Loading...

CVS Health

NYSE:CVS
Snowflake Description

Established dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CVS
NYSE
$69B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

CVS Health Corporation provides health services and plans in the United States. The last earnings update was 57 days ago. More info.


Add to Portfolio Compare Print
  • CVS Health has significant price volatility in the past 3 months.
CVS Share Price and Events
7 Day Returns
1.1%
NYSE:CVS
1.8%
US Healthcare
0.9%
US Market
1 Year Returns
-23.9%
NYSE:CVS
-2.8%
US Healthcare
9.6%
US Market
CVS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CVS Health (CVS) 1.1% -1.5% -18.7% -23.9% -47% -27.9%
US Healthcare 1.8% -5.2% -9.7% -2.8% 13.1% 63.8%
US Market 0.9% 4.6% 10.9% 9.6% 39% 47.2%
1 Year Return vs Industry and Market
  • CVS underperformed the Healthcare industry which returned -2.8% over the past year.
  • CVS underperformed the Market in United States of America which returned 9.6% over the past year.
Price Volatility
CVS
Industry
5yr Volatility vs Market

Value

 Is CVS Health undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CVS Health to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CVS Health.

NYSE:CVS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 22 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CVS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.716 (1 + (1- 21%) (106.33%))
1.213
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.213 * 5.96%)
9.96%

Discounted Cash Flow Calculation for NYSE:CVS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CVS Health is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:CVS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.96%)
2019 8,411.30 Analyst x8 7,649.66
2020 9,883.19 Analyst x8 8,174.39
2021 10,816.12 Analyst x5 8,135.96
2022 11,497.85 Analyst x4 7,865.62
2023 12,039.20 Analyst x3 7,490.19
2024 12,525.72 Est @ 4.04% 7,087.24
2025 12,982.63 Est @ 3.65% 6,680.61
2026 13,420.46 Est @ 3.37% 6,280.58
2027 13,847.20 Est @ 3.18% 5,893.50
2028 14,268.82 Est @ 3.04% 5,523.04
Present value of next 10 years cash flows $70,780.79
NYSE:CVS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $14,268.82 × (1 + 2.73%) ÷ (9.96% – 2.73%)
$202,841.42
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $202,841.42 ÷ (1 + 9.96%)10
$78,514.02
NYSE:CVS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $70,780.79 + $78,514.02
$149,294.81
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $149,294.81 / 1,297.41
$115.07
NYSE:CVS Discount to Share Price
Calculation Result
Value per share (USD) From above. $115.07
Current discount Discount to share price of $53.23
= -1 x ($53.23 - $115.07) / $115.07
53.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CVS Health is available for.
Intrinsic value
>50%
Share price is $53.23 vs Future cash flow value of $115.07
Current Discount Checks
For CVS Health to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CVS Health's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • CVS Health's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CVS Health's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CVS Health's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CVS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.57
NYSE:CVS Share Price ** NYSE (2019-04-25) in USD $53.23
United States of America Healthcare Industry PE Ratio Median Figure of 53 Publicly-Listed Healthcare Companies 21.81x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.28x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CVS Health.

NYSE:CVS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CVS Share Price ÷ EPS (both in USD)

= 53.23 ÷ -0.57

-93.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CVS Health is loss making, we can't compare its value to the US Healthcare industry average.
  • CVS Health is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does CVS Health's expected growth come at a high price?
Raw Data
NYSE:CVS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -93.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts
25.1%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 40 Publicly-Listed Healthcare Companies 1.52x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for CVS Health, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on CVS Health's assets?
Raw Data
NYSE:CVS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $44.96
NYSE:CVS Share Price * NYSE (2019-04-25) in USD $53.23
United States of America Healthcare Industry PB Ratio Median Figure of 92 Publicly-Listed Healthcare Companies 2.39x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:CVS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CVS Share Price ÷ Book Value per Share (both in USD)

