CVS HEALTH CORP (1CVS.MI) Stock Fundamental Analysis
BIT:1CVS - Euronext Milan - US1266501006 - Common Stock - Currency: EUR
Overall 1CVS gets a fundamental rating of 3 out of 10. We evaluated 1CVS against 25 industry peers in the Health Care Providers & Services industry. 1CVS has a bad profitability rating. Also its financial health evaluation is rather negative. 1CVS has a valuation in line with the averages, but on the other hand it scores bad on growth. 1CVS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1CVS had positive earnings in the past year.
In the past year 1CVS had a positive cash flow from operations.
In the past 5 years 1CVS has always been profitable.
Each year in the past 5 years 1CVS had a positive operating cash flow.
1.2 Ratios
1CVS has a Return On Assets (1.82%) which is comparable to the rest of the industry.
1CVS has a Return On Equity (6.11%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.29%, 1CVS is in line with its industry, outperforming 56.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1CVS is in line with the industry average of 5.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 6.11% | ||
| ROIC | 4.29% |
ROA(3y)2.35%
ROA(5y)2.72%
ROE(3y)7.68%
ROE(5y)8.81%
ROIC(3y)6.22%
ROIC(5y)6.35%
1.3 Margins
With a Profit Margin value of 1.24%, 1CVS is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of 1CVS has declined.
Looking at the Operating Margin, with a value of 2.63%, 1CVS is doing worse than 72.00% of the companies in the same industry.
In the last couple of years the Operating Margin of 1CVS has declined.
1CVS has a worse Gross Margin (13.79%) than 76.00% of its industry peers.
1CVS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.63% | ||
| PM (TTM) | 1.24% | ||
| GM | 13.79% |
OM growth 3Y-19.77%
OM growth 5Y-11.12%
PM growth 3Y-23.26%
PM growth 5Y-13.69%
GM growth 3Y-8.24%
GM growth 5Y-18.43%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1CVS is destroying value.
Compared to 1 year ago, 1CVS has less shares outstanding
Compared to 5 years ago, 1CVS has less shares outstanding
The debt/assets ratio for 1CVS is higher compared to a year ago.
2.2 Solvency
1CVS has an Altman-Z score of 2.15. This is not the best score and indicates that 1CVS is in the grey zone with still only limited risk for bankruptcy at the moment.
1CVS's Altman-Z score of 2.15 is fine compared to the rest of the industry. 1CVS outperforms 68.00% of its industry peers.
1CVS has a debt to FCF ratio of 10.48. This is a negative value and a sign of low solvency as 1CVS would need 10.48 years to pay back of all of its debts.
The Debt to FCF ratio of 1CVS (10.48) is worse than 60.00% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that 1CVS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.83, 1CVS is in line with its industry, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.58
WACC7.35%
2.3 Liquidity
A Current Ratio of 0.81 indicates that 1CVS may have some problems paying its short term obligations.
With a Current ratio value of 0.81, 1CVS is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
1CVS has a Quick Ratio of 0.81. This is a bad value and indicates that 1CVS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.60, 1CVS is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
1CVS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.99%.
Measured over the past years, 1CVS shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.20% on average per year.
1CVS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.20%.
The Revenue has been growing slightly by 7.74% on average over the past years.
EPS 1Y (TTM)-37.99%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%-43.87%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%4.15%
3.2 Future
The Earnings Per Share is expected to grow by 12.74% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.22% on average over the next years.
EPS Next Y10.02%
EPS Next 2Y12.96%
EPS Next 3Y13.58%
EPS Next 5Y12.74%
Revenue Next Year4.67%
Revenue Next 2Y4.78%
Revenue Next 3Y4.95%
Revenue Next 5Y4.22%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1CVS is valuated reasonably with a Price/Earnings ratio of 11.89.
Based on the Price/Earnings ratio, 1CVS is valued cheaply inside the industry as 84.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1CVS to the average of the S&P500 Index (28.04), we can say 1CVS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.81, the valuation of 1CVS can be described as reasonable.
1CVS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1CVS is cheaper than 80.00% of the companies in the same industry.
1CVS is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
1CVS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.86 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
1CVS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as 1CVS's earnings are expected to grow with 13.58% in the coming years.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y12.96%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
1CVS has a Yearly Dividend Yield of 4.30%, which is a nice return.
