Medical distribution

4 companies · $992B combined revenue · $12.1B operating profit

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The typical US-listed medical distribution company grew revenue 10.8% and earnings 6.4% in its latest year, at a 1.3% operating margin, and 2 of 4 earn a return on capital above 15%. Figures from each company's latest annual filing with the SEC, refreshed daily.

10.8%Median revenue growth
6.4%Median earnings growth
8.9%Median revenue growth, 3 yrs
3.6%Median earnings growth, 3 yrs
1.3%Median operating margin
16.8%Median ROCE
Fastest revenue growthCardinal Health CAH14.2%Fastest earnings growthMckesson MCK44.5%Highest ROCEMckesson MCK40.6%Biggest margin gainMckesson MCK+0.3 pts

Growth engines: the 4 Cylinders

All four working: 0% of companies

A company's earnings per share can grow in only four ways: more sales, profits growing faster than sales (operating leverage), wider margins, and less debt. Each bar is the share of companies where that engine worked in their latest year.

  • Sales growth · Revenue up 10% or more50%
  • Operating leverage · Operating income growing faster than a growing revenue100%
  • Margin expansion · Operating margin up 1 point or more0%
  • Debt reduction · Debt down 5% or more, or net cash25%

Combined revenue · 4 companies reporting in US dollars

Revenue
$0$250B$500B$750B$1,000BFY21FY22FY23FY24FY25

Combined operating margin

Operating margin
0%0.5%1%1.5%FY21FY22FY23FY24FY25

All 4 companies

Median–10.8%6.4%1.3%16.8%3.01x
MCKMckesson$403B12.4%▲44.5%▲1.5%▲40.6%▲–
CORCencora$321B9.3%▼3%▼0.8%▼14%▼5.08x▼
CAHCardinal Health$254B14.2%▲9.8%▲1%▼19.5%▲–
HSICHenry Schein$13.2B4%▼2.1%▼5%▲8.2%▼0.95x▲

▲ better than the median, ▼ worse. n/a: the ratio doesn't apply to that kind of business (e.g. a bank's operating margin). Sort by any column. Figures from each company's latest 10-K (or 20-F/40-F).