Cencora (COR)
NYSE:COR
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Cencora
(NYSE:COR)
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Rating:64Neutral
Price Target:
$350.00
▲(7.76% Upside)
Action:ReiteratedDate:03/23/26
The score is primarily supported by solid operational execution and upgraded fiscal 2026 guidance, plus strong cash generation. It is held back by balance-sheet leverage and very thin margins, with near-term technical weakness (negative MACD and price below key moving averages) and a relatively high P/E with a low dividend yield.
Positive Factors
Strong cash generation
Consistent, sizable free cash flow (about $3.6B TTM) provides durable internal funding for working capital, acquisitions, and debt paydown. Over a 2–6 month horizon, strong cash conversion supports strategic flexibility, funds MSO expansions and helps absorb cyclical working-capital swings.
Negative Factors
Elevated leverage
A very high debt-to-equity ratio leaves the company more exposed to adverse demand or margin shocks and reduces strategic optionality. Over months, elevated leverage increases refinancing and covenant risk, constraining capital allocation and making deleveraging a multi-period priority.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, sizable free cash flow (about $3.6B TTM) provides durable internal funding for working capital, acquisitions, and debt paydown. Over a 2–6 month horizon, strong cash conversion supports strategic flexibility, funds MSO expansions and helps absorb cyclical working-capital swings.
Read all positive factors
Cencora (COR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.18B
Dividend Yield0.66%
Average Volume (3M)1.40M
Price to Earnings (P/E)29.3
Beta (1Y)0.14
Revenue Growth9.31%
EPS Growth5.92%
CountryUS
Employees47,000
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)4.08
Shares Outstanding194,530,690
10 Day Avg. Volume1,754,815
30 Day Avg. Volume1,402,165
Financial Highlights & Ratios
PEG Ratio7.05
Price to Book (P/B)40.17
Price to Sales (P/S)0.19
P/FCF Ratio18.89
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit6.48
Enterprise Value/Ebitda18.16
Forecast
1Y Price Target
$411.44Price Target Upside26.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)17.63
Revenue Forecast (FY)$345.82B
Cencora Business Overview & Revenue Model
Company Description
Cencora, Inc. sources and distributes pharmaceutical products in the United States and internationally. The company's U.S. Healthcare Solutions segment distributes generic and injectable pharmaceuticals, over-the-counter healthcare products, home ...
How the Company Makes Money
Cencora makes money primarily by distributing pharmaceuticals and healthcare products and earning revenue from the sale of those products to retail pharmacies, health systems, and other provider customers. A significant portion of its business is ...
Cencora Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call communicated strong execution and clear growth momentum: revenue, gross profit, adjusted EPS and consolidated operating income all increased, leadership completed a strategic MSO acquisition (OneOncology), and management raised both revenue and operating income guidance for fiscal 2026. Key drivers included specialty growth (including GLP-1s), RCA outperformance, and MSO expansion. Near-term pressures were acknowledged — higher operating and interest expenses from acquisitions and financing, a seasonal negative free cash flow quarter, timing-related international operating income weakness, and customer off-boarding — but management framed many as transitory or expected to normalize over the year. Overall, positive operational trends and upgraded guidance outweigh the near-term challenges.Positive Updates
Revenue Growth and Raised Top-Line Guidance
Consolidated revenue of $85.9 billion, up 5.5% year-over-year. Company raised full-year consolidated revenue growth guidance to 7%–9% (from prior 5%–7%), reflecting stronger growth across reportable segments and contributions from OneOncology.
Negative Updates
Increased Operating Expenses
Consolidated operating expenses rose approximately 22% in the quarter (to $1.9 billion), driven primarily by the RCA acquisition and spending to support revenue growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth and Raised Top-Line Guidance
Consolidated revenue of $85.9 billion, up 5.5% year-over-year. Company raised full-year consolidated revenue growth guidance to 7%–9% (from prior 5%–7%), reflecting stronger growth across reportable segments and contributions from OneOncology.
