Great video! I currently own this stock in my Roth IRA, plan on continuing to add to my position all day under $70 I believe it’s a steal at these prices…it has never traded at these prices since I’ve been in the stock market, I hope that they continue to increase that dividend for years to come so that one day they can become a dividend aristocrat 👍🏾
I sold out my CVS holding recently, because the new CEO is on a buying spree. Having so much debt from acquisition in 2018, this year again she bought another big company. and she still doing stock buy back, but with borrowed money. The debt is out of control. I don't like their balance sheet, and the CEO's discipline on debt. It failed my qualitative evaluation.
with such cash flows, debt is playing a disciplinary role and is not yet concerning ( only if you were looking for more aggressive buybacks and dividend increases). Regarding the empire building effect, I do agree that it may seem concerning but they have been planning them long time ago, and willing to make the move despite the price tanking ever since which really shows their conviction. The health Hub platform, investing in value based care and integrating vertically seems like necessary plays. ( The CEO bought $1M worth of shares recently)
Their free cash flow is less because they have been aggressively paying down debt from the aquisition. Once this is done free cash flow growth will dramatically increase.
For myself, the future free cash flows are too hard to predict with CVS, and for that reason I will not take a stake in the company - However, it may be a good choice for other investors - Great Video my friend 👍
Yes I started buying this stock 2 weeks ago and wasn’t sure if I was making the right Decision I needed this video to see someone else’s analysis on it
great question, I should've addressed this in the video. Basically, Grahams valuation is a forward looking projection of the earnings growth of the company. You could use current EPS for this, but at times it could make more sense to use forward looking earnings if will provide a more accurate representation of the companies earnings moving forward. Witht the multiples valuation, the goal is to evaluate how the company is currently valued by the market by putting it up against comparables. Most of the time, this will be done with current earnings. You technically could use forward looking earnings as long as you use the forward looking earnings for the comparable companies. But most of the time in this situation, people will use current earnings.
@@Dividendology Thank you! This is great knowledge to have. It makes sense that the multiples valuation model compares apples to apples. And I like that the Graham's Valuation Model is a a forecasting tool using forward EPS. Thanks again for the clarification.
Another fantastic video thank you 😊 I'm curious for your opinion on BHP obviously cyclical but giant dividend and has performed fantastic over the years.
@@Dividendology the year will look rougher for them than it is. An acquisition went through way earlier than expected. Q1 earnings still show 10% revenue growth YoY
Great video! I currently own this stock in my Roth IRA, plan on continuing to add to my position all day under $70 I believe it’s a steal at these prices…it has never traded at these prices since I’ve been in the stock market, I hope that they continue to increase that dividend for years to come so that one day they can become a dividend aristocrat 👍🏾
Great opportunity on the way back to $100.
And it pays a 3.4% div while you wait 😀
I sold out my CVS holding recently, because the new CEO is on a buying spree. Having so much debt from acquisition in 2018, this year again she bought another big company. and she still doing stock buy back, but with borrowed money. The debt is out of control. I don't like their balance sheet, and the CEO's discipline on debt. It failed my qualitative evaluation.
with such cash flows, debt is playing a disciplinary role and is not yet concerning ( only if you were looking for more aggressive buybacks and dividend increases). Regarding the empire building effect, I do agree that it may seem concerning but they have been planning them long time ago, and willing to make the move despite the price tanking ever since which really shows their conviction. The health Hub platform, investing in value based care and integrating vertically seems like necessary plays. ( The CEO bought $1M worth of shares recently)
But the company is reducing debt arent they?
@@MiguelMartinezmtzzz yes, but ramping up is faster.
Their free cash flow is less because they have been aggressively paying down debt from the aquisition. Once this is done free cash flow growth will dramatically increase.
For myself, the future free cash flows are too hard to predict with CVS, and for that reason I will not take a stake in the company - However, it may be a good choice for other investors - Great Video my friend 👍
Yes I started buying this stock 2 weeks ago and wasn’t sure if I was making the right Decision I needed this video to see someone else’s analysis on it
You are. He is hugely underestimating the business. I recommend you to go read the equity research report of JP Morgan “CVS health week”
One I've been waiting to see for a little while, thanks for the analysis!
What is the rationale for using the forward EPS for Graham's Valuation and the current EPS for the Multiples Valuation?
great question, I should've addressed this in the video. Basically, Grahams valuation is a forward looking projection of the earnings growth of the company. You could use current EPS for this, but at times it could make more sense to use forward looking earnings if will provide a more accurate representation of the companies earnings moving forward.
Witht the multiples valuation, the goal is to evaluate how the company is currently valued by the market by putting it up against comparables. Most of the time, this will be done with current earnings. You technically could use forward looking earnings as long as you use the forward looking earnings for the comparable companies. But most of the time in this situation, people will use current earnings.
@@Dividendology Thank you! This is great knowledge to have. It makes sense that the multiples valuation model compares apples to apples. And I like that the Graham's Valuation Model is a a forecasting tool using forward EPS. Thanks again for the clarification.
Thank you for the video. Could you please do an analysis of AVGO? ✌️
good idea!! I'll probably make that soon.
You said CVS is trading at $62 and something cents. The low for the year is 67.05. Good video
He meant $69
cvs walgreens and rite aid all look tempting
Another fantastic video thank you 😊 I'm curious for your opinion on BHP obviously cyclical but giant dividend and has performed fantastic over the years.
maybe I'll make a video on it!
Please look into Truist Financial (TFC) an awesome regional bank play! Thank you!
I bought a bunch at around $31… you’ll do great once the financial sector recovers and it has an awesome dividend!
Can you do a video on CAG?
Do Petrofac LSE. I suspect it's turning round
I would prefer to use 2018-19 numbers. Anything after the pandemic is not sustainable.
cheers
FINALLY 😂😂
you got it!
@@Dividendology the year will look rougher for them than it is. An acquisition went through way earlier than expected. Q1 earnings still show 10% revenue growth YoY