= 53.23 ÷ 44.96

1.18x

* Primary Listing of CVS Health.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CVS Health is good value based on assets compared to the US Healthcare industry average.
X
Value checks
We assess CVS Health's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. CVS Health has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is CVS Health expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
25.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CVS Health expected to grow at an attractive rate?
  • CVS Health's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • CVS Health's earnings growth is expected to exceed the United States of America market average.
  • CVS Health's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CVS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CVS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts 25.1%
NYSE:CVS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts 7%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CVS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CVS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 295,524 14,506 8,119 3
2022-12-31 284,067 14,025 8,274 4
2021-12-31 269,053 12,706 8,027 11
2020-12-31 259,594 13,154 7,413 22
2019-12-31 251,503 10,794 6,532 22
NYSE:CVS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 193,919 8,865 -597
2018-09-30 188,055 6,250 3,098
2018-06-30 186,967 7,764 2,989
2018-03-31 185,944 6,829 6,645
2017-12-31 184,765 8,007 6,606
2017-09-30 182,351 10,264 5,029
2017-06-30 180,785 11,587 5,281
2017-03-31 178,825 11,235 5,108
2016-12-31 177,526 10,141 5,291
2016-09-30 172,701 11,591 5,084
2016-06-30 166,729 9,477 4,781
2016-03-31 160,173 8,867 5,126

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CVS Health's earnings are expected to grow significantly at over 20% yearly.
  • CVS Health's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CVS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below

All data from CVS Health Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CVS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 5.94 5.94 5.94 1.00
2022-12-31 5.49 5.49 5.49 1.00
2021-12-31 6.07 6.89 5.17 3.00
2020-12-31 5.82 7.20 4.87 9.00
2019-12-31 4.98 5.09 4.82 8.00
NYSE:CVS Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.57
2018-09-30 3.05
2018-06-30 2.94
2018-03-31 6.54
2017-12-31 6.48
2017-09-30 4.87
2017-06-30 5.06
2017-03-31 4.83
2016-12-31 4.93
2016-09-30 4.69
2016-06-30 4.36
2016-03-31 4.62

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CVS Health is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CVS Health's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CVS Health has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has CVS Health performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CVS Health's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CVS Health does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare CVS Health's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare CVS Health's 1-year growth to the US Healthcare industry average as it is not currently profitable.
Earnings and Revenue History
CVS Health's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CVS Health Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CVS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 193,919.00 -597.00 21,165.00
2018-09-30 188,055.00 3,098.00 18,503.00
2018-06-30 186,967.00 2,989.00 18,503.00
2018-03-31 185,944.00 6,645.00 18,723.00
2017-12-31 184,765.00 6,606.00 18,681.00
2017-09-30 182,351.00 5,029.00 4,607.00
2017-06-30 180,785.00 5,281.00 9,215.00
2017-03-31 178,825.00 5,108.00 18,362.00
2016-12-31 177,526.00 5,291.00 18,284.00
2016-09-30 172,701.00 5,084.00 18,102.00
2016-06-30 166,729.00 4,781.00 17,677.00
2016-03-31 160,173.00 5,126.00 17,234.00
2015-12-31 153,290.00 5,202.00 16,833.00
2015-09-30 149,199.00 5,027.00 16,673.00
2015-06-30 145,577.00 4,741.00 16,712.00
2015-03-31 143,010.00 4,713.00 16,688.00
2014-12-31 139,367.00 4,626.00 16,543.00
2014-09-30 135,142.00 4,576.00 16,378.00
2014-06-30 132,053.00 4,887.00 16,100.00
2014-03-31 128,699.00 4,775.00 15,853.00
2013-12-31 126,761.00 4,600.00 15,818.00
2013-09-30 125,312.00 4,450.00 15,690.00
2013-06-30 123,607.00 4,206.00 15,579.00
2013-03-31 123,073.00 4,048.00 15,452.00
2012-12-31 123,120.00 3,871.00 15,278.00
2012-09-30 120,056.00 3,855.00 14,882.00
2012-06-30 116,503.00 3,712.00 14,643.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if CVS Health has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • CVS Health used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.
  • It is difficult to establish if CVS Health improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess CVS Health's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CVS Health has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is CVS Health's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CVS Health's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CVS Health is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CVS Health's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of CVS Health's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CVS Health Company Filings, last reported 3 months ago.

