Cencora (COR) AI Stock Analysis

• Market Cap: $56.17B
• Dividend Yield: 0.76%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.12
• 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: 1,416,865
• 30 Day Avg. Volume: 1,240,227
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: $333.40
• Price Target Upside: 15.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 58 Neutral
• Price Target: $300.00 ▲(3.56% Upside)

Cencora's overall stock score reflects a balance of strengths and challenges. Strong earnings performance and strategic financial adjustments are positive, but high leverage and valuation concerns weigh on the score. Technical indicators provide a neutral outlook, while the company's modest dividend yield offers limited investor income.

Positive Factors

Financial Performance

The US Healthcare adjusted operating income growth estimate exceeds the company's long-term growth targets, suggesting strong momentum.

Growth Potential

The stock is seen as having a durable growth story, with recent weaknesses viewed as overdone relative to this perspective.

Negative Factors

Earnings Impact

The loss of FCS and Publix could impact future earnings, despite overall positive growth estimates.

International Performance

Softness on the International side created a mathematical shortfall for the segment.

Cencora Business Overview & Revenue Model

Company Description

Cencora (COR) is a global leader in the pharmaceutical supply chain, specializing in providing comprehensive services for the healthcare and life sciences sectors. The company operates in various segments, including logistics, distribution, and regulatory compliance, offering a suite of products and services designed to ensure the efficient delivery of pharmaceuticals and medical devices. Cencora focuses on enhancing supply chain performance for pharmaceutical manufacturers, healthcare providers, and patients through innovative solutions and robust infrastructure.

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 consistent revenue growth and operational improvements, but faces challenges with high leverage and declining free cash flow. The company's profitability margins are improving, yet remain low, reflecting industry pressures. The balance sheet's high debt levels could pose risks if not managed carefully, 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: 289.70
• 50DMA: Negative
• 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 Negative. The current price of 289.7 is below the 20-day moving average (MA) of 290.71, below the 50-day MA of 292.76, and above the 200-day MA of 267.67, indicating a neutral trend. The MACD of 0.64 indicates Negative momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 22.24 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	70 Outperform	$8.37B	22.21	11.18%	―	2.29%	14.98%
MCK	66 Neutral	$84.65B	27.09	51.23%	0.42%	20.35%	11.96%
CAH	59 Neutral	$34.87B	22.96	-43.80%	1.37%	-1.94%	85.70%
COR	58 Neutral	$56.17B	29.66	130.60%	0.76%	11.56%	5.31%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%
OMI	43 Neutral	$386.99M	―	-144.11%	―	-17.10%	-2720.40%

Cencora Corporate Events

Cencora Reports Strong Q3 2025 Financial Results

On August 6, 2025, Cencora announced its fiscal third-quarter results for 2025, reporting an 8.7% increase in revenue to $80.7 billion compared to the previous year. The company’s GAAP diluted EPS rose to $3.52, while adjusted diluted EPS increased to $4.00, leading to an upward revision of its fiscal 2025 EPS guidance. The growth was attributed to strategic acquisitions and a focus on digital transformation, talent investment, and productivity, enhancing its position as a preferred partner in the healthcare sector.

Cencora Enhances Receivables Purchase Agreement for Liquidity

On June 30, 2025, Cencora, Inc.’s subsidiaries entered into a significant amendment to their Receivables Purchase Agreement, enhancing their securitization facility from $1.45 billion to $1.5 billion and expanding the Accordion Feature to allow for an additional $500 million in commitments, subject to approval. This amendment aims to provide Cencora with increased liquidity and funding flexibility, supporting its ongoing business operations and potentially strengthening its market position.

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.

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.