Pharmacy retailer CVS offers everything from COVID-19 vaccines and beauty products to home cleaning products and passport photos. The company has tried to differentiate itself from other drugstores with an emphasis on health and medical care.
Overview of CVS
Here’s a breakdown of other factors that can help investors decide whether to buy this stock.
|What CVS Is Worth||Financials|
|CVS Share Price, 52-Week Range||$68.02 – $111.25|
|2021 Revenue||$292.11 Billion|
|2021 Profit||$7.91 Billion|
| GOBankingRates’ Evaluation of
CVS’s Net Worth
|Headquarters||Woonsocket, Rhode Island|
|CEO Karen S. Lynch’s Salary (2021)||$1.45 Million|
CVS Market Cap: $135.53 Billion
When investors want to know the size of the company, they look at market capitalization, or the total dollar worth of the company’s stock. To find this number, they multiply the number of outstanding shares with the current market price of one share. With roughly 1.320 billion shares outstanding and a current share price of $102.97, CVS’ market cap is $135.53 billion.
CVS Net Worth: $247.55 Billion
Although market cap gives you a sense of what the market values a company at, the number is based on hundreds of factors, big and small, that boil down to market volatility.
The GOBankingRates Evaluation of a company’s net worth, however, considers figures like assets and revenue, using a company’s last three fiscal year income statements and balance sheets to conclude its value.
Based on CVS’s revenue and profits from the last three years, CVS is worth over $247 billion.
CVS Expands Beyond Pharmacies
CVS’s sheer volume of prescription revenue alone makes it the largest pharmacy in the U.S., thanks to its merger with Aetna and its agreement with Anthem Inc. to provide services, including prescription fulfillment, for pharmacy benefits company IngenioRx.
CVS, like other pharmacies, has received a major boost since the pandemic began, first with COVID-19 tests and then with vaccines. It announced in September that it would hire 25,000 new workers to meet flu and COVID-19 vaccine demand. In support of that effort, it hosted a one-day career fair resulting in about 45,000 clinical and retail hires. CVS also increased its minimum wage to $15 as of July.
In 2021, CVS administered over 32 million COVID-19 tests and over 59 million vaccines, according to the company’s earnings release for the fourth quarter of 2021.
The Health Care Benefits operating segment expanded its medical services last year with the launch of Aetna Virtual Primary Care, which augments in-person physician visits at MinuteClinic and HealthHUB locations with virtual appointments. Quarterly revenue in this segment increased 8.4% compared to the same quarter in 2020, and medical membership increased by 151,000 members.
Good To Know
CVS outperformed analysts’ projections in the fourth quarter of 2021, beating earnings per share and revenue forecasts. Total revenue grew 8.7% compared to the same quarter a year ago, to $76.6 billion. Adjusted earnings per share were $1.98, a 0.68% increase compared to 2020.
In its full-year guidance for 2022, CVS confirmed a projected diluted earnings-per-share of $7.04 to $7.24. The company’s failure to revise its forecast upward rather than confirm prior projections resulted in a 5.45% dip in share prices by the end of trading on Feb. 9, the day the earnings were released, CNBC reported.
CVS History and Investors
CVS stands for Consumer Value Stores, the name it started using a year after its 1963 founding by brothers Stanley and Sidney Goldstein and their partner Ralph Hoagland. One of the company’s notable milestones occurred in 2001 when it became the first national pharmacy retailer to offer its customers a loyalty program.
CVS headquarters, located in Rhode Island, oversees more than 9,900 locations in 49 states, the District of Columbia and Puerto Rico, according to the company’s website. The company’s investors include large financial service groups such as The Vanguard Group, FMR LLC, Blackrock Inc. and State Street Corporation.
Karen S. Lynch was introduced as CVS’ new president and CEO in February 2021. According to the 2021 Notice of Annual Meeting of Stockholders and Proxy Statement, Lynch’s base salary is $1.45 million as of February 2021. She received a $2.538 million annual cash incentive and a $7.5 million equity award in 2020.
Sean Dennison contributed to the reporting for this article.
Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.
Data is accurate as of Feb. 16, 2022, and subject to change.