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1. Company Snapshot

1.a. Company Description

Cencora, Inc.sources and distributes pharmaceutical products.Its U.S. Healthcare Solutions segment distributes pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers.


The company also provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; packaging solutions to various institutional and retail healthcare providers; clinical trial support, product post-approval, and commercialization support services; data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers; and pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and other products to the companion animal and production animal markets.In addition, this segment distributes plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty products; and provides other services primarily to physicians who specialize in various disease states, primarily oncology, as well as to other healthcare providers, including hospitals and dialysis clinics.The company's International Healthcare Solutions segment offers international pharmaceutical wholesale and related service, and global commercialization services; and distributes pharmaceuticals, other healthcare products, and related services to pharmacies, doctors, health centers and hospitals primarily in Europe.


This segment also provides specialty transportation and logistics services for the biopharmaceutical industry.The company was formerly known as AmerisourceBergen Corporation and changed its name to Cencora, Inc.in August 2023.


Cencora, Inc.was incorporated in 2001 and is headquartered in Conshohocken, Pennsylvania.

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1.b. Last Insights on COR

Cencora's recent performance is driven by strong growth prospects, with above-average growth in financials. The company's expanding data capabilities, particularly in oncology biomarker data, are expected to improve patient outcomes. A consensus recommendation of "Moderate Buy" from analysts, with 15 buy ratings, underscores the stock's potential. Additionally, Cencora's dividend growth history and expected dividend increase in November are attractive to investors. Its Q4 earnings release and solid fundamentals are also key drivers. (Source: Marketbeat, Business Wire)

1.c. Company Highlights

2. Cencora's Fiscal 2025 Earnings: A Strong Performance

Cencora reported a robust financial performance in fiscal 2025, with adjusted operating income and adjusted diluted EPS growth of 16%. The company's consolidated revenue reached $321.3 billion, up 9% year-over-year, driven by a 10% growth in the U.S. Healthcare Solutions segment and a 6% growth in the International Healthcare Solutions segment. Consolidated operating income was $4.2 billion, a 16% increase, primarily driven by the U.S. Healthcare Solutions segment. The company generated $3 billion of adjusted free cash flow and ended the year with a cash balance of $4.4 billion. The actual EPS came out at $3.84, beating estimates of $3.79.

Publication Date: Nov -06

📋 Highlights
  • Revenue and Income Growth:: Consolidated revenue reached $321.3 billion (+9%), with adjusted operating income and EPS up 16%, driven by strong performance in the U.S. Healthcare Solutions segment.
  • Free Cash Flow and Cash Balance:: Generated $3 billion in adjusted free cash flow and ended the year with $4.4 billion in cash, reflecting robust liquidity.
  • Segment Performance:: U.S. Healthcare Solutions grew 10%, contributing to 25% adjusted operating income growth in Q4 (13% ex-RCA), while International Solutions rose 6%.
  • Strategic Investments and Dividend:: Announced a $1 billion investment in distribution network expansion through 2030 and increased the quarterly dividend by 9%.
  • 2026 Guidance and Long-Term Outlook:: Raised long-term adjusted operating income growth to 6–9% and EPS growth to 9–13%, with $17.45–$17.75 adjusted diluted EPS expected for 2026 (9–11% growth).

Segment Performance

The U.S. Healthcare Solutions segment had an exceptional fourth quarter, with adjusted operating income growth of 25%, and 13% ex-RCA. The guidance for fiscal year '26 contemplates growth within the new long-term guidance range of 6% to 9%. Cencora will continue to invest in its MSO platform, including its successful acquisition of RCA and the pathway to full ownership of OneOncology.

Outlook and Guidance

Cencora is raising its long-term guidance for adjusted operating income growth to 6% to 9% and adjusted EPS growth to 9% to 13%. For fiscal 2026, the company expects adjusted diluted EPS to be in the range of $17.45 to $17.75, representing growth of 9% to 11%. Consolidated revenue growth is expected to be in the range of 5% to 7%, with analysts estimating revenue growth at 6.6% for next year.

