Cvs Health Stock Fair Value Calculation – CVS Health Stock Drops Despite Outperforming Market
January 5, 2024
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Friday saw CVS ($NYSE:CVS) Health Corp. stock drop, yet it still outperformed the market. The company is a major player in the healthcare industry and its stock has seen significant growth over the past few years. Despite the stock’s recent drop, CVS Health still proved to outperform the overall market.
Despite the drop, analysts still maintain a positive stance for the company’s future prospects. Many predict that CVS Health will continue to benefit from its strong relationships with insurers and drug makers, as well as its focus on expanding its retail presence to meet its customers’ needs.
Stock Price
On Tuesday, CVS HEALTH stock opened at $78.9 and closed at $80.8, up by 2.4% from the prior closing price of 79.0. This was due to investor concern over the company’s drug pricing strategies, which have come under increasing scrutiny from federal and state regulators. Moreover, some analysts have raised doubts about the future prospects of CVS Health, citing a possible slowdown in its pharmacy business and retail operations. Despite these issues, CVS Health remains a solid, diversified healthcare provider, and analysts remain optimistic about its long-term prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cvs Health. More…
| Total Revenues | Net Income | Net Margin |
| 347.81k | 8.47k | 2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cvs Health. More…
| Operations | Investing | Financing |
| 14.11k | -19.77k | 1.47k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cvs Health. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 251.31k | 176.8k | 57.76 |
Key Ratios Snapshot
Some of the financial key ratios for Cvs Health are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.3% | 0.8% | 4.0% |
| FCF Margin | ROE | ROA |
| 3.2% | 11.8% | 3.5% |
Analysis – Cvs Health Stock Fair Value Calculation
At GoodWhale, we analyzed CVS HEALTH‘s fundamentals to provide you with a comprehensive view of the company. Our proprietary Valuation Line shows that the intrinsic value of CVS HEALTH share is around $97.7. This suggests that the stock is currently trading at a fair price of $80.8, which is 17.3% undervalued. More…
Peers
The competition between CVS Health Corp and its competitors is fierce. Each company is striving to be the top provider of healthcare services and products. CVS Health Corp is the largest provider of pharmacy services in the United States. Marpai Inc is a close second. Molina Healthcare Inc and Humana Inc are also major competitors in the healthcare industry.
– Marpai Inc ($NASDAQ:MRAI)
Marpai Inc is a publicly traded company with a market capitalization of 20.89 million as of 2022. The company has a return on equity of -64.66%. Marpai Inc is engaged in the business of developing and marketing products and services for the energy industry. The company’s products and services include oil and gas exploration, production, and development; oilfield services; and petrochemical refining.
– Molina Healthcare Inc ($NYSE:MOH)
Molina Healthcare Inc is a health care company that provides Medicaid-related solutions for low-income families and individuals. As of 2022, the company had a market capitalization of 20.52 billion dollars and a return on equity of 24.89%. The company’s main business is providing managed care services under the Medicaid and Medicare programs. In addition to this, the company also provides other health services such as behavioral health, long-term care, and pharmacy services.
– Humana Inc ($NYSE:HUM)
Humana Inc is a healthcare company that offers a wide range of health and wellness products and services. The company has a market cap of 63.3B as of 2022 and a return on equity of 17.4%. Humana’s products and services include medical and prescription drug coverage, dental and vision coverage, and wellness and fitness programs. The company also offers a variety of health and wellness products and services for individuals, families, and businesses.
Summary
CVS Health Corp.’s stock prices fell on Friday, though it still outperformed the broader market. The decline was likely due to factors such as a strong dollar, tight labor market, and rising interest rates. Investors should watch the company closely as any changes in those three factors could affect the stock price significantly. An analysis of its balance sheet shows that its debt-to-equity ratio is low, indicating that its debt burden is manageable.
Analysts generally have a “buy” or “hold” rating for the stock, suggesting a positive outlook for the company in the future. Investors should research CVS Health more thoroughly before making any decisions on whether or not to invest in the stock.
