CVS HEALTH CORP (CVS.DE) Fundamental Analysis & Valuation
FRA:CVS • US1266501006
Current stock price
65.84 EUR
+0.58 (+0.89%)
Last:
This CVS.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CVS.DE Profitability Analysis
1.1 Basic Checks
- CVS had positive earnings in the past year.
- In the past year CVS had a positive cash flow from operations.
- In the past 5 years CVS has always been profitable.
- In the past 5 years CVS always reported a positive cash flow from operatings.
1.2 Ratios
- CVS has a worse Return On Assets (0.70%) than 75.00% of its industry peers.
- CVS has a Return On Equity of 2.35%. This is in the lower half of the industry: CVS underperforms 75.00% of its industry peers.
- With a Return On Invested Capital value of 4.90%, CVS is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for CVS is in line with the industry average of 6.23%.
| 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 worse Profit Margin (0.44%) than 75.00% of its industry peers.
- CVS's Profit Margin has declined in the last couple of years.
- The Operating Margin of CVS (2.58%) is worse than 71.43% of its industry peers.
- CVS's Operating Margin has declined in the last couple of years.
- The Gross Margin of CVS (13.77%) is worse than 67.86% of its industry peers.
- In the last couple of years the Gross Margin of CVS has declined.
| 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.DE Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVS is destroying value.
- CVS has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for CVS has been reduced compared to 5 years ago.
- CVS has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.33 indicates that CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.33, CVS is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- CVS has a debt to FCF ratio of 8.27. This is a slightly negative value and a sign of low solvency as CVS would need 8.27 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 8.27, CVS is doing good in the industry, outperforming 60.71% of the companies in the same industry.
- CVS has a Debt/Equity ratio of 0.80. This is a neutral value indicating CVS is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.80, CVS is in line with its industry, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 8.27 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.6
WACC8.12%
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.
- CVS has a Current ratio (0.84) which is comparable to the rest of the industry.
- A Quick Ratio of 0.63 indicates that CVS may have some problems paying its short term obligations.
- CVS has a worse Quick ratio (0.63) than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.63 |
3. CVS.DE 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.
- The Earnings Per Share has been decreasing by -2.11% on average over the past years.
- The Revenue has been growing slightly by 7.85% in the past year.
- CVS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.39% yearly.
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 10.88% on average per year.
- Based on estimates for the next years, CVS will show a small growth in Revenue. The Revenue will grow by 4.08% on average per year.
EPS Next Y7.26%
EPS Next 2Y10.6%
EPS Next 3Y12.01%
EPS Next 5Y10.88%
Revenue Next Year1.31%
Revenue Next 2Y2.99%
Revenue Next 3Y3.57%
Revenue Next 5Y4.08%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. CVS.DE Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 11.45, the valuation of CVS can be described as reasonable.
- 78.57% of the companies in the same industry are more expensive than CVS, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of CVS to the average of the S&P500 Index (27.47), we can say CVS is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.67 indicates a reasonable valuation of CVS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CVS indicates a rather cheap valuation: CVS is cheaper than 85.71% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of CVS to the average of the S&P500 Index (22.62), we can say CVS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 10.67 |
4.2 Price Multiples
- CVS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.68 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The 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 CVS's earnings are expected to grow with 12.01% in the coming years.
PEG (NY)1.58
PEG (5Y)N/A
EPS Next 2Y10.6%
EPS Next 3Y12.01%
5. CVS.DE Dividend Analysis
5.1 Amount
- CVS has a Yearly Dividend Yield of 3.46%.
- Compared to an average industry Dividend Yield of 1.84, CVS pays a better dividend. On top of this CVS pays more dividend than 92.86% of the companies listed in the same industry.
- CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
5.2 History
- The dividend of CVS has a limited annual growth rate of 5.96%.
Dividend Growth(5Y)5.96%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
- CVS pays out 192.14% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of CVS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP192.14%
EPS Next 2Y10.6%
EPS Next 3Y12.01%
CVS.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:CVS (4/22/2026, 7:00:00 PM)
65.84
+0.58 (+0.89%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
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 Cap84.38B
Revenue(TTM)402.07B
Net Income(TTM)1.77B
Analysts80.61
Price Target81.46 (23.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
Yearly Dividend2.28
Dividend Growth(5Y)5.96%
DP192.14%
Div Incr Years0
Div Non Decr Years6
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)0.15%
PT rev (3m)0.92%
EPS NQ rev (1m)-1.3%
EPS NQ rev (3m)-1.51%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 10.67 | ||
| P/S | 0.25 | ||
| P/FCF | 12.68 | ||
| P/OCF | 9.31 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)5.75
EY8.73%
EPS(NY)6.17
Fwd EY9.37%
FCF(TTM)5.19
FCFY7.89%
OCF(TTM)7.08
OCFY10.75%
SpS267.38
BVpS50.02
TBVpS-23.79
PEG (NY)1.58
PEG (5Y)N/A
Graham Number80.444 (22.18%)
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 | 2.33 |
F-Score6
WACC8.12%
ROIC/WACC0.6
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 5Y10.88%
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 5Y4.08%
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 CORP / CVS.DE Fundamental Analysis FAQ
What is the fundamental rating for CVS stock?
ChartMill assigns a fundamental rating of 4 / 10 to CVS.DE.
What is the valuation status of CVS HEALTH CORP (CVS.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to CVS HEALTH CORP (CVS.DE). This can be considered as Fairly Valued.
How profitable is CVS HEALTH CORP (CVS.DE) stock?
CVS HEALTH CORP (CVS.DE) has a profitability rating of 2 / 10.
What is the valuation of CVS HEALTH CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CVS HEALTH CORP (CVS.DE) is 11.45 and the Price/Book (PB) ratio is 1.32.
What is the financial health of CVS HEALTH CORP (CVS.DE) stock?
The financial health rating of CVS HEALTH CORP (CVS.DE) is 3 / 10.