investorscraft@gmail.com

Intrinsic Value of Cencora, Inc. (COR)

Previous Close$296.23
Intrinsic Value
Upside potential
Previous Close
$296.23

VALUATION INPUT DATA

This valuation is based on fiscal year data as of 2024 and quarterly data as of .

Data is not available at this time.

Stock Valuation Context

Business Model And Market Position

Cencora, Inc. operates as a global pharmaceutical solutions company, specializing in drug distribution, specialty pharmacy, and healthcare consulting. The company serves a broad network of healthcare providers, including hospitals, retail pharmacies, and clinics, leveraging its extensive logistics infrastructure to ensure efficient delivery of pharmaceuticals and medical products. As a key intermediary in the pharmaceutical supply chain, Cencora benefits from long-term contracts with manufacturers and providers, reinforcing its stable revenue streams. The company operates in a highly regulated industry, where scale and compliance are critical competitive advantages. Its market position is strengthened by strategic acquisitions and partnerships, enabling it to expand its service offerings and geographic reach. Cencora’s ability to integrate technology and data analytics into its operations further differentiates it, enhancing supply chain efficiency and customer service. The pharmaceutical distribution sector remains resilient due to consistent demand for healthcare products, positioning Cencora favorably for sustained growth.

Revenue Profitability And Efficiency

Cencora reported revenue of $293.96 billion for FY 2024, reflecting its dominant position in pharmaceutical distribution. Net income stood at $1.51 billion, with diluted EPS of $7.53, indicating solid profitability. Operating cash flow was robust at $3.48 billion, supported by efficient working capital management. Capital expenditures of $487 million suggest disciplined reinvestment in logistics and technology to maintain operational efficiency.

Earnings Power And Capital Efficiency

The company’s earnings power is underscored by its ability to generate consistent cash flows from its core distribution operations. With a capital-light model, Cencora achieves high capital efficiency, as evidenced by its strong operating cash flow relative to net income. Its focus on optimizing supply chain logistics further enhances margins and return on invested capital.

Balance Sheet And Financial Health

Cencora maintains a solid balance sheet with $3.13 billion in cash and equivalents, providing liquidity for operations and strategic initiatives. Total debt of $4.39 billion is manageable given the company’s cash flow generation. The balance sheet reflects prudent financial management, with sufficient flexibility to navigate industry dynamics and pursue growth opportunities.

Growth Trends And Dividend Policy

Cencora has demonstrated steady growth through organic expansion and acquisitions, capitalizing on increasing demand for pharmaceutical services. The company pays a dividend of $2.10 per share, reflecting a commitment to returning capital to shareholders while retaining funds for reinvestment. Its growth trajectory is supported by long-term industry tailwinds, including aging populations and rising healthcare expenditures.

Valuation And Market Expectations

The market values Cencora based on its stable cash flows and strategic position in the pharmaceutical supply chain. Investors likely price in moderate growth expectations, given the company’s mature but resilient business model. Valuation metrics should account for its earnings consistency and ability to adapt to regulatory and technological changes in healthcare.

Strategic Advantages And Outlook

Cencora’s strategic advantages include its extensive distribution network, strong manufacturer relationships, and technological integration. The outlook remains positive, driven by sustained demand for pharmaceuticals and potential margin improvements from operational efficiencies. The company is well-positioned to capitalize on industry consolidation and emerging healthcare trends, ensuring long-term competitiveness.

Sources

10-K filings, company investor presentations

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2025202620272028202920302031203220332034203520362037203820392040204120422043204420452046204720482049

INCOME STATEMENT

Revenue growth rate, %NaN
Revenue, $NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $mNaN
Operating income, $mNaN
EBITDA, $mNaN
Interest expense (income), $mNaN
Earnings before tax, $mNaN
Tax expense, $mNaN
Net income, $mNaN

BALANCE SHEET

Cash and short-term investments, $mNaN
Total assets, $mNaN
Adjusted assets (=assets-cash), $mNaN
Average production assets, $mNaN
Working capital, $mNaN
Total debt, $mNaN
Total liabilities, $mNaN
Total equity, $mNaN
Debt-to-equity ratioNaN
Adjusted equity ratioNaN

CASH FLOW

Net income, $mNaN
Depreciation, amort., depletion, $mNaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $mNaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $mNaN
Free cash flow, $mNaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $mNaN
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN
HomeMenuAccount