CVS HEALTH CORP (CVS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CVS - US1266501006 - Common Stock
67.36 EUR
-1.05 (-1.53%)
Overall CVS gets a fundamental rating of 4 out of 10. We evaluated CVS against 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 is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years CVS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.18%, CVS is doing worse than 81.48% of the companies in the same industry.
CVS's Return On Equity of 0.64% is on the low side compared to the rest of the industry. CVS is outperformed by 85.19% of its industry peers.
With a Return On Invested Capital value of 4.90%, CVS perfoms like the industry average, outperforming 40.74% 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 6.98%.
| 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's Profit Margin of 0.12% is on the low side compared to the rest of the industry. CVS is outperformed by 81.48% 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 74.07% of its industry peers.
In the last couple of years the Operating Margin of CVS has declined.
With a Gross Margin value of 13.88%, CVS is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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
CVS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CVS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVS has less shares outstanding
CVS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.26 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 2.26. This is comparable to the rest of the industry: CVS outperforms 59.26% of 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 44.44% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that CVS is somewhat dependend on debt financing.
CVS has a Debt to Equity ratio of 0.85. This is comparable to the rest of the industry: CVS outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.62
WACC7.93%
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.
CVS has a worse Current ratio (0.83) than 66.67% 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 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%.
Measured over the past years, CVS shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.20% on average per year.
Looking at the last year, CVS shows a small growth in Revenue. The Revenue has grown by 6.82% in the last 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)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
Based on estimates for the next years, CVS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.34% on average per year.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y21.57%
EPS Next 2Y15.57%
EPS Next 3Y14.75%
EPS Next 5Y12.34%
Revenue Next Year7.03%
Revenue Next 2Y5.59%
Revenue Next 3Y5.45%
Revenue Next 5Y5%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.42, the valuation of CVS can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CVS indicates a rather cheap valuation: CVS is cheaper than 81.48% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, CVS is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.81, the valuation of CVS can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVS indicates a somewhat cheap valuation: CVS is cheaper than 74.07% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.22. CVS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
CVS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.78 | ||
| 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 14.75% in the coming years.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y15.57%
EPS Next 3Y14.75%
5. Dividend
5.1 Amount
CVS has a Yearly Dividend Yield of 3.33%. Purely for dividend investing, there may be better candidates out there.
CVS's Dividend Yield is rather good when compared to the industry average which is at 2.04. CVS pays more dividend than 96.30% of the companies in the same industry.
CVS's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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
722.81% 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.
DP722.81%
EPS Next 2Y15.57%
EPS Next 3Y14.75%
FRA:CVS (12/2/2025, 7:00:00 PM)
67.36
-1.05 (-1.53%)
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 Cap85.51B
Revenue(TTM)394.08B
Net Income(TTM)469.00M
Analysts80
Price Target80.46 (19.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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)15.44%
PT rev (3m)15.04%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)2.42%
EPS NY rev (3m)2.66%
Revenue NQ rev (1m)1.17%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)0.82%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 10.81 | ||
| P/S | 0.25 | ||
| P/FCF | 15.78 | ||
| P/OCF | 10.9 | ||
| P/B | 1.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)5.9
EY8.76%
EPS(NY)6.23
Fwd EY9.25%
FCF(TTM)4.27
FCFY6.34%
OCF(TTM)6.18
OCFY9.17%
SpS267.3
BVpS49.47
TBVpS-26.14
PEG (NY)0.53
PEG (5Y)N/A
Graham Number81.03
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 | 2.26 |
F-Score6
WACC7.93%
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)7.87%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%46.79%
EPS Next Y21.57%
EPS Next 2Y15.57%
EPS Next 3Y14.75%
EPS Next 5Y12.34%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%7.8%
Revenue Next Year7.03%
Revenue Next 2Y5.59%
Revenue Next 3Y5.45%
Revenue Next 5Y5%
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 5Y17.54%
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 11.42 and the Price/Book (PB) ratio is 1.36.
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%.