Cencora (COR) AI Stock Analysis

• Market Cap: $56.69B
• Dividend Yield: 0.74%
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 33.9
• Beta (1Y): 0.15
• Revenue Growth: 12.18%
• EPS Growth: -5.92%
• Country: US
• Employees: 42,000
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Distribution
• EPS (TTM): 4.42
• Shares Outstanding: 193,823,490
• 10 Day Avg. Volume: 1,173,947
• 30 Day Avg. Volume: 1,583,701
• PEG Ratio: 1.85
• Price to Book (P/B): -97.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.78
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: 2.20
• 1Y Price Target: $335.20
• Price Target Upside: 14.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 78 Outperform
• Price Target: $329.00 ▲(12.21%Upside)

Cencora's strong financial performance and positive earnings call results are key strengths, driving the overall score. Technical analysis suggests a neutral to slightly bullish trend, while valuation indicates potential overvaluation, which slightly tempers the overall score.

Positive Factors

Earnings and Financial Performance

The U.S. Healthcare segment of Cencora, Inc. has significantly contributed to the increase in the company's earnings per share, indicating strong performance.

Market Position and Strategy

COR's lack of exposure to medical stands out as both a near-term advantage and potentially a more meaningful long-term advantage over competitors given recent struggles.

Valuation and Industry Background

The improvement in valuation is justified by a strong industry backdrop and relatively low exposure to macro and policy risks.

Negative Factors

Business Relationships

Cencora, Inc. received a non-renewal notice from Florida Cancer Specialists, which could impact future business relationships.

International Market Challenges

The international segment of Cencora, Inc. showed disappointing performance, with an expected guide down due to slow clinical trial activity.

Revenue and Guidance

Management lowered revenue and adjusted operating income guidance due to subdued trial starts and outsourced services activity.

Cencora Business Overview & Revenue Model

Company Description

Cencora, Inc. sources and distributes pharmaceutical products. Its U.S. Healthcare Solutions segment distributes pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers. The company also provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; packaging solutions to various institutional and retail healthcare providers; clinical trial support, product post-approval, and commercialization support services; data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers; and pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and other products to the companion animal and production animal markets. In addition, this segment distributes plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty products; and provides other services primarily to physicians who specialize in various disease states, primarily oncology, as well as to other healthcare providers, including hospitals and dialysis clinics. The company's International Healthcare Solutions segment offers international pharmaceutical wholesale and related service, and global commercialization services; and distributes pharmaceuticals, other healthcare products, and related services to pharmacies, doctors, health centers and hospitals primarily in Europe. This segment also provides specialty transportation and logistics services for the biopharmaceutical industry. The company was formerly known as AmerisourceBergen Corporation and changed its name to Cencora, Inc. in August 2023. Cencora, Inc. was incorporated in 2001 and is headquartered in Conshohocken, Pennsylvania.

How the Company Makes Money

Cencora generates revenue primarily through its pharmaceutical distribution services, where it acts as an intermediary between pharmaceutical manufacturers and healthcare providers, including hospitals, pharmacies, and clinics. By purchasing medications and healthcare products in bulk from manufacturers, Cencora leverages economies of scale to negotiate favorable pricing and resell these products to healthcare providers with a markup. Additionally, the company offers specialty logistics and consulting services, which provide added value through customized supply chain solutions, regulatory support, and market access strategies. These services create additional revenue streams by addressing specific needs of healthcare providers and manufacturers. Key partnerships with major pharmaceutical companies and healthcare providers are significant contributors to Cencora's earnings, as they enable the company to expand its reach and enhance its service offerings.

Cencora Financial Statement Overview

Summary

Cencora exhibits a solid financial profile with strong revenue growth and profitability. Operational efficiency and robust cash flow management are notable positives. However, the high leverage on the balance sheet poses a potential risk.

Income Statement

Cencora has demonstrated strong revenue growth with a positive trajectory, as evidenced by a 5.53% increase in total revenue TTM over the previous year. Gross profit margin stands at 3.29%, indicating stable profitability. The net profit margin of 0.55% is modest but consistent. EBIT and EBITDA margins of 0.83% and 1.18% respectively underline operational efficiency improvements.

Balance Sheet

The balance sheet reveals strong growth in stockholders' equity, resulting in a positive equity ratio of 1.42%. The debt-to-equity ratio stands at 7.76, indicating leverage that is higher than ideal, posing potential risk. Return on equity (ROE) is an impressive 167.24%, driven by recent net income growth, but the high leverage remains a concern.

