CVS Corp Profitability Analysis

CVS
 Stock
  

USD 97.74  0.61  0.62%   

For CVS Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CVS Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CVS Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CVS Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CVS Corp over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
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.

CVS Corp Return On Asset vs. Number of Shares Shorted Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CVS Corp's current stock value. Our valuation model uses many indicators to compare CVS Corp value to that of its competitors to determine the firm's financial worth.
CVS Corp is number one stock in number of shares shorted category among related companies. It is number one stock in return on asset category among related companies . The ratio of Number of Shares Shorted to Return On Asset for CVS Corp is about  3,447,570 . Comparative valuation analysis is a catch-all model that can be used if you cannot value CVS Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for CVS Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CVS Corp's earnings, one of the primary drivers of an investment's value.

CVS Corp Return On Asset vs. Number of Shares Shorted

Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
CVS Corp 
Shares Shorted 
 = 
Shorted by Public 
by Institutions 
13.48 M
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
CVS Corp 
Return on Asset 
 = 
Net Income 
Total Assets 
X
100 
3.91 %
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

CVS Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CVS Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CVS Corp will eventually generate negative long term returns. The profitability progress is the general direction of CVS Corp's change in net profit over the period of time. It can combine multiple indicators of CVS Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
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.

CVS Corp Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on CVS Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CVS Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CVS Corp's important profitability drivers and their relationship over time.

Use CVS Corp in pair-trading

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.

CVS Corp Pair Trading

CVS Corp Pair Trading Analysis

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

Use Investing Themes to Complement your CVS Corp position

In addition to having CVS Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Market Neutral Theme
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Continue to Trending Equities. You can also try Equity Valuation module to check real value of public entities based on technical and fundamental data.

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To fully project CVS Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CVS Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include CVS Corp's income statement, its balance sheet, and the statement of cash flows.
Potential CVS Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CVS Corp investors may work on each financial statement separately, they are all related. The changes in CVS Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CVS Corp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.