CVS Corp Beneish M Score

CVS
 Stock
  

USD 106.43  0.16  0.15%   

This module uses fundamental data of CVS Corp to approximate the value of its Beneish M Score. CVS Corp M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to CVS Corp Piotroski F Score and CVS Corp Altman Z Score analysis.
  
As of 08/16/2022, Total Debt is likely to drop to about 63.8 B. In addition to that, Debt Current is likely to drop to about 4.7 B. CVS Corp Return on Investment is relatively stable at the moment as compared to the past year. CVS Corp reported last year Return on Investment of 9.95. As of 08/16/2022, Cash Flow Per Share is likely to grow to 14.91, while PPandE Turnover is likely to drop 19.30.
At this time, it appears that CVS Corp is an unlikely manipulator. The earnings manipulation may begin if CVS Corp's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by CVS Corp executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of CVS Corp's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.73
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.96Focus
Asset Quality0.94Focus
Expense Coverage0.98Focus
Gross Margin Strengs0.96Focus
Accruals Factor0.98Focus
Depreciation Resistance0.93Focus
Net Sales Growth0.89Focus
Financial Leverage Condition0.98Focus

CVS Corp Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if CVS Corp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues260.3 B292.1 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense32.3 B37.1 B
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations15.3 B18.3 B
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and AccretionB4.5 B
Fairly Down
Increasing
Slightly volatile
Total Assets198.5 B233 B
Fairly Down
Increasing
Slightly volatile
Investments28.2 B26.1 B
Significantly Up
Increasing
Slightly volatile
Investments Current3.4 B3.1 B
Significantly Up
Increasing
Slightly volatile
Investments Non Current21 B23 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net26 B32 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables20.8 B24.4 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities130.9 B157.6 B
Significantly Down
Increasing
Slightly volatile
Current Assets52.3 B60 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current146.2 B173 B
Fairly Down
Increasing
Slightly volatile
Current Liabilities55 B67.8 B
Significantly Down
Increasing
Slightly volatile
Liabilities Non Current75.8 B89.8 B
Fairly Down
Increasing
Slightly volatile
Total Debt63.8 B76 B
Fairly Down
Increasing
Slightly volatile
Debt Current4.7 B5.9 B
Significantly Down
Increasing
Slightly volatile
Debt Non Current59 B70.1 B
Fairly Down
Increasing
Slightly volatile
Operating Income12.4 B13.2 B
Notably Down
Increasing
Slightly volatile
Gross Margin0.170.178
Sufficiently Down
Decreasing
Slightly volatile

CVS Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between CVS Corp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards CVS Corp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find CVS Corp's degree of accounting gimmicks and manipulations.

About CVS Corp Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

33.68 Billion

CVS Corp Operating Expenses is relatively stable at the moment as compared to the past year. CVS Corp reported last year Operating Expenses of 38.85 Billion

CVS Corp Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as CVS Corp. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues184.79 B194.58 B256.78 B268.71 B292.11 B260.28 B
Total Assets95.13 B196.46 B222.45 B230.72 B233 B198.48 B
Current Assets31.23 B45.24 B50.3 B56.37 B60.01 B52.29 B
Assets Non Current63.9 B151.21 B172.15 B174.35 B172.99 B146.19 B
Total Liabilities57.44 B137.91 B158.28 B161.01 B157.62 B130.85 B
Current Liabilities30.65 B44.01 B53.3 B62.02 B67.81 B55.04 B
Total Debt27 B73.43 B89 B85.04 B76 B63.77 B
Debt Current4.82 B1.99 B5.38 B7.08 B5.85 B4.74 B
Debt Non Current22.18 B71.44 B83.62 B77.96 B70.15 B59.03 B
Operating Income9.54 B4.02 B11.99 B13.91 B13.19 B12.36 B
Investments223 M18.25 B19.69 B23.81 B26.14 B28.21 B
Investments Current111 M2.52 B2.37 B3 B3.12 B3.36 B

About CVS Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze CVS Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of CVS Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of CVS Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
CVS Health Corporation provides health services in the United States. CVS Health Corporation was founded in 1963 and is headquartered in Woonsocket, Rhode Island. CVS Corp operates under Healthcare Plans classification in the United States and is traded on New York Stock Exchange. It employs 216000 people.

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Our tools can tell you how much better you can do entering a position in CVS Corp without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with CVS Corp

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CVS Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CVS Corp will appreciate offsetting losses from the drop in the long position's value.

Moving together with CVS Corp

0.72AAgilent Technologies Earnings Call  TodayPairCorr
The ability to find closely correlated positions to CVS Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CVS Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CVS Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CVS Corp to buy it.
The correlation of CVS Corp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CVS Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CVS Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CVS Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to CVS Corp Piotroski F Score and CVS Corp Altman Z Score analysis. Note that the CVS Corp information on this page should be used as a complementary analysis to other CVS Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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When running CVS Corp price analysis, check to measure CVS Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CVS Corp is operating at the current time. Most of CVS Corp's value examination focuses on studying past and present price action to predict the probability of CVS Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move CVS Corp's price. Additionally, you may evaluate how the addition of CVS Corp to your portfolios can decrease your overall portfolio volatility.
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Is CVS Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CVS Corp. If investors know CVS Corp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CVS Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of CVS Corp is measured differently than its book value, which is the value of CVS Corp that is recorded on the company's balance sheet. Investors also form their own opinion of CVS Corp's value that differs from its market value or its book value, called intrinsic value, which is CVS Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CVS Corp's market value can be influenced by many factors that don't directly affect CVS Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CVS Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine CVS Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CVS Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.