任意の製品分析
許可いただいた場合、プライバシーに配慮した限定的な分析を使用し、どのリサーチ経路が有効かを把握します。広告トラッカーやセッション録画は使用しません。この選択は設定で変更できます。詳しくは プライバシーポリシー.
Acceleration of Medicare Advantage margin recovery combined with pharmacy services scale expansion.
Sustained elevation of medical utilization rates pushing Health Care Benefits medical benefit ratio (MBR) above 90.0%.
CVS Health Corporation presents a compelling risk-adjusted Buy opportunity at $93.45, offering a 14.81% implied return to our synthesized intrinsic fair value of $107.29 as multi-year Medicare Advantage repricing and pharmacy services operating scale restore normalized enterprise earnings power.3
CVS Health trades at $93.45, representing a 12.90% discount and a 14.81% implied return to our synthesized intrinsic fair value of $107.29. The company's NTM forward P/E multiple sits at 10.67x, pricing in severe policy and utilization overhangs and trading at an unwarranted discount to managed care peers Elevance Health (14.59x) and UnitedHealth Group (17.92x). Our fair value of $107.29 aligns with the present-value equivalent ($106.69) of the analyst consensus 12-month target of $115.48 discounted at our 8.24% cost of equity.
Operational recovery is underway, led by the Health Care Benefits segment, where medical benefit ratio compression and operating income expansion reflect disciplined underwriting execution. Management has already repriced and renewed 75% of its 2027 commercial and Medicare book, locking in structural underwriting improvements. Meanwhile, Health Services continues to deliver steady revenue growth and solid adjusted operating income, demonstrating robust core pharmacy volumes.4
Cash flow generation remains exceptional, providing crucial balance-sheet de-risking. The business produced $10,594M in cash flow from operations during H1 2026 alone, prompting management to raise full-year 2026 operating cash flow guidance to at least $11.5 billion. Capital allocation is heavily prioritized toward debt reduction, with $3,287M in long-term debt repaid in H1 2026, systematically de-risking the enterprise's $93,593M total debt position.3
Health Care Benefits adjusted operating income surged 85.5% YoY in Q2 2026 to $2,426M as MBR improved from 89.9% to 87.4%. With 75% of the 2027 contract book renewed under repriced margins, enterprise operating margin is set to expand from 1.16% in FY2025 toward 2.3% in FY2027.4
The company generated $10,594M in operating cash flow during H1 2026 and raised full-year guidance to at least $11.5B. Management applied cash flow to retire $3,287M of long-term debt in H1 2026, accelerating balance-sheet de-risking against $93,593M in debt.3
At 10.67x forward P/E, CVS trades at an unwarranted valuation discount to managed care peers, offering 14.8% upside to our Fair value of $107.29.3
We issue a Buy rating on CVS Health Corporation with a Fair value of $107.29 as operational turnaround across Aetna and strong operational cash flows strengthen the balance sheet.
CVS Health Corporation (NYSE: CVS) operates as an integrated healthcare solutions provider in the United States, delivering health services, pharmacy benefit management (PBM), retail pharmacy operations, and medical benefits coverage. The enterprise operates through three core operational segments: Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness. In FY2025, consolidated revenue totaled $402,067M, led by Health Services ($190,425M), Health Care Benefits ($143,354M), and Pharmacy & Consumer Wellness ($139,367M).
The Health Care Benefits division (Aetna) covered 26.0 million medical members as of June 30, 2026, comprising 18.32M commercial members, 4.20M Medicare Advantage members, and 2.33M Medicaid members. Health Services (Caremark) serves approximately 87 million pharmacy benefit plan members and processed 473.0 million pharmacy claims in Q2 2026. Pharmacy & Consumer Wellness dispenses prescriptions across approximately 9,000 retail pharmacies and over 1,000 walk-in medical clinics, filling 457.0 million prescriptions in Q2 2026. Contracts with CMS for coverage of Medicare-eligible individuals accounted for 25% of consolidated revenues in FY2025 ($100.5B).
A combined adverse scenario envisions medical utilization persisting above 90.0% across Medicare Advantage contracts while statutory reforms eliminate PBM spread pricing. Under this stress case, consolidated operating income remains suppressed near $4.6B, reducing annual operating cash flow below $8.5B and halting balance sheet deleveraging across $93,593M in debt. With pre-tax borrowing costs at 11.16%, debt service would consume over 35% of operating earnings, limiting dividend growth and forcing multiple compression toward peer trough valuations.
