CVS Health Corporation
Find Ratings ReportsCVS HEALTH CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. CVS HEALTH CORP has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 7.66% 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 FY23 | Q4 FY22 |
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Net Sales ($mil) | 93813.0 | 83846.0 |
EBITDA ($mil) | 4700.0 | 4680.0 |
EBIT ($mil) | 3566.0 | 3637.0 |
Net Income ($mil) | 2046.0 | 2334.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 11545.0 | 15867.0 |
Total Assets ($mil) | 249728.0 | 228275.0 |
Total Debt ($mil) | 79385.0 | 70732.0 |
Equity ($mil) | 76461.0 | 71015.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 15.46 | 17.29 |
EBITDA Margin | 5.0 | 5.58 |
Operating Margin | 3.8 | 4.34 |
Sales Turnover | 1.43 | 1.41 |
Return on Assets | 3.34 | 1.88 |
Return on Equity | 10.91 | 6.07 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.86 | 0.94 |
Debt/Capital | 0.51 | 0.5 |
Interest Expense | 690.0 | 552.0 |
Interest Coverage | 5.17 | 6.59 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 1288.0 | 1300.0 |
Div / share | 0.61 | 0.55 |
EPS | 1.58 | 1.77 |
Book value / share | 59.36 | 54.63 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1.0941938E7 | 7468575.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 21.06 for the Ambulatory Health Care Services subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.29 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 3.19. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, CVS HEALTH CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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CVS 11.83 | Peers 21.06 | CVS 7.33 | Peers 54.00 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. CVS is trading at a significant discount to its peers. |
Discount. 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 significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CVS 8.29 | Peers 15.17 | CVS 0.41 | Peers 0.67 | |||||||||||||||||||||
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 significant 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. |
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Price/Book |
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Earnings Growth |
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CVS 1.29 | Peers 3.19 | CVS 99.38 | Peers 33.66 | |||||||||||||||||||||
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. |
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Price/Sales |
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Sales Growth |
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CVS 0.28 | Peers 1.25 | CVS 10.94 | Peers 10.95 | |||||||||||||||||||||
Discount. 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 significant discount to its subsector on this measurement. |
Average. Comparing a company's sales growth to its subsector 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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