Cencora (COR) AI Stock Analysis

• Market Cap: $56.50B
• Dividend Yield: 0.75%
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 30.0
• Beta (1Y): 0.15
• Revenue Growth: 11.56%
• EPS Growth: 5.31%
• Country: US
• Employees: 42,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 4.00
• Shares Outstanding: 193,877,880
• 10 Day Avg. Volume: 1,446,972
• 30 Day Avg. Volume: 1,422,890
• PEG Ratio: -2.51
• Price to Book (P/B): 69.17
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 14.91
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 6.67
• Enterprise Value/Ebitda: 16.14
• 1Y Price Target: $330.80
• Price Target Upside: 14.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 59 Neutral
• Price Target: $303.00 ▲(4.48% Upside)

Cencora's overall stock score reflects strong earnings performance and raised guidance, which are significant positives. However, high leverage, declining free cash flow, and valuation concerns weigh on the score. Technical indicators suggest a neutral trend, adding moderate support to the stock's outlook.

Positive Factors

Revenue Growth

Cencora's strong revenue and gross profit growth indicate robust demand for its services, enhancing its market position and supporting long-term business expansion.

U.S. Healthcare Solutions Success

The success in the U.S. Healthcare Solutions segment highlights Cencora's ability to capitalize on domestic market opportunities, strengthening its competitive edge.

Increased Fiscal Guidance

Raising fiscal guidance reflects management's confidence in the company's growth trajectory, suggesting sustained operational strength and strategic execution.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase vulnerability to interest rate hikes, potentially impacting long-term financial stability.

Declining Free Cash Flow

Declining free cash flow growth may constrain the company's ability to invest in growth initiatives and meet debt obligations, affecting future expansion.

International Segment Challenges

Challenges in the international segment could hinder global expansion efforts and reduce overall profitability, impacting long-term growth prospects.

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 through multiple key streams, primarily by offering logistics and distribution services to pharmaceutical companies. The company charges fees for warehousing, inventory management, and transportation of pharmaceutical products. Additionally, Cencora earns revenue by providing regulatory compliance consulting services, assisting clients in navigating the complex landscape of drug approval and safety regulations. Significant partnerships with major pharmaceutical manufacturers and healthcare institutions also bolster its earnings, as these collaborations often lead to long-term contracts and recurring revenue. Furthermore, Cencora may benefit from value-added services, such as temperature-controlled shipping and real-time tracking solutions, which command premium pricing.

Cencora Financial Statement Overview

Summary

Cencora shows steady revenue growth and operational improvements, but faces challenges with high leverage and declining free cash flow. Profitability margins are improving but remain low, reflecting industry pressures. The high debt levels pose risks, especially in a rising interest rate environment.

Income Statement

Cencora has shown consistent revenue growth over the years, with a TTM revenue growth rate of 2.07%. However, the gross profit margin and net profit margin remain relatively low at 3.29% and 0.55% respectively, indicating tight margins typical in the distribution industry. The EBIT and EBITDA margins have improved slightly, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 7.76, which poses a significant leverage risk. Although the return on equity is positive at 2.41%, the equity ratio is low, indicating a heavy reliance on debt financing. This could be a potential risk if interest rates rise or if the company faces cash flow challenges.