In the Bear case, outpatient medical utilization remains elevated throughout 2026 and 2027 while regulatory interventions restrict PBM margin retention. Operating income normalization stalls, forcing the company to divert remaining cash flows entirely to debt service and halting dividend growth.
In FY2025, medical loss ratios elevated near 90% (89.9% in Q2 2025), driving consolidated operating income down to $4,660M. Sustained utilization spikes above 90% in Health Care Benefits ($143.35B revenue) eliminate margin normalization assumptions, triggering a 26.5% fair value decline.6
投資判断を弱める5つの変化です。
Re-acceleration of inpatient and outpatient medical utilization across Medicare Advantage or commercial risk blocks, breaching 90% and halting underwriting margin normalization.
現在:87.4% in Q2 2026
警戒条件>= 90.0%
Erosion of pharmacy benefit procurement margins and contract repricing headwinds from 340B pressure or legislative spread pricing restrictions.
CVS Health Corporation possesses a Narrow economic moat grounded in structural scale advantages across pharmacy services and widespread physical distribution across its retail footprint. The company's Health Services division (Caremark) processed 473.0 million claims in Q2 2026 alone and generated $190,425M in FY2025 revenue. This colossal purchasing scale affords Caremark substantial bargaining leverage over drug manufacturers, enabling it to negotiate aggressive formulary discounts and rebate terms that lower overall net drug spending for plan sponsors.
In addition to PBM scale, CVS benefits from high customer switching costs and entrenched local distribution. The enterprise operates approximately 9,000 retail locations and more than 1,000 walk-in medical clinics nationwide, placing healthcare services within miles of a vast majority of the US population. In managed care, Aetna's 26.0 million covered medical lives create significant provider network contracting power and operational inertia. Corporate and governmental plan sponsors face complex administrative burdens when switching major managed care carriers, which provides Aetna with pricing durability as evidenced by the successful renewal of 75% of its 2027 commercial pricing book.
Consolidated operating income of $4,660M in FY2025 produced an EBIT margin of 1.16%, temporarily depressing returns on invested capital below the 8.31% WACC. However, H1 2026 operating income of $9,383M demonstrates significant recovery, re-establishing positive economic profits as operating margins normalize toward 2.3% in FY2027 and 3.2% by FY2030.
Each lens answers a different valuation question. Only included lenses set Fair value; floors and diagnostics provide context.
The highlighted cell is Fair value when every assumption sits at its base level ($107.29). Each row and column shows what Fair value becomes when one assumption moves.
Free cash flow to the firm stays positive in the first projected year at $4.7B after modeled reinvestment of $1.0B, with terminal value at 79.1% of enterprise value. A sudden drop in free cash flow is not projected unless capital spending relative to revenue, reinvestment, or gross margin resets materially.
The Base case represents the modal expected trajectory, delivering our intrinsic Fair value of $107.29 per share. Underwriting discipline drives Health Care Benefits MBR compression, supporting steady operating margin expansion through FY2027. Robust cash flow generation funds consistent debt reduction, steadily lowering financial leverage and driving sustainable earnings expansion.
An earnings beat driven by lower MBR confirms that Medicare Advantage contract repricing is running ahead of plan, expanding operating margins toward our FY2027 target.
Results matching consensus confirm that underwriting recovery remains intact and operating cash flow tracks toward full-year guidance targets.
An earnings miss driven by renewed medical loss ratio spikes would indicate ongoing underwriting misalignment, requiring a fundamental re-examination of operating margin normalization timelines.
Earnings quality remains robust, supported by strong operating cash conversion where cash flow from operations substantially exceeds consolidated net income. Non-GAAP adjustments primarily reflect routine intangible asset amortization from past acquisitions alongside minor integration costs and realized capital movements rather than structural operational add-backs, confirming high underlying cash conversion durability.
Consensus earnings estimates have moved upward following CVS's strong Q2 2026 results and raised full-year guidance. FY2026 EPS consensus increased to $8.04, while FY2027 EPS consensus rose to $8.54. Full-year consensus revenue expectations have similarly adjusted upward in tandem with management's updated outlook.1
The primary operating driver of underwriting margin recovery and enterprise operating income expansion toward the house forecast.
