Home Sectors Healthcare Latest Valuation: CVS Health Corporation (NYSE: CVS)

Latest Valuation: CVS Health Corporation (NYSE: CVS)


CVS Health Corporation is in the health care plans industry and is in the healthcare sector. The company CEO is Larry J. Merlo. CVS Health Corp operates in the healthcare sector. Its primary business is that of operating retail pharmacies. The company has three reportable segments namely Pharmacy Services, Retail/LTC, and Corporate.

Previous Intraday Trading Performance:

The CVS stock showed a previous change of -1.13% with an open at 65.49 and a close of 65.01. It reached an intraday high of 65.70 and a low of 64.36.

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The stock has a market cap of $84.1b with 1.3b shares outstanding, of which the float is 1.3b shares. Trading volume reached 6,603,551 shares compared to its average volume of 9,725,119 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, CVS Health Corporation shares returned -1.37% and in the past 30 trading days it returned 0.41%. Over three months, it changed -7.14%. In one year it has changed -19.92% and within that year its 52-week high was 82.15 and its 52-week low was 60.14. CVS stock is 8.10% above its 52 Week Low.

Our calculations show a 200 day moving average of 69.50 and a 50 day moving average of 68.50. Currently CVS stock is trading -6.46% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 6.45 that ended on 31st of December 2017, which according to the previous close, that is a PE of 10.08. Based on 10 analyst estimates, the consensus EPS for the next quarter is 2.07. The TTM EPS is 6.82, which comes to a TTM PE of 9.53. Historically, the PE high was 28.70 and the PE low was 9.53. CVS stock has set a new PE low record!

The following are the last four quarter reported earnings per share:
09-30-2018:  1.73
06-30-2018:  1.69
03-31-2018:  1.48
12-31-2017:  1.92

The dividend per share is currently 2.00, which is a dividend yield of 3.08%. Also, the payout ratio is 29.33%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 125.59, which means it is possibly undervalued and has a margin of safety of 48.23%

Indicators to Watch:

Based on the latest filings, there is 106.80% of institutional ownership. Short-interest is 10,671,652, which is 0.83% of shares outstanding. The short-interest ratio or days-to-cover ratio is 1.02. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.01

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 8.75%, return on assets is 2.79%, profit margin is -0.13%, price-to-sales is 0.61 and price-to-book is 2.30.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 1  :Past Performance Score
 3  :Financial Strength Score
 4  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.