CVS Health Corporation (CVS) – A good dividend stock

CVS Health Corporation (CVS) (Q1FY23)

Introduction

CVS Health Corporation provides health services in the United States. It operates through Health Care Benefits, Pharmacy Services, and Retail/LTC segments.

The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates.

The Pharmacy Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, mail order pharmacy, specialty pharmacy and infusion, clinical, and disease and medical spend management services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, plans offered on public health insurance and private health insurance exchanges, other sponsors of health benefit plans, and individuals. This segment operates retail specialty pharmacy stores; and specialty mail-order, mail-order dispensing, and compounding pharmacies, as well as branches for infusion and enteral nutrition services.

The Retail/LTC segment sells prescription and over-the-counter drugs, consumer health and beauty products, and personal care products; and provides health care services through its MinuteClinic walk-in medical clinics. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings

Highlights

Investors can have a reasonable expectation of consistently increasing dividend payments. The company temporarily halted annual dividend rise to prioritize debt reduction resulting from the acquisition of Aetna.

CVS revenues decreased $7.4bn, or 29%, in Q1FY23 to $18.3bn from $25.7bn in Q1FY22, reflecting an operational decrease of $6.6bn, or 26%, as well as an unfavorable impact of foreign exchange of $730mn, or 3%. The operational decrease was primarily driven by a decline in Comirnaty, partially offset by growth from Paxlovid.

Stock performance

CVS Health’s stock price showed a downward trend in the past 3 months. It declined by 8.94% during the period. The stock price declined by 23.62% in the past 1-year. The stock has a 52-week high of $107.26 and its 52-week low is $66.34.

In the past 3 years, the stock has given 5.01%. CVS has a 50-day moving Avg. and 200-day moving Avg. of $70.75 and $85.87, respectively.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– Key Developments
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 36

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