Read all positive updates
Company Guidance
Cencora raised and clarified fiscal 2026 guidance: reaffirming adjusted diluted EPS of $17.45–$17.75 (Q1 adj. EPS $4.08, +9%), raising consolidated revenue growth to 7%–9% (Q1 revenue $85.9B, +5.5%) and consolidated operating income growth to 11.5%–13.5% (Q1 operating income $1.1B, +12%). Key segment guidance includes US Healthcare Solutions operating income growth of 14%–16% (Q1 US revenue $76.2B, +5%; US operating income $831M, +21%), International revenue growth 7%–9% as‑reported (6%–8% constant currency) with no change to international operating income guidance, and Other revenue growth of 1%–5% with Other operating income expected flat year‑over‑year. Financial assumptions include interest expense of $480M–$500M (up from $315M–$335M; Q1 net interest $72M and Q2 expected to be about 2x Q1), a full‑year effective tax rate of ~20% (Q1 19%), cash of $1.8B, negative adjusted free cash flow of $2.4B in Q1 (vs. -$2.8B prior year) and full‑year adj. FCF ~ $3B, paused share repurchases with reported Q1 diluted share count 195.3M (company expects ~105.5M full‑year), OneOncology expected to be roughly neutral to adjusted EPS in its first 12 months but to boost operating income and to contribute ~ $30M of other income (with related noncontrolling interest impacts largely offset).Cencora Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
46
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 325.78B | 321.33B | 293.96B | 262.17B | 238.59B | 213.99B |
| Gross Profit | 10.69B | 10.14B | 8.70B | 7.76B | 7.60B | 6.27B |
| EBITDA | 3.82B | 3.74B | 3.36B | 3.41B | 3.11B | 2.91B |
| Net Income | 1.63B | 1.55B | 1.51B | 1.75B | 1.70B | 1.54B |
Balance Sheet | ||||||
| Total Assets | 78.36B | 76.59B | 67.10B | 62.56B | 56.56B | 57.34B |
| Cash, Cash Equivalents and Short-Term Investments | 1.81B | 4.39B | 3.23B | 2.69B | 3.53B | 2.55B |
| Total Debt | 7.92B | 10.75B | 6.65B | 6.82B | 7.59B | 8.75B |
| Total Liabilities | 76.27B | 74.84B | 66.31B | 61.89B | 56.49B | 56.75B |
| Stockholders Equity | 1.91B | 1.51B | 645.94M | 522.00M | -211.56M | 223.35M |
Cash Flow | ||||||
| Free Cash Flow | 3.61B | 3.21B | 3.00B | 3.45B | 2.21B | 2.23B |
| Operating Cash Flow | 4.29B | 3.88B | 3.48B | 3.91B | 2.70B | 2.67B |
| Investing Cash Flow | -4.93B | -4.98B | -618.10M | -2.60B | -368.44M | -6.14B |
| Financing Cash Flow | -916.83M | 2.25B | -2.33B | -2.22B | -1.75B | 1.95B |
Cencora Technical Analysis
Neutral
324.80
Price Trends
348.82
Negative
349.04
Negative
325.41
Negative
Market Momentum
-10.43
Positive
42.33
Neutral
43.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COR, the sentiment is Neutral. The current price of 324.8 is below the 20-day moving average (MA) of 332.99, below the 50-day MA of 348.82, and below the 200-day MA of 325.41, indicating a bearish trend. The MACD of -10.43 indicates Positive momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for COR.
