This company generated $1.4B in adjusted FCF in the first nine months of the year. Falling interest expenses and lower integration costs will boost the FY 2017 cash flow by approximately $100M (without taking any growth into account). The free cash flow yield of 8% is appealing. Buying back stock is a great way to create more value for its shareholders. And the company can definitely afford to do so!
I'm still surprised by the lack of attention for Cardinal Health (NYSE:CAH), as even though this is a major company, not a lot of authors (or readers) seem to care about the company's performance. Very surprising, considering CAH is quite a consistent performer! Back in the first quarter I said the company's weak share price performance wasn't warranted, and the stock moved up by 15% but now came back down to the same level we were previously trading at in January. Is it time to pick up some more stock, or has something changed?
Source: Seeking Alpha
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