CVS Health Corp
NYSE:CVS
Intrinsic Value
CVS Health Corp. engages in the provision of healthcare services. [ Read More ]
The intrinsic value of one CVS stock under the Base Case scenario is 169.25 USD. Compared to the current market price of 77.57 USD, CVS Health Corp is Undervalued by 54%.
Valuation Backtest
CVS Health Corp
Run backtest to discover the historical profit from buying and selling CVS stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Company Reports Strong Growth and Share Repurchases
2023-Q4 Earnings Call
The company closed its fourth quarter with remarkable revenue growth across all business segments, tallying nearly $94 billion, a 12% increase over the previous year, and a modest 4% hike in adjusted earnings per share (EPS) to $2.12. However, challenges were evident as the medical benefit ratio rose by 270 basis points to 88.5% due to higher Medicare Advantage utilization. The company’s pharmacy and consumer wellness sectors experienced nearly 9% and 11% surges in revenue, respectively, with corresponding hikes in operating income. These promising results enabled the company to enhance shareholder value by returning $779 million in dividends and initiating a $3 billion share repurchase transaction. Looking ahead, the company has revised its 2024 EPS guidance to a minimum of $8.30 and projects an increase in the medical benefit ratio to about 87.7%. Operationally, it forecasts at least $5.4 billion for the Health Care Benefits segment and at least $5.6 billion for the Pharmacy & Consumer Wellness segment, while the Health Services segment anticipates at least $7.4 billion in adjusted operating income. Overall, the company expects at least $12 billion in cash flow from operations, with less than 50% of adjusted EPS accrued in the first half of the year, and about 20% in the first quarter.
Balance Sheet Decomposition
CVS Health Corp
Current Assets | 67.9B |
Cash & Short-Term Investments | 11.5B |
Receivables | 35.2B |
Other Current Assets | 21.2B |
Non-Current Assets | 181.9B |
Long-Term Investments | 23B |
PP&E | 30.4B |
Intangibles | 120.5B |
Other Non-Current Assets | 7.9B |
Current Liabilities | 79.2B |
Accounts Payable | 49.8B |
Accrued Liabilities | 23.8B |
Short-Term Debt | 200m |
Other Current Liabilities | 5.4B |
Non-Current Liabilities | 94.1B |
Long-Term Debt | 58.6B |
Other Non-Current Liabilities | 35.4B |
Earnings Waterfall
CVS Health Corp
Revenue
|
357.8B
USD
|
Cost of Revenue
|
-303.3B
USD
|
Gross Profit
|
54.4B
USD
|
Operating Expenses
|
-39.3B
USD
|
Operating Income
|
15.1B
USD
|
Other Expenses
|
-6.7B
USD
|
Net Income
|
8.3B
USD
|
Free Cash Flow Analysis
CVS Health Corp
What is Free Cash Flow?
CVS Profitability Score
Profitability Due Diligence
CVS Health Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
Score
CVS Health Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
CVS Solvency Score
Solvency Due Diligence
CVS Health Corp's solvency score is 35/100. The higher the solvency score, the more solvent the company is.
Score
CVS Health Corp's solvency score is 35/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
CVS Price Targets Summary
CVS Health Corp
According to Wall Street analysts, the average 1-year price target for CVS is 89.73 USD with a low forecast of 74.74 USD and a high forecast of 103.95 USD.
Ownership
CVS Insider Trading
Buy and sell transactions by insiders
Period | Sold | Bought | Net |
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Shareholder Return
CVS Price
CVS Health Corp
Average Annual Return | 18.63% |
Standard Deviation of Annual Returns | 29.3% |
Max Drawdown | -39% |
Market Capitalization | 99.9B USD |
Shares Outstanding | 1 258 450 048 |
Percentage of Shares Shorted | 1.92% |
CVS News
Last Important Events
CVS Health Corp
Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.
Sentiment Analysis
CVS Health Corp
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
CVS Health Corp. engages in the provision of healthcare services. The company is headquartered in Woonsocket, Rhode Island and currently employs 300,000 full-time employees. The firm's segments include Pharmacy Services, Retail/LTC, Health Care Benefits and Corporate/Other. The Pharmacy Services segment provides a range of pharmacy benefit management (PBM) solutions, including plan design offerings and administration, retail pharmacy network management services, mail order pharmacy, specialty pharmacy, clinical services, disease management services and medical spend management. Retail/LTC segment sells prescription drugs and a range of health and wellness products and general merchandise. The Health Care Benefits segment offers a range of traditional, voluntary and consumer-directed health insurance products and related services. The firm's services include health & wellness services, health plans, pharmacy services and prescription drug coverage. The firm has approximately 9,900 retail locations, over 1,200 walk-in medical clinics, a pharmacy benefits manager.
Contact
IPO
Employees
Officers
The intrinsic value of one CVS stock under the Base Case scenario is 169.25 USD.
Compared to the current market price of 77.57 USD, CVS Health Corp is Undervalued by 54%.