CVS Health Corporation Harvard Case Solution & Analysis

CVS Health Corporation(NYS: CVS Health Corporation)

Introduction:

CVS Health Corporation is the largest pharmacy health care in the U.S. based in Woonsocket, RI with integrated offering across the spectrum of pharmacy care. It has approximately 200,000 employees in 46 states along with the District of Columbia and Puerto Rico. The main goal of the company is to help millions of people to gain better health and it is the inspiration behind everything CVS Health Corporation does. CVS Health Corporation health is led by a team of executives with huge experience across the health care spectrum.

cvs pharmacy case solution

The revenue of CVS Health Corporation in 2014 was $139.4 Billion, which grew from $126.8 billion in 2013 with the diluted EPS from its continuous operations of $3.96 per share. In addition, the dividend distributed in 2014 was $1.10 per share.

Dividend Policy:

The dividend policy is the set of guidelines, which a company uses to decide how much earnings it will pay to the shareholders. CVS Health Corporation Health Corporation Health Corporation has the policy to distribute the dividends to its shareholders quarterly. CVS Health Corporation has paid dividends to its shareholders for last five years and the dividends have increased each year. Over the last five years, the dividend paid to shareholders has increased from $0.35 in 2010 to $1.10 in 2014, which shows a significant growth in the dividends paid out by the company. The average growth of dividends in last five years was 29.60%. The company’s free cash flow per share was 3.5 in 2010, which shows that CVS Health Corporation has the ability to pay more dividends to its shareholders, however it retains profit so that it can reinvest in the operations for the future growth of the company.

CVS Health Corporation Case Solution

The health industry companies like Walgreens Boots Alliance, Express Scripts Holding Company, Rite Aid Corporation, Amsurg Corp. are the main companies that can be compared to CVS Health Corporation. Out of all these companies,CVS Health Corporation has the highest value of $110 million and has the highest sales of $98.78 million among all. The EPS of CVS Health Corporation is also high among all these companies with $4.14 while Walgreen Boots Alliance has an EPS of $3.98. Only two companies including CVS Health Corporation pay dividend to their shareholders while others do not have dividend policies and they mainly focus on the gain through the increase of share price. WBA has paid the Dividend of $1.35 per share annually in 2014 and has the higher dividend yield than CVS Health Corporation of 1.72 compared to $1.10 dividend per share and dividend yields of 1.35.............................

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