NYSE:CVS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


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

-0.2%

CVS

-0.3%

US Healthcare

-1.4%

US Market


1 Year Return

-8.6%

CVS

20.0%

US Healthcare

17.8%

US Market

Return vs Industry: CVS underperformed the US Healthcare industry which returned 20% over the past year.

Return vs Market: CVS underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

CVSIndustryMarket
7 Day-0.2%-0.3%-1.4%
30 Day3.6%9.4%4.7%
90 Day-6.1%3.8%8.2%
1 Year-5.7%-8.6%21.6%20.0%20.5%17.8%
3 Year-5.4%-13.8%32.3%26.6%42.2%32.7%
5 Year-31.0%-39.8%59.4%47.7%83.4%62.7%

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

Below Fair Value: CVS ($59.48) is trading below our estimate of fair value ($119.88)

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 (9.4x) compared to the US Healthcare industry average (23.3x).

PE vs Market: CVS is good value based on its PE Ratio (9.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CVS is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: CVS is good value based on its PB Ratio (1.1x) compared to the US Healthcare industry average (3x).


Next Steps

Future Growth

How is CVS Health forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVS's forecast earnings growth (8.5% per year) is above the savings rate (2.2%).

Earnings vs Market: CVS's earnings (8.5% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: CVS's revenue (3.7% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CVS's revenue (3.7% 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 (12.8%).


Next Steps

Past Performance

How has CVS Health performed over the past 5 years?

0.01%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVS has high quality earnings.

Growing Profit Margin: CVS's current net profit margins (3.1%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: CVS's earnings have grown by 0.01% per year over the past 5 years.

Accelerating Growth: CVS's earnings growth over the past year (90.9%) exceeds its 5-year average (0.01% per year).

Earnings vs Industry: CVS earnings growth over the past year (90.9%) exceeded the Healthcare industry 28%.


Return on Equity

High ROE: CVS's Return on Equity (12.1%) 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 ($62.5B) do not cover its short term liabilities ($63.7B).

Long Term Liabilities: CVS's short term assets ($62.5B) do not cover its long term liabilities ($103.4B).


Debt to Equity History and Analysis

Debt Level: CVS's debt to equity ratio (103.4%) is considered high.

Reducing Debt: CVS's debt to equity ratio has increased from 36.2% to 103.4% over the past 5 years.

Debt Coverage: CVS's debt is well covered by operating cash flow (22.6%).

Interest Coverage: CVS's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Next Steps

Dividend

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

3.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CVS's dividend (3.36%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: CVS's dividend (3.36%) is low compared to the top 25% of dividend payers in the US market (4.67%).


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 (31.6%), 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 (24.4% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Larry Merlo (64 yo)

9.58yrs

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 ($USD36.45M) is above average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Larry Merlo
President9.58yrsUS$36.45m0.071%
$ 55.1m
Eva Boratto
Executive VP & CFO1.92yrsUS$9.56m0.0054%
$ 4.2m
Jonathan Roberts
Executive VP & COO3.58yrsUS$15.05m0.0041%
$ 3.2m
Thomas Moriarty
Executive VP8yrsUS$23.15m0.0052%
$ 4.0m
James Clark
Senior VP1.92yrsno data0.00035%
$ 272.4k
Valerie Haertel
Senior Vice President of Investor Relations1.25yrsno datano data
David Falkowski
Executive VP & Chief Compliance Officer0.75yrno datano data
Lisa Bisaccia
Executive VP & Chief Human Resources Officer10.75yrsno data0.0036%
$ 2.8m
Troyen Brennan
Executive VP & Chief Medical Officer11.92yrsUS$5.02m0.0080%
$ 6.2m
Joshua Flum
Executive Vice President of Enterprise Strategy & Digital1.92yrsno data0.0019%
$ 1.5m
John Kennedy
Chief Tax Officer & Senior VP7.75yrsno datano data
Karen Lynch
Executive VP & President of the Aetna Business Unit1.92yrsno data0.0060%
$ 4.7m

2.8yrs

Average Tenure

57yo

Average Age

Experienced Management: CVS's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Larry Merlo
President9.58yrsUS$36.45m0.071%
$ 55.1m
Edward Ludwig
Independent Director1.92yrsUS$339.74k0.0017%
$ 1.3m
William Weldon
Independent Director7.58yrsUS$310.00k0.00014%
$ 109.0k
Tony White
Independent Director9.58yrsUS$312.04k0.0025%
$ 2.0m
David Dorman
Independent Non-Executive Chairman9.42yrsUS$585.00k0.010%
$ 8.1m
Mary Schapiro
Independent Director3.42yrsUS$310.00k0.00033%
$ 256.9k
Nancy-Ann DeParle
Independent Director7.08yrsUS$325.00k0.0014%
$ 1.1m
Anne Finucane
Independent Director9.75yrsUS$321.00k0.0018%
$ 1.4m
C. Brown
Independent Director13.58yrsUS$332.21k0.0090%
$ 7.0m
Jean-Pierre Millon
Independent Director13.58yrsUS$312.04k0.0074%
$ 5.8m
Alecia DeCoudreaux
Independent Director5.58yrsUS$310.97k0.00023%
$ 179.0k
Fernando Aguirre
Independent Director1.92yrsUS$310.00k0.0017%
$ 1.3m

8.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: CVS's board of directors are considered experienced (8.5 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 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$77.842b
  • 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

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
CVSETLX (Eurotlx)YesCommon StockITEURJan 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. The company’s Pharmacy Services segment offers pharmacy benefit management solutions, including plan design and administratio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:06
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.