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CVS Health Corp CVS

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Stock XNYS Rating as of
$104.15 +1.34 (1.30%)
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CVS Remains in Turnaround Mode, as Medical Insurance Profits Rise on Margin Improvement

Julie Utterback

CVS aims to be the most trusted health company in the United States. It has spent over a decade positioning itself as a managed care leader, with the acquisitions of pharmacy benefit manager Caremark (2007), insurance provider Aetna (2018), and healthcare service provider Oak Street Health (2023) defining its strategic direction. CVS' top-tier retail pharmacy, health insurer, and PBM franchises create the potential to improve health outcomes and even bend the healthcare cost curve for its clients, especially if it can align incentives through its healthcare service operations.

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Price vs Fair Value

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CVS is trading at a LOCK|$>?SGSW premium.
Price
$104.15
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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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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Trading Information

Previous Close Price
$102.81
Day Range
$102.40–105.46
52-Week Range
$58.50–106.15
Bid/Ask
$103.95 / $104.49
Shares Outstanding
1.28B
Market Cap
$132.89B
Volume/Avg
9M / 8M

Key Statistics

Price/Earnings (Normalized)
14.76
Price/Sales
0.33
Dividend Yield (Trailing)
2.55%
Dividend Yield (Forward)
2.55%
Total Yield
2.55%

Company Profile

CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates around 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 operates a top-tier health insurer (acquired through Aetna) through which it serves about 27 million medical members. The acquisition of Oak Street Health added primary care services to the mix, which could have significant synergies with all 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

Valuation

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Metric
CVS
CI
ELV
Price/Earnings (Normalized)
 14.769.2813.61
Price/Book Value
 1.711.802.07
Price/Sales
 0.330.280.47
Price/Cash Flow
 10.05—14.50
Price/Earnings
CVS
CI
ELV

Financial Strength

Metric
CVS
CI
ELV
Quick Ratio
 0.610.66—
Current Ratio
 0.870.82—
Interest Coverage
 2.116.995.39
Quick Ratio
CVS
CI
ELV

Profitability

Metric
CVS
CI
ELV
Return on Assets (Normalized)
 3.54%5.34%5.60%
Return on Equity (Normalized)
 11.87%19.96%15.73%
Return on Invested Capital (Normalized)
 7.41%12.83%10.74%
Return on Assets
CVS
CI
ELV

Healthcare Plans Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
UnitedHealth Group Inc
UNH
LOCK|ng%h^N@LOCK|ZplG$386B
 Elevance Health Inc
ELV
LOCK|<&Df#?LOCK|NdDF%$90B
 The Cigna Group
CI
LOCK|>p#DK?LOCK|d@%x$78B
 Humana Inc
HUM
LOCK|G&!?KT^LOCK|f!c>Z$47B
 Centene Corp
CNC
LOCK|Gz$BkTjLOCK|>CC$33B
 Molina Healthcare Inc
MOH
LOCK|qSv!mBLOCK|!<pc?$12B
 Oscar Health Inc Class A
OSCR
—LOCK|KX?$9B
 Alignment Healthcare Inc
ALHC
—LOCK|vj$4B
 Progyny Inc
PGNY
—LOCK|%B$2B

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