Valuation

Using the current valuation metrics, Cencora's P/E Ratio stands at 44.17, and its EV/EBITDA ratio is 19.43. These metrics indicate that the market is pricing in a certain level of growth for the company. With the company's long-term EPS growth expected to be in the range of 9% to 13%, it remains to be seen if the current valuation is justified.

Capital Deployment

Cencora's capital deployment priorities remain unchanged, with a focus on internal investments, strategic M&A, opportunistic share repurchases, and a growing dividend. The company has a call option to acquire OneOncology, which is expected to be exercised in the future. The increased capital expenditures, dividend growth, and potential M&A activities may impact the company's near-term M&A strategy, but the company remains focused on creating value for stakeholders.

3. NewsRoom

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Edgestream Partners L.P. Increases Stock Holdings in Cencora, Inc. $COR

Dec -04

Source: defenseworld.net

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Cencora Enhances Global Pharmaceutical Logistics Services, Cold Chain Capabilities

Dec -03

Source: businesswire.com

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Cencora, Inc. (COR) Presents at Citi Annual Global Healthcare Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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Cencora, Inc. (COR) Presents at Evercore 8th Annual Healthcare Conference Transcript

Dec -02

Source: seekingalpha.com

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Aviso Financial Inc. Has $3.07 Million Position in Cencora, Inc. $COR

Nov -25

Source: defenseworld.net

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Are Medical Stocks Lagging Cencora, Inc. (COR) This Year?

Nov -21

Source: zacks.com

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Artisan Partners Limited Partnership Acquires New Stake in Cencora, Inc. $COR

Nov -20

Source: defenseworld.net

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Cencora, Inc. $COR Shares Sold by Black Creek Investment Management Inc.

Nov -18

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.38%)

6. Segments

Human Health

Expected Growth: 8.5%

Cencora, Inc.'s Human Health segment growth of 8.5% is driven by increased demand for pharmaceuticals, expanding patient access, and rising adoption of innovative treatments. Additionally, the company's robust distribution network and growing presence in emerging markets contribute to its strong growth momentum.

Alliance Healthcare

Expected Growth: 7.0%

Alliance Healthcare from Cencora, Inc.'s 7.0% growth is driven by increased demand for pharmaceutical distribution services, expanded customer base, and strategic acquisitions. The company's strong logistics capabilities and ability to adapt to changing market conditions have also contributed to its growth. Additionally, the segment's growth is fueled by the rising need for healthcare products and services.

Other Healthcare Solutions

Expected Growth: 9.5%

The 9.5% growth in Other Healthcare Solutions from Cencora, Inc. is driven by increasing demand for specialty pharmaceuticals, expanding patient access programs, and strategic partnerships. Additionally, the segment benefits from Cencora's expertise in healthcare logistics and distribution, enabling efficient and reliable delivery of critical therapies to patients.

Animal Health

Expected Growth: 8.0%

The 8.0% growth in Animal Health from Cencora, Inc. is driven by increasing demand for animal care products, expanding veterinary services, and rising pet ownership. Additionally, the segment benefits from a strong portfolio of veterinary pharmaceuticals and vaccines, as well as growing sales of animal health diagnostics and nutritional products.

Intersegment Eliminations

Expected Growth: 0.0%

Intersegment eliminations from Cencora, Inc. show 0.0% growth, indicating no change in inter-segment transactions or pricing. This stability suggests that the company's business segments are not experiencing significant shifts in operations or market dynamics that would impact intersegment interactions.

7. Detailed Products

Pharmaceutical Distribution

Cencora, Inc. (formerly AmerisourceBergen) provides pharmaceutical distribution services to healthcare providers, pharmacies, and pharmaceutical manufacturers. They offer a comprehensive portfolio of pharmaceuticals, including brand-name, generic, and specialty medications.