Consolidated operating cash flow generation rebounded sharply in 2026, reaching $10,594M in the first six months of the year compared to $6,453M in H1 2025. Following this performance, management raised its full-year 2026 operating cash flow guidance by $2.0B to at least $11.5 billion. Free cash flow conversion is robust; in FY2025, operating cash flow of $10,639M and capex of $2,832M yielded $7,807M in free cash flow. The house forecast projects free cash flow to firm (FCFF) expanding from $4,656M in FY2026 to $6,120M in FY2027 and $9,259M by FY2030, driven by disciplined reinvestment and operating income recovery.5
CVS Health's capital allocation strategy prioritizes debt reduction and balance-sheet repair over discretionary share repurchases. In H1 2026, the company generated $10,594M in and deployed $3,287M to repay , systematically de-risking the $93,593M total debt burden recorded at year-end FY2025. Dividend distributions totaled $1,725M in H1 2026, maintaining an approved annual dividend of $2.66 per share. are held to a disciplined of 18.0% of NOPAT, with FY2025 at $2,832M and H1 2026 capex at $1,540M.
Consolidated ROIC fell below the 8.31% WACC in FY2025 due to compressed EBIT of $4,660M. However, with NOPAT projected to expand from $5,678M in FY2026 to $7,463M in FY2027 and $11,292M by FY2030 on a stable invested capital base, ROIC is poised to surpass the enterprise cost of capital, re-establishing economic profit generation.
ROIC is currently inflecting from trough levels toward WACC (8.31%), with value creation widening by FY2027 as operating margin reaches 2.3%.
Operating margin compressed to 1.16% in FY2025 on of $4,660M, but rebounded in H1 2026 to $9,383M. The house forecast projects operating margin normalizing to 1.8% in FY2026 ($7,525M ) and 2.3% in FY2027 ($9,891M EBIT).
| 売上高 | $402,067,000,000 |
|---|---|
| 売上原価 | $346,705,000,000 |
| 売上総利益 | $55,362,000,000 |
| 営業費用 | $50,702,000,000 |
| 営業利益 | $4,660,000,000 |
| 営業外項目および税金 | -$2,892,000,000 |
| 純利益 | $1,768,000,000 |
| 総資産 | $253,538,000,000 |
|---|---|
| 現金 | $8,453,000,000 |
| 流動資産 | $74,714,000,000 |
| 負債合計 | $178,156,000,000 |
| 流動負債 | $88,692,000,000 |
| 株主資本 | $75,382,000,000 |
| 純利益 | $1,768,000,000 |
|---|---|
| 営業キャッシュ流入 | $10,639,000,000 |
| 減価償却費 | $4,606,000,000 |
| 株式報酬 | $535,000,000 |
| その他の営業調整 | $3,730,000,000 |
| 営業キャッシュフロー | $10,639,000,000 |
| 利用可能現金 | $19,523,000,000 |
| 期首現金 | $8,884,000,000 |
| 投資キャッシュ流出 | $5,871,000,000 |
| 設備投資 | $2,832,000,000 |
| その他の投資活動 | $3,039,000,000 |
| 財務キャッシュ流出 | $4,940,000,000 |
| 期末現金 | $8,712,000,000 |
| 投資キャッシュフロー | -$5,871,000,000 |
| 財務キャッシュフロー | -$4,940,000,000 |
2026-10-22の分析で使用した時点財務データ。
| 期間 | 売上高 | EBITDA | 純利益 | 営業キャッシュフロー | フリーキャッシュフロー | 設備投資 | 減価償却費 | 株式報酬 | 自社株買い | 支払配当金 | 純有利子負債調達 | 投資キャッシュフロー | 財務キャッシュフロー | 期首現金 | 期末現金 | 現金および投資 | 総負債 | 営業利益率 | ROIC | WACC | ROIC−WACCスプレッド |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2016-12-31 | $1775.3億 | $121.9億 | $53.2億 | $101.4億 | $79.2億 | $22.2億 | $24.8億 | $2.2億 | $44.6億 | $18.4億 | — | -$24.7億 | -$67.6億 | — | $35.2億 | $34.6億 | $257億 | 5.9% | — | 4.9% | — |
