CVS Health
Market Cap
US$84.6b
Last Updated
2020/07/05 23:47 UTC
Data Sources
Company Financials +
Executive Summary
CVS Health Corporation provides health services and plans in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued established dividend payer.
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
Stable Share Price: CVS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.0%
CVS
4.1%
US Healthcare
4.0%
US Market
1 Year Return
16.4%
CVS
13.7%
US Healthcare
5.0%
US Market
Return vs Industry: CVS exceeded the US Healthcare industry which returned 13.7% over the past year.
Return vs Market: CVS exceeded the US Market which returned 4.9% over the past year.
Shareholder returns
| CVS | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 4.1% | 4.0% |
| 30 Day | -5.3% | -4.5% | -1.1% |
| 90 Day | 15.1% | 17.9% | 21.1% |
| 1 Year | 20.2%16.4% | 15.2%13.7% | 7.2%5.0% |
| 3 Year | -10.0%-17.7% | 29.2%23.5% | 36.0%27.1% |
| 5 Year | -31.6%-39.8% | 39.1%29.6% | 65.3%46.9% |
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
4 days ago | Simply Wall St
What Can We Learn About CVS Health's (NYSE:CVS) CEO Compensation?3 weeks ago | Simply Wall St
CVS Health (NYSE:CVS) Takes On Some Risk With Its Use Of Debt1 month ago | Simply Wall St
Is CVS Health Corporation (NYSE:CVS) A Smart Pick For Income Investors?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
Below Fair Value: CVS ($64.7) is trading below our estimate of fair value ($137.81)
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 (11.7x) compared to the Healthcare industry average (24x).
PE vs Market: CVS is good value based on its PE Ratio (11.7x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: CVS is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: CVS is good value based on its PB Ratio (1.3x) compared to the US Healthcare industry average (2.7x).
Next Steps
Future Growth
How is CVS Health forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
9.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CVS's forecast earnings growth (9.7% per year) is above the savings rate (2.2%).
Earnings vs Market: CVS's earnings (9.7% per year) are forecast to grow slower than the US market (22.8% per year).
High Growth Earnings: CVS's earnings are forecast to grow, but not significantly.
Revenue vs Market: CVS's revenue (4% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: CVS's revenue (4% 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 (13.2%).
Next Steps
Past Performance
How has CVS Health performed over the past 5 years?
-4.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CVS has high quality earnings.
Growing Profit Margin: CVS became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CVS's earnings have declined by -4.2% per year over the past 5 years.
Accelerating Growth: CVS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: CVS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (10.1%).
Return on Equity
High ROE: CVS's Return on Equity (11%) is considered low.
Next Steps
Financial Health
How is CVS Health's financial position?
Financial Position Analysis
Short Term Liabilities: CVS's short term assets ($59.0B) do not cover its short term liabilities ($59.6B).
Long Term Liabilities: CVS's short term assets ($59.0B) do not cover its long term liabilities ($105.6B).
Debt to Equity History and Analysis
Debt Level: CVS's debt to equity ratio (108.3%) is considered high.
Reducing Debt: CVS's debt to equity ratio has increased from 34.5% to 108.3% over the past 5 years.
Debt Coverage: CVS's debt is well covered by operating cash flow (20%).
Interest Coverage: CVS's interest payments on its debt are well covered by EBIT (6x coverage).
Balance Sheet
Next Steps
Dividend
What is CVS Health current dividend yield, its reliability and sustainability?
3.09%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CVS's dividend (3.09%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: CVS's dividend (3.09%) is low compared to the top 25% of dividend payers in the US market (4.5%).
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 (36.1%), 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 (24.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.5yrs
Average management tenure
CEO
Larry Merlo (64yo)
9.33yrs
Tenure
US$36,451,749
Compensation
Mr. Larry J. Merlo serves as the President of CVS Health Corporation (formerly, CVS Caremark Corporation) since May 12, 2010 and serves as its Chief Executive Officer since March 1, 2011. He is Director of ...
CEO Compensation Analysis
Compensation vs Market: Larry's total compensation ($USD36.45M) is above average for companies of similar size in the US market ($USD11.50M).
Compensation vs Earnings: Larry's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 9.33yrs | US$36.45m | 0.071% $60.0m | |
| Executive VP & CFO | 1.67yrs | US$9.56m | 0.0054% $4.6m | |
| Executive VP & COO | 3.33yrs | US$15.05m | 0.0041% $3.5m | |
| Executive VP | 7.75yrs | US$23.15m | 0.0052% $4.4m | |
| Senior VP | 1.67yrs | no data | 0.00035% $296.0k | |
| Senior Vice President of Investor Relations | 1yr | no data | no data | |
| Executive VP & Chief Compliance Officer | 0.50yr | no data | no data | |
| Executive VP & Chief Human Resources Officer | 10.5yrs | no data | 0.0036% $3.1m | |
| Executive VP & Chief Medical Officer | 11.67yrs | US$5.02m | 0.0080% $6.8m | |
| Chief Merchant & Senior VP of Front Store Business | 8.83yrs | no data | no data |
5.5yrs
Average Tenure
64yo
Average Age
Experienced Management: CVS's management team is seasoned and experienced (5.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 9.33yrs | US$36.45m | 0.071% $60.0m | |
| Independent Director | 1.67yrs | US$339.74k | 0.0017% $1.4m | |
| Independent Director | 7.33yrs | US$310.00k | 0.00014% $118.4k | |
| Independent Director | 9.33yrs | US$312.04k | 0.0025% $2.1m | |
| Independent Non-Executive Chairman | 9.17yrs | US$585.00k | 0.010% $8.8m | |
| Independent Director | 6.83yrs | US$325.00k | 0.0014% $1.2m | |
| Independent Director | 9.5yrs | US$321.00k | 0.0018% $1.5m | |
| Independent Director | 13.33yrs | US$332.21k | 0.0090% $7.6m | |
| Independent Director | 13.33yrs | US$312.04k | 0.0074% $6.3m | |
| Independent Director | 5.33yrs | US$310.97k | 0.00023% $194.5k |
9.3yrs
Average Tenure
67.5yo
Average Age
Experienced Board: CVS's board of directors are considered experienced (9.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CVS insiders have sold more shares than they have bought 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 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$84.569b
- Shares outstanding: 1.31b
- 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 | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | 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. 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 (PDPs), Medicaid managed care plans, plans offered on public health insurance and private health insurance exchanges, other sponsors of health benefit plans, and individuals. This segment operates retail specialty pharmacy stores; and specialty mail order, mail order dispensing, and compounding pharmacies, as well as branches for infusion and enteral nutrition services. Its Retail/LTC segment sells prescription and over-the-counter drugs, beauty and personal care products, and cosmetics; and provides health care services through its MinuteClinic walk-in medical clinics. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to chronic care facilities and other care settings. As of December 31, 2019, it operated approximately 9,900 retail locations and 1,100 MinuteClinic locations, as well as online retail pharmacy websites, LTC pharmacies, and onsite pharmacies. The company’s Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. The company was founded in 1963 and is headquartered in Woonsocket, Rhode Island.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/05 23:47 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.