95
Sector Avg
-53.6% (Weaker)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
COR
Cencora, Inc.
NEUTRAL $70.85B 45.47 123.8% 0.5% $361.94
CI
The Cigna Group
BULLISH $72.36B 11.93 15.5% 2.3% $269.66
IDXX
IDEXX Laboratories, Inc.
BULLISH $56.01B 54.63 64.6% 24.7% $689.93
BDX
Becton, Dickinson and Company
BULLISH $55.33B 33.23 6.5% 7.7% $193.04
ZTS
Zoetis Inc.
BULLISH $53.39B 20.34 49.9% 28.2% $120.82

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-11-07 BATTAGLIA SILVANA Officer Stock Award 2,349 -
2025-11-07 CAMPBELL ELIZABETH S Officer Stock Award 3,853 -
2025-11-07 CLEARY JAMES F. JR. Chief Financial Officer Stock Award 5,390 -
2025-11-07 MAUCH ROBERT P JR Chief Executive Officer Stock Award 8,280 -
2025-11-07 KRIKORIAN LAZARUS Officer Stock Award 2,831 -
2025-10-31 VERMA PAWAN Officer Option Exercise 8,537 $2,883,884
2025-10-31 BAUMANN WERNER Director Stock Award 108 $36,483
2025-10-31 NALLY DENNIS M Director Stock Award 104 $35,132
2025-10-31 TYLER LAUREN M. Director Stock Award 89 $30,065
2025-10-20 MAUCH ROBERT P JR Chief Executive Officer Sale 5,097 $1,665,700
2025-10-20 MAUCH ROBERT P JR Chief Executive Officer Option Exercise 3,763 $323,957
2025-10-01 CAMPBELL ELIZABETH S Officer Sale 1,886 $590,846
2025-09-18 MAUCH ROBERT P JR Chief Executive Officer Sale 5,097 $1,478,130
2025-09-18 MAUCH ROBERT P JR Chief Executive Officer Option Exercise 3,763 $323,957
2025-09-16 COLLIS STEVEN H Officer and Director Sale 31,350 $9,087,142
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
14 analysts
JP Morgan
2025-11-11
Maintains
Overweight Overweight
Wells Fargo
2025-11-11
Maintains
Overweight Overweight
TD Cowen
2025-11-10
Maintains
Buy Buy
UBS
2025-11-07
Maintains
Buy Buy
Baird
2025-11-06
Maintains
Outperform Outperform
Mizuho
2025-11-06
Maintains
Outperform Outperform
Mizuho
2025-10-30
Maintains
Outperform Outperform
UBS
2025-10-27
Maintains
Buy Buy
Mizuho
2025-10-16
Maintains
Outperform Outperform
Wells Fargo
2025-08-13
Maintains
Overweight Overweight