Medical Supply Distribution

Cencora, Inc. distributes medical supplies, including surgical supplies, medical equipment, and patient care products, to various healthcare settings such as hospitals, clinics, and physician practices.

Pharmaceutical Manufacturer Services

Cencora, Inc. offers a range of services to pharmaceutical manufacturers, including supply chain management, logistics, and market access solutions. They help manufacturers navigate complex regulatory environments and optimize their product distribution.

Specialty Pharmacy Services

Cencora, Inc. operates a specialty pharmacy business that focuses on providing medications and support services for patients with complex conditions, such as cancer, HIV/AIDS, and rare diseases.

Data and Analytics Services

Cencora, Inc. offers data and analytics services to help healthcare providers, pharmaceutical manufacturers, and other stakeholders make informed decisions. They provide insights on market trends, patient outcomes, and treatment patterns.

8. Cencora's Porter Forces

Forces Ranking

Threat Of Substitutes

Cencora, Inc., formerly known as AmerisourceBergen, operates in the pharmaceutical distribution industry. The threat of substitutes in this industry is medium. While there are alternative distribution channels and some pharmacies or healthcare providers might consider direct purchasing, the extensive network, reliability, and regulatory compliance of companies like Cencora make substitution challenging. However, the growing trend of online pharmacies and direct-to-consumer sales of pharmaceuticals could potentially increase the threat level over time.

Bargaining Power Of Customers

The bargaining power of customers in the pharmaceutical distribution industry, where Cencora operates, is relatively low. This is because the customers (pharmacies, hospitals, and healthcare providers) rely heavily on the extensive distribution networks and the critical role that distributors play in ensuring the availability of medications. While large pharmacy chains might have some negotiating power, the essential nature of the services provided by Cencora limits the overall bargaining power of customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers in the pharmaceutical distribution industry is medium. Cencora deals with a variety of pharmaceutical manufacturers. While some of these suppliers, especially those with highly sought-after medications, might have more bargaining power, the industry's dynamics and the regulatory environment tend to balance the power. Cencora's size and market position also give it significant negotiating power with suppliers.

Threat Of New Entrants

The threat of new entrants in the pharmaceutical distribution industry is low. This industry is highly regulated, and new entrants face significant barriers to entry, including the need for substantial capital investment in logistics and distribution networks, as well as the establishment of relationships with pharmaceutical manufacturers and healthcare providers. Additionally, companies like Cencora have long-standing relationships with suppliers and customers, making it difficult for new entrants to compete effectively.

Intensity Of Rivalry

The intensity of rivalry in the pharmaceutical distribution industry, where Cencora operates, is high. The industry is dominated by a few large players, including Cencora (formerly AmerisourceBergen), Cardinal Health, and McKesson. These companies compete aggressively on price, service, and the ability to adapt to changing market conditions, such as the opioid crisis and the COVID-19 pandemic. The high level of competition among these major players results in a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 87.17%
Debt Cost 7.48%
Equity Weight 12.83%
Equity Cost 7.40%
WACC 7.47%
Leverage 679.33%

11. Quality Control: Cencora passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AbbVie

A-Score: 6.6/10

Value: 3.0

Growth: 4.7

Quality: 7.5

Yield: 7.0

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
J&J

A-Score: 6.4/10

Value: 3.0

Growth: 4.0

Quality: 7.7

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Cardinal Health

A-Score: 6.3/10

Value: 5.9

Growth: 6.6

Quality: 4.5

Yield: 4.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
McKesson

A-Score: 6.2/10

Value: 5.4

Growth: 8.3

Quality: 4.5

Yield: 0.0

Momentum: 9.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Cencor

A-Score: 5.7/10

Value: 2.8

Growth: 6.8

Quality: 4.0

Yield: 2.0

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Regeneron Pharmaceuticals

A-Score: 4.2/10

Value: 4.2

Growth: 6.4

Quality: 8.6

Yield: 0.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

339.66$

Current Price

339.66$

Potential

-0.00%

Expected Cash-Flows