CVS HEALTH CORP (CVS.DE) Stock Fundamental Analysis
Europe - FRA:CVS - US1266501006 - Common Stock
66.64 EUR
-0.59 (-0.88%)
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 has a bad profitability rating. Also its financial health evaluation is rather negative. CVS has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years CVS had a positive operating cash flow.
1.2 Ratios
CVS's Return On Assets of 0.18% is on the low side compared to the rest of the industry. CVS is outperformed by 74.07% of its industry peers.
CVS has a worse Return On Equity (0.64%) than 74.07% of its industry peers.
With a Return On Invested Capital value of 4.90%, CVS perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
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 6.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.18% | ||
| ROE | 0.64% | ||
| ROIC | 4.9% |
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 0.12%. This is in the lower half of the industry: CVS underperforms 74.07% of its industry peers.
CVS's Profit Margin has declined in the last couple of years.
CVS has a worse Operating Margin (2.73%) than 70.37% of its industry peers.
In the last couple of years the Operating Margin of CVS has declined.
The Gross Margin of CVS (13.88%) is worse than 66.67% of its industry peers.
CVS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.73% | ||
| PM (TTM) | 0.12% | ||
| GM | 13.88% |
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-4.91%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CVS is destroying value.
CVS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVS has less shares outstanding
The debt/assets ratio for CVS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.25 indicates that CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVS has a Altman-Z score (2.25) which is in line with its industry peers.
CVS has a debt to FCF ratio of 10.46. This is a negative value and a sign of low solvency as CVS would need 10.46 years to pay back of all of its debts.
CVS's Debt to FCF ratio of 10.46 is in line compared to the rest of the industry. CVS outperforms 40.74% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that CVS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.85, CVS is in line with its industry, outperforming 48.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.59
WACC8.3%
2.3 Liquidity
CVS has a Current Ratio of 0.83. 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 Current ratio value of 0.83, CVS is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
CVS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.87%.
The Earnings Per Share has been decreasing by -5.20% on average over the past years.
CVS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.82%.
CVS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.74% yearly.
EPS 1Y (TTM)7.87%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%46.79%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%7.8%
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 10.91% yearly.
CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.71% yearly.
EPS Next Y18.7%
EPS Next 2Y15.58%
EPS Next 3Y14.55%
EPS Next 5Y10.91%
Revenue Next Year6.16%
Revenue Next 2Y5%
Revenue Next 3Y5.09%
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
The Price/Earnings ratio is 11.24, which indicates a very decent valuation of CVS.
88.89% of the companies in the same industry are more expensive than CVS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.11. CVS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.63, which indicates a very decent valuation of CVS.
CVS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CVS is cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CVS to the average of the S&P500 Index (22.55), we can say CVS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 10.63 |
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 | 15.52 | ||
| 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.
A more expensive valuation may be justified as CVS's earnings are expected to grow with 14.55% in the coming years.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y15.58%
EPS Next 3Y14.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.47%, CVS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.55, CVS pays a better dividend. On top of this CVS pays more dividend than 96.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, CVS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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 722.81% of its income as dividend. This is not a sustainable payout ratio.
CVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP722.81%
EPS Next 2Y15.58%
EPS Next 3Y14.55%
FRA:CVS (10/31/2025, 7:00:00 PM)
66.64
-0.59 (-0.88%)
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 Cap84.52B
Revenue(TTM)394.08B
Net Income(TTM)469.00M
Analysts80
Price Target74.21 (11.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend2.29
Dividend Growth(5Y)5.72%
DP722.81%
Div Incr Years3
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.34%
Min EPS beat(2)15.69%
Max EPS beat(2)22.99%
EPS beat(4)4
Avg EPS beat(4)24.17%
Min EPS beat(4)15.69%
Max EPS beat(4)30.76%
EPS beat(8)6
Avg EPS beat(8)6.87%
EPS beat(12)10
Avg EPS beat(12)5.67%
EPS beat(16)14
Avg EPS beat(16)5.3%
Revenue beat(2)2
Avg Revenue beat(2)3.34%
Min Revenue beat(2)3.04%
Max Revenue beat(2)3.64%
Revenue beat(4)3
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-0.46%
Max Revenue beat(4)3.64%
Revenue beat(8)5
Avg Revenue beat(8)0.97%
Revenue beat(12)9
Avg Revenue beat(12)1.97%
Revenue beat(16)13
Avg Revenue beat(16)2.12%
PT rev (1m)5.46%
PT rev (3m)7.5%
EPS NQ rev (1m)1.24%
EPS NQ rev (3m)-4.69%
EPS NY rev (1m)0.09%
EPS NY rev (3m)3.84%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 10.63 | ||
| P/S | 0.25 | ||
| P/FCF | 15.52 | ||
| P/OCF | 10.72 | ||
| P/B | 1.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)5.93
EY8.9%
EPS(NY)6.27
Fwd EY9.4%
FCF(TTM)4.29
FCFY6.44%
OCF(TTM)6.22
OCFY9.33%
SpS268.92
BVpS49.77
TBVpS-26.3
PEG (NY)0.6
PEG (5Y)N/A
Graham Number81.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.18% | ||
| ROE | 0.64% | ||
| ROCE | 6.61% | ||
| ROIC | 4.9% | ||
| ROICexc | 5.26% | ||
| ROICexgc | 19.51% | ||
| OM | 2.73% | ||
| PM (TTM) | 0.12% | ||
| GM | 13.88% | ||
| FCFM | 1.6% |
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%
ROICexgc growth 3Y-10.65%
ROICexgc 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-4.91%
F-Score6
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 10.46 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | -3.53 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 1341.79% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 2.25 |
F-Score6
WACC8.3%
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)7.87%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%46.79%
EPS Next Y18.7%
EPS Next 2Y15.58%
EPS Next 3Y14.55%
EPS Next 5Y10.91%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%7.8%
Revenue Next Year6.16%
Revenue Next 2Y5%
Revenue Next 3Y5.09%
Revenue Next 5Y4.71%
EBIT growth 1Y-3.81%
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-44.32%
FCF growth 3Y-26.21%
FCF growth 5Y-9.45%
OCF growth 1Y-35.44%
OCF growth 3Y-20.7%
OCF growth 5Y-6.65%
CVS HEALTH CORP / CVS.DE 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 for CVS stock?
ChartMill assigns a valuation rating of 6 / 10 to CVS HEALTH CORP (CVS.DE). This can be considered as Fairly Valued.
What is the profitability of CVS stock?
CVS HEALTH CORP (CVS.DE) has a profitability rating of 3 / 10.
What are the PE and PB ratios of CVS HEALTH CORP (CVS.DE) stock?
The Price/Earnings (PE) ratio for CVS HEALTH CORP (CVS.DE) is 11.24 and the Price/Book (PB) ratio is 1.34.
Is the dividend of CVS HEALTH CORP sustainable?
The dividend rating of CVS HEALTH CORP (CVS.DE) is 5 / 10 and the dividend payout ratio is 722.81%.