1. Name the Company. Tell me about the history of theFortune 500 corporation that will be the focus of your blog.
CVS Health Corp. is the largest U.S. pharmacy company and one of the nation’s largest health services providers. Its four business segments — Pharmacy Services, Retail/LTC, Health Care Benefits and Corporate/Other — encompass more than 9,900 retail drugstores (CVS Pharmacy), 1,100 walk-in medical clinics (MinuteClinic), a pharmacy benefits manager (CVS Caremark) with 105 million PBM plan members, specialty pharmacy services, a long-term care pharmacy business (Omnicare) serving more than 1 million patients annually and a health insurance unit (Aetna) serving 34 million people via health coverage products and related services, including Medicare Advantage and Medicare Part D prescription drug plans.
CVS Health got its start in retailing. Founded in Lowell, Mass., in 1963 as Consumer Value Stores, a health and beauty products retailer, CVS branched into pharmacy in 1967 and then was sold to Melville Corp. in 1969, where as CVS/pharmacy it grew into one of the biggest U.S. drugstore chains. CVS was spun off from Melville in 1996 to form CVS Corp. The company delved deeper into health care in 2006 with the acquisition of retail health clinic chain MinuteClinic and in 2007 by merging with PBM Caremark Rx in a $26.5 billion deal to form CVS Caremark. The company acquired Longs Drugs (retail drug chain) in 2008, Coram (specialty infusion services) in 2014, Omnicare (long-term care pharmacy services) in 2015 and Target Corp.’s pharmacy business in 2015. CVS changed its name to CVS Health in 2014 and completed its transformation into a healthcare-focused company in 2018 with its $70 billion acquisition of health insurer Aetna
2. What business/industry are they in?
a. What is their revenue? Support with data.
b. Is the corporation publicly traded or privately held? Provide support.
CVS Health's revenue topped $300 billion in 2022, though profits for the full year did take a hit compared to 2021, according to the company's earnings report released Wednesday. CVS reported $322.5 billion in revenue for the full year, up 10.4% from $292.1 billion in 2021. Profit declined from $7.9 billion in 2021 to $4.1 billion last year, according to the report. In the fourth quarter, the healthcare giant reported $83.8 billion in revenue as well as $2.3 billion in profit, both of which surpassed Wall Street's expectations, according to analysts at Zack's Investment Research. By comparison, CVS brought in $76.6 billion in revenue and $2.3 billion in profit in the fourth quarter of 2021."2022 was a year of progress for CVS Health," said CEO Karen Lynch on the company's earnings call.
CVS Health Company is publicly held. Cvs Health stock last closed at $77.54, down 0.27% from the previous day, and has decreased 24.03% in one year. It has underperformed other stocks in the Healthcare Plans industry by 0.21 percentage points. Cvs Health stock is currently +7.54% from its 52-week low of $72.11, and -28.02% from its 52-week high of $107.73.
As of Apr 5, 2023, there are 1.28B shares of CVS outstanding. The market capitalization of CVS is $99.57B. In the past 24 hours, 8.78M CVS shares were traded.
3. What is their mission statement? Look on their website.
The Mission Statement of CVS Health is:
Guided by our purpose, CVS Health® is building an entire world of health care around each and every person we serve, no matter where they are on their journey.
We listen, show empathy and deliver innovative solutions that serve people’s unique needs and earn their loyalty. Because how we deliver our services is just as important as what we deliver.
Looking ahead, we’ve put in place strategies that will help us give more people a higher level of care.
4. What products and/or services do they offer?
CVS sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards, and convenience foods through their CVS Pharmacy and Longs Drugs retail stores and online through CVS.com.
5. Who is their targeted audience? Write a detailed description.
Numerator found that CVS's typical shopper is a white, urban Gen Xer who has a college education and an annual income of more than $80,000. The brand is also very popular among Black and Latino shoppers with similar education and income. The typical customer visits CVS every other week on average —
about 22 trips per year — and picks up 4 products for a total cost of $20.27 per trip, Numerator found. Prescription medication constitutes about half of CVS's revenues, and the drugstore offers a variety of over-the-counter medical supplies, personal care items, food and beverages. This retail segment accounts for about a third of the company's revenues. In addition to OTC pain medication and cough remedies, the typical retail shopper often prefers to buy candies, chocolates, and bottled water. Their favorite sweets brands at CVS are M&M's and Reese's, and they also buy a lot of Hallmark cards. Roughly 70% of CVS customers visited the store in both 2020 and 2021, a loyalty percentage that is slightly below the other major brands included in the survey. Even so, the company added slightly more new shoppers than it lost last year, suggesting that the brand's customer base is expanding. Just 1.6% of a CVS shopper's total dollars are spent at CVS, compared with 6.8% of their spending on Amazon. At other retailers, the CVS shopper buys more fresh garlic, hand sanitizer, bar soap, and non-dairy milk alternatives than the national average shopper. They're also big fans of fast-food chicken nuggets.
6. Other than the home country, in which other countries does the corporation operate?
CVS health. Supermarket News. (2023, April 7). Retrieved April 9, 2023, from https://www.supermarketnews.com/companies/cvs-health
How much does it cost to buy one CVS health share? WallStreetZen. (2023, April 7). Retrieved April 9, 2023, from https://www.wallstreetzen.com/how-to-buy-cvs-health-stock
International, B. I. (n.d.). Meet the typical CVS shopper: A white gen X college-educated city dweller earning a high income: Business insider méxico: Noticias Pensadas para Ti. Business Insider México | Noticias pensadas para ti. Retrieved April 9, 2023, from https://businessinsider.mx/typical-cvs-shopper-demographic-urban-genx-earning-high-income-2021-9/?r=US&IR=T
Minemyer, P. (2023, February 8). CVS reports double-digit revenue growth in 2022, $4.1B in profit. Fierce Healthcare. Retrieved April 9, 2023, from https://www.fiercehealthcare.com/payers/cvs-reports-double-digit-revenue-growth-2022-41b-profit
Our health services: CVS health. Our Health Services | CVS Health. (n.d.). Retrieved April 9, 2023, from https://www.cvshealth.com/services.html
Our purpose: CVS health. Our Purpose | CVS Health. (n.d.). Retrieved April 9, 2023, from https://www.cvshealth.com/about/our-people/our-purpose.html
Plc, G. D. (n.d.). CVS Health Corp Company Profile - Overview. GlobalData. Retrieved April 9, 2023, from https://www.globaldata.com/company-profile/cvs-health-corp/
Plc, G. D. (n.d.). Number of CVS health stores globally (FY2016 – FY2021). GlobalData. Retrieved April 9, 2023, from https://www.globaldata.com/data-insights/retail-amp-wholesale/number-of-cvs-health-stores-globally/
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