CVS Corp Z Score

CVS
 Stock
  

USD 106.43  0.16  0.15%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Continue to CVS Corp Piotroski F Score and CVS Corp Valuation analysis.
  
As of 08/16/2022, Return on Invested Capital is likely to grow to 0.14, while Capital Expenditure is likely to drop (2.7 B). As of 08/16/2022, Direct Expenses is likely to grow to about 259 B, while Consolidated Income is likely to drop slightly above 7 B.

CVS Corp Z Score Analysis

CVS Corp's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2019 2020 2021 2022 (projected)
Long Term Debt to Equity1.010.850.690.61
Interest Coverage3.954.795.278.15
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current CVS Corp Z Score

    
  3.6  
Most of CVS Corp's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, CVS Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

CVS Corp Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for CVS Corp is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since CVS Corp's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of CVS Corp's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of CVS Corp's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

In accordance with the company's disclosures, CVS Corp has a Z Score of 3.6. This is 46.67% lower than that of the Healthcare sector and significantly higher than that of the Healthcare Plans industry. The z score for all United States stocks is 58.72% higher than that of the company.

CVS Corp Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses CVS Corp's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of CVS Corp could also be used in its relative valuation, which is a method of valuing CVS Corp by comparing valuation metrics of similar companies.
CVS Corp is currently under evaluation in z score category among related companies.

CVS Corp Current Valuation Drivers

We derive many important indicators used in calculating different scores of CVS Corp from analyzing CVS Corp's financial statements. These drivers represent accounts that assess CVS Corp's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of CVS Corp's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee26.92 K(2.01 K)22.88 K23.86 K26.37 K21.69 K
Revenue Per Employee751.08 K659.59 K885.43 K893.24 K973.7 K790.25 K
Average Assets93.29 B149.1 B220.31 B232.44 B232.16 B194.59 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA11.8 B6.75 B16.41 B17.1 B17.45 B16.02 B
Earnings Before Interest Taxes and Depreciation Amortization USD11.8 B6.75 B16.41 B17.1 B17.45 B16.02 B
Earnings before Tax8.26 B1.41 B9 B9.75 B10.43 B9.88 B
Average Equity35.13 B42.28 B61.86 B67.84 B73.37 B65.22 B
Enterprise Value96.75 B88.05 B181.13 B167.42 B205.01 B177.75 B
Free Cash Flow6.09 B6.83 B10.39 B13.43 B15.74 B12.77 B
Invested Capital37.71 B106.61 B139.59 B135.19 B123.64 B103.59 B
Invested Capital Average37.92 B83.65 B141.19 B137.52 B131.19 B106.54 B
Market Capitalization73.44 B66.75 B96.65 B89.4 B136.18 B122.4 B
Tangible Asset Value43.05 B81.25 B109.58 B120.02 B124.85 B102.13 B
Working Capital581 M1.23 B(3 B)(5.65 B)(7.8 B)(8 B)

CVS Corp Fundamentals

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.

Be your own money manager

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

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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 Valuation 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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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.