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 27 industry peers in the Health Care Providers & Services industry. CVS may be in some trouble as it scores bad on both profitability and health. CVS has a valuation in line with the averages, but it does not seem to be growing. Finally CVS also has an excellent dividend rating.
1. Profitability
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.
Each year in the past 5 years CVS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CVS (2.07%) is comparable to the rest of the industry.
The Return On Equity of CVS (6.86%) is comparable to the rest of the industry.
The Return On Invested Capital of CVS (4.85%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CVS is in line with the industry average of 5.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 6.86% | ||
| ROIC | 4.85% |
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
Looking at the Profit Margin, with a value of 1.39%, CVS is doing worse than 62.96% of the companies in the same industry.
CVS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 2.88%, CVS is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
CVS's Operating Margin has declined in the last couple of years.
The Gross Margin of CVS (14.05%) is worse than 74.07% of its industry peers.
In the last couple of years the Gross Margin of CVS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.88% | ||
| PM (TTM) | 1.39% | ||
| GM | 14.05% |
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
CVS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CVS has less shares outstanding
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 2.17. 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.
CVS has a better Altman-Z score (2.17) than 70.37% of its industry peers.
The Debt to FCF ratio of CVS is 10.89, which is on the high side as it means it would take CVS, 10.89 years of fcf income to pay off all of its debts.
CVS has a Debt to FCF ratio of 10.89. This is comparable to the rest of the industry: CVS outperforms 44.44% of its industry peers.
CVS has a Debt/Equity ratio of 0.78. This is a neutral value indicating 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 | 10.89 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.68
WACC7.15%
2.3 Liquidity
A Current Ratio of 0.82 indicates that CVS may have some problems paying its short term obligations.
CVS has a worse Current ratio (0.82) than 62.96% of its industry peers.
A Quick Ratio of 0.63 indicates that CVS may have some problems paying its short term obligations.
CVS's Quick ratio of 0.63 is on the low side compared to the rest of the industry. CVS is outperformed by 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.63 |
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%.
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 4.99% 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)-18.98%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%71.76%
Revenue 1Y (TTM)4.99%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%6.96%
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 12.74% on average per year.
CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y13.84%
EPS Next 2Y14.3%
EPS Next 3Y14.14%
EPS Next 5Y12.74%
Revenue Next Year4.04%
Revenue Next 2Y4.09%
Revenue Next 3Y4.74%
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
CVS is valuated reasonably with a Price/Earnings ratio of 9.98.
Based on the Price/Earnings ratio, CVS is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
CVS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.25.
With a Price/Forward Earnings ratio of 8.97, the valuation of CVS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CVS is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.15. CVS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 8.97 |
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 | 13.52 | ||
| 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.
CVS's earnings are expected to grow with 14.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y14.3%
EPS Next 3Y14.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.24%, CVS is a good candidate for dividend investing.
CVS's Dividend Yield is rather good when compared to the industry average which is at 2.78. CVS pays more dividend than 96.30% of the companies in the same industry.
CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
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 63.88% 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.
DP63.88%
EPS Next 2Y14.3%
EPS Next 3Y14.14%
FRA:CVS (5/30/2025, 7:00:00 PM)
55.99
+0.94 (+1.71%)
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 Cap70.83B
Analysts76.36
Price Target70.87 (26.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
Yearly Dividend2.33
Dividend Growth(5Y)5.72%
DP63.88%
Div Incr Years3
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.01%
Min EPS beat(2)27.26%
Max EPS beat(2)30.76%
EPS beat(4)3
Avg EPS beat(4)8.58%
Min EPS beat(4)-28.4%
Max EPS beat(4)30.76%
EPS beat(8)6
Avg EPS beat(8)2.83%
EPS beat(12)10
Avg EPS beat(12)3.55%
EPS beat(16)14
Avg EPS beat(16)4.5%
Revenue beat(2)1
Avg Revenue beat(2)-0.22%
Min Revenue beat(2)-0.46%
Max Revenue beat(2)0.02%
Revenue beat(4)2
Avg Revenue beat(4)0.04%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)1.87%
Revenue beat(8)5
Avg Revenue beat(8)0.44%
Revenue beat(12)9
Avg Revenue beat(12)2.18%
Revenue beat(16)13
Avg Revenue beat(16)2.08%
PT rev (1m)6.48%
PT rev (3m)14.78%
EPS NQ rev (1m)-8.13%
EPS NQ rev (3m)-9.63%
EPS NY rev (1m)3.47%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 8.97 | ||
| P/S | 0.21 | ||
| P/FCF | 13.52 | ||
| P/OCF | 9.17 | ||
| P/B | 1.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)5.61
EY10.02%
EPS(NY)6.25
Fwd EY11.15%
FCF(TTM)4.14
FCFY7.4%
OCF(TTM)6.11
OCFY10.91%
SpS264.19
BVpS53.63
TBVpS-28.47
PEG (NY)0.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 6.86% | ||
| ROCE | 6.54% | ||
| ROIC | 4.85% | ||
| ROICexc | 5.25% | ||
| ROICexgc | 21.75% | ||
| OM | 2.88% | ||
| PM (TTM) | 1.39% | ||
| GM | 14.05% | ||
| FCFM | 1.57% |
ROA(3y)2.35%
ROA(5y)2.72%
ROE(3y)7.68%
ROE(5y)8.81%
ROIC(3y)6.22%
ROIC(5y)6.35%
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-Score6
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 10.89 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.74% | ||
| Interest Coverage | -3.79 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 112.52% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 2.17 |
F-Score6
WACC7.15%
ROIC/WACC0.68
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 Y13.84%
EPS Next 2Y14.3%
EPS Next 3Y14.14%
EPS Next 5Y12.74%
Revenue 1Y (TTM)4.99%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%6.96%
Revenue Next Year4.04%
Revenue Next 2Y4.09%
Revenue Next 3Y4.74%
Revenue Next 5Y4.22%
EBIT growth 1Y-19.64%
EBIT growth 3Y-12.98%
EBIT growth 5Y-4.24%
EBIT Next Year41.15%
EBIT Next 3Y19.25%
EBIT Next 5YN/A
FCF growth 1Y-65.84%
FCF growth 3Y-26.21%
FCF growth 5Y-9.45%
OCF growth 1Y-56.31%
OCF growth 3Y-20.7%
OCF growth 5Y-6.65%