CVS HEALTH CORP (CVS.DE) Stock Fundamental Analysis
Europe - FRA:CVS - US1266501006 - Common Stock
66.86 EUR
+1.11 (+1.69%)
We assign a fundamental rating of 3 out of 10 to CVS. CVS was compared to 32 industry peers in the Health Care Providers & Services industry. Both the profitability and financial health of CVS have multiple concerns. 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
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 worse Return On Assets (1.75%) than 65.63% of its industry peers.
CVS has a Return On Equity (5.86%) which is in line with its industry peers.
The Return On Invested Capital of CVS (4.57%) 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 6.78%.
| 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 (1.17%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CVS has declined.
Looking at the Operating Margin, with a value of 2.65%, CVS is doing worse than 68.75% of the companies in the same industry.
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 62.50% 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.
Compared to 1 year ago, CVS has less shares outstanding
Compared to 5 years ago, CVS has less shares outstanding
Compared to 1 year ago, CVS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.22 indicates that CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVS has a Altman-Z score of 2.22. This is comparable to the rest of the industry: CVS outperforms 59.38% of its industry peers.
CVS has a debt to FCF ratio of 13.91. This is a negative value and a sign of low solvency as CVS would need 13.91 years to pay back of all of its debts.
The Debt to FCF ratio of CVS (13.91) is worse than 65.63% 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's Debt to Equity ratio of 0.78 is in line compared to the rest of the industry. CVS outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 13.91 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.56
WACC8.2%
2.3 Liquidity
CVS has a Current Ratio of 0.80. This is a bad value and indicates that CVS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CVS (0.80) is worse than 68.75% of its industry peers.
CVS has a Quick Ratio of 0.80. 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 0.62, CVS is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| 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.
The Revenue has been growing slightly by 6.44% in the past 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)-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
The Earnings Per Share is expected to grow by 10.91% on average over the next years. This is quite good.
Based on estimates for the next years, CVS will show a small growth in Revenue. The Revenue will grow by 4.71% on average per year.
EPS Next Y18.59%
EPS Next 2Y15.41%
EPS Next 3Y14.23%
EPS Next 5Y10.91%
Revenue Next Year6.17%
Revenue Next 2Y4.99%
Revenue Next 3Y5.11%
Revenue Next 5Y4.71%
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
With a Price/Earnings ratio of 12.38, CVS is valued correctly.
CVS's Price/Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 84.38% of the companies in the same industry.
When comparing the Price/Earnings ratio of CVS to the average of the S&P500 Index (27.86), we can say CVS is valued rather cheaply.
CVS is valuated reasonably with a Price/Forward Earnings ratio of 10.87.
84.38% of the companies in the same industry are more expensive than CVS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.32. CVS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CVS is valued a bit more expensive than the industry average as 65.63% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.82 | ||
| 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 14.23% in the coming years.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y15.41%
EPS Next 3Y14.23%
5. Dividend
5.1 Amount
CVS has a Yearly Dividend Yield of 3.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.38, CVS pays a better dividend. On top of this CVS pays more dividend than 93.75% of the companies listed in the same industry.
CVS's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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.
The dividend of CVS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP74.62%
EPS Next 2Y15.41%
EPS Next 3Y14.23%
FRA:CVS (10/3/2025, 7:00:00 PM)
66.86
+1.11 (+1.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners88.11%
Inst Owner ChangeN/A
Ins Owners0.99%
Ins Owner ChangeN/A
Market Cap84.80B
Analysts80
Price Target69.7 (4.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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)-0.35%
PT rev (3m)-0.08%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-5.35%
EPS NY rev (1m)0.15%
EPS NY rev (3m)3.75%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 10.87 | ||
| P/S | 0.26 | ||
| P/FCF | 20.82 | ||
| P/OCF | 13.15 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)5.4
EY8.08%
EPS(NY)6.15
Fwd EY9.2%
FCF(TTM)3.21
FCFY4.8%
OCF(TTM)5.09
OCFY7.61%
SpS259.79
BVpS51.99
TBVpS-26.91
PEG (NY)0.67
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 | 2.22 |
F-Score5
WACC8.2%
ROIC/WACC0.56
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 Y18.59%
EPS Next 2Y15.41%
EPS Next 3Y14.23%
EPS Next 5Y10.91%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%8.42%
Revenue Next Year6.17%
Revenue Next 2Y4.99%
Revenue Next 3Y5.11%
Revenue Next 5Y4.71%
EBIT growth 1Y-20.52%
EBIT growth 3Y-12.98%
EBIT growth 5Y-4.24%
EBIT Next Year40.75%
EBIT Next 3Y19.75%
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%