CVS Health Corp

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CVS : NYSE : Health Care
$76.64 | %
Today's Range: 75.935 - 76.65
Avg. Daily Volume: 6460600.0
05/26/17 - 4:03 PM ET

Financial Analysis


CVS HEALTH CORP's gross profit margin for the first quarter of its fiscal year 2017 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 0.53 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 6.07% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)44514.043215.0
EBITDA ($mil)2626.02857.0
EBIT ($mil)2007.02240.0
Net Income ($mil)952.01146.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)2302.01864.0
Total Assets ($mil)92670.092634.0
Total Debt ($mil)27433.027469.0
Equity ($mil)33837.036025.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin16.1717.04
EBITDA Margin5.896.61
Operating Margin4.515.18
Sales Turnover1.931.73
Return on Assets5.525.57
Return on Equity15.1614.3
Debt Q1 FY17 Q1 FY16
Current Ratio1.081.2
Debt/Capital0.450.43
Interest Expense258.0288.0
Interest Coverage7.787.78


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)1027.01081.0
Div / share0.50.43
EPS0.921.04
Book value / share32.9533.33
Institutional Own % n/a n/a
Avg Daily Volume6378822.07543205.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.73 for the Food & Staples Retailing industry and a discount compared to the S&P 500 average of 25.54. To use another comparison, its price-to-book ratio of 2.31 indicates a discount versus the S&P 500 average of 3.06 and a significant discount versus the industry average of 3.90. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry 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 within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CVS 15.82 Peers 23.73   CVS 7.10 Peers 9.78

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CVS 11.90 Peers 19.21   CVS 0.81 Peers 2.39

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CVS 2.31 Peers 3.90   CVS 4.34 Peers 6.29

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.

 

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

However, CVS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CVS 0.44 Peers 0.55   CVS 11.64 Peers 0.14

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 discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

CVS has a sales growth rate that significantly exceeds its peers.

 

 

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