CVS HEALTH CORP (1CVS.MI) Stock Fundamental Analysis
Europe - BIT:1CVS - US1266501006 - Common Stock
61.18 EUR
+6.37 (+11.62%)
We assign a fundamental rating of 3 out of 10 to 1CVS. 1CVS was compared to 28 industry peers in the Health Care Providers & Services industry. Both the profitability and financial health of 1CVS have multiple concerns. 1CVS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1CVS was profitable.
In the past year 1CVS had a positive cash flow from operations.
1CVS had positive earnings in each of the past 5 years.
In the past 5 years 1CVS always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.75%, 1CVS perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
With a Return On Equity value of 5.86%, 1CVS perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
The Return On Invested Capital of 1CVS (4.57%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1CVS is in line with the industry average of 6.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | 5.86% | ||
| ROIC | 4.57% |
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
1CVS's Profit Margin of 1.17% is in line compared to the rest of the industry. 1CVS outperforms 40.74% of its industry peers.
In the last couple of years the Profit Margin of 1CVS has declined.
1CVS has a worse Operating Margin (2.65%) than 66.67% of its industry peers.
1CVS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 13.82%, 1CVS is doing worse than 70.37% of the companies in the same industry.
In the last couple of years the Gross Margin of 1CVS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.65% | ||
| PM (TTM) | 1.17% | ||
| GM | 13.82% |
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.
1CVS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1CVS has less shares outstanding
1CVS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.19 indicates that 1CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
1CVS's Altman-Z score of 2.19 is in line compared to the rest of the industry. 1CVS outperforms 59.26% of its industry peers.
The Debt to FCF ratio of 1CVS is 13.91, which is on the high side as it means it would take 1CVS, 13.91 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.91, 1CVS is doing worse than 62.96% of the companies in the same industry.
1CVS has a Debt/Equity ratio of 0.78. This is a neutral value indicating 1CVS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, 1CVS is in line with its industry, outperforming 51.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 13.91 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.6
WACC7.58%
2.3 Liquidity
A Current Ratio of 0.80 indicates that 1CVS may have some problems paying its short term obligations.
1CVS's Current ratio of 0.80 is on the low side compared to the rest of the industry. 1CVS is outperformed by 70.37% of its industry peers.
1CVS has a Quick Ratio of 0.80. This is a bad value and indicates that 1CVS is not financially healthy enough and could expect problems in meeting its short term obligations.
1CVS's Quick ratio of 0.62 is on the low side compared to the rest of the industry. 1CVS is outperformed by 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
1CVS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.13%.
The Earnings Per Share has been decreasing by -5.20% on average over the past years.
The Revenue has been growing slightly by 6.44% in the past year.
The Revenue has been growing slightly by 7.74% on average over the past years.
EPS 1Y (TTM)-15.13%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%-1.09%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%8.42%
3.2 Future
1CVS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.99% yearly.
1CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.84% yearly.
EPS Next Y18.42%
EPS Next 2Y15.4%
EPS Next 3Y14.5%
EPS Next 5Y10.99%
Revenue Next Year5.75%
Revenue Next 2Y5.07%
Revenue Next 3Y5.19%
Revenue Next 5Y4.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 11.25, the valuation of 1CVS can be described as reasonable.
1CVS's Price/Earnings ratio is rather cheap when compared to the industry. 1CVS is cheaper than 88.89% of the companies in the same industry.
1CVS is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.88 indicates a reasonable valuation of 1CVS.
Based on the Price/Forward Earnings ratio, 1CVS is valued cheaper than 81.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1CVS to the average of the S&P500 Index (22.73), we can say 1CVS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than 1CVS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.93 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as 1CVS's earnings are expected to grow with 14.50% in the coming years.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y15.4%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.69%, 1CVS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.57, 1CVS pays a better dividend. On top of this 1CVS pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 1CVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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 74.62% of its income as dividend. This is not a sustainable payout ratio.
1CVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP74.62%
EPS Next 2Y15.4%
EPS Next 3Y14.5%
BIT:1CVS (8/22/2025, 7:00:00 PM)
61.18
+6.37 (+11.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.14%
Inst Owner ChangeN/A
Ins Owners0.99%
Ins Owner ChangeN/A
Market Cap77.60B
Analysts77.58
Price Target69.97 (14.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Yearly Dividend2.27
Dividend Growth(5Y)5.72%
DP74.62%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.87%
Min EPS beat(2)22.99%
Max EPS beat(2)30.76%
EPS beat(4)3
Avg EPS beat(4)13.15%
Min EPS beat(4)-28.4%
Max EPS beat(4)30.76%
EPS beat(8)6
Avg EPS beat(8)5.23%
EPS beat(12)10
Avg EPS beat(12)4.69%
EPS beat(16)14
Avg EPS beat(16)4.93%
Revenue beat(2)2
Avg Revenue beat(2)1.83%
Min Revenue beat(2)0.02%
Max Revenue beat(2)3.64%
Revenue beat(4)3
Avg Revenue beat(4)1.27%
Min Revenue beat(4)-0.46%
Max Revenue beat(4)3.64%
Revenue beat(8)5
Avg Revenue beat(8)0.67%
Revenue beat(12)9
Avg Revenue beat(12)2.1%
Revenue beat(16)13
Avg Revenue beat(16)2.16%
PT rev (1m)0.71%
PT rev (3m)5.78%
EPS NQ rev (1m)-4.11%
EPS NQ rev (3m)-14.98%
EPS NY rev (1m)3.6%
EPS NY rev (3m)7.63%
Revenue NQ rev (1m)1.18%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)1.59%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 9.88 | ||
| P/S | 0.23 | ||
| P/FCF | 18.93 | ||
| P/OCF | 11.95 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)5.44
EY8.89%
EPS(NY)6.19
Fwd EY10.12%
FCF(TTM)3.23
FCFY5.28%
OCF(TTM)5.12
OCFY8.37%
SpS261.49
BVpS52.33
TBVpS-27.08
PEG (NY)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | 5.86% | ||
| ROCE | 6.23% | ||
| ROIC | 4.57% | ||
| ROICexc | 5% | ||
| ROICexgc | 21.47% | ||
| OM | 2.65% | ||
| PM (TTM) | 1.17% | ||
| GM | 13.82% | ||
| FCFM | 1.24% |
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 Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 13.91 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | -3.41 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 105.5% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 2.19 |
F-Score5
WACC7.58%
ROIC/WACC0.6
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)-15.13%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%-1.09%
EPS Next Y18.42%
EPS Next 2Y15.4%
EPS Next 3Y14.5%
EPS Next 5Y10.99%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%8.42%
Revenue Next Year5.75%
Revenue Next 2Y5.07%
Revenue Next 3Y5.19%
Revenue Next 5Y4.84%
EBIT growth 1Y-20.52%
EBIT growth 3Y-12.98%
EBIT growth 5Y-4.24%
EBIT Next Year42.57%
EBIT Next 3Y19.26%
EBIT Next 5Y18.23%
FCF growth 1Y-72.95%
FCF growth 3Y-26.21%
FCF growth 5Y-9.45%
OCF growth 1Y-63.11%
OCF growth 3Y-20.7%
OCF growth 5Y-6.65%