Cencora, Inc. (COR)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Cencora as a distributor: scale matters, but thin margins leave little room for error. In fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $84.8B while net income was only $763.5M and diluted EPS was $3.94, a 0.90% net margin. Filed FY2025 revenue was $321.3B, net income $1.6B, and diluted EPS $7.96; FY2024 EPS was $7.53 and FY2023 was $8.53, so sales have grown but per-share earnings have not compounded. FairStock's Lynch category is SLOW GROWER: profit 0.2% a year over four years and revenue 10.7%. FairStock's ROE of 96.87% looks spectacular, but D/E of 4.47 and ROCE of 3.56% tell me leverage and low returns on total capital are doing much of the work. Altman Z of 1.63 and Piotroski of 6/9 suggest fragility rather than a fortress. Cash generation is a positive: $4.1B of trailing FCF and a 6.4% FCF yield. At the $330 close on 2026-10-26, FairStock shows P/E 24.52, P/B 20.64, PEG 2.22, EV/EBITDA 13.90, and a Graham Number of $69.59, a -375.64% margin of safety. Beta of 0.57 may indicate defensive demand, but the price assumes more than slow growth. I would want a much lower price or clear evidence of durable margin and cash-flow improvement.

In plain English: Cencora distributes prescription drugs and medical supplies to pharmacies, hospitals, and clinics. It is a very large, low-margin business: sales are huge, but profit per sales dollar is tiny, and it carries a lot of debt. At $330, the stock looks expensive compared with its modest profit growth and accounting-based value.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer