CVS HEALTH CORP (CVS.DE) Stock Fundamental Analysis
FRA:CVS - Deutsche Boerse Ag - US1266501006 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to CVS. CVS was compared to 503 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CVS was profitable.
CVS had a positive operating cash flow in the past year.
Each year in the past 5 years CVS has been profitable.
Each year in the past 5 years CVS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.07%, CVS is in line with its industry, outperforming 54.55% of the companies in the same industry.
With a Return On Equity value of 6.86%, CVS perfoms like the industry average, outperforming 50.00% of the companies in the same 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 significantly below the industry average of 13.71%.
| 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
CVS's Profit Margin of 1.39% is on the low side compared to the rest of the industry. CVS is outperformed by 63.64% of its industry peers.
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: 72.73% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CVS has declined.
CVS has a Gross Margin of 14.05%. This is in the lower half of the industry: CVS underperforms 72.73% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVS is destroying value.
CVS has less shares outstanding than it did 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
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.
CVS has a better Altman-Z score (2.18) than 68.18% 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 worse Debt to FCF ratio (10.89) than 63.64% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 10.89 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.65
WACC7.5%
2.3 Liquidity
A Current Ratio of 0.82 indicates that CVS may have some problems paying its short term obligations.
CVS's Current ratio of 0.82 is on the low side compared to the rest of the industry. CVS is outperformed by 68.18% 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 68.18% 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%.
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 4.99%.
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
The Earnings Per Share is expected to grow by 12.97% on average over the next years. This is quite good.
CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.43% yearly.
EPS Next Y14.3%
EPS Next 2Y14.46%
EPS Next 3Y14.15%
EPS Next 5Y12.97%
Revenue Next Year4.15%
Revenue Next 2Y4.09%
Revenue Next 3Y4.71%
Revenue Next 5Y4.43%
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 10.54.
CVS's Price/Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 95.45% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. CVS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.44, which indicates a very decent valuation of CVS.
Based on the Price/Forward Earnings ratio, CVS is valued cheaper than 81.82% of the companies in the same industry.
CVS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.44 |
4.2 Price Multiples
CVS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.27 | ||
| 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 14.15% in the coming years.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y14.46%
EPS Next 3Y14.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.98%, CVS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.44, CVS pays a better dividend. On top of this CVS pays more dividend than 95.45% of the companies listed in the same industry.
CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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.
CVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.88%
EPS Next 2Y14.46%
EPS Next 3Y14.15%
FRA:CVS (6/18/2025, 7:00:00 PM)
58.19
-0.48 (-0.82%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.33%
Inst Owner ChangeN/A
Ins Owners0.99%
Ins Owner ChangeN/A
Market Cap73.61B
Analysts77.58
Price Target69.75 (19.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend2.3
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)-1.57%
PT rev (3m)1.61%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)-7.58%
EPS NY rev (1m)0.4%
EPS NY rev (3m)3.79%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 9.44 | ||
| P/S | 0.22 | ||
| P/FCF | 14.27 | ||
| P/OCF | 9.68 | ||
| P/B | 1.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)5.52
EY9.49%
EPS(NY)6.17
Fwd EY10.6%
FCF(TTM)4.08
FCFY7.01%
OCF(TTM)6.01
OCFY10.33%
SpS260.15
BVpS52.81
TBVpS-28.04
PEG (NY)0.74
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 | 2.18 |
F-Score6
WACC7.5%
ROIC/WACC0.65
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 Y14.3%
EPS Next 2Y14.46%
EPS Next 3Y14.15%
EPS Next 5Y12.97%
Revenue 1Y (TTM)4.99%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%6.96%
Revenue Next Year4.15%
Revenue Next 2Y4.09%
Revenue Next 3Y4.71%
Revenue Next 5Y4.43%
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%