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Fundamental analysis: CVS Health Corporation (CVS)

Awarener score: 7.7

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.0

• Business has been growing at a good pace. It's been weak when measured against peer companies.
• CVS Health Corporation business trend stability is good. The higher the stability, the lower the risk. It looks mediocre against rivals.

Margins score: 5.2

• CVS profit margins -on goods and services sold- are usually meagre. They stand slightly worse than rival companies.
• Business profit on sales tends to be sufficient. It's more than average in relation to competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain close to average when compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still slightly worse than similar companies.
• Profits -before income taxes- are usually sufficient considering total sales, and remain almost average when measured against rivals.
• Total net profit tends to be hardly sufficient when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 6.0

• CVS Health Corporation profit -on goods and services sold- has been growing at a good pace. It's been close to average when compared to competitors.
• In recent years, earnings -on operations- have been growing at a very good step, which has been somewhat better than comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares encouraging in relation to peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be excellent in relation to similar stocks.
• In past years, profits -before income taxes- grew at an extremely fast speed. It was better than most rivals.
• In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
• The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 3.0

• CVS had to pay a lot of income taxes in relation to profits made in the past years. It's been worse than most peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 6.8

• CVS Health Corporation usually gets good returns on the resources it controls. It proves below average when measured against peer firms.
• The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain lacking compared to similar companies.
• There's usually some profitability -in relation to owned resources-. It ranks below average when measured against competitors.
• In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's almost average when measured against comparable enterprises.

Usage of Funds score: 5.4

• CVS usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands almost average when measured against rival firms.
• The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is substantially worse when measured against industry peers.
• In the past twelve months it paid good dividends, considering the current stock price. It came slightly better than competitors.
• In recent years, has slightly cut back dividend payments. The company has behaved a disappointment compared to similar firms.
• Dividend payments usually represent a modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks mediocre against comparable companies.
• The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains lacking compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
• The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks almost average when measured against competitors.

Balance Sheet score: 5.1

• CVS Health Corporation intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
• The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be in a very weak position compared to similar firms.
• A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains bottom tier against rival firms.
• Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks last-in-rank when measured against rivals.
• For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's lacking compared to peer firms.
• For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is worse than most similar enterprises.
• Usually, sales are on a month credit. It still ranks substantially worse when measured against peers.
• Normally has approximately somewhat less than one month of sales worth in inventory. It comes up as a disappointment compared to competitors.
• On average, it takes less than three months from the purchase to charging customers. It happens to be bottom tier against peers.
• On average pays suppliers before a month from the purchase. It ranks similar to industry peers.
• The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's a disappointment compared to similar companies.
• Net interest expenses consume a portion of usual business earnings, but are bearable. It stands mediocre against rival firms.
• Business earnings have usually been low when measured against loans taken. Even cutting back reinvesting in the business, it could take more than seven years to repay the obligations with current profitability. It ranks substantially worse when measured against comparable enterprises.
• Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks a disappointment compared to similar firms.
• Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat worse than peer companies.

Valuation score: 5.8

• CVS Health Corporation looks heavily expensive in relation to profits and financial position. It happens to be substantially worse when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
• In the past twelve months, the company generated some good free funds in relation to the stock price, which stands slightly worse than similar companies.
• The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still encouraging in relation to industry firms.
• In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
• The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks bottom tier against similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks substantially worse when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks a slight improvement compared to rival firms.
• The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains well ranked against peer firms.
• In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be below average when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 5.5

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Awarener score: 7.7

Conclusion

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