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 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.
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.
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.