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CVS Caremark Corp
CVS : NYSE : Services

$73.74 | %
Today's Range: 73.32 - 74.10
Avg. Daily Volume: 6,001,000
04/17/14 - 4:00 PM ET

Financial Analysis


CVS CAREMARK CORP's gross profit margin for the fourth quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. CVS CAREMARK CORP has weak liquidity. Currently, the Quick Ratio is 0.84 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY13 Q4 FY12
Net Sales ($mil)32830.031394.0
EBITDA ($mil)2675.02759.0
EBIT ($mil)2217.02303.0
Net Income ($mil)1265.01129.0


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)4177.01380.0
Total Assets ($mil)71526.065912.0
Total Debt ($mil)13402.09828.0
Equity ($mil)37938.037704.0


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin20.721.51
EBITDA Margin8.148.78
Operating Margin6.757.34
Sales Turnover1.771.87
Return on Assets6.425.88
Return on Equity12.1210.3
Debt Q4 FY13 Q4 FY12
Current Ratio1.641.44
Debt/Capital0.260.21
Interest Expense138.0162.0
Interest Coverage16.0714.22


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)1180.01231.0
Div / share0.230.16
EPS1.050.9
Book value / share32.1530.63
Institutional Own % n/a n/a
Avg Daily Volume6008433.05333069.0

Valuation


BUY. CVS CAREMARK CORP's P/E ratio indicates a discount compared to an average of 21.37 for the Food & Staples Retailing industry and a value on par with the S&P 500 average of 18.29. To use another comparison, its price-to-book ratio of 2.27 indicates valuation on par with the S&P 500 average of 2.52 and a discount versus the industry average of 3.24. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, CVS CAREMARK CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CVS 19.40 Peers 21.37   CVS 14.88 Peers 12.67

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

CVS is trading at a valuation on par with its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CVS is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CVS 14.52 Peers 18.66   CVS 1.01 Peers 1.52

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

CVS is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

CVS trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CVS 2.27 Peers 3.24   CVS 24.09 Peers 5.38

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CVS is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

CVS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CVS 0.68 Peers 0.59   CVS 2.94 Peers 3.13

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CVS is trading at a premium to its industry on this measurement.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

CVS is keeping pace with its peers on the basis of sales growth.

 

 

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