NYSE:CVS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 58,543.00 73,429.00 6,581.00
2018-09-30 36,622.00 62,886.00 41,692.00
2018-06-30 35,611.00 65,109.00 43,911.00
2018-03-31 38,677.00 65,094.00 42,142.00
2017-12-31 37,695.00 27,025.00 1,812.00
2017-09-30 34,868.00 25,789.00 2,560.00
2017-06-30 34,147.00 26,764.00 2,169.00
2017-03-31 33,842.00 27,433.00 2,302.00
2016-12-31 36,834.00 27,531.00 3,458.00
2016-09-30 35,954.00 26,733.00 2,263.00
2016-06-30 34,766.00 28,636.00 1,207.00
2016-03-31 36,031.00 27,469.00 1,864.00
2015-12-31 37,242.00 27,464.00 2,547.00
2015-09-30 37,180.00 27,222.00 3,011.00
2015-06-30 37,133.00 13,145.00 1,404.00
2015-03-31 36,995.00 12,762.00 1,634.00
2014-12-31 37,963.00 12,890.00 2,515.00
2014-09-30 38,109.00 13,056.00 1,210.00
2014-06-30 38,132.00 13,371.00 1,712.00
2014-03-31 38,212.00 13,410.00 2,848.00
2013-12-31 37,938.00 13,402.00 4,177.00
2013-09-30 38,534.00 10,205.00 1,613.00
2013-06-30 38,906.00 9,376.00 1,179.00
2013-03-31 38,209.00 9,664.00 1,556.00
2012-12-31 37,653.00 9,828.00 1,380.00
2012-09-30 36,916.00 10,040.00 1,238.00
2012-06-30 37,913.00 9,413.00 1,828.00
  • CVS Health's level of debt (125.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (35.3% vs 125.4% today).
  • Debt is not well covered by operating cash flow (12.1%, less than 20% of total debt).
  • CVS Health is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess CVS Health's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CVS Health has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is CVS Health's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.76%
Current annual income from CVS Health dividends. Estimated to be 3.74% next year.
If you bought $2,000 of CVS Health shares you are expected to receive $75 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CVS Health's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • CVS Health's dividend is above the markets top 25% of dividend payers in United States of America (3.61%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CVS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CVS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.03 4.00
2020-12-31 2.00 10.00
2019-12-31 1.98 10.00
NYSE:CVS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-06 2.000 3.696
2019-01-03 2.000 3.124
2018-10-04 2.000 2.711
2018-07-11 2.000 2.771
2018-02-28 2.000 3.044
2017-12-29 2.000 2.674
2017-09-19 2.000 2.719
2017-07-06 2.000 2.540
2017-03-02 2.000 2.528
2016-09-22 1.700 2.101
2016-07-06 1.700 1.794
2016-03-02 1.700 1.705
2015-12-16 1.700 1.774
2015-10-01 1.400 1.431
2015-07-08 1.400 1.335
2015-03-04 1.400 1.365
2014-12-16 1.400 1.408
2014-09-24 1.100 1.283
2014-07-10 1.100 1.393
2014-03-06 1.100 1.461
2013-12-18 1.100 1.581
2013-09-25 0.900 1.435
2013-07-10 0.900 1.506
2013-03-06 0.900 1.575
2012-12-13 0.900 1.773
2012-09-19 0.650 1.388
2012-07-05 0.650 1.417
2012-03-07 0.650 1.445
2011-12-20 0.650 1.520
2011-09-21 0.500 1.374
2011-07-06 0.500 1.405
2011-03-09 0.500 1.378
2011-01-11 0.500 1.481
2010-09-22 0.350 1.090
2010-07-07 0.350 1.190
2010-03-10 0.350 1.019
2010-01-12 0.350 1.044
2009-09-18 0.305 0.915
2009-07-08 0.305 0.881

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of CVS Health's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).
X
Income/ dividend checks
We assess CVS Health's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CVS Health afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CVS Health has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of CVS Health's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Larry Merlo
COMPENSATION $21,939,098
AGE 62
TENURE AS CEO 8.1 years
CEO Bio

Mr. Larry J. Merlo serves as the President of CVS Health Corporation (formerly, CVS Caremark Corporation) since May 12, 2010 and serves as its Chief Executive Officer since March 1, 2011. He is Director of CVS Health Corporation since May 2010. Mr. Merlo served as the Chief Operating Officer of CVS Health Corporation from May 12, 2010 to March 2011. He served as the President of CVS Pharmacy, Inc., Retail at CVS Health Corporation from January 22, 2007 to January 2010. He served as an Executive Vice President of CVS Health Corporation since January 2007 until May 12, 2010. He served as an Executive Vice President of Stores of CVS Health Corporation from April 2000 to January 22, 2007 and served as an Executive Vice President of Stores of CVS Pharmacy, Inc., a subsidiary of CVS Health Corporation from March 1998 to January 22, 2007. He served as Senior Vice President of Stores of CVS Health Corporation from January 1994 to March 1998. He served as the Chairman of National Association of Chain Drug Stores since April 2010 until May 2, 2011. He served as Vice Chairman of National Association of Chain Drug Stores (NACDS) since April 2009 and serves as its Director. Mr. Merlo serves as Trustee of University of Pittsburgh. He holds a B.S. in Pharmacy from University of Pittsburgh.

