CVS Health
Market Cap
US$86.5b
Last Updated
2019/10/17 23:34 UTC
Data Sources
Company Financials +
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
| CVS | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.0% | 5.8% | 1.8% |
| 30 Day | 4.8% | 2.5% | -0.7% |
| 90 Day | 18.9% | -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
10 hours ago | Simply Wall St
Read This Before Considering CVS Health Corporation (NYSE:CVS) For Its Upcoming 0.8% Dividend5 days ago | Simply Wall St
Does CVS Health (NYSE:CVS) Have A Healthy Balance Sheet?2 weeks ago | Simply Wall St
Why CVS Health Corporation (NYSE:CVS) Could Be Your Next InvestmentValuation
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
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
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,000 |
| Max Price | US$52.80 |
| Entity | Individual |
| Role | Chairman of the Board Independent Non-Executive Chairman |
| Shares | 9,600 |
| Max Price | US$52.71 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | US$53.18 |
| Entity | Individual |
| Shares | 1,900 |
| Max Price | US$53.59 |
| Entity | Individual |
| Shares | 3,410 |
| Max Price | US$58.29 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,000 |
| Max Price | US$58.27 |
| Entity | Individual |
| Role | Chief Accounting Officer Senior VP |
| Shares | 1,664 |
| Max Price | US$58.14 |
| Entity | Individual |
| Shares | 25,159 |
| Max Price | US$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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CVS | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| CVS | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| CVS | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
| CVS * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| CVS | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Jan 1968 |
| 0HRS | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| CVS | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| CVSH34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REP 1/2 COM USD0.01 | BR | BRL | Apr 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/17 23:34 |
| End of Day Share Price | 2019/10/17 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.