CVS Health Operating Margin vs. Gross Profit
| CVS Stock | MXN 1,225 6.99 0.57% |
For CVS Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CVS Health to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CVS Health utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CVS Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CVS Health over time as well as its relative position and ranking within its peers.
CVS |
CVS Health Gross Profit vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining CVS Health's current stock value. Our valuation model uses many indicators to compare CVS Health value to that of its competitors to determine the firm's financial worth. CVS Health is rated third in operating margin category among its peers. It is number one stock in gross profit category among its peers fabricating about 1,115,991,649,269 of Gross Profit per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value CVS Health by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for CVS Health's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.CVS Gross Profit vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
CVS Health |
| = | 0.05 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
CVS Health |
| = | 53.46 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
CVS Gross Profit Comparison
CVS Health is currently under evaluation in gross profit category among its peers.
CVS Health Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in CVS Health, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CVS Health will eventually generate negative long term returns. The profitability progress is the general direction of CVS Health's change in net profit over the period of time. It can combine multiple indicators of CVS Health, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
CVS Health Corporation provides health services and plans in the United States. CVS Health Corporation was founded in 1963 and is headquartered in Woonsocket, Rhode Island. CVS HEALTH operates under Health Care Plans classification in Mexico and is traded on Mexico Stock Exchange. It employs 295000 people.
CVS Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on CVS Health. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CVS Health position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CVS Health's important profitability drivers and their relationship over time.
Use CVS Health in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CVS Health position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CVS Health will appreciate offsetting losses from the drop in the long position's value.CVS Health Pair Trading
CVS Health Pair Trading Analysis
The ability to find closely correlated positions to CVS Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CVS Health when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CVS Health - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CVS Health to buy it.
The correlation of CVS Health is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CVS Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CVS Health moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CVS Health can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your CVS Health position
In addition to having CVS Health in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Large & Mid Caps ETFs Thematic Idea Now
Large & Mid Caps ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Large & Mid Caps ETFs theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Large & Mid Caps ETFs Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for CVS Stock Analysis
When running CVS Health's price analysis, check to measure CVS Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CVS Health is operating at the current time. Most of CVS Health's value examination focuses on studying past and present price action to predict the probability of CVS Health's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CVS Health's price. Additionally, you may evaluate how the addition of CVS Health to your portfolios can decrease your overall portfolio volatility.