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CVS

CVS HealthNYSE:CVS Stock Report

Last Price

US$101.56

Market Cap

US$134.2b

7D

-4.4%

1Y

37.0%

Updated

21 Jan, 2022

Data

Company Financials +
CVS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends5/6

CVS Stock Overview

CVS Health Corporation provides health services in the United States.

CVS Health Competitors

Cigna

NYSE:CI

US$78.3b

Amazon.com

NasdaqGS:AMZN

US$1.4t

McDonald's

NYSE:MCD

US$190.2b

Medtronic

NYSE:MDT

US$142.0b

Price History & Performance

Summary of all time highs, changes and price drops for CVS Health
Historical stock prices
Current Share PriceUS$101.56
52 Week HighUS$107.26
52 Week LowUS$68.02
Beta0.84
1 Month Change0.65%
3 Month Change16.04%
1 Year Change37.02%
3 Year Change55.17%
5 Year Change30.62%
Change since IPO797.77%

Recent News & Updates

Jan 20
Is CVS Health Corporation (NYSE:CVS) Trading At A 35% Discount?

Is CVS Health Corporation (NYSE:CVS) Trading At A 35% Discount?

How far off is CVS Health Corporation ( NYSE:CVS ) from its intrinsic value? Using the most recent financial data...

Jan 19

Is CVS A Dividend Stock To Watch After The Dividend Increase?

After a hiatus designed to reduce debt following the Aetna acquisition, CVS recently raised its dividend payout for the first time since 2017. The firm’s three segments generate synergies, while the PBM and Aetna provide shallow but enduring moats. Investors fear competition from Amazon.

Shareholder Returns

CVSUS HealthcareUS Market
7D-4.4%-3.5%-6.1%
1Y37.0%12.7%4.2%

Return vs Industry: CVS exceeded the US Healthcare industry which returned 12.8% over the past year.

Return vs Market: CVS exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is CVS's price volatile compared to industry and market?
CVS volatility
CVS Average Weekly Movement3.2%
Healthcare Industry Average Movement7.9%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: CVS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CVS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1963256,500Karen Lynchhttps://www.cvshealth.com

CVS Health Corporation provides health services in the United States. The company’s Pharmacy Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, mail order pharmacy, specialty pharmacy and infusion, clinical, and disease and medical spend management services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, plans offered on public health insurance and private health insurance exchanges, other sponsors of health benefit plans, and individuals.

CVS Health Fundamentals Summary

How do CVS Health's earnings and revenue compare to its market cap?
CVS fundamental statistics
Market CapUS$134.16b
Earnings (TTM)US$7.59b
Revenue (TTM)US$283.98b

17.7x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CVS income statement (TTM)
RevenueUS$283.98b
Cost of RevenueUS$234.71b
Gross ProfitUS$49.27b
ExpensesUS$41.69b
EarningsUS$7.59b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 09, 2022

Earnings per share (EPS)5.74
Gross Margin17.35%
Net Profit Margin2.67%
Debt/Equity Ratio76.6%

How did CVS perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

35%

Payout Ratio

Valuation

Is CVS Health undervalued compared to its fair value and its price relative to the market?

36.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVS ($101.56) is trading below our estimate of fair value ($159.12)

Significantly Below Fair Value: CVS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CVS is good value based on its PE Ratio (17.7x) compared to the US Healthcare industry average (20.3x).

PE vs Market: CVS is poor value based on its PE Ratio (17.7x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: CVS is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: CVS is good value based on its PB Ratio (1.8x) compared to the US Healthcare industry average (2.6x).


Future Growth

How is CVS Health forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVS's forecast earnings growth (5.2% per year) is above the savings rate (2%).

Earnings vs Market: CVS's earnings (5.2% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: CVS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CVS's revenue (4.3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CVS's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CVS's Return on Equity is forecast to be low in 3 years time (14%).


Past Performance

How has CVS Health performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVS has high quality earnings.

Growing Profit Margin: CVS's current net profit margins (2.7%) are lower than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: CVS's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: CVS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CVS had negative earnings growth (-4.6%) over the past year, making it difficult to compare to the Healthcare industry average (32.5%).


Return on Equity

High ROE: CVS's Return on Equity (10.2%) is considered low.


Financial Health

How is CVS Health's financial position?


Financial Position Analysis

Short Term Liabilities: CVS's short term assets ($60.8B) do not cover its short term liabilities ($64.7B).

Long Term Liabilities: CVS's short term assets ($60.8B) do not cover its long term liabilities ($95.6B).


Debt to Equity History and Analysis

Debt Level: CVS's net debt to equity ratio (59.4%) is considered high.

Reducing Debt: CVS's debt to equity ratio has increased from 74.4% to 76.6% over the past 5 years.

Debt Coverage: CVS's debt is well covered by operating cash flow (31.2%).

Interest Coverage: CVS's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Dividend

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

2.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CVS's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: CVS's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: CVS's dividends per share have been stable in the past 10 years.

Growing Dividend: CVS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.7%), CVS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CVS's dividends in 3 years are forecast to be well covered by earnings (25% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Karen Lynch (58 yo)

0.92

Tenure

US$11,307,916

Compensation

Ms. Karen Sue Lynch serves as Chief Executive Officer, President and Director at CVS Health Corporation since February 01, 2021. She has extensive experience in the health care industry. She was Executive...


CEO Compensation Analysis

Compensation vs Market: Karen's total compensation ($USD11.31M) is about average for companies of similar size in the US market ($USD11.42M).

Compensation vs Earnings: Insufficient data to compare Karen's compensation with company performance.


Leadership Team

Experienced Management: CVS's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: CVS's board of directors are considered experienced (8.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CVS Health Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: CVS Health Corporation
  • Ticker: CVS
  • Exchange: NYSE
  • Founded: 1963
  • Industry: Health Care Services
  • Sector: Healthcare
  • Implied Market Cap: US$134.161b
  • Shares outstanding: 1.32b
  • Website: https://www.cvshealth.com

Number of Employees


Location

  • CVS Health Corporation
  • One CVS Drive
  • Woonsocket
  • Rhode Island
  • 2895
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:34
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.