Cardinal is the most diversified company in the distributor industry. This not only insulates it more from risks as a distributors, but gives it more opportunities for growth and higher margins.
As the US has an increasingly high proportion of senior citizens, and politicians call louder for more universal health care, the volume of purchased pharmaceuticals should increase steadily if not drastically over the coming years.
Because of SEC inquiries and the change in compensation, this stock did not do well for a few years. It is probably still be undervalued, especially because the Street has trouble with valuations for its diversified segments.