CVS Health Corp (CVS) (2024)

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Stock XNYS Rating as of Aug 13, 2024

$55.82 +0.01(0.02%)

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As of Aug 13, 2024 11:00pm Delayed Price Pre-Open:$55.99 +0.17

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Company Report

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CVS Earnings: Surging Medical Utilization Cuts Into 2024 Outlook Again

Julie Utterback Aug 7, 2024

Narrow-moat CVS Health delivered weak second-quarter results, primarily on deflated profits in Medicare Advantage, where spiking medical utilization and mispriced plans caused profits to decline substantially. Because this weakness may continue, management cut its 2024 guidance for the second time this year. However, changing our near-term estimates a bit does not materially affect our $93 fair value estimate, and shares remain cheap relative to the firm's longer-term prospects, in our opinion.

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Price vs Fair Value

See Also
CVS Health Corporation (CVS) Stock Historical Prices & Data - Yahoo Finance CVS Health Corporation Aktie (859034) - Kurs Nyse - MarketScreener SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in CVS Health Corporation of Class Action Lawsuit and Upcoming Deadlines - CVS

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CVS is trading within a range we consider fairly valued.

Price

$55.82

Aug 13, 2024

Fair Value

$62.00

May 1, 2024

Uncertainty

Medium

1-Star Price: $239.62
5-Star Price: $21.60
Economic Moat: Pnrjdyn
Capital Allocation: Zghwwnhgd

Bulls Say, Bears Say

Bulls

CVS' diverse operations create the opportunity to view a patient more holistically by managing both medical and pharmacy benefits, which could lead to revenue and cost synergies for the organization.

Bears

Healthcare reform will likely remain a recurring political topic until universal, affordable coverage is achieved in the US, and CVS' stock may experience volatility if scenarios that threaten its prospects gain traction.

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News

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The Gross Law Firm Notifies Shareholders of CVS Health Corporation (CVS) of a Class Action Lawsuit and an Upcoming Deadline
CVS Investors Have Opportunity to Lead CVS Health Corporation Securities Fraud Lawsuit
CVS Investors Have Opportunity to Lead CVS Health Corporation Securities Fraud Lawsuit with the Schall Law Firm
CVS HEALTH CORPORATION (NYSE: CVS) DEADLINE ALERT: Bernstein Liebhard LLP Reminds CVS Health Corporation Investors of Upcoming Deadline
DEADLINE ALERT for ICU, MDB, CVS, and WBA: The Law Offices of Frank R. Cruz Reminds Investors of Class Actions on Behalf of Shareholders

Trading Information

Previous Close Price: $55.81
Day Range: $55.75–56.49
52-Week Range: $52.77–83.25
Bid/Ask: $55.91/$56.00
Market Cap: $70.22 Bil
Volume/Avg: 5,853/11.0 Mil

Key Statistics

Price/Earnings (Normalized): 7.47
Price/Sales: 0.20
Dividend Yield (Trailing): 4.66%
Dividend Yield (Forward): 4.77%
Total Yield: 8.96%

Company Profile

CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the us. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.

Sector: Healthcare
Industry: Healthcare Plans
Stock Style Box: Large Value
Total Number of Employees: 300,000
Website: https://www.cvshealth.com

Competitors

Elevance Health Inc ELV
UnitedHealth Group Inc UNH
Walgreens Boots Alliance Inc WBA
Humana Inc HUM
The Cigna Group CI

Valuation

Metric	CVS	ELV	UNH
Price/Earnings (Normalized)	7.47	15.03	21.73
Price/Book Value	0.94	2.92	5.92
Price/Sales	0.20	0.73	1.40
Price/Cash Flow	5.96	13.64	18.97

Price/Earnings

CVS

ELV

UNH

Financial Strength

Metric	CVS	ELV	UNH
Quick Ratio	0.60	—	0.78
Current Ratio	0.86	—	0.88
Interest Coverage	4.41	9.07	6.79

Quick Ratio

CVS

ELV

UNH

Profitability

Metric	CVS	ELV	UNH
Return on Assets (Normalized)	3.81%	7.50%	8.76%
Return on Equity (Normalized)	12.82%	20.90%	28.53%
Return on Invested Capital (Normalized)	7.47%	13.90%	16.56%

Return on Assets

CVS

ELV

UNH

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