CVS Health Corporation - March 2023 (LTM): Peer Snapshot

CVS Health Corporation: Update to credit analysis following ratings affirmation - Credit Opinion – 2023/12/20 – US$ 250.00 – ...CVS' credit profile reflects its large scale, leading positions in PBM and retail operations, and the strength of its Aetna brand in health insurance. CVS benefits from broad reach and solid industry fundamentals including growth in Medicare Advantage. Both the retail pharmacy and PBM businesses will benefit from rising use of prescription drugs. Transition toward a new pharmacy reimbursement model will increase transparency and help ease earnings pressure in the retail operation. Strong cash flow supports reinvestment in the business and shareholder payouts without a material increase in leverage. Tempering these strengths, CVS faces execution risk as it rapidly expands in primary care. This strategy includes the recent acquisitions of physician-led centers (Oak Street Health, Inc., i.e. "Oak Street") and integrated virtual and home healthcare assets (Signify Health, Inc., i.e. "Signify"). We anticipate lease-adjusted gross debt/EBITDA of 3.5x-4.0x over the next 12 to 18 months, including...

Moody's affirms CVS Health's Baa2 ratings; stable outlook - Rating Action – 2023/12/19 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

CVS Health Corporation - September 2023 (LTM): Peer Snapshot - Peer Snapshot – 2023/12/04 – US$ 750.00 – Peer Snapshot: CVS Health Corporation - September 2023 (LTM) 4 December 2023 (in US millions) FYE Dec-21 FYE Dec-22 LTM Sep-23 FYE Mar-22 FYE Mar-23 LTM Sep-23 FYE Aug-21 FYE Aug-22 LTM Aug-23 FYE Dec-21 FYE Dec-22 LTM Sep-23 Revenue...

CVS Health Corporation - June 2023 (LTM): Peer Snapshot - Peer Snapshot – 2023/09/04 – US$ 750.00 – ...Baa2 Stable Baa1 Positive Baa3 Negative Baa3 Stable CVS Health Corporation McKesson Corporation Walgreens Boots Alliance, Inc. HCA Inc.*...

CVS Health Corporation: Strategic expansion into primary care is underway - Credit Opinion – 2023/06/21 – US$ 250.00 – ...CVS' credit profile reflects its large scale, leading positions in PBM and retail operations, and the strength of its Aetna brand in health insurance. CVS benefits from broad reach and solid industry fundamentals including growth in Medicare Advantage. Both the retail pharmacy and PBM industries will benefit from demographic trends that support rising use of prescription drugs. Strong cash flow supports deleveraging after acquisitions. Tempering these strengths, CVS faces execution risk as it rapidly expands its primary care business. This strategy includes the recent acquisitions of physician-led centers (Oak Street Health) and integrated virtual and home healthcare assets (Signify Health). Absent other large acquisitions, we anticipate lease-adjusted gross debt/EBITDA of 3.5x ¡ 3.75x over the next 12 to 18 months, including an adjustment for opioid liabilities. CVS faces intense competition, reimbursement rate pressure, and regulatory uncertainty, especially pertaining to drug pricing...

Moody's assigns Baa2 rating to CVS's sr. unsecured notes; stable outlook - Rating Action – 2023/05/30 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

CVS Health Corporation - December 2022 (LTM): Peer Snapshot - Peer Snapshot – 2023/03/01 – US$ 750.00 – ...CVS Health Corporation Walgreens Boots Alliance, Inc. Rite Aid Corporation Baa2 Stable Baa3 Negative Caa2 Stable...

CVS Health Corporation: Acquisition of Oak Street will deepen reach into primary care, but at a rich price - Issuer Comment – 2023/02/09 – US$ 200.00 – ...In the latest move to become an integrated medical services provider, CVS Health Corporation (Baa2 stable) said on February 8 that it is buying Oak Street Health Inc. for $10.6 billion in cash. Oak Street is a value based primary care provider that administers care to older patients enrolled in Medicare and most Medicare Advantage health insurance plans. Value based care is a healthcare delivery model under which providers are paid based on patient health outcomes rather than for each service rendered. The $10.6 billion price tag represents a rich multiple, notwithstanding the deal's potential synergies, because Oak Street currently generates operating losses. The transaction comes at the heels of CVS' $8.2 billion acquisition of Signify (over 50x EBITDA multiple), announced in September 2022. The combination of Oak Street and Signify will expand CVS' footprint into primary and home health care. The potential for both companies to reduce the cost of care paid per patient, will also benefit...

CVS Health Corporation: Update to credit analysis - Credit Opinion – 2022/12/22 – US$ 250.00 – ...CVS Health Corporation's (Baa2 stable) credit profile is supported by its large scale, leading market positions at both its PBM and US retail pharmacy segments and the strength of the Aetna brand name in the US health insurance sector. CVS benefits from its broad industry reach, solid industry fundamentals and moderate financial policies. We estimate that lease- adjusted debt/EBITDA will remain between 3.5x-3.6x over the next 12-18 months, because of earnings growth and potential tuck in acquisitions. While we expect financial leverage to periodically tick up following debt-financed acquisitions, we believe that the company will maintain balanced financial policies. CVS continues to focus on growing its primary care business and expects to acquire physician practices and clinics. This strategy will include physician-led primary care centers with integrated virtual and home healthcare assets. Earnings will benefit from good store traffic and prescription volumes and increasing doctor visits....

CVS Health Corporation - September 2022 (LTM): Peer Snapshot - Peer Snapshot – 2022/11/25 – US$ 750.00 – Peer Snapshot: CVS Health Corporation - September 2022 (LTM) 25 November 2022 (in US millions) FYE Dec-20 FYE Dec-21 LTM Sep-22 FYE Aug-20 FYE Aug-21 LTM Aug-22 FYE Feb-21 FYE Feb-22 LTM Aug-22 Revenue $267,908 $292,111 $315,225 $121,982...