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CVS Health Corp CVS

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Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

CVS Delivers Strong Q1 and Increases 2021 Outlook; Shares Remain Undervalued

Julie Utterback, CFA Senior Equity Analyst

Analyst Note

| Julie Utterback, CFA |

Narrow-moat CVS Health turned in first-quarter results that beat FactSet consensus and raised its 2021 EPS outlook slightly. At first glance, we do not anticipate changing our $92 fair value estimate materially based on this announcement, but CVS shares still appear moderately undervalued, in our opinion.

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Company Profile

Business Description

Following its acquisition of Aetna in late 2018, CVS Health now provides an even more integrated healthcare-services offering for its members. Legacy CVS combined both the largest pharmacy benefit manager, processing over 2 billion adjusted claims annually, and a sizable pharmacy operation, including nearly 10,000 retail pharmacy locations primarily in the U.S. Adding a managed-care organization with over 23 million medical members gives the company a strong position in the insurance industry and should help CVS better control overall healthcare costs for its clients.

Contact
One CVS Drive
Woonsocket, RI, 02895
T +1 401 765-1500
Sector Healthcare
Industry Healthcare Plans
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Classic Growth
Employees 300,000

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