CVS HEALTH CORP (CVS) Stock Fundamental Analysis
USA - NYSE:CVS - US1266501006 - Common Stock
77.46 USD
-0.03 (-0.04%)
We assign a fundamental rating of 4 out of 10 to CVS. CVS was compared to 101 industry peers in the Health Care Providers & Services industry. While CVS is still in line with the averages on profitability rating, there are concerns on its financial health. CVS is valued correctly, but it does not seem to be growing. Finally CVS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CVS was profitable.
In the past year CVS had a positive cash flow from operations.
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 has a Return On Assets (1.75%) which is in line with its industry peers.
CVS has a better Return On Equity (5.86%) than 63.37% of its industry peers.
CVS has a Return On Invested Capital of 4.57%. This is comparable to the rest of the industry: CVS outperforms 54.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CVS is below the industry average of 9.20%.
| 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's Profit Margin of 1.17% is in line compared to the rest of the industry. CVS outperforms 57.43% of its industry peers.
In the last couple of years the Profit Margin of CVS has declined.
CVS has a Operating Margin of 2.65%. This is comparable to the rest of the industry: CVS outperforms 51.49% of its industry peers.
CVS's Operating Margin has declined in the last couple of years.
CVS has a Gross Margin of 13.82%. This is in the lower half of the industry: CVS underperforms 67.33% of its industry peers.
In the last couple of years the Gross Margin of CVS has declined.
| 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
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.
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 2.21 indicates that CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.21, CVS is in line with its industry, outperforming 50.49% of the companies in the same industry.
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.
CVS has a Debt to FCF ratio (13.91) which is in line with 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 of 0.78. This is comparable to the rest of the industry: CVS outperforms 43.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 13.91 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.55
WACC8.27%
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 85.15% 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.
CVS has a worse Quick ratio (0.62) than 86.14% of its industry peers.
| 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.
Looking at the last year, CVS shows a small growth in Revenue. The Revenue has grown by 6.44% in the last year.
The Revenue has been growing slightly by 7.74% on average over the past years.
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.
CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.71% yearly.
EPS Next Y18.59%
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
CVS is valuated correctly with a Price/Earnings ratio of 12.22.
87.13% of the companies in the same industry are more expensive than CVS, based on the Price/Earnings ratio.
CVS is valuated cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.73, 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 rather cheap valuation: CVS is cheaper than 87.13% of the companies listed in the same industry.
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 | 12.22 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
64.36% of the companies in the same industry are more expensive than CVS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.55 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CVS's 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)0.66
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%.
CVS's Dividend Yield is rather good when compared to the industry average which is at 2.45. CVS pays more dividend than 97.03% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, CVS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
The dividend of CVS has a limited annual growth rate of 5.72%.
CVS has been paying a dividend for at least 10 years, so it has a reliable track record.
CVS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.72%
Div Incr Years3
Div Non Decr Years28
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 2Y15.41%
EPS Next 3Y14.23%
NYSE:CVS (10/6/2025, 10:02:08 AM)
77.46
-0.03 (-0.04%)
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 Change0%
Ins Owners0.99%
Ins Owner Change2.43%
Market Cap98.24B
Analysts80
Price Target82.68 (6.74%)
Short Float %1.88%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend2.65
Dividend Growth(5Y)5.72%
DP74.62%
Div Incr Years3
Div Non Decr Years28
Ex-Date
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)1.47%
PT rev (3m)3.2%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-5.01%
EPS NY rev (1m)0.15%
EPS NY rev (3m)3.75%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 10.73 | ||
| P/S | 0.25 | ||
| P/FCF | 20.55 | ||
| P/OCF | 12.98 | ||
| P/B | 1.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.34
EY8.18%
EPS(NY)7.22
Fwd EY9.32%
FCF(TTM)3.77
FCFY4.87%
OCF(TTM)5.97
OCFY7.7%
SpS304.84
BVpS61.01
TBVpS-31.58
PEG (NY)0.66
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 | 2.21 |
F-Score5
WACC8.27%
ROIC/WACC0.55
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%