CVS Health corporation or NYSE: CVS is an American health care company that owns a pharmacy chain – CVS Pharmacy, pharmacy benefits manager – Aetna, and also provides healthcare insurance. Headquartered in Woonsocket, Rhode Island, the company was founded in 1963 by three men – Stanley and Sidney Goldstein and Ralph Hogland. This venture started as a health and beauty aid stored but later on added pharmacies to its list. To make expansion possible, the company entered into a partnership with Melville Corporation that manages several retail businesses.
As the health corporation in the 1980s and 90s, CVS separated from Melville Corporation in 1996 and entered New York Stock Exchange as NYSE: CVS at https://www.webull.com/quote/nyse-cvs. Some of the services covered by the company are benefit management services, retail clinics, mail order, retail and specialty pharmacy, disease management programs, and retail clinics.
Sector-wise performance of NYSE: CVS
The company stands at -1.17% in the field of Equity. However, it has seen a growth in the sectors of Health care and Health Care Facilities and SVCS at 0.58 percent and 0.18 percent respectively.
Statistics related to the company’s performance at NYSE
The P/E ratio is 9.64 and the PEGY Ration us 1.0361. The price to book ration us 1.2470 and the price to sales ratio is 0.3211. The one-year return value is 10.99%. The thirty-day average volume is 6,859,975. The EPS is 6.73 and the dividend stands at 3.08%. the last reported dividend is 0.5. Currently, the Nasdaq performance of CVS health corporation is an upward trend of +110.43. The stocks opened at 65.85 and previously closed at 65.67.
How do NYSE: CVS make money?
In 2019, the company brought in a whopping $177.5 billion. This revenue was generated through several sales channels that flow into its revenue stream and the biggest revenue generator is its pharmacy benefits manager (PBM). This branch serves as the middleman between the companies that make drugs and the PBM’s customers. In 2019. PBM filled in 1.6 billion prescriptions and this lead to the generation of one hundred and twenty billion dollars as revenue. Much to the happiness of the investors, PBM is only getting bigger as the days pass by. In the first quarter, the company processed 376.8 million prescriptions and generated 31.2 billion dollars as the revenue.
What is supplementing the growth of PBM?
USA citizens are increasingly becoming dependent on drugs. In 2016, according to a survey, the money spent on prescription drugs rose by a significant 5.8 percent when compared to 2015.
The increasing number of users of prescription drugs also gives great leverage to PBM to negotiate for lower prices with the drugmakers. You can check the stock price at stock buying app.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.