Cencora (COR)
Health Care · $66.5B market cap · SEC CIK 0001140859
ahead of 64% of the S&P 500 · #23 of 59 in Health Care
Next reports on Feb 2, 2027, with analysts expecting $4.57 in earnings per share.
52-week range $244.82 to $377.54. 8% below its 52-week high and 42% above its low.
The case for COR
- Earnings per share up 125.3%.
- Reasonably priced for its growth: 19.1× earnings, where 11% a year of growth plus a 1.0% dividend would justify about 26×.
- Moves less than the market (beta 0.55).
- Pays a modest 1.0% dividend.
- Price/sales of 0.2× is lower than 98% of Health Care companies.
The case against
- Net margin of 1.0% leaves very little room for error.
- Current liabilities exceed current assets (ratio 0.94).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 71 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 78 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 27 |
| Momentumhow the price has behaved lately | 58 |
| Stabilityhow violently it moves, what it owes and what it pays you | 72 |
- Equity is a sliver of assets, so return on assets stands in for return on equity, and price-to-book and debt-to-equity are left out.
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +5.0% |
|---|---|
| Over 5 years | +9.5% a year |
| FY2025 revenue | $321B (+9%) |
Free cash flow
Is it generating real cash? A little
| FY2025 free cash flow | $3.2B |
|---|---|
| Of revenue | 1% |
| Of profit | 206% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 4% |
|---|---|
| Operating margin | 1% |
| Net margin, FY24 → FY25 → now | 0.5% → 0.5% → 1.0% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $4.4B |
|---|---|
| Long-term debt | $7.5B |
| Net debt | $3.2B |
| Years to repay | 1.9 yrs |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 19.1× |
|---|---|
| Fair P/E for its growth | 26× |
| P/FCF | 20.7× |
| Forward P/E | 16.8× |
| EV / EBITDA | 14.7× |
At 19.1× earnings it trades below the 26× that 11% a year of growth plus a 1.0% dividend would justify. At 20.7× free cash flow it trades below that same mark.
The financials, five years deep
Pulled from Cencora's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $321B | $294B | $262B | $239B | $214B |
| Change on the year | +9% | +12% | +10% | +11% | — |
| Free cash flow | |||||
| Free cash flow | $3.2B | $3.0B | $3.5B | $2.2B | $2.2B |
| Of revenue | 1% | 1% | 1% | 1% | 1% |
| Profit margins | |||||
| Gross margin | 3.6% | 3.4% | 3.4% | 3.5% | 3.2% |
| Operating margin | 0.8% | 0.7% | 0.9% | 1.0% | 1.1% |
| Net margin | 0.5% | 0.5% | 0.7% | 0.7% | 0.7% |
| Debt vs. cash | |||||
| Cash | $4.4B | $3.1B | $2.6B | $3.4B | $2.5B |
| Long-term debt | $7.5B | $3.8B | $4.1B | $4.6B | $6.4B |
| Net cash (debt) | −$3.2B | −$679M | −$1.6B | −$1.2B | −$3.8B |
What Cencora says it does
As used herein, the terms “Company,” “Cencora,” “we,” “us,” or “our” refer to Cencora, Inc., a Delaware corporation. Cencora is one of the largest global pharmaceutical sourcing and distribution services companies, helping both healthcare providers and pharmaceutical and biotech manufacturers improve patient access to products and enhance patient care. We deliver innovative programs and services designed to increase the effectiveness and efficiency of the pharmaceutical supply chain in both human and animal health. More specifically, we distribute a comprehensive offering of brand-name, specialty brand-name, and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to a wide variety of healthcare providers located in the United States and select global markets, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order…