June 19, 2025 a 12:46 pm
COR: Dividend Analysis - Cencora, Inc.
Cencora, Inc. demonstrates a stable dividend profile with its notable presence in the market. Despite a relatively low dividend yield, the company boasts a consistent dividend history, reflecting its commitment to returning value to shareholders. Some volatility can be noted in its dividend growth figures, indicating room for strategic financial planning.
📊 Overview
Understanding the core financial metrics of Cencora, Inc. is vital for evaluating its dividend potential and stability in the sector. Here’s a closer look at key figures:
| Metric | Value |
|---|---|
| Sector | Healthcare |
| Dividend yield | 0.74% |
| Current dividend per share | 2.10 USD |
| Dividend history | 25 years |
| Last cut or suspension | None |
🗣️ Dividend History
The dividend history of Cencora, Inc. over 25 years shows a strong tradition of providing returns to shareholders. This consistency is crucial for investors seeking reliable income streams.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.10 |
| 2024 | 2.08 |
| 2023 | 1.965 |
| 2022 | 1.865 |
| 2021 | 1.78 |
📈 Dividend Growth
Dividend growth is a critical measure of a company’s ability to increase shareholder returns over time. Cencora, Inc. presents mixed signals with its dividend growth rates.
| Time | Growth |
|---|---|
| 3 years | 5.33% |
| 5 years | -20.03% |
The average dividend growth is -20.03% over 5 years. This shows a declining trend which could be a concern for growth-focused investors.
⚠️ Payout Ratio
Payout ratios provide insight into a company’s dividend sustainability. Cencora's payout ratios are indicative of a cautious approach to dividend disbursement.
| Key figure | Ratio |
|---|---|
| EPS-based | 23.99% |
| Free cash flow-based | 11.37% |
Both EPS-based (23.99%) and free cash flow-based (11.37%) payout ratios suggest that Cencora has a conservative payout policy, offering room for potential investment in growth opportunities.
✅ Cashflow & Capital Efficiency
Cashflow and capital efficiency metrics provide insights into a company’s operational effectiveness and financial health.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 6.71% | 9.47% | 7.82% |
| Earnings Yield | 3.38% | 4.79% | 6.02% |
| CAPEX to Operating Cash Flow | 13.98% | 11.72% | 18.36% |
| Stock-based Compensation to Revenue | 0.05% | 0.04% | 0.04% |
| Free Cash Flow / Operating Cash Flow Ratio | 86.02% | 88.28% | 81.64% |
Overall, Cencora’s cash flow and capital efficiency indicators suggest a strong ability to generate cash, critical for sustaining operations and dividends.
📉 Balance Sheet & Leverage Analysis
Analyzing leverage indicates the degree to which a company is utilizing borrowed money. Cencora's ratios demonstrate its leveraged financial position.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 6.79 | 7.19 | -19.68 |
| Debt-to-Assets | 6.54% | 7.65% | 10.08% |
| Debt-to-Capital | 87.17% | 87.78% | 105.35% |
| Net Debt to EBITDA | 0.39 | 0.64 | 0.74 |
| Current Ratio | 0.88 | 0.88 | 0.91 |
| Quick Ratio | 0.53 | 0.52 | 0.55 |
| Financial Leverage | 103.88 | 93.89 | -195.18 |
The data reflect a highly leveraged company, which could pose risks, especially in times of economic downturn, affecting liquidity and financial stability.
🔍 Fundamental Strength & Profitability
Assessing profitability through various margins and returns is essential for understanding a company’s financial health.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 2.34% | 2.62% | -5.86% |
| Return on Assets | 2.25% | 2.79% | 3.00% |
| Net Margin | 0.51% | 0.67% | 0.71% |
| EBIT Margin | 0.77% | 0.93% | 1.01% |
| EBITDA Margin | 1.11% | 1.30% | 1.30% |
| Gross Margin | 3.37% | 3.42% | 3.49% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
Despite challenges, Cencora maintains modest profitability margins and returns, albeit with some negative values indicating potential areas for improvement.
🕒 Price Development
🎯 Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 4 | |
| Dividend growth | 1 | |
| Payout ratio | 4 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 2 |
Total Score: 25/40
🏆 Rating
In conclusion, Cencora, Inc. offers a reliable dividend profile with room for improvement in growth and leverage metrics. While the dividend yield is relatively low, the company's consistency presents an attractive option for investors seeking stability. However, attention should be paid to the high leverage and modest growth figures, which could affect future performance.