CEO Compensation
  • Larry's compensation has increased whilst company is loss making.
  • Larry's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the CVS Health management team in years:

2.1
Average Tenure
58
Average Age
  • The tenure for the CVS Health management team is about average.
Management Team

Larry Merlo

TITLE
President
COMPENSATION
$22M
AGE
62
TENURE
8.1 yrs

Eva Boratto

TITLE
Executive VP & CFO
COMPENSATION
$7M
AGE
51
TENURE
0.4 yrs

Jon Roberts

TITLE
Executive VP & COO
COMPENSATION
$16M
AGE
62
TENURE
2.1 yrs

Thomas Moriarty

TITLE
Executive VP
COMPENSATION
$11M
AGE
54
TENURE
6.5 yrs

Derica Rice

TITLE
Executive VP & President of CVS Caremark
COMPENSATION
$13M
AGE
53
TENURE
1.1 yrs

James Clark

TITLE
Senior VP
AGE
53
TENURE
0.4 yrs

Mike McGuire

TITLE
Senior Vice President of Investor Relations
TENURE
1.7 yrs

David Falkowski

TITLE
Chief Compliance Officer & Senior VP

Lisa Bisaccia

TITLE
Executive VP & Chief Human Resources Officer
AGE
62
TENURE
9.3 yrs

Troy Brennan

TITLE
Executive VP & Chief Medical Officer
COMPENSATION
$5M
AGE
63
TENURE
10.4 yrs
Board of Directors Tenure

Average tenure and age of the CVS Health board of directors in years:

8.2
Average Tenure
66.5
Average Age
  • The tenure for the CVS Health board of directors is about average.
Board of Directors

Dave Dorman

TITLE
Independent Non-Executive Chairman
COMPENSATION
$570K
AGE
64
TENURE
7.9 yrs

Larry Merlo

TITLE
President
COMPENSATION
$22M
AGE
62
TENURE
8.9 yrs

Dick Swift

TITLE
Independent Director
COMPENSATION
$307K
AGE
74
TENURE
12.6 yrs

C. Brown

TITLE
Independent Director
COMPENSATION
$302K
AGE
66
TENURE
12.1 yrs

Richard Bracken

TITLE
Independent Director
COMPENSATION
$297K
AGE
66
TENURE
4.3 yrs

Edward Ludwig

TITLE
Director
COMPENSATION
$148K
AGE
67
TENURE
0.4 yrs

JP Millon

TITLE
Independent Director
COMPENSATION
$282K
AGE
67
TENURE
12.1 yrs

Anne Finucane

TITLE
Independent Director
COMPENSATION
$280K
AGE
65
TENURE
8.3 yrs

Tony White

TITLE
Independent Director
COMPENSATION
$282K
AGE
71
TENURE
8.1 yrs

William Weldon

TITLE
Independent Director
COMPENSATION
$280K
AGE
69
TENURE
6.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by CVS Health insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Mar 19 Buy Edward Ludwig Individual 08. Mar 19 08. Mar 19 2,000 $52.80 $105,600
11. Mar 19 Buy David Dorman Individual 08. Mar 19 08. Mar 19 9,600 $52.71 $506,016
11. Mar 19 Buy C. Brown Individual 11. Mar 19 11. Mar 19 10,000 $53.18 $531,800
11. Mar 19 Buy Fernando Aguirre Individual 11. Mar 19 11. Mar 19 1,900 $53.59 $101,821
04. Mar 19 Buy Fernando Aguirre Individual 01. Mar 19 01. Mar 19 3,410 $58.29 $198,769
04. Mar 19 Buy Edward Ludwig Individual 01. Mar 19 01. Mar 19 4,000 $58.27 $233,080
01. Mar 19 Sell James Clark Individual 01. Mar 19 01. Mar 19 -1,664 $58.14 $-96,745
30. Nov 18 Sell David Denton Individual 29. Nov 18 29. Nov 18 -25,159 $80.13 $-2,015,991
07. May 18 Buy David Dorman Individual 04. May 18 04. May 18 24,300 $62.22 $1,511,868
07. May 18 Buy C. Brown Individual 04. May 18 04. May 18 10,000 $61.99 $619,900
X
Management checks
We assess CVS Health's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CVS Health has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Worry About CVS Health Corporation's (NYSE:CVS) CEO Salary Level?

