CVS Health logged a -0.0% change during today's afternoon session, and is now trading at a price of $69.05 per share.
CVS Health returned losses of -27.0% last year, with its stock price reaching a high of $104.83 and a low of $64.62. Over the same period, the stock underperformed the S&P 500 index by -39.0%. As of April 2023, the company's 50-day average price was $69.56. CVS Health Corporation provides health services in the United States. Based in Woonsocket, RI, the large-cap Consumer Staples company has 219,000 full time employees. CVS Health has offered a 3.3% dividend yield over the last 12 months.
The Business Runs With Healthy Debt Levels:
|Net Income (MM)||$5,317||$6,622||-$594||$6,634||$7,179||$7,910|
|Net Interest Expense (MM)||-$1,078||-$1,062||-$2,619||-$3,035||-$2,907||-$2,503|
|Earnings Per Share||$4.93||$6.47||-$0.57||$5.08||$5.46||$5.95|
|Diluted Shares (MM)||1,079||1,024||1,044||1,305||1,314||1,329|
|Free Cash Flow (MM)||$12,365||$9,925||$10,070||$15,305||$18,302||$20,785|
|Capital Expenditures (MM)||-$2,224||-$1,918||-$1,205||-$2,457||-$2,437||-$2,520|
|Net Current Assets (MM)||-$26,586||-$26,207||-$92,670||-$107,977||-$104,645||-$97,610|
|Long Term Debt (MM)||$25,615||$22,181||$71,444||$64,699||$59,207||$51,971|
CVS Health has a pattern of improving cash flows and healthy debt levels. Additionally, the company's financial statements display average operating margins with a stable trend and positive EPS growth. However, the firm has slimmer gross margins than its peers. Finally, we note that CVS Health has weak revenue growth and a flat capital expenditure trend.
Trades Below Its Graham Number but Has an Elevated P/E Ratio:
CVS Health has a trailing twelve month P/E ratio of 31.8, compared to an average of 24.36 for the Consumer Staples sector. Based on its EPS guidance of $8.6, the company has a forward P/E ratio of 8.1. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 3.2%. On this basis, the company's PEG ratio is 9.98, which suggests that it is overpriced. In contrast, the market is likely undervaluing CVS Health in terms of its equity because its P/B ratio is 1.22 while the sector average is 4.29. The company's shares are currently trading -20.8% below their Graham number. In conclusion, CVS Health's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
CVS Health Has an Analyst Consensus of Strong Upside Potential:
The 22 analysts following CVS Health have set target prices ranging from $76.0 to $110.0 per share, for an average of $90.16 with a buy rating. As of April 2023, the company is trading -22.8% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
CVS Health has a very low short interest because 1.1% of the company's shares are sold short. Institutions own 79.9% of the company's shares, and the insider ownership rate stands at 0.18%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $8,055,955,104.