| 2017-12-31 | $1847.7億 | $118.1億 | $66.2億 | $80.1億 | $60.9億 | $19.2億 | $24.8億 | $2.3億 | $43.6億 | $20.5億 | — | -$28.8億 | -$67.5億 | $35.2億 | $19億 | $18.1億 | $270億 | 5.2% | — | 4.7% | — |
| 2018-12-31 | $1939.2億 | $67.4億 | -$5.9億 | $88.7億 | $68.3億 | $20.4億 | $27.2億 | $2.8億 | $0 | $20.4億 | — | -$432.9億 | $368.2億 | $19億 | $65.5億 | $65.8億 | $734.3億 | 2.1% | — | 4.6% | — |
| 2019-12-31 | $2567.8億 | $164億 | $66.3億 | $128.5億 | $103.9億 | $24.6億 | $43.7億 | $4.5億 | $0 | $26億 | — | -$33.4億 | -$76.5億 | $65.5億 | $84.1億 | $80.6億 | $890億 | 4.7% | — | 3.7% | — |
| 2020-12-31 | $2687.1億 | $171.2億 | $71.8億 | $158.7億 | $134.3億 | $24.4億 | $44.4億 | $4億 | $0 | $26.2億 | — | -$55.3億 | -$77億 | $84.1億 | $110.4億 | $108.5億 | $850.4億 | 5.2% | — | 2.7% | — |
| 2021-12-31 | $2921.1億 | $175.3億 | $80億 | $182.7億 | $157.5億 | $25.2億 | $44.9億 | $4.8億 | $0 | $26.3億 | — | -$52.6億 | -$113.6億 | $110.4億 | $126.9億 | $125.3億 | $760億 | 4.6% | — | 3.7% | — |
| 2022-12-31 | $3224.7億 | $123.5億 | $43.1億 | $161.8億 | $134.5億 | $27.3億 | $42.2億 | $4.5億 | $35億 | $29.1億 | -$42.1億 | -$50.5億 | -$105.2億 | $126.9億 | $133.1億 | $157.2億 | $707.3億 | 2.5% | — | 5.8% | — |
| 2023-12-31 | $3577.8億 | $137.4億 | $83.4億 | $134.3億 | $104億 | $30.3億 | $43.7億 | $5.9億 | $20.1億 | $31.3億 | $79.3億 | -$208.9億 | $26.8億 | $133.1億 | $85.3億 | $114.6億 | $793.9億 | 3.8% | — | 5.3% | — |
| 2024-12-31 | $3728.1億 | $136.8億 | $46.1億 | $91.1億 | $63.3億 | $27.8億 | $46億 | $5.4億 | $30.2億 | $33.7億 | $50.6億 | -$76.1億 | -$11.4億 | $85.3億 | $88.8億 | $109.9億 | $829.2億 | 2.3% | — | 5.8% | — |
| 2025-12-31 | $4020.7億 | $98.6億 | $17.7億 | $106.4億 | $78.1億 | $28.3億 | $46.1億 | $5.4億 | $0 | $34億 | -$17.8億 | -$58.7億 | -$49.4億 | $88.8億 | $87.1億 | $106億 | $935.9億 | 1.2% | — | 7.6% | — |
CVS Health Corporation (CVS) trades at 10.7x forward earnings against a peer median of 16.3x. Its EV/EBITDA of 10.9x compares with a peer median of 11.1x. The comparison uses 4 peers: Elevance Health Inc., The Cigna Group, Humana Inc. and UnitedHealth Group Incorporated, as of 2026-10-22.
Industry capex-to-depreciation stands at 0.81 and capex-to-revenue is 0.009 (0.9%), demonstrating sub-replacement capital reinvestment. CVS's FY2025 capex of $2,832M represented 0.70% of revenue and 61.5% of annual depreciation, reflecting sector-wide capital discipline as insurers exit an underwriting margin trough.
The industry upcycle is characterized by disciplined multi-year premium repricing, benefit rationalization, recovery in Medicare Advantage Star ratings, and adoption of efficiency-enhancing technologies such as AI claims processing (e.g., Aetna Claims Assist Manager). During an upcycle, premium growth outpaces healthcare cost trends, allowing industry operating margins to normalize back toward 3.0% to 5.0%.