Cencora Risk Analysis
Cencora disclosed 31 risk factors in its most recent earnings report. Cencora reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cencora Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $108.31B | 21.30 | -245.27% | 0.37% | 17.23% | 66.17% | |
65 Neutral | $50.37B | 25.74 | -58.93% | 0.98% | 4.37% | 28.48% | |
65 Neutral | $8.48B | 23.11 | 11.92% | ― | 3.51% | 29.65% | |
64 Neutral | $63.18B | 29.30 | 101.43% | 0.66% | 9.31% | 5.92% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
COR
Cencora
324.80
52.19
19.15%
CAH
Cardinal Health
214.05
89.77
72.23%
HSIC
Henry Schein
73.94
9.63
14.97%
MCK
McKesson
884.28
224.92
34.11%
Cencora Corporate Events
Business Operations and StrategyM&A Transactions
Cencora to Acquire EyeSouth Retina Business for Expansion
Positive
Mar 23, 2026
Cencora, Inc., a global pharmaceutical solutions and distribution company that operates Retina Consultants of America as a physician-centered retina specialty network, focuses on improving access to therapies and supporting community care provider...
Executive/Board ChangesFinancial Disclosures
Cencora CFO Retirement Announced, Financial Guidance Reaffirmed
Positive
Mar 17, 2026
Cencora, Inc., a leading global pharmaceutical solutions provider with more than $300 billion in annual revenue, serves pharmaceutical innovators and care providers by optimizing market access and ensuring secure delivery of drugs and healthcare p...
Executive/Board ChangesShareholder Meetings
Cencora Shareholders Reaffirm Board, Pay and Auditor Oversight
Positive
Mar 6, 2026
Cencora held its 2026 Annual Meeting of Shareholders on March 5, 2026, at which investors elected eleven directors to the board, reaffirming the current slate of leadership with strong majority support and no alternative slates presented. The meet...
Business Operations and StrategyM&A Transactions
Cencora Restructures Animal Health Business in Covetrus Merger
Positive
Feb 18, 2026
On February 17, 2026, Cencora agreed to merge its MWI Animal Health business with Covetrus in a deal that values MWI at $3.5 billion and exceeds its current book value. The combined company aims to create a broad animal health platform spanning di...
Business Operations and StrategyPrivate Placements and Financing
Cencora Prices $3 Billion Senior Notes Offering
Positive
Feb 13, 2026
On February 13, 2026, Cencora closed a $3.0 billion underwritten public offering of unsecured, unsubordinated senior notes with maturities ranging from 2029 to 2056 and coupons between 3.950% and 5.650%. The notes, issued under existing indentures...
Business Operations and StrategyPrivate Placements and Financing
Cencora Issues $3 Billion in Senior Unsecured Notes
Positive
Feb 11, 2026
On February 10, 2026, Cencora priced a total of $3 billion in senior unsecured notes across five tranches maturing between 2029 and 2056 in an underwritten registered public offering, with coupons ranging from 3.950% to 5.650%. The offering, expec...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Cencora Updates Segment Reporting Following Strategic Business Review
Neutral
Feb 10, 2026
Cencora, Inc. has revised how it presents historical financial information from its fiscal 2025 annual report to reflect a new segment structure adopted after a strategic review of its business. Effective with the first quarter of fiscal 2026, end...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Cencora Completes OneOncology Acquisition, Lifts Guidance
Positive
Feb 4, 2026
For its fiscal 2026 first quarter ended December 31, 2025, Cencora reported revenue of $85.9 billion, up 5.5% year over year, with GAAP diluted EPS rising to $2.87 from $2.50 and adjusted diluted EPS increasing 9.4% to $4.08. The company delivered...
Business Operations and StrategyExecutive/Board Changes
Cencora Expands Board with Appointment of New Director
Positive
Jan 22, 2026
On January 20, 2026, Cencora’s board of directors appointed Ellen G. Cooper, Chairman, President and CEO of Lincoln Financial, as a new independent director, expanding the board from ten to eleven members; the company announced the move publ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Cencora Expands Credit Facilities to Finance OneOncology Deal
Positive
Jan 16, 2026
On January 12, 2026, Cencora, Inc. amended its existing revolving credit agreement, increasing total commitments by $1.0 billion to $5.5 billion, enhancing its overall liquidity profile. On the same date, the company secured a new senior unsecured...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.