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analyst_report__luanli_cvs_caremark1.docx
CVS CaremarkCVS
Executive Summary
C
VS Caremark submitted its Annual report for the year ended December 31, 2012on February 15, 2013. For this analysis, we have taken this report from the company’s website. Hence all information and analysis in this report is based on the Annual report of the company for the year 2012, released on February 15, 2013.
CVS is the largest pharmacy health care provider in US. The company is reinventing pharmacy to offer innovative solutions to help the general public to move towards better health. Their continuous effort towards lower care costs has taken the company to operate more than 7,400 CVS/pharmacy stores, serving more than 60 million members. Hence CVS is nation’s largest retail medical clinic system, having more than 600 Minute Clinic locations.
The Financial Highlights of the company are as under:
2012 2011 % Increase
Net revenues $ 123,133 $ 107,100 15.0%
Operating profit $ 7,228 $ 6,330 14.2%
Net income $ 3,877 $ 3,461 12.0%
Diluted EPS $ 3.03 $ 2.59 17.1%
Stock price $ 48.35 $ 40.78 18.6%
Market capital. $ 59,527 $ 52,937 12.4%
Larry J. Merlo, President and Chief Executive Officer, has focussed on future growth of the company. The company believe in their business model is well aligned with longer term trends in the industry and uniquely positioned. The company’s growth plan is:
• First, we will create greater health care value byincreasing the convenience and quality of care; weare expanding and differentiating our services for better health at lower costs
• Second, we will serve new and existing customers innew ways; our teams from across the enterprise arefocused on identifying and targeting opportunities tobetter serve the fastest-growing customer segments.
• And third, we will optimize our enterprise assets by delivering innovative solutions that leverage ourunmatched breadth of capabilities
Company Profile
The company profile is as under;
*Ticker symbol CVS – NYSE
*Mission Statement as it is printed in the Annual Report
Helping people on their
path to better health
*Corporate headquarters location
One CVS Drive, Woonsocket, Rhode Island
Delaware
*Date of Incorporation
CVS Caremark Corporation was founded in 1892 and is based in Woonsocket, Rhode Island
*Public Auditor
Ernst & Young LLP - Boston,
Massachusetts
*Name of CEO
Larry J. Merlo
- President and Chief Executive Officer
*Name of CFO
David M. Denton
Executive Vice President and
Chief Financial Officer
*Stock classifications
The company has issued common stock and preferred stock. Both are appearing in the Balance sheet.
*Exchange
NYSE
*Dividends
2012 2011 2010
Common stock dividends (829) (674) (479)
Industry Profile
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CVS Sector / Industry Membership |
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Recommendation
The company is really working strong and well managed. The net income of the company is showing an increasing trend. The net income of the company has been:
Net income of CVS Caremark
For 2010 $ 3,427
For 2011 $ 3,461 Increased by 1%
For 2012 $ 3,877 Increased by 12%
Dividends per common stock share
The cash dividend per share has increased every year. It creates confidence among the stockholders. The cash dividends distributed as follows:
Cash dividends per common share
For 2008 $ 0.258
For 2009 $ 0.305
For 2010 $ 0.350
For 2011 $ 0.500
For 2012 $ 0.650
Total Assets
Total assets of the company has shown increasing trend and is increasing every year. Increase in total assets indicates the growth of the company. Increase in total assets are as follows:
For 2008 $ 60,960
For 2009 $ 61,641
For 2010 $ 62,169
For 2011 $ 64,543
For 2012 $ 65,912
Share price
The share price at New York Stock Exchange under the symbol “CVS” has shown a very high increase. In 2011 the average share piece was $41.35, which has gone up to $49.80 per share. It indicates the market position and investor’s confidence towards company’s shares.
In view of above the CVS Caremark is a good company for stockholders, investors and to a great extent to general public of USA.
Analyst Report_luanli_CVS Caremark1
