Diplomat Pharmacy Inc
CVS Health’s Stock Trades at Lower Valuations against Its Peers
CVS Health’s valuations have risen by 13.7% since the start of 2015. Valuations have risen by 6.8% since June 15, when the proposed purchase of Target’s pharmacies and clinics business was announced.
CVS Eyes Specialty Pharmacy Opportunity through Acquisitions
CVS is the largest specialty pharmacy in the United States. Specialty sales came in at $31 billion in 2014 and are expected to rise to $37 billion this year.
CVS Expects Double-Digit Dividend Growth over the Next Four Years
CVS Health is targeting a payout ratio of 35% by 2018. Dividend per share would come in at $2.13 in 2018, according to the company’s guidance CAGR of 18% from 2014–2018.
Key Drivers Affecting CVS’s Profitability in 2015
CVS Health’s (CVS) profitability is falling. Its gross margins have been on the decline, partly due to a shift in the sales mix in its Pharmacy Services segment.
CVS Health’s Financial Performance in 2015
CVS Health posted a strong financial performance in 1Q15. Adjusted EPS in 1Q15 grew 12.2% year-over-year to $1.14. CVS came in ahead of its own guidance by a long margin.
Why the Target Deal Is a Winner for CVS Health
CVS Health is the largest drug retailer in the US in terms of revenue and market cap. The company posted almost $139.4 billion in sales in 2014.