CVS Health
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CVS Health Corporation provides health services and plans in the United States. The last earnings update was 57 days ago. More info.
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- CVS Health has significant price volatility in the past 3 months.
CVS Share Price and Events
7 Day Returns
1 Year Returns
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.
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for CVS Health.
| 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.
| 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.
| 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 | ||
| 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 |
| 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 |
| 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
Current Discount Checks
- 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?
| 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.
| 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?
| 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?
| 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 |
| 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.
Value checks
We assess CVS Health's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check) 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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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.
Future performance checks
We assess CVS Health's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from CVS Health Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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.
Past performance checks
We assess CVS Health's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from CVS Health Company Filings, last reported 3 months ago.
| 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.
Financial health checks
We assess CVS Health's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) CVS Health has a total score of 1/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
$2,000 of
CVS Health
shares you are expected to receive
$75
in your first year as a dividend.
Dividend Amount
- 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.
| 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.
| 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 |
| 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.
- Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).
Income/ dividend checks
We assess CVS Health's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- The tenure for the CVS Health management team is about average.
Management Team
Larry Merlo
President
$22M
62
8.1 yrs
Eva Boratto
Executive VP & CFO
$7M
51
0.4 yrs
Jon Roberts
Executive VP & COO
$16M
62
2.1 yrs
Thomas Moriarty
Executive VP
$11M
54
6.5 yrs
Derica Rice
Executive VP & President of CVS Caremark
$13M
53
1.1 yrs
James Clark
Senior VP
53
0.4 yrs
Mike McGuire
Senior Vice President of Investor Relations
1.7 yrs
David Falkowski
Chief Compliance Officer & Senior VP
Lisa Bisaccia
Executive VP & Chief Human Resources Officer
62
9.3 yrs
Troy Brennan
Executive VP & Chief Medical Officer
$5M
63
10.4 yrs
Board of Directors Tenure
Average tenure and age of the CVS Health board of directors in years:
- The tenure for the CVS Health board of directors is about average.
Board of Directors
Dave Dorman
Independent Non-Executive Chairman
$570K
64
7.9 yrs
Larry Merlo
President
$22M
62
8.9 yrs
Dick Swift
Independent Director
$307K
74
12.6 yrs
C. Brown
Independent Director
$302K
66
12.1 yrs
Richard Bracken
Independent Director
$297K
66
4.3 yrs
Edward Ludwig
Director
$148K
67
0.4 yrs
JP Millon
Independent Director
$282K
67
12.1 yrs
Anne Finucane
Independent Director
$280K
65
8.3 yrs
Tony White
Independent Director
$282K
71
8.1 yrs
William Weldon
Independent Director
$280K
69
6.1 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by CVS Health insiders in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | 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 | ||
Management checks
We assess CVS Health's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 - – Full articleIs 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 - – Full articleInvestors 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 - – Full articleOnly 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 - – Full articleWhat 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 - – Full articleLooking 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 - – Full articleNeed 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 - – Full articleWhat 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 - – Full articleShould 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 - – Full articleCVS 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 - – Full articleCompany 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
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.
