CVSCVS
US • —
$103.45
P/E
45.75
PEG
—
FCF Yield
—
Rev Growth YoY
+7.6% YoY
Gross Margin
13.9%
Health Score
5/10
D/E Ratio
0.86
Confidence
LOW
Business Snapshot
The company operates primarily in the healthcare sector, offering pharmacy services and health insurance through its vertically integrated model. CVS competes as a dominant player in the U.S. pharmacy and managed care landscape, leveraging its network of retail pharmacies and the Aetna health insurance business. The company has a large-cap scale, though specific revenue and market cap figures are not available in this data set. A defining characteristic of the business is its integration across insurance, pharmacy benefit management, and retail pharmacy.
Financial Health
Gross margin is 13.9%, and net margin is 0.7%, both of which are thin and indicate a low-margin business model. The balance sheet is manageable with a debt-to-equity ratio of 0.86x, but the current ratio of 0.84x points to a tight liquidity position, as current liabilities exceed current assets...
Risk Assessment
- VALUATION — P/E of 45.75x is significantly above the sector average of 22x, implying a high premium for a company with declining earnings.
- EARNINGS QUALITY — Earnings fell -46% year-over-year despite a 7.6% revenue increase, indicating a severe disconnect between top-line growth and bottom-line results.
- DEBT / LIQUIDITY — Current ratio of 0.84x is below 1.0x, signaling potential short-term liquidity strain.
- INSIDER ACTIVITY — Insiders have sold shares 6 times versus 0 buys over the last 90 days, a bearish signal from those with the most intimate knowledge of the business.
- TECHNICALS — RSI, MACD, and moving average data are all unavailable for this period; momentum cannot be independently confirmed....
Gross margin is 13.9%, and net margin is 0.7%, both of which are thin and indicate a low-margin business model. The balance sheet is manageable with a debt-to-equity ratio of 0.86x, but the current ratio of 0.84x points to a tight liquidity position, as current liabilities exceed current assets. Free cash flow is unavailable in this data, preventing an assessment of cash generation; however, the low net margin suggests limited capacity for cash retention. Return on equity is a modest 3.9%, reflecting weak profitability relative to shareholder equity. Overall, the company's financial health is stretched, with low margins and tight liquidity potentially constraining its ability to invest in growth or raise dividends.
- VALUATION — P/E of 45.75x is significantly above the sector average of 22x, implying a high premium for a company with declining earnings. - EARNINGS QUALITY — Earnings fell -46% year-over-year despite a 7.6% revenue increase, indicating a severe disconnect between top-line growth and bottom-line results. - DEBT / LIQUIDITY — Current ratio of 0.84x is below 1.0x, signaling potential short-term liquidity strain. - INSIDER ACTIVITY — Insiders have sold shares 6 times versus 0 buys over the last 90 days, a bearish signal from those with the most intimate knowledge of the business. - TECHNICALS — RSI, MACD, and moving average data are all unavailable for this period; momentum cannot be independently confirmed.
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