CVS HEALTH CORP (CVS.DE) Stock Fundamental Analysis
FRA:CVS - US1266501006 - Common Stock
61.12 EUR
+0.77 (+1.28%)
CVS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 27 industry peers in the Health Care Providers & Services industry. CVS has a bad profitability rating. Also its financial health evaluation is rather negative. CVS has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CVS was profitable.
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 Return On Assets (1.75%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.86%, CVS is in line with its industry, outperforming 44.44% of the companies in the same industry.
CVS has a Return On Invested Capital of 4.57%. This is comparable to the rest of the industry: CVS outperforms 55.56% of its industry peers.
CVS had an Average Return On Invested Capital over the past 3 years of 6.22%. This is in line with the industry average of 6.10%.
| 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
CVS has a Profit Margin of 1.17%. This is in the lower half of the industry: CVS underperforms 62.96% of its industry peers.
CVS's Profit Margin has declined in the last couple of years.
CVS's Operating Margin of 2.65% is on the low side compared to the rest of the industry. CVS is outperformed by 74.07% of its industry peers.
In the last couple of years the Operating Margin of CVS has declined.
CVS has a Gross Margin of 13.82%. This is in the lower half of the industry: CVS underperforms 74.07% of its industry peers.
CVS's Gross Margin has declined in the last couple of years.
| 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), CVS is destroying value.
The number of shares outstanding for CVS has been reduced compared to 1 year ago.
CVS has less shares outstanding than it did 5 years ago.
CVS has a worse debt/assets ratio than last year.
2.2 Solvency
CVS has an Altman-Z score of 2.19. 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.
The Altman-Z score of CVS (2.19) is better than 62.96% of its industry peers.
The Debt to FCF ratio of CVS is 13.91, which is on the high side as it means it would take CVS, 13.91 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 13.91, CVS is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.78 indicates that CVS is somewhat dependend on debt financing.
CVS has a Debt to Equity ratio (0.78) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 13.91 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.59
WACC7.78%
2.3 Liquidity
A Current Ratio of 0.80 indicates that CVS may have some problems paying its short term obligations.
With a Current ratio value of 0.80, CVS is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
A Quick Ratio of 0.62 indicates that CVS may have some problems paying its short term obligations.
CVS's Quick ratio of 0.62 is on the low side compared to the rest of the industry. CVS is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
CVS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.13%.
CVS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.20% yearly.
Looking at the last year, CVS shows a small growth in Revenue. The Revenue has grown by 6.44% in the last year.
Measured over the past years, CVS shows a small growth in Revenue. The Revenue has been growing by 7.74% on average per year.
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
CVS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.99% yearly.
Based on estimates for the next years, CVS will show a small growth in Revenue. The Revenue will grow by 4.84% on average per year.
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.
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.32, the valuation of CVS can be described as reasonable.
Based on the Price/Earnings ratio, CVS is valued cheaper than 92.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.07, CVS is valued rather cheaply.
The Price/Forward Earnings ratio is 9.94, which indicates a very decent valuation of CVS.
CVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 85.19% of the companies in the same industry.
CVS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
70.37% of the companies in the same industry are cheaper than CVS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.05 | ||
| 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 CVS'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
CVS has a Yearly Dividend Yield of 3.61%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.78, CVS pays a better dividend. On top of this CVS pays more dividend than 92.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, CVS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
The dividend of CVS has a limited annual growth rate of 5.72%.
Dividend Growth(5Y)5.72%
Div Incr Years3
Div Non Decr Years5
5.3 Sustainability
74.62% 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.
DP74.62%
EPS Next 2Y15.4%
EPS Next 3Y14.5%
FRA:CVS (9/9/2025, 7:00:00 PM)
61.12
+0.77 (+1.28%)
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 Cap77.52B
Analysts79.39
Price Target69.94 (14.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend2.26
Dividend Growth(5Y)5.72%
DP74.62%
Div Incr Years3
Div Non Decr Years5
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)1.31%
PT rev (3m)-0.31%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)-15.14%
EPS NY rev (1m)3.6%
EPS NY rev (3m)4.02%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)1.65%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 9.94 | ||
| P/S | 0.24 | ||
| P/FCF | 19.05 | ||
| P/OCF | 12.03 | ||
| P/B | 1.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)5.4
EY8.84%
EPS(NY)6.15
Fwd EY10.06%
FCF(TTM)3.21
FCFY5.25%
OCF(TTM)5.08
OCFY8.31%
SpS259.57
BVpS51.95
TBVpS-26.89
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
WACC7.78%
ROIC/WACC0.59
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%