The healthcare managed care downcycle is marked by unexpected medical utilization spikes among Medicare Advantage and commercial populations, elevated hospital contracting costs, CMS risk-adjustment reimbursement cuts, and regulatory restrictions on PBM spread pricing. When medical loss ratios exceed 90%, underwriting margins turn negative, causing earnings contractions across managed care operators as observed in FY2025.
CVS occupies an advantaged, vertically integrated position spanning healthcare benefits (Aetna), pharmacy services (Caremark), and physical retail pharmacy delivery. This integrated structure captures multiple margins across the patient care journey and enables coordinated care management, moderating standalone underwriting volatility.
High conviction is supported by proven operational cash flow generation ($11.5B+ full-year guidance), tangible progress in Aetna MBR compression (down 250 bps in Q2 2026), and a compelling relative valuation discount at 10.67x forward P/E.3
Portfolio risk is managed through position sizing discipline, strict monitoring of quarterly medical loss ratios, and active tracking of balance-sheet deleveraging. Downside risks from elevated debt ($93,593M in FY2025) are mitigated by strong operating cash flows and minimal maintenance capex obligations.
CVS trades at a steep discount to healthcare peers (10.67x forward P/E vs 14.59x for ELV and 17.92x for UNH), while generating $10.6B+ in operational cash flow that supports intrinsic value of $107.29.5
Operational inflection is confirmed by Q2 2026 results where adjusted operating income rose 35.4% YoY and MBR fell 250 bps to 87.4%, with 75% of 2027 pricing locked in.4
Favorable 14.8% upside from $93.45 combined with steady dividend return provides an attractive risk-reward profile while management systematically de-risks balance-sheet debt.3
We issue a Buy rating on CVS Health Corporation with an intrinsic Fair value of $107.29, offering 14.8% implied upside from $93.45. The company is executing an operational turnaround across Aetna while generating substantial operating cash flow.35
Trading at just 10.67x forward earnings, the shares discount persistent downside risks that are actively abating, creating an asymmetrical risk-reward profile anchored by steady deleveraging and mid-single-digit long-term growth.
Capture your own thesis, position size, and follow-up questions. Stays on this device, only you can see it.
The records this analysis drew on, as they stood when it was run.
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
Peer Cigna trades at 9.09x forward P/E. If federal legislative mandates eliminate PBM spread pricing and restrict rebate retention across Caremark's $190.43B Health Services business, terminal multiple compresses by 20% from 11.5x toward peer floor levels, resulting in a 20.0% fair value contraction.6
With total debt of $93,593M, pre-tax cost of debt at 11.16%, and debt weight at 38.97%, a 100 bps widening in WACC from 8.31% deeply discounts explicit cash flows, leading to a 15.8% fair value reduction.3
現在:3.3% in Q2 2026
警戒条件< 2.5%
Consolidated operating cash flow falling below $10.0B while total debt remains above $90B, impeding balance-sheet deleveraging and elevating refinancing costs.
警戒条件> 9.0x
Operating income falling back toward FY2025 trough levels ($4,660M), signaling that pricing actions failed to overcome medical cost inflation.
現在:$4,703M in Q2 2026 ($9,383M in H1 2026)
警戒条件< $6,000M annualized
A sharp decline in days claims payable below historical norms (38.9 days at year-end 2025), indicating potential reserve depletion masking underlying claim acceleration.
現在:41.7 days as of June 30, 2026
警戒条件< 38.0 days
| 6 to 18 months |
| Disciplined underwriting repricing, strategic geographic benefit exits, and plan de-risking, securing 75% of 2027 contract renewals at restored margin targets.4 |
| Manufacturer direct-to-consumer distribution models and 340B contract pharmacy reimbursement pressure. | low | 12 to 36 months | Expanding commercial formulary volume, driving biosimilar conversions, and capturing strong selling-season pipelines ($6B+ in new sales). |
Under the moderate discount rate, $31.02 comes from forecast-period earnings and $136 from the long-term value, totaling $167.
Project EPS through the explicit advantage period, fade growth as competition catches up, and discount the full stream at cost of equity.
Apply a terminal P/E to the dated forward EPS path, then discount that future share value back to the analysis date.
