Pioneer Investments (Trades, Portfolio) was founded by Philip L. Carret in 1928. Carret started his own investment portfolio with $10,000. Over the course of the next 55 years, his initial investment grew to $8 million. Warren Buffett (Trades, Portfolio) once said that Carret had "the best long term investment record of anyone I know."
The first CVS store was opened in 1963, by Stanley and Sidney Goldstein. Since then the company has been providing health care services to clients across the U.S. for the past 53 years. The company operates in three segments: Pharmacy services, Retail Pharmacy and corporate. According to GuruFocus, CVS Health has a 9/10 financial strength rating with a 8/10 profitability and growth rating.
CVS Health has a market cap of $112.51 billion, a P/E ratio of 22.70, an enterprise value of $138.13 billion and a P/B ratio of 3.19.
Mario Gabelli (Trades, Portfolio) wrote the following about CVS in his shareholder letter.
"CVS Health Corp. (2.4%) (CVS – $97.77 – NYSE)(NYSE:CVS) is the leading pharmacy and pharmacy benefits manager in the country, with over $150 billion in annual revenue. The company’s recent acquisitions of institutional pharmacy Omnicare and the pharmacies inside Target stores should add $0.15 to earnings in 2016 and further CVS’s dominance across the pharmacy channel. Same store sales should improve in 2016 now that the company has annualized its decision to stop selling tobacco, and that decision has helped them win over $11 billion in net new business for its pharmacy benefits management (PBM) division."
Below is a Peter Lynch Chart for CVS Health Corp.
Pioneer Investments (Trades, Portfolio) is an investment firm that was established by one of the greatest investors of all time. The following reasons may have had an influence on the company to increase their stake in CVS Health:
- CVS Health is well known and established with 53 years of experience in the industry.
- The company generates over $150 billion in revenue annually, with an annual average increase of 11.60% in revenue growth over the previous 10 years.
- The company has been consistently improving its EBITDA over the previous 10 years at 12.40% annually and 17.60% over the previous 12 months.
- The company revenue per share has increased at an average rate of 12% over the previous 10 years.
- The dividend yield is close to a 10-year high at 1.48%, ranking above 53% of the companies in the industry.
Cheers to your investment success.
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