Compared to an average industry Dividend Yield of 2.87, 1CVS pays a better dividend. On top of this 1CVS pays more dividend than 92.00% of the companies listed in the same industry.
1CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
The dividend of 1CVS has a limited annual growth rate of 5.72%.
Dividend Growth(5Y)5.72%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1CVS pays out 73.10% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1CVS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.1%
EPS Next 2Y12.96%
EPS Next 3Y13.58%
BIT:1CVS (7/16/2025, 7:00:00 PM)
54.81
-6.23 (-10.21%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.33%
Inst Owner ChangeN/A
Ins Owners0.99%
Ins Owner ChangeN/A
Market Cap69.34B
Analysts77.58
Price Target69.48 (26.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend2.26
Dividend Growth(5Y)5.72%
DP73.1%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.57%
Min EPS beat(2)-28.4%
Max EPS beat(2)27.26%
EPS beat(4)2
Avg EPS beat(4)-4.97%
Min EPS beat(4)-28.4%
Max EPS beat(4)27.26%
EPS beat(8)6
Avg EPS beat(8)-0.48%
EPS beat(12)10
Avg EPS beat(12)1.15%
EPS beat(16)14
Avg EPS beat(16)3.69%
Revenue beat(2)1
Avg Revenue beat(2)0.71%
Min Revenue beat(2)-0.46%
Max Revenue beat(2)1.87%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)1.87%
Revenue beat(8)5
Avg Revenue beat(8)1%
Revenue beat(12)9
Avg Revenue beat(12)2.25%
Revenue beat(16)13
Avg Revenue beat(16)2.08%
PT rev (1m)-3.71%
PT rev (3m)3.35%
EPS NQ rev (1m)4.02%
EPS NQ rev (3m)24.9%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-3.92%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 10.81 | ||
| P/S | 0.22 | ||
| P/FCF | 12.86 | ||
| P/OCF | 8.93 | ||
| P/B | 1.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)4.61
EY8.41%
EPS(NY)5.07
Fwd EY9.25%
FCF(TTM)4.26
FCFY7.78%
OCF(TTM)6.14
OCFY11.2%
SpS251.21
BVpS50.91
TBVpS-29
PEG (NY)1.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 6.11% | ||
| ROCE | 5.81% | ||
| ROIC | 4.29% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 17.8% | ||
| OM | 2.63% | ||
| PM (TTM) | 1.24% | ||
| GM | 13.79% | ||
| FCFM | 1.7% |
ROA(3y)2.35%
ROA(5y)2.72%
ROE(3y)7.68%
ROE(5y)8.81%
ROIC(3y)6.22%
ROIC(5y)6.35%
ROICexc(3y)6.76%
ROICexc(5y)6.87%
ROICexgc(3y)25.87%
ROICexgc(5y)25.07%
ROCE(3y)8.35%
ROCE(5y)8.51%
ROICexcg growth 3Y-10.65%
ROICexcg growth 5Y-1.15%
ROICexc growth 3Y-14.28%
ROICexc growth 5Y-4.08%
OM growth 3Y-19.77%
OM growth 5Y-11.12%
PM growth 3Y-23.26%
PM growth 5Y-13.69%
GM growth 3Y-8.24%
GM growth 5Y-18.43%
F-Score5
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 10.48 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | -3.37 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 137.1% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.15 |
F-Score5
WACC7.35%
ROIC/WACC0.58
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.81%
Cap/Sales(5y)0.84%
Profit Quality(3y)191.23%
Profit Quality(5y)191.5%
High Growth Momentum
Growth
EPS 1Y (TTM)-37.99%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%-43.87%
EPS Next Y10.02%
EPS Next 2Y12.96%
EPS Next 3Y13.58%
EPS Next 5Y12.74%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%4.15%
Revenue Next Year4.67%
Revenue Next 2Y4.78%
Revenue Next 3Y4.95%
Revenue Next 5Y4.22%
EBIT growth 1Y-35.07%
EBIT growth 3Y-12.98%
EBIT growth 5Y-4.24%
EBIT Next Year40.63%
EBIT Next 3Y19.8%
EBIT Next 5YN/A
FCF growth 1Y-39.14%
FCF growth 3Y-26.21%
FCF growth 5Y-9.45%
OCF growth 1Y-32.17%
OCF growth 3Y-20.7%
OCF growth 5Y-6.65%