In 2011 Larry Merlo was appointed CEO of CVS Health Corporation (NYSE:CVS). … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Larry Merlo's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is CVS Health Corporation's (NYSE:CVS) 8.5% ROE Worse Than Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.085. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Investors Are Undervaluing CVS Health Corporation (NYSE:CVS) By 47.5%

by taking the expected future cash flows and discounting them to their present value. … discounted cash flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Only 4 Days Left Before CVS Health Corporation (NYSE:CVS) Will Be Trading Ex-Dividend

Have you been keeping an eye on CVS Health Corporation's (NYSE:CVS) upcoming dividend of US$0.50 per share payable on the 04 February 2019? … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Let's take a look at CVS Health's most recent financial data to examine its dividend characteristics in more detail.

Simply Wall St -

What Kind Of Investor Owns Most Of CVS Health Corporation (NYSE:CVS)?

Every investor in CVS Health Corporation (NYSE:CVS) should be aware of the most powerful shareholder groups. … Generally speaking, as a company grows, institutions will increase their ownership. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Looking At CVS Health Corporation (NYSE:CVS) From All Angles

CVS Health Corporation (NYSE:CVS) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of CVS, it

Simply Wall St -

Need To Know: CVS Health Corporation (NYSE:CVS) Insiders Have Been Buying Shares

So shareholders might well want to know whether insiders have been buying or selling shares in CVS Health Corporation (NYSE:CVS). … In the last twelve months, the biggest single sale by an insider was when David Denton sold US$2.0m worth of shares at a price of US$80.13 per share. … David Denton was the only individual insider to sell shares in the last twelve months.

Simply Wall St -

What Should You Know About CVS Health Corporation's (NYSE:CVS) Return On Capital?

This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Therefore, looking at how efficiently CVS Health is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Should You Be Tempted To Sell CVS Health Corporation (NYSE:CVS) Because Of Its P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll show how you can use CVS Health Corporation's (NYSE:CVS) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

CVS Health Corporation (NYSE:CVS): Is It A Smart Long Term Opportunity?

As CVS Health Corporation (NYSE:CVS) released its earnings announcement on 30 September 2018, … the consensus outlook from analysts appear highly confident, … as a 82% rise in profits is expected in the upcoming year,

Simply Wall St -

Company Info

Description

CVS Health Corporation provides health services and plans in the United States. Its Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, retail pharmacy network management, mail order pharmacy, specialty pharmacy and infusion, Medicare Part D, clinical, disease management, and medical spend management services. The company’s Retail/LTC segment sells prescription drugs and general merchandise, such as over-the-counter drugs, beauty products, cosmetics, and personal care products, as well as provides health care services through its MinuteClinic walk-in medical clinics. Its Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, medical management, Medicare plans, PDPs, Medicaid health care management services, workers’ compensation administrative services, and health information technology products and services. The company’s customers include employers, insurance companies, unions, government employee groups, health plans, Medicare Part D prescription drug plans, Medicaid managed care plans, plans offered on public health insurance exchanges and private health insurance exchanges, other sponsors of health benefit plans, individuals, college students, workers, labor groups, and expatriates. As of December 31, 2018, it had approximately 40 leased on-site pharmacies, 25 leased retail specialty pharmacy stores, 20 specialty mail order pharmacies, and 90 branches for infusion and enteral services; and 9,900 retail locations and 1,100 MinuteClinic locations, as well as operated an online retail pharmacy Websites, LTC pharmacies, and onsite pharmacies. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was founded in 1963 and is headquartered in Woonsocket, Rhode Island.

Details
Name: CVS Health Corporation
CVS
Exchange: NYSE
Founded: 1963
$69,060,877,305
1,297,405,172
Website: http://www.cvshealth.com
Address: CVS Health Corporation
One CVS Drive,
Woonsocket,
Rhode Island, 02895,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CVS Common Stock New York Stock Exchange US USD 02. Jan 1968
DB CVS Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0HRS Common Stock London Stock Exchange GB USD 02. Jan 1968
SNSE CVS Common Stock Santiago Stock Exchange CL USD 02. Jan 1968
BMV CVS * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BOVESPA CVSH34 BDR EA REP 1/2 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 25. Apr 2016
Number of employees
Current staff
Staff numbers
295,000
CVS Health employees.
Industry
Health Care Services
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/26 01:34
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/25
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.