Cash Flow

Cencora's cash flow statement reveals a concerning decline in free cash flow growth at -68.07% TTM. The operating cash flow to net income ratio is low at 0.08, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio remains strong at 0.87, indicating that the company is still generating cash from its operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.65B	293.96B	262.17B	238.59B	213.99B	189.89B
Gross Profit	9.70B	8.70B	7.76B	7.60B	6.27B	4.79B
EBITDA	4.01B	3.36B	3.41B	3.11B	2.91B	-4.73B
Net Income	1.90B	1.51B	1.75B	1.70B	1.54B	-3.41B
Balance Sheet
Total Assets	73.96B	67.10B	62.56B	56.56B	57.34B	44.27B
Cash, Cash Equivalents and Short-Term Investments	2.23B	3.13B	2.59B	3.39B	2.55B	4.60B
Total Debt	8.24B	4.39B	4.79B	5.70B	6.68B	4.12B
Total Liabilities	71.75B	66.31B	61.89B	56.49B	56.75B	45.11B
Stockholders Equity	1.98B	645.94M	522.00M	-211.56M	223.35M	-1.02B
Cash Flow
Free Cash Flow	1.14B	3.00B	3.45B	2.21B	2.23B	1.84B
Operating Cash Flow	1.74B	3.48B	3.91B	2.70B	2.67B	2.21B
Investing Cash Flow	-4.90B	-618.10M	-2.60B	-368.44M	-6.14B	-379.87M
Financing Cash Flow	1.98B	-2.33B	-2.22B	-1.75B	1.95B	-603.62M

Cencora Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 290.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COR, the sentiment is Negative. The current price of 290 is below the 20-day moving average (MA) of 294.95, below the 50-day MA of 292.71, and above the 200-day MA of 271.25, indicating a neutral trend. The MACD of 1.02 indicates Positive momentum. The RSI at 45.32 is Neutral, neither overbought nor oversold. The STOCH value of 30.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COR.

Cencora Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSIC	68 Neutral	8.34B	22.13	11.29%	―	2.29%	14.98%
MCK	66 Neutral	87.43B	28.05	-160.85%	0.42%	20.35%	11.96%
CAH	61 Neutral	35.88B	23.30	-56.13%	1.35%	-1.94%	85.70%
COR	59 Neutral	$56.50B	29.98	130.60%	0.75%	11.56%	5.31%
OMI	43 Neutral	401.67M	-0.33	428.07%	―	-17.10%	-2720.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Cencora Corporate Events

Cencora Amends Credit Agreements for Enhanced Flexibility

On September 5, 2025, Cencora, Inc. amended its Term Credit Agreement, originally dated November 26, 2024, to adjust the maturity date to October 1, 2027, and modify the interest rate structure based on public debt ratings. Additionally, Cencora amended its Money Market Facility Agreement to allow borrowings up to $750 million during certain periods, enhancing its financial flexibility. These amendments are likely to impact Cencora’s operational strategies and financial positioning, offering greater adaptability in managing its credit facilities.

The most recent analyst rating on (COR) stock is a Hold with a $306.00 price target. To see the full list of analyst forecasts on Cencora stock, see the COR Stock Forecast page.

Cencora Settles Stockholder Derivative Action for $111.3M

On September 3, 2025, Cencora announced a court-approved agreement to resolve a stockholder derivative action filed by the Lebanon County Employees’ Retirement Fund and Teamsters Local 443 Health Services & Insurance Plan. The complaint, initiated on December 30, 2021, alleged breaches of fiduciary duty related to the oversight of Cencora’s controlled substance diversion control programs. The settlement, reached after a successful mediation, involves insurance carriers paying Cencora $111.3 million, excluding legal fees, without any admission of liability from the defendants. This resolution marks a significant step in addressing claims against the company’s management and could impact its financial standing and stakeholder relations.

The most recent analyst rating on (COR) stock is a Hold with a $306.00 price target. To see the full list of analyst forecasts on Cencora stock, see the COR Stock Forecast page.

Cencora Appoints New Chairman Effective October 2025

On August 27, 2025, Cencora announced the appointment of D. Mark Durcan as the new Chairman of the Board, effective October 1, 2025. Durcan, who has been a director since 2015 and Lead Independent Director since March 2023, will succeed Steven H. Collis, who will retire at the end of the fiscal year. This leadership transition is expected to support Cencora’s continued growth and leadership in the healthcare industry, leveraging Durcan’s extensive experience in strategic planning and technological innovation.

The most recent analyst rating on (COR) stock is a Hold with a $300.00 price target. To see the full list of analyst forecasts on Cencora stock, see the COR Stock Forecast page.