NYSE:CVS

Stock Analysis Report

Executive Summary

CVS Health Corporation provides health services and plans in the United States.

Snowflake

Fundamentals

Established dividend payer and good value.


Similar Companies

Share Price & News

How has CVS Health's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.0%

CVS

5.8%

US Healthcare

1.8%

US Market


1 Year Return

-10.8%

CVS

-6.5%

US Healthcare

7.3%

US Market

Return vs Industry: CVS underperformed the US Healthcare industry which returned -6.5% over the past year.

Return vs Market: CVS underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

CVSIndustryMarket
7 Day7.0%5.8%1.8%
30 Day4.8%2.5%-0.7%
90 Day18.9%-1.8%0.06%
1 Year-7.8%-10.8%-5.0%-6.5%9.7%7.3%
3 Year-17.5%-23.8%33.9%28.6%46.3%36.9%
5 Year-11.1%-20.5%65.6%55.8%64.5%46.5%

Price Volatility Vs. Market

How volatile is CVS Health's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CVS ($66.5) is trading below our estimate of fair value ($137.23)

Significantly Undervalued: 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 (18.2x) compared to the Healthcare industry average (20.4x).

PE vs Market: CVS is poor value based on its PE Ratio (18.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CVS is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CVS is good value based on its PB Ratio (1.4x) compared to the US Healthcare industry average (2.5x).


Next Steps

Future Growth

How is CVS Health forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVS's forecast earnings growth (9.3% per year) is above the savings rate (2.7%).

Earnings vs Market: CVS's earnings (9.3% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: CVS's revenue (3.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CVS's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CVS's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has CVS Health performed over the past 5 years?

-11.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CVS's earnings have declined by -11.3% per year over the past 5 years.

Accelerating Growth: CVS's earnings growth over the past year (44.7%) exceeds its 5-year average (-11.3% per year).

Earnings vs Industry: CVS earnings growth over the past year (44.7%) exceeded the Healthcare industry 5.3%.


Return on Equity

High ROE: CVS's Return on Equity (7%) is considered low.


Return on Assets

ROA vs Industry: CVS's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: CVS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is CVS Health's financial position?


Financial Position Analysis

Short Term Liabilities: CVS's short term assets ($46.9B) do not cover its short term liabilities ($49.4B)

Long Term Liabilities: CVS's short term assets (46.9B) do not cover its long term liabilities (107.9B)


Debt to Equity History and Analysis

Debt Level: CVS's debt to equity ratio (114.8%) is considered high

Reducing Debt: CVS's debt to equity ratio has increased from 35.1% to 114.8% over the past 5 years.

Debt Coverage: CVS's debt is not well covered by operating cash flow (15.4%).

Interest Coverage: CVS's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet

Inventory Level: CVS has a high level of physical assets or inventory.

Debt Coverage by Assets: CVS's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

3.01%

Current Dividend Yield


Upcoming Dividend Payment

Purchase CVS Health before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.0%marketbottom25%1.5%markettop25%3.7%industryaverage1.6%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CVS's dividend (3.01%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CVS's dividend (3.01%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 reasonable payout ratio (54.8%), CVS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CVS's dividends in 3 years are forecast to be well covered by earnings (25.3% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Larry Merlo (63yo)

8.6yrs

Tenure

US$21,939,098

Compensation

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 ...


CEO Compensation Analysis

Compensation vs. Market: Larry's total compensation ($USD21.94M) is above average for companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: Larry's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.6yrs

Average Tenure

59yo

Average Age

Experienced Management: CVS's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

8.7yrs

Average Tenure

67yo

Average Age

Experienced Board: CVS's board of directors are considered experienced (8.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$105,60011 Mar 19
Edward Ludwig
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$52.80
BuyUS$506,01611 Mar 19
David Dorman
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares9,600
Max PriceUS$52.71
BuyUS$531,80011 Mar 19
C. Brown
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$53.18
BuyUS$101,82111 Mar 19
Fernando Aguirre
EntityIndividual
Shares1,900
Max PriceUS$53.59
BuyUS$198,76904 Mar 19
Fernando Aguirre
EntityIndividual
Shares3,410
Max PriceUS$58.29
BuyUS$233,08004 Mar 19
Edward Ludwig
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$58.27
SellUS$96,74501 Mar 19
James Clark
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares1,664
Max PriceUS$58.14
SellUS$2,015,99130 Nov 18
David Denton
EntityIndividual
Shares25,159
Max PriceUS$80.13

Ownership Breakdown


Management Team

  • Larry Merlo (63yo)

    President

    • Tenure: 8.6yrs
    • Compensation: US$21.94m
  • Derica Rice (54yo)

    Executive VP & President of CVS Caremark

    • Tenure: 1.6yrs
    • Compensation: US$12.81m
  • Valerie Haertel

    Senior Vice President of Investor Relations Officer

    • Tenure: 0.3yrs
  • Lisa Bisaccia (63yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 9.8yrs
  • Troy Brennan (64yo)

    Executive VP & Chief Medical Officer

    • Tenure: 10.9yrs
    • Compensation: US$5.02m
  • Jon Roberts (63yo)

    Executive VP & COO

    • Tenure: 2.6yrs
    • Compensation: US$16.07m
  • Thomas Moriarty (55yo)

    Executive VP

    • Tenure: 7yrs
    • Compensation: US$10.98m
  • Eva Boratto (52yo)

    Executive VP & CFO

    • Tenure: 0.9yrs
    • Compensation: US$6.97m
  • David Falkowski

    Chief Compliance Officer & Senior VP

    • Tenure: 0yrs
  • James Clark (54yo)

    Senior VP

    • Tenure: 0.9yrs

Board Members

  • Edward Ludwig (68yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$147.50k
  • Larry Merlo (63yo)

    President

    • Tenure: 8.6yrs
    • Compensation: US$21.94m
  • Richard Bracken (67yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$297.04k
  • Dick Swift (75yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$307.04k
  • Tony White (72yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$282.04k
  • Dave Dorman (65yo)

    Independent Non-Executive Chairman

    • Tenure: 8.4yrs
    • Compensation: US$570.00k
  • Nancy-Ann DeParle (62yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$280.00k
  • Anne Finucane (66yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$280.00k
  • C. Brown (67yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$302.04k
  • JP Millon (68yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$282.04k

Company Information

CVS Health Corporation's company bio, 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
  • Market Cap: US$86.483b
  • Shares outstanding: 1.30b
  • Website: https://www.cvshealth.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVSNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
CVSDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
CVSXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
CVS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
CVSSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
0HRSLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
CVSWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
CVSH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REP 1/2 COM USD0.01BRBRLApr 2016

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:34
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.