CVS Health CDR (CVS.CA) Fundamental Analysis & Valuation
TSX:CVS
Current stock price
19.83 CAD
-0.2 (-1%)
Last:
This CVS.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CVS.CA Profitability Analysis
1.1 Basic Checks
- CVS had positive earnings in the past year.
- CVS had a positive operating cash flow in the past year.
- In the past 5 years CVS has always been profitable.
- CVS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CVS has a better Return On Assets (0.70%) than 75.00% of its industry peers.
- CVS has a better Return On Equity (2.35%) than 75.00% of its industry peers.
- CVS's Return On Invested Capital of 4.90% is amongst the best of the industry. CVS outperforms 83.33% of its industry peers.
- CVS had an Average Return On Invested Capital over the past 3 years of 5.46%. This is in line with the industry average of 6.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 2.35% | ||
| ROIC | 4.9% |
ROA(3y)1.95%
ROA(5y)2.24%
ROE(3y)6.46%
ROE(5y)7.21%
ROIC(3y)5.46%
ROIC(5y)6.31%
1.3 Margins
- CVS has a Profit Margin of 0.44%. This is in the better half of the industry: CVS outperforms 66.67% of its industry peers.
- CVS's Profit Margin has declined in the last couple of years.
- CVS's Operating Margin of 2.58% is in line compared to the rest of the industry. CVS outperforms 41.67% of its industry peers.
- CVS's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 13.77%, CVS is doing worse than 91.67% of the companies in the same industry.
- CVS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.58% | ||
| PM (TTM) | 0.44% | ||
| GM | 13.77% |
OM growth 3Y-19.74%
OM growth 5Y-12.87%
PM growth 3Y-30.97%
PM growth 5Y-30.29%
GM growth 3Y-6.6%
GM growth 5Y-5.48%
2. CVS.CA Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVS is destroying value.
- Compared to 1 year ago, CVS has more shares outstanding
- CVS has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for CVS has been reduced compared to a year ago.
2.2 Solvency
- CVS has an Altman-Z score of 2.06. This is not the best score and indicates that CVS is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.06, CVS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- The Debt to FCF ratio of CVS is 8.27, which is on the high side as it means it would take CVS, 8.27 years of fcf income to pay off all of its debts.
- CVS's Debt to FCF ratio of 8.27 is in line compared to the rest of the industry. CVS outperforms 41.67% of its industry peers.
- CVS has a Debt/Equity ratio of 0.80. This is a neutral value indicating CVS is somewhat dependend on debt financing.
- The Debt to Equity ratio of CVS (0.80) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 8.27 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.7
WACC7.03%
2.3 Liquidity
- CVS has a Current Ratio of 0.84. This is a bad value and indicates that CVS is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.84, CVS perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- CVS has a Quick Ratio of 0.84. This is a bad value and indicates that CVS is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.63, CVS perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.63 |
3. CVS.CA Growth Analysis
3.1 Past
- CVS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.54%, which is quite impressive.
- CVS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.11% yearly.
- Looking at the last year, CVS shows a small growth in Revenue. The Revenue has grown by 7.85% in the last year.
- The Revenue has been growing by 8.39% on average over the past years. This is quite good.
EPS 1Y (TTM)24.54%
EPS 3Y-8.11%
EPS 5Y-2.11%
EPS Q2Q%-8.4%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y7.63%
Revenue growth 5Y8.39%
Sales Q2Q%8.17%
3.2 Future
- Based on estimates for the next years, CVS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.45% on average per year.
- CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.04% yearly.
EPS Next Y7.26%
EPS Next 2Y10.6%
EPS Next 3Y12.01%
EPS Next 5Y11.45%
Revenue Next Year1.31%
Revenue Next 2Y2.99%
Revenue Next 3Y3.57%
Revenue Next 5Y4.04%
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. CVS.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 2.15, which indicates a rather cheap valuation of CVS.
- CVS's Price/Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CVS to the average of the S&P500 Index (26.64), we can say CVS is valued rather cheaply.
- A Price/Forward Earnings ratio of 2.00 indicates a rather cheap valuation of CVS.
- 100.00% of the companies in the same industry are more expensive than CVS, based on the Price/Forward Earnings ratio.
- CVS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.15 | ||
| Fwd PE | 2 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, CVS is valued cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.38 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- CVS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CVS's earnings are expected to grow with 12.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y10.6%
EPS Next 3Y12.01%
5. CVS.CA Dividend Analysis
5.1 Amount
- CVS has a Yearly Dividend Yield of 3.37%. Purely for dividend investing, there may be better candidates out there.
- CVS's Dividend Yield is rather good when compared to the industry average which is at 1.49. CVS pays more dividend than 83.33% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, CVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
- The dividend of CVS has a limited annual growth rate of 5.96%.
- CVS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)5.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 192.14% of the earnings are spent on dividend by CVS. This is not a sustainable payout ratio.
- CVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP192.14%
EPS Next 2Y10.6%
EPS Next 3Y12.01%
CVS.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:CVS (5/1/2026, 7:00:00 PM)
19.83
-0.2 (-1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Industry Strength49.07
Industry Growth86.96
Earnings (Last)02-10 2026-02-10/bmo
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners90.77%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap25.41B
Revenue(TTM)402.07B
Net Income(TTM)1.77B
Analysts80.61
Price Target22.96 (15.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend3.67
Dividend Growth(5Y)5.96%
DP192.14%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.24%
Min EPS beat(2)8.8%
Max EPS beat(2)15.69%
EPS beat(4)4
Avg EPS beat(4)19.56%
Min EPS beat(4)8.8%
Max EPS beat(4)30.76%
EPS beat(8)6
Avg EPS beat(8)7.29%
EPS beat(12)10
Avg EPS beat(12)6.2%
EPS beat(16)14
Avg EPS beat(16)5.76%
Revenue beat(2)2
Avg Revenue beat(2)2.03%
Min Revenue beat(2)1.02%
Max Revenue beat(2)3.04%
Revenue beat(4)4
Avg Revenue beat(4)1.93%
Min Revenue beat(4)0.02%
Max Revenue beat(4)3.64%
Revenue beat(8)5
Avg Revenue beat(8)0.75%
Revenue beat(12)9
Avg Revenue beat(12)1.31%
Revenue beat(16)13
Avg Revenue beat(16)2.17%
PT rev (1m)-0.95%
PT rev (3m)-1.1%
EPS NQ rev (1m)-1.54%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.15 | ||
| Fwd PE | 2 | ||
| P/S | 0.05 | ||
| P/FCF | 2.38 | ||
| P/OCF | 1.75 | ||
| P/B | 0.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)9.23
EY46.55%
EPS(NY)9.9
Fwd EY49.9%
FCF(TTM)8.33
FCFY41.99%
OCF(TTM)11.35
OCFY57.22%
SpS428.79
BVpS80.21
TBVpS-38.15
PEG (NY)0.3
PEG (5Y)N/A
Graham Number129.067 (550.87%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 2.35% | ||
| ROCE | 6.3% | ||
| ROIC | 4.9% | ||
| ROICexc | 5.23% | ||
| ROICexgc | 18.66% | ||
| OM | 2.58% | ||
| PM (TTM) | 0.44% | ||
| GM | 13.77% | ||
| FCFM | 1.94% |
ROA(3y)1.95%
ROA(5y)2.24%
ROE(3y)6.46%
ROE(5y)7.21%
ROIC(3y)5.46%
ROIC(5y)6.31%
ROICexc(3y)5.85%
ROICexc(5y)6.83%
ROICexgc(3y)22.7%
ROICexgc(5y)25.24%
ROCE(3y)7.06%
ROCE(5y)8.13%
ROICexgc growth 3Y-15.72%
ROICexgc growth 5Y-3.91%
ROICexc growth 3Y-15.74%
ROICexc growth 5Y-5.12%
OM growth 3Y-19.74%
OM growth 5Y-12.87%
PM growth 3Y-30.97%
PM growth 5Y-30.29%
GM growth 3Y-6.6%
GM growth 5Y-5.48%
F-Score6
Asset Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 8.27 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.7% | ||
| Interest Coverage | -3.47 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 441.57% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 2.06 |
F-Score6
WACC7.03%
ROIC/WACC0.7
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.77%
Cap/Sales(5y)0.8%
Profit Quality(3y)234.42%
Profit Quality(5y)242.41%
High Growth Momentum
Growth
EPS 1Y (TTM)24.54%
EPS 3Y-8.11%
EPS 5Y-2.11%
EPS Q2Q%-8.4%
EPS Next Y7.26%
EPS Next 2Y10.6%
EPS Next 3Y12.01%
EPS Next 5Y11.45%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y7.63%
Revenue growth 5Y8.39%
Sales Q2Q%8.17%
Revenue Next Year1.31%
Revenue Next 2Y2.99%
Revenue Next 3Y3.57%
Revenue Next 5Y4.04%
EBIT growth 1Y6.02%
EBIT growth 3Y-13.61%
EBIT growth 5Y-5.55%
EBIT Next Year24.76%
EBIT Next 3Y14.94%
EBIT Next 5YN/A
FCF growth 1Y23.41%
FCF growth 3Y-16.58%
FCF growth 5Y-10.28%
OCF growth 1Y16.82%
OCF growth 3Y-13.04%
OCF growth 5Y-7.68%
CVS Health CDR / CVS.CA Fundamental Analysis FAQ
What is the fundamental rating for CVS stock?
ChartMill assigns a fundamental rating of 5 / 10 to CVS.CA.
What is the valuation status of CVS Health CDR (CVS.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to CVS Health CDR (CVS.CA). This can be considered as Undervalued.
How profitable is CVS Health CDR (CVS.CA) stock?
CVS Health CDR (CVS.CA) has a profitability rating of 5 / 10.
What is the valuation of CVS Health CDR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CVS Health CDR (CVS.CA) is 2.15 and the Price/Book (PB) ratio is 0.25.
What is the financial health of CVS Health CDR (CVS.CA) stock?
The financial health rating of CVS Health CDR (CVS.CA) is 3 / 10.