The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 62 | 23.5x | 20.8x | Around median | |
Growth | 48 | 5.9% | 6.1% | Around median | |
Quality | 56 | 19.8% | 6.6% | Around median | |
Safety | 45 | 1.3x | 0.7x | Around median | |
Capital Return | 18 | 0.74% | 2.02% | Bottom tier | |
Momentum | 37 | -5.1% | 4.1% | Bottom tier | |
Sentiment | 83 | 10 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Cencora, Inc. serves as the backbone of the global pharmaceutical supply chain, providing drug distribution services and specialized logistics solutions from manufacturers to various healthcare sites. The company generates its revenue primarily through two main segments: the U.S. Healthcare Solutions segment and the International Healthcare Solutions segment, playing a vital role in reducing costs, streamlining inventory processes, and managing working capital for its partners.
According to the recent financial statements for the second quarter of 2026, the company achieved total revenue of $78.4 billion and a net income of $1.6 billion, with a gross profit of $3.6 billion and earnings per share (EPS) of $8.4. At the segment level, the U.S. Healthcare Solutions segment recorded revenue of $68.8 billion, representing a growth of 3%, driven by sales of specialty medications and GLP-1 drugs, while the International Healthcare Solutions segment recorded revenue of $7.6 billion, a growth of 13%.
The company's adjusted gross profit margin increased by 45 basis points to reach 4.31%, mainly due to the positive contribution of the acquisition of OneOncology in February 2026. Based on these strong results and business resilience, the company raised its earnings guidance for the full fiscal year 2026, in parallel with announcing the resumption of share buyback operations under a newly authorized $2 billion program.
Cencora stock is currently trading within a 52-week range of $244.82 to $377.54, placing it below the analysts' average consensus price target of $378.57. The stock enjoys a strong analyst consensus Buy rating, with a high price target of $440 and a low target of $331, reflecting a positive outlook on the company's valuation and its ability to achieve sustainable growth in operating profit.
Figures in the text are as of 2026-06-16; the live price is shown at the top of the page.
Cencora lowered its annual revenue growth guidance to a range of 4% to 6% due to the accelerating shift of a large mail-order pharmacy customer to low-margin biosimilars, alongside slower-than-expected growth in the GLP-1 drug category. Additionally, the company faced a $2 billion headwind resulting from manufacturer list price reductions. However, management emphasizes that these changes only affect revenue volume without posing a significant threat to operating profits, given the low margins of these products.
The acquisition of OneOncology in February 2026 contributed to an increase in the company's adjusted gross profit margin by 45 basis points to reach 4.31%. Although the transaction caused interest expenses to increase by $36 million to reach $140 million in the second quarter, management remains optimistic about the combined capabilities with RCA. The company expects operating profit growth to accelerate in the second half of the year as the cumulative profit contribution from this acquisition increases.
Cencora has authorized a strategic $2 billion share buyback program and plans to repurchase $1 billion worth of shares by the end of the current calendar year. The company also continues to pursue a balanced capital allocation approach that includes repaying term loans, having repaid $500 million and targeting the repayment of $1.3 billion during fiscal year 2026. These plans are supported by the company's strong ability to generate an expected annual free cash flow of approximately $3 billion.
Automated analysis for informational purposes only — not investment advice.
Severe weather conditions in the United States during January and February created a $10 million headwind for the Healthcare Solutions segment's operating income due to patient appointment cancellations at specialty clinics. The segment also faced an additional $10 million burden due to declining demand for COVID-19 vaccines compared to the previous year, which had a $15 million contribution. Despite these temporary impacts, the company saw a strong rebound in sales volumes and specialty visits during March.
Management expects strong consolidated operating income growth ranging between 12% and 14% for the full year 2026, supported by lapping the negative impact of losing a large oncology customer in July 2025. Additionally, classifying MWI as assets held for sale will eliminate depreciation expenses and support operating margins in the other activities segment. Furthermore, the company expects comparisons of core operating expenses to improve in the fourth quarter and profitability from recent acquisitions to increase.