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Is this Large Market Cap Stock target price reasonable for CVS Health Corporation (NYSE:CVS)?

The company in question is, CVS Health Corporation (NYSE:CVS) currently with a stock price of 93.78 (-3.49% today). The market cap for CVS Health Corporation is 100174.86, and is in the sector Healthcare, and Health Care Plans industry. The target price for CVS Health Corporation is 111.46. Currently CVS Health Corporation is trading with a P/E of 21.58, and a forward P/E of 14.26. Average volume for CVS Health Corporation is 4928.45 and so far today it is 9378300.

Performance in the last year for CVS Health Corporation has been -7.33%. For EPS growth, CVS Health Corporation has seen a growth of 16.80%, and is looking to grow in the next year to 12.24%. More long term stats show that EPS growth has been 13.30% over the last five years and could be 14.58% for the next five years. CVS Health Corporation has seen sales growth quarter over quarter at 17.60%, with EPS growth quarter over quarter at -23.50%. The 20-day simple moving average is -2.01%, with the 200-day simple moving average coming to -3.10%.

Since the IPO date for CVS Health Corporation on the 12/17/1984, CVS Health Corporation has seen performance year to date to be -2.83%. With CVS Health Corporation trading at 93.78, the dividend yield is 1.81%, and the EPS is 4.35.

So could CVS Health Corporation, be undervalued? Well as said before P/E is 21.58. The PEG is 1.48, P/S is 0.6 and the P/B is at 2.89. The P/cash is 82.99, with P/free cash flow at 19.35.

CVS Health Corporation ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 0.6. This is with long term debt/equity at 0.74, and total debt/equity at 0.82.

In terms of margins, CVS Health Corporation has a gross margin of 16.60%, an operating margin of 5.40% and a profit margin of 2.90%.Payout ratio for CVS Health Corporation is 35.40%. Return on assets come to 5.20% with return on investment coming to 9.40%.

Insider ownership for CVS Health Corporation, is at 0.20% and institutional ownership comes to 83.80%. Outstanding shares are at 1068.19. While shares float is 1063.55. The float short is currently 1.07%, and short ratio is 2.3.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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