Practice Mode
CVS Health · December 2018
CVSHealth care2-year horizonMedium
Imagine you already own shares of this company.
Everything on this page is limited to information available on December 3, 2018.
The situation
- Date
- December 3, 2018
- You own
- Shares of CVS Health
- Period
- 2 years, until December 2020
Decide what to do with your shares.
The company at the time
CVS Health runs the largest pharmacy chain in the United States, with nearly 10,000 stores, and a large business that manages prescription drug benefits for employers and health plans. Last week it completed its purchase of Aetna, one of the largest U.S. health insurers, for about $70 billion, paid mostly with borrowed money and new shares. The idea is to combine insurance, pharmacies and clinics in one company. The cash shown below, as of September, was largely money borrowed for the deal, and it has since been paid out; the company has kept its dividend unchanged to focus on paying down debt. Earlier this year CVS wrote down the value of its business supplying nursing homes, which lowered recent profit and makes the P/E look higher than usual. Investors have also worried that Amazon, which bought the online pharmacy PillPack in June, could become a competitor.
Information available at the time
The same numbers as on company pages, as they had been reported by December 3, 2018. Sector medians aren't shown because StockLab doesn't have them as they stood back then.
Revenue, growth, profit and cash flow are for fiscal year 2017 (ended December 2017), the latest full year in an annual report filed by then; cash and debt come from the latest report (its date is on the card). Results announced after that aren't in these cards yet, even if the story above mentions them, so their numbers can differ.
Click any metric to see what it means.Tap any metric to see what it means.
$79.52
Close on Dec 3, 2018
$81.0B
5-year trends
Annual figures, fiscal years 2013-2017.
Stock price
Useful context, but not the main focus.
Drag across the chart to compare two days.Touch the chart with two fingers to compare two days.
Future prices are hidden until you decide.
What would you do?
No virtual money and no score. After you choose, you'll see what happened and a review of the reasoning.