CVS HEALTH CORP (CVS.DE) Stock Fundamental Analysis
FRA:CVS - Deutsche Boerse Ag - US1266501006 - Common Stock - Currency: EUR
Taking everything into account, CVS scores 4 out of 10 in our fundamental rating. CVS was compared to 24 industry peers in the Health Care Providers & Services industry. CVS has a medium profitability rating, but doesn't score so well on its financial health evaluation. CVS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CVS was profitable.
In the past year CVS had a positive cash flow from operations.
In the past 5 years CVS has always been profitable.
Each year in the past 5 years CVS had a positive operating cash flow.
1.2 Ratios
CVS has a Return On Assets (1.82%) which is comparable to the rest of the industry.
With a Return On Equity value of 6.11%, CVS perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.29%, CVS is doing good in the industry, outperforming 62.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CVS is in line with the industry average of 5.60%.
| 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
The Profit Margin of CVS (1.24%) is comparable to the rest of the industry.
CVS's Profit Margin has declined in the last couple of years.
CVS's Operating Margin of 2.63% 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.
CVS's Gross Margin of 13.79% is on the low side compared to the rest of the industry. CVS is outperformed by 66.67% of its industry peers.
In the last couple of years the Gross Margin of CVS has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVS is destroying value.
The number of shares outstanding for CVS has been reduced compared to 1 year ago.
The number of shares outstanding for CVS has been reduced compared to 5 years ago.
CVS has a worse debt/assets ratio than last year.
2.2 Solvency
CVS has an Altman-Z score of 2.15. 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.
With a decent Altman-Z score value of 2.15, CVS is doing good in the industry, outperforming 79.17% of the companies in the same industry.
The Debt to FCF ratio of CVS is 10.48, which is on the high side as it means it would take CVS, 10.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.48, CVS is in line with its industry, outperforming 45.83% of the companies in the same industry.
CVS has a Debt/Equity ratio of 0.83. This is a neutral value indicating CVS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.83, CVS is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.59
WACC7.33%
2.3 Liquidity
CVS has a Current Ratio of 0.81. 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 (0.81) which is comparable to the rest of the industry.
A Quick Ratio of 0.60 indicates that CVS may have some problems paying its short term obligations.
CVS has a Quick ratio (0.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
CVS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.98%.
Measured over the past years, CVS shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.20% on average per year.
Looking at the last year, CVS shows a small growth in Revenue. The Revenue has grown by 4.20% in the last year.
CVS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.74% yearly.
EPS 1Y (TTM)-18.98%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%71.76%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%6.96%
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 12.74% yearly.
CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y10.02%
EPS Next 2Y12.96%
EPS Next 3Y13.58%
EPS Next 5Y12.74%
Revenue Next Year4.74%
Revenue Next 2Y4.8%
Revenue Next 3Y5.02%
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.
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
A Price/Earnings ratio of 10.41 indicates a reasonable valuation of CVS.
CVS's Price/Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.29. CVS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.58, the valuation of CVS can be described as very reasonable.
CVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.42. CVS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 9.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.23 | ||
| 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.
CVS's earnings are expected to grow with 13.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y12.96%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.83%, CVS has a reasonable but not impressive dividend return.
CVS's Dividend Yield is rather good when compared to the industry average which is at 2.73. CVS pays more dividend than 95.83% of the companies in the same industry.
CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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
CVS pays out 73.10% 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.
DP73.1%
EPS Next 2Y12.96%
EPS Next 3Y13.58%
FRA:CVS (5/6/2025, 7:00:00 PM)
58.52
-1.5 (-2.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners85.02%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap73.87B
Analysts76.36
Price Target66.55 (13.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend2.33
Dividend Growth(5Y)5.72%
DP73.1%
Div Incr Years3
Div Non Decr Years5
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)0.6%
PT rev (3m)7.8%
EPS NQ rev (1m)3.79%
EPS NQ rev (3m)28.63%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 9.58 | ||
| P/S | 0.22 | ||
| P/FCF | 13.23 | ||
| P/OCF | 9.19 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)5.62
EY9.6%
EPS(NY)6.11
Fwd EY10.43%
FCF(TTM)4.42
FCFY7.56%
OCF(TTM)6.37
OCFY10.89%
SpS260.77
BVpS52.85
TBVpS-30.1
PEG (NY)1.04
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
WACC7.33%
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)-18.98%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%71.76%
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%6.96%
Revenue Next Year4.74%
Revenue Next 2Y4.8%
Revenue Next 3Y5.02%
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%