One-glance verdict
Undervalued
$378.70 our estimate vs market $306.92
Wall Street consensus: $369.25 (-2.5% lower than our fair-value estimate)
19% below our estimate, below the bear case
Fundamentals snapshot
Cencora, Inc.
COR · NYQ · Healthcare · Medical Distribution
Current price
$306.92
52-week range
$244.82 - $377.54
Market cap
$58.57B
Balance sheet
Distressed
9.37x Adequate
Net debt $11.65B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 3.6% last year.
- Reward Returns 96.9% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 42.8% over 3 years.
What this company does
Cencora, Inc.
Cencora acts like a giant wholesaler for the healthcare industry, buying prescription drugs, medical supplies, and even animal health products from manufacturers. They then sell and deliver these essential items to the places we all use, such as local pharmacies, hospitals, and clinics. This middleman position is important because it helps keep the healthcare supply chain (the path products take from factory to patient) running smoothly for millions of people.
How the company got here
Cencora was formed in 2001 through the merger of two long-standing drug distribution companies, AmeriSource Health and Bergen Brunswig, creating a major player in the U.S. market. Over the years, it expanded by acquiring other companies, including those specializing in animal health and the global transportation of sensitive medical products. A key turning point was the 2021 acquisition of Alliance Healthcare, which significantly grew its international presence. To reflect its more global and comprehensive role in healthcare, the company changed its name from AmerisourceBergen to Cencora in 2023.
What it actually does
Think of Cencora as a critical link in the healthcare system, operating largely behind the scenes. The company doesn't create medicines, but it gets them from the drug manufacturers to the places where you and your pets receive care. This includes hospitals, local pharmacies like Walgreens, doctors' offices, and veterinary clinics. Essentially, Cencora is a massive logistics and distribution business, ensuring that trillions of dollars worth of healthcare products are safely and efficiently delivered where they are needed.
U.S. Healthcare Solutions
This is Cencora's largest business segment by a wide margin, making up the vast majority of its revenue (the money it brings in from sales). It focuses on distributing a huge range of pharmaceutical products—from common generic drugs to complex specialty medications for diseases like cancer—throughout the United States. Its customers are the places you'd expect, such as hospitals, retail pharmacies, and clinics. This segment also provides related services like software for managing supplies and support for clinical trials (the process of testing new drugs).
International Healthcare Solutions
This segment handles the distribution of pharmaceuticals and other healthcare products outside of the United States. It serves pharmacies, doctors, and hospitals in other countries, and also provides specialized logistics services globally. For example, its World Courier business is an expert in transporting sensitive and time-critical medical materials around the world. While much smaller than the U.S. business, it represents a significant and growing part of the company's global footprint.
What management is betting on now
Cencora's leadership is heavily focused on specialty pharmaceuticals, which are complex and often expensive drugs for serious conditions like cancer. They are investing in and acquiring companies that strengthen their ability to support doctors and patients in these specific areas. The company is also working to improve its core operations by using technology to make its supply chain (the entire process of moving products from manufacturer to customer) more efficient and transparent. Another key priority is expanding its global reach and providing a wider range of services to pharmaceutical manufacturers to help them bring new drugs to market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$818.05M
FY2025 Q1
$-2.82B
FY2025 Q2
$3.22B
FY2025 Q3
$-73.97M
FY2025 Q4
$2.88B
FY2026 Q1
$-2.42B
FY2026 Q2
$1.17B
FY2026 Q3
$2.43B
Revenue
$84.75B
Net income
$763.52M
Diluted EPS
3.94
Operating cash flow
$2.65B
Free cash flow
$2.43B
Fetching…
Sources
Revenue
$78.36B
Net income
$1.64B
Diluted EPS
8.40
Operating cash flow
$1.34B
Free cash flow
$1.17B
Fetching…
Sources
Revenue
$85.93B
Net income
$559.65M
Diluted EPS
2.87
Operating cash flow
$-2.31B
Free cash flow
$-2.42B
Fetching…
Sources
Revenue
$83.73B
Net income
$-339.70M
Diluted EPS
-1.74
Operating cash flow
$3.13B
Free cash flow
$2.88B
Fetching…
Sources
Revenue
$80.66B
Net income
$687.40M
Diluted EPS
3.52
Operating cash flow
$109.25M
Free cash flow
$-73.97M
Fetching…
Sources
Revenue
$75.45B
Net income
$717.87M
Diluted EPS
3.68
Operating cash flow
$3.35B
Free cash flow
$3.22B
Fetching…
Sources
Revenue
$81.49B
Net income
$488.60M
Diluted EPS
2.50
Operating cash flow
$-2.72B
Free cash flow
$-2.82B
Fetching…
Sources
Revenue
$79.05B
Net income
$3.38M
Diluted EPS
0.04
Operating cash flow
$1.00B
Free cash flow
$818.05M
Fetching…
Sources
Is it cheap or expensive?
Fair value $378.70 vs current price $306.92
Wall Street consensus is the average analyst price target: $369.25 (-2.5% lower than our fair-value estimate).
Our most-likely fair value is $378.70 a share — about 23.4% above today's price of $306.92, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $11.6B. Interest coverage 9.4x.
Net debt
$11.65B
Interest coverage
9.37x
Cencora, Inc.'s profit covers its interest bill about 9.4 times over. which is stronger than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
COR
BASELINE
Cencora, Inc.
Total debt $14.46B Interest coverage 9.37x This is the baseline the peer rows are being compared against.
Total debt $11.80B Interest coverage 26.13x +179% vs COR Carries about 2.8x more debt cushion than COR.
Total debt $10.00B Interest coverage 9.12x -3% vs COR Has roughly the same debt cushion as COR.
Total debt $3.81B Interest coverage 5.05x -46% vs COR Carries about 1.9x less debt cushion than COR.
What you should know
The case for and against COR
3 Rewards
1 Risk
Rewards
-
Revenue grew 3.6% last year.
-
Returns 96.9% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 42.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
22.79x
Forward P/E
15.48x
P/B
19.20x
P/S
0.18x
EV/EBITDA
12.69x
PEG ratio
0.64x
Profitability
How much profit each dollar creates
Gross margin
4.0%
Operating margin
1.4%
Net margin
0.8%
ROE
96.9%
ROA
3.6%
Health
Liquidity and balance-sheet strength
Debt / equity
4.47x
Current ratio
0.94x
Quick ratio
0.48x
Total debt
$14.46B
Total cash
$2.82B
Growth
How the business has been compounding
Revenue TTM
$332.77B
Revenue 5Y CAGR
10.7%
EPS TTM
13.47
EPS 5Y CAGR
-0.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.82B
Free CF TTM
$3.21B
FCF margin
1.0%
Dividend
Shareholder payout
Yield
0.8%
Payout ratio
17.4%
Last ex-div date
2026-08-14