Cash Flow

Cencora's cash flow performance is robust, with a free cash flow growth rate of 19.26% TTM. The operating cash flow to net income ratio is 2.43, showing strong cash conversion from net income. The free cash flow to net income ratio is 2.11, reflecting efficient capital expenditure management and cash generation capabilities.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
310.23B	293.96B	262.17B	238.59B	213.99B	189.89B
	Gross Profit
10.20B	9.91B	8.96B	8.33B	6.77B	5.20B
	EBIT
2.57B	2.18B	2.34B	2.37B	2.35B	-5.14B
	EBITDA
3.68B	3.25B	3.41B	3.11B	2.91B	-4.75B
	Net Income Common Stockholders
1.69B	1.51B	1.75B	1.70B	1.54B	-3.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.98B	3.13B	2.59B	3.39B	2.55B	4.60B
	Total Assets
71.19B	67.10B	62.56B	56.56B	57.34B	43.95B
	Total Debt
7.86B	4.39B	4.79B	5.70B	6.68B	4.12B
	Net Debt
5.88B	1.26B	2.20B	2.31B	4.14B	-478.23M
	Total Liabilities
70.01B	66.31B	61.89B	56.49B	56.75B	44.79B
	Stockholders Equity
1.01B	645.94M	666.29M	-289.78M	223.35M	-839.64M
Cash Flow		Free Cash Flow
3.58B	3.00B	3.45B	2.21B	2.23B	1.84B
	Operating Cash Flow
4.11B	3.48B	3.91B	2.70B	2.67B	2.21B
	Investing Cash Flow
-4.81B	-618.10M	-2.60B	-368.44M	-6.14B	-379.87M
	Financing Cash Flow
614.92M	-2.33B	-2.22B	-1.75B	1.95B	-603.62M

Cencora Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 293.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COR, the sentiment is Positive. The current price of 293.2 is above the 20-day moving average (MA) of 290.62, above the 50-day MA of 287.13, and above the 200-day MA of 252.89, indicating a bullish trend. The MACD of 1.58 indicates Negative momentum. The RSI at 56.28 is Neutral, neither overbought nor oversold. The STOCH value of 79.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COR.

Cencora Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COR	78 Outperform	$56.69B	33.95	161.58%	0.74%	12.18%	-5.92%
CNC	77 Outperform	$27.21B	8.14	12.59%	―	8.85%	33.30%
MCK	76 Outperform	$90.03B	27.97	51.23%	0.39%	16.22%	15.29%
CAH	70 Outperform	$38.76B	25.36	-43.80%	1.25%	0.78%	183.45%
GSK	70 Neutral	$81.64B	20.77	22.26%	4.24%	4.17%	-29.96%
CVS	69 Neutral	$85.65B	16.17	7.00%	3.93%	4.84%	-26.54%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%

Cencora Corporate Events

Cencora Enhances Financial Flexibility with Credit Amendments

On June 4, 2025, Cencora, Inc. amended and restated its Revolving Credit Facility, increasing the commitment to $4.5 billion and extending the maturity date to June 4, 2030. This adjustment aims to enhance financial flexibility for general corporate purposes. Additionally, the company amended its Term Loan to align with the Revolving Credit Facility’s terms, reflecting a strategic move to optimize its financial structure. The termination of a $1 billion revolving credit facility originally set to expire in 2026 further streamlines Cencora’s credit arrangements.

The most recent analyst rating on (COR) stock is a Hold with a $245.00 price target. To see the full list of analyst forecasts on Cencora stock, see the COR Stock Forecast page.

Cencora Announces New Board Appointment Amid Recent Resignation

Cencora, Inc. announced the appointment of Lori J. Ryerkerk to its Board of Directors, effective June 1, 2025. Ms. Ryerkerk, with her extensive experience in global supply chains and leadership roles, is expected to enhance the board’s expertise and support the company’s long-term growth strategy as a healthcare services provider. Additionally, Ornella Barra resigned from the board on May 27, 2025, following Walgreens Boots Alliance’s anticipated ownership reduction in Cencora. This resignation is not due to any disagreements with the company, and WBA does not intend to fill the vacancy.

The most recent analyst rating on (COR) stock is a Hold with a $245.00 price target. To see the full list of analyst forecasts on Cencora stock, see the COR Stock Forecast page.

Cencora Completes €1 Billion Senior Notes Sale

On May 22, 2025, Cencora, Inc. completed the sale of €1 billion in senior notes, split equally between 2.875% notes due in 2028 and 3.625% notes due in 2032. These notes are unsecured and unsubordinated obligations, with specific terms outlined in the Indentures, which include limitations on creating liens, sale and leaseback transactions, and mergers. The issuance of these notes is significant for Cencora’s financial strategy, potentially impacting its market positioning by providing liquidity while imposing certain operational constraints.

The most recent analyst rating on (COR) stock is a Hold with a $245.00 price target. To see the full list of analyst forecasts on Cencora stock, see the COR Stock Forecast page.

Cencora Enters €1 Billion Senior Notes Agreement

On May 15, 2025, Cencora, Inc. entered into an Underwriting Agreement with several financial institutions for the issuance and sale of €1 billion in senior notes, split between €500 million due in 2028 and €500 million due in 2032. These notes are senior unsecured obligations, and the company expects to complete the sale by May 22, 2025, with net proceeds of approximately €994 million intended for general corporate purposes. The underwriters involved have previously provided various financial services to Cencora and may continue to do so in the future.

The most recent analyst rating on (COR) stock is a Hold with a $245.00 price target. To see the full list of analyst forecasts on Cencora stock, see the COR Stock Forecast page.

Cencora Reports Strong Q2 2025 Financial Results

On May 7, 2025, Cencora announced its fiscal 2025 second-quarter results, reporting a 10.3% year-over-year revenue increase to $75.5 billion. The company also raised its adjusted diluted EPS guidance for fiscal 2025, reflecting strong performance driven by its U.S. Healthcare Solutions segment and strategic acquisitions like Retina Consultants of America. This growth underscores Cencora’s role in the healthcare supply chain and its focus on operational excellence, which is expected to continue driving resilient financial performance.