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CVS HEALTH CORP (CVS.DE) Stock Fundamental Analysis

FRA:CVS - Deutsche Boerse Ag - US1266501006 - Common Stock - Currency: EUR

60.24  +1.77 (+3.03%)

Fundamental Rating

3

CVS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 25 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 it does not seem to be growing.


Dividend Valuation Growth Profitability Health

3

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.
Each year in the past 5 years CVS has been profitable.
CVS had a positive operating cash flow in each of the past 5 years.
CVS.DE Yearly Net Income VS EBIT VS OCF VS FCFCVS.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

CVS has a Return On Assets of 1.75%. This is comparable to the rest of the industry: CVS outperforms 44.00% of its industry peers.
The Return On Equity of CVS (5.86%) is comparable to the rest of the industry.
CVS has a Return On Invested Capital of 4.57%. This is comparable to the rest of the industry: CVS outperforms 52.00% 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 5.91%.
Industry RankSector 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%
CVS.DE Yearly ROA, ROE, ROICCVS.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

1.3 Margins

With a Profit Margin value of 1.17%, CVS is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
CVS's Profit Margin has declined in the last couple of years.
CVS has a Operating Margin of 2.65%. This is in the lower half of the industry: CVS underperforms 72.00% of its industry peers.
In the last couple of years the Operating Margin of CVS has declined.
Looking at the Gross Margin, with a value of 13.82%, CVS is doing worse than 72.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CVS has declined.
Industry RankSector 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%
CVS.DE Yearly Profit, Operating, Gross MarginsCVS.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVS is destroying value.
Compared to 1 year ago, CVS has less shares outstanding
CVS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CVS has a worse debt to assets ratio.
CVS.DE Yearly Shares OutstandingCVS.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
CVS.DE Yearly Total Debt VS Total AssetsCVS.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B 250B

2.2 Solvency

An Altman-Z score of 2.18 indicates that CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.18, CVS is doing good in the industry, outperforming 68.00% of the companies in the same industry.
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: 68.00% of the companies in the same industry are doing better.
CVS has a Debt/Equity ratio of 0.78. This is a neutral value indicating CVS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, CVS perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF 13.91
Altman-Z 2.18
ROIC/WACC0.62
WACC7.33%
CVS.DE Yearly LT Debt VS Equity VS FCFCVS.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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.
CVS has a worse Current ratio (0.80) than 68.00% 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.
Looking at the Quick ratio, with a value of 0.62, CVS is doing worse than 68.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.8
Quick Ratio 0.62
CVS.DE Yearly Current Assets VS Current LiabilitesCVS.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

3

3. Growth

3.1 Past

The earnings per share for CVS have decreased strongly by -15.13% in the last year.
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.
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.
The Revenue is expected to grow by 4.84% on average over the next years.
EPS Next Y14.3%
EPS Next 2Y14.4%
EPS Next 3Y14.23%
EPS Next 5Y10.99%
Revenue Next Year4.03%
Revenue Next 2Y4.03%
Revenue Next 3Y4.69%
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.
CVS.DE Yearly Revenue VS EstimatesCVS.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 100B 200B 300B 400B 500B
CVS.DE Yearly EPS VS EstimatesCVS.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.09, the valuation of CVS can be described as reasonable.
Based on the Price/Earnings ratio, CVS is valued cheaper than 92.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. CVS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.91, the valuation of CVS can be described as reasonable.
Based on the Price/Forward Earnings ratio, CVS is valued cheaper than 88.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CVS to the average of the S&P500 Index (35.24), we can say CVS is valued rather cheaply.
Industry RankSector Rank
PE 11.09
Fwd PE 9.91
CVS.DE Price Earnings VS Forward Price EarningsCVS.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

72.00% of the companies in the same industry are cheaper than CVS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.61
EV/EBITDA N/A
CVS.DE Per share dataCVS.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150 200 250

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 14.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y14.4%
EPS Next 3Y14.23%

6

5. Dividend

5.1 Amount

CVS has a Yearly Dividend Yield of 3.99%.
Compared to an average industry Dividend Yield of 2.79, CVS pays a better dividend. On top of this CVS pays more dividend than 96.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CVS pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.99%

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
CVS.DE Yearly Dividends per shareCVS.DE Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

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 2Y14.4%
EPS Next 3Y14.23%
CVS.DE Yearly Income VS Free CF VS DividendCVS.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B
CVS.DE Dividend Payout.CVS.DE Dividend Payout, showing the Payout Ratio.CVS.DE Dividend Payout.PayoutRetained Earnings

CVS HEALTH CORP

FRA:CVS (8/18/2025, 7:00:00 PM)

60.24

+1.77 (+3.03%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)07-31 2025-07-31/bmo
Earnings (Next)11-04 2025-11-04/bmo
Inst Owners87.14%
Inst Owner ChangeN/A
Ins Owners0.99%
Ins Owner ChangeN/A
Market Cap76.20B
Analysts77.58
Price Target70.39 (16.85%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.99%
Yearly Dividend2.27
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)0.91%
PT rev (3m)-0.67%
EPS NQ rev (1m)-2.58%
EPS NQ rev (3m)-14.21%
EPS NY rev (1m)0%
EPS NY rev (3m)3.9%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.05%
Valuation
Industry RankSector Rank
PE 11.09
Fwd PE 9.91
P/S 0.23
P/FCF 18.61
P/OCF 11.75
P/B 1.15
P/tB N/A
EV/EBITDA N/A
EPS(TTM)5.43
EY9.01%
EPS(NY)6.08
Fwd EY10.09%
FCF(TTM)3.24
FCFY5.37%
OCF(TTM)5.13
OCFY8.51%
SpS261.84
BVpS52.4
TBVpS-27.12
PEG (NY)0.78
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 2.18
F-Score5
WACC7.33%
ROIC/WACC0.62
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 Y14.3%
EPS Next 2Y14.4%
EPS Next 3Y14.23%
EPS Next 5Y10.99%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%8.42%
Revenue Next Year4.03%
Revenue Next 2Y4.03%
Revenue Next 3Y4.69%
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%