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CVS Health Corp
NYSE:CVS

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CVS Health Corp Logo
CVS Health Corp
NYSE:CVS
Watchlist
Price: 77.57 USD 0.22% Market Closed
Updated: Mar 19, 2024

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%.

Key Points:
CVS Intrinsic Value
Base Case
169.25 USD
Undervaluation 54%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
CVS Health Corp

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Fundamental Analysis

Company Reports Strong Growth and Share Repurchases
2023-Q4 Earnings Call

Company Reports Strong Growth and Share Repurchases

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.

Financials

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
Efficiency

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

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
Chart
Table
What is Free Cash Flow?
Fundamental Scores

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.

Positive Gross Profit
Positive 3-Years Revenue Growth
Positive Free Cash Flow
Positive Revenue Growth Forecast
50/100
Profitability
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.

Low D/E
Long-Term Solvency
Short-Term Solvency
Average Altman Z-Score
35/100
Solvency
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

Wall Street analysts forecast CVS stock price to rise over the next 12 months.

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.

Lowest
Price Target
74.74 USD
4% Downside
Average
Price Target
89.73 USD
16% Upside
Highest
Price Target
103.95 USD
34% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

CVS Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

CVS Price
CVS Health Corp

1M 1M
+2%
6M 6M
+8%
1Y 1Y
+4%
3Y 3Y
+12%
5Y 5Y
+53%
10Y 10Y
+32%
Annual Price Range
77.57
52w Low
65.17
52w High
81.42
Price Metrics
Average Annual Return 18.63%
Standard Deviation of Annual Returns 29.3%
Max Drawdown -39%
Shares Statistics
Market Capitalization 99.9B USD
Shares Outstanding 1 258 450 048
Percentage of Shares Shorted 1.92%

CVS Return Decomposition
Main factors of price return

What is price return decomposition?

CVS News

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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.

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Sentiment Analysis
CVS Health Corp

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Last 7 Days 7D
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Company Profile

CVS Health Corp Logo
CVS Health Corp

Country

United States of America

Industry

Health Care

Market Cap

99.9B USD

Dividend Yield

3.43%

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

RHODE ISLAND
Woonsocket
1 Cvs Dr
+14017651500.0
https://cvshealth.com/

IPO

1952-10-01

Employees

300 000

Officers

President, CEO & Director
Ms. Karen Sue Lynch
Executive VP of Ventures and Chief Digital, Data, Analytics & Technology Officer
Mr. Tilak Mandadi
Executive VP, Chief Pharmacy Officer and President of Pharmacy & Consumer Wellness
Mr. Prem S. Shah Pharm.D
Senior Director of Business Development & CVS Health and Partner & Co-Founder
Mr. Vijay Patel
Executive VP & CFO
Mr. Thomas Francis Cowhey
Senior VP, Controller & Chief Accounting Officer
Mr. James David Clark
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Senior Vice President of Business Development & Investor Relations
Mr. Laurence F. McGrath
Executive VP & Chief Compliance Officer
Mr. David A. Falkowski
Executive VP, Chief Policy Officer & General Counsel
Mr. Samrat S. Khichi Esq.
Executive VP & Chief People Officer
Ms. Laurie P. Havanec
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See Also

Discover More
What is the Intrinsic Value of one CVS stock?

The intrinsic value of one CVS stock under the Base Case scenario is 169.25 USD.

Is CVS stock undervalued or overvalued?

Compared to the current market price of 77.57 USD, CVS Health Corp is Undervalued by 54%.