About CVS Health Corporation
CVS Health Corporation provides health solutions in the United States. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental, and behavioral health plans; medical management capabilities; Medicare Advantage and Medicare Supplement plans; prescription drug plans (PDPs); and Medicaid health care management 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 Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail-order pharmacy, clinical services, disease management, medical spend management services, and pharmacy and other administrative services. It serves employers, insurance companies, unions, government employee groups, health plans, PDPs, Medicaid managed care plans, CMS, plans offered on public health insurance exchanges, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, personal care products, and other general merchandise products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, retail specialty pharmacy stores, and compounding pharmacies, as well as branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was founded in 1963 and is headquartered in Woonsocket, Rhode Island.
CVS Health Corporation (CVS) is a Healthcare company in the Healthcare Plans industry with a market capitalisation of $121.1B. The stock trades at 24.98x trailing earnings and yields 2.81%.
- Sector
- Healthcare
- Industry
- Healthcare Plans
- Market cap
- $121.1B
- P/E ratio
- 24.98
- Forward P/E
- 11.10
- EPS (TTM)
- $3.79
- Revenue (TTM)
- $412.6B
- Free cash flow
- $8.1B
- Profit margin
- 1.2%
- Dividend yield
- 2.81%
- Beta
- 0.58
- Shares outstanding
- 1.3B
Financial health: Fair5.5/10
5 strengths, 4 concerns. Weakest points: current ratio, return on equity, gross margin and 1 more.
- Debt to equity: 0.00 (Strong, benchmark < 0.5) — Debt of 0.00x equity is conservative against the 0.5x benchmark.
- Net debt vs cash flow: 0.0y (Strong, benchmark < 4 years) — Holds more cash than debt ($10.6B net cash).
- Current ratio: 0.84 (Concern, benchmark > 1.5) — Short-term assets cover only 0.84x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has deteriorated over the last 4 years.
- Return on equity: 6.2% (Concern, benchmark > 15%) — Earns 6.2% on shareholder equity, well short of the > 15% mark.
- Gross margin: 13.7% (Concern, benchmark > 40%) — Keeps 13.7% of revenue after the direct cost of sales, well short of the > 40% mark.
- Net margin: 1.2% (Concern, benchmark > 10%) — Turns 1.2% of revenue into profit, well short of the > 10% mark.
- Free cash flow: $7.8B (Strong, benchmark positive) — Generated $7.8B of free cash flow after capital spending. It has deteriorated over the last 4 years.
- Revenue growth: 7.1% (Watch, benchmark > 10%) — Revenue changed 7.1% year on year, short of the > 10% mark.
- Earnings growth: 188.8% (Strong, benchmark > 10%) — Earnings changed 188.8% year on year, comfortably past the > 10% mark.
- PEG ratio: 0.22 (Strong, benchmark < 1) — At 0.22, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 70.2% (Watch, benchmark < 60%) — Pays out 70.2% of earnings as dividends — above the level usually considered sustainable.