Add depreciation to net income, subtract maintenance capex, divide by diluted shares, and apply a normalized valuation multiple.
Solve for the growth rate that makes the model value equal the report-date share price.
Multiply the peer median PEG by this stock's forecast growth to derive an implied forward P/E, then apply it to forward EPS.
In the Bull case, Medicare Advantage repricing exceeds expectations and medical loss ratios drop rapidly below baseline underwriting targets, while Caremark captures significant biosimilar and incretin dispensing volumes. Operating margins rebound toward historical peaks, generating accelerated cash flows that enable complete debt repayment ahead of schedule and substantial share repurchases.
Funds balance-sheet deleveraging across $93,593M in debt and underpins dividend stability.3
Confirms Caremark's market share retention and scale stability amidst ongoing PBM policy scrutiny.
Verifies that underwriting repricing actions restore target profitability without causing adverse selection or excessive membership attrition.
Transitions pharmacy reimbursement toward transparent cost-based structures, mitigating legislative spread pricing risks.
| $443.79B |
| $456.21B |
| $467.62B |
| Revenue growth | 4.0% | 2.9% | 3.2% | 2.8% | 2.5% |
| Operating margin | 1.8% | 2.3% | 2.7% | 3.0% | 3.2% |
| Operating income | $7.52B | $9.89B | $11.98B | $13.69B | $14.96B |
| Tax rate | 24.5% | 24.5% | 24.5% | 24.5% | 24.5% |
| NOPAT | $5.68B | $7.46B | $9.04B | $10.33B | $11.29B |
| Reinvestment | $1.02B | $1.34B | $1.63B | $1.86B | $2.03B |
| Reinvestment rate (of NOPAT) | 18.0% | 18.0% | 18.0% | 18.0% | 18.0% |
| Free cash flow to firm | $4.66B | $6.12B | $7.41B | $8.47B | $9.26B |
| Health Services revenue | $197.98B | $203.66B | $210.18B | $216.06B | $221.46B |
| Health Care Benefits revenue | $149.03B | $153.30B | $158.21B | $162.64B | $166.71B |
| Pharmacy and Consumer Health revenue | $144.89B | $149.05B | $153.82B | $158.12B | $162.08B |
| Terminal growth | 2.5% | 2.5% | 2.5% | 2.5% | 2.5% |
Total debt of $93,593M at year-end FY2025 carried a pre-tax cost of debt of 11.16%. Long-term debt repayments reached $3,287M in H1 2026.
Accelerated debt retirement reduces annual interest expenses ($1,531M in H1 2026) and lowers enterprise debt weight from 38.97%, shifting enterprise value toward equity holders.
FY2025 capex was $2,832M and H1 2026 capex was $1,540M, consistent with an approved reinvestment rate of 18.0% of NOPAT.
Low capital expenditure intensity yields FCFF of $6,120M in FY2027 and $9,259M in FY2030, ensuring ample distributable cash flow for balance sheet de-risking and dividend support.
| マージン |
|---|
| CVS | CVS Health Corporation | $119.5B | 10.7x | 0.3x | 10.9x | 6.2% | — |
| ELV | Elevance Health Inc. | $94.1B | 14.6x | 0.5x | 10.6x | 11.1% | 4.6% |
| CI | The Cigna Group | $80.4B | 9.1x | 0.3x | 8.3x | 16.8% | 4.0% |
| HUM | Humana Inc. | $51.1B | 24.9x | 0.4x | 11.7x | 6.9% | 3.5% |
| UNH | UnitedHealth Group Incorporated | $374.3B | 17.9x | 0.8x | 14.6x | 15.8% | 5.8% |
| negative |
| Scrutiny from Congress and the FTC regarding PBM spread pricing, rebate retention, and contract pharmacy fees creates ongoing structural regulatory headwinds for pharmacy benefit administration. |
| Complete final tranche to achieve full target allocation |
| Captures deep-value dislocations where implied return expands substantially above 14.8%, providing an exceptional risk-adjusted return profile. |
| Lower debt paydown expectations, inspect working capital changes, and review position sizing. |
| Health Services Adjusted Operating Income | Quarterly adjusted operating income contracting year over year | Assess PBM client retention rates, evaluate federal drug discount regulatory headwinds, and inspect procurement gross margins. |
