CVS HEALTH CORP (CVS) Stock Fundamental Analysis
USA - NYSE:CVS - US1266501006 - Common Stock
78.21 USD
-1.03 (-1.3%)
CVS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 100 industry peers in the Health Care Providers & Services industry. CVS has a bad profitability rating. Also its financial health evaluation is rather negative. CVS may be a bit undervalued, certainly considering the very reasonable score on growth
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 in line compared to the rest of the industry. CVS outperforms 49.00% of its industry peers.
CVS has a Return On Equity (0.64%) which is comparable to the rest of the industry.
CVS has a Return On Invested Capital (4.90%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CVS is below the industry average of 9.45%.
| 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 (0.12%) which is comparable to the rest of the industry.
CVS's Profit Margin has declined in the last couple of years.
CVS's Operating Margin of 2.73% is in line compared to the rest of the industry. CVS outperforms 53.00% of its industry peers.
In the last couple of years the Operating Margin of CVS has declined.
CVS has a worse Gross Margin (13.88%) than 68.00% 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
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 2.26 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 53.00% 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 has a Debt to FCF ratio (10.46) which is comparable to the rest of the industry.
CVS has a Debt/Equity ratio of 0.85. This is a neutral value indicating 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 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.59
WACC8.33%
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 83.00% of its industry peers.
CVS has a Quick 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 Quick ratio (0.63) than 83.00% 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%.
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 6.82% in the last 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)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
The Earnings Per Share is expected to grow by 12.34% on average over the next years. This is quite good.
Based on estimates for the next years, CVS will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
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
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 11.42.
Based on the Price/Earnings ratio, CVS is valued cheaper than 87.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CVS to the average of the S&P500 Index (25.91), we can say CVS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.80, the valuation of CVS can be described as reasonable.
Based on the Price/Forward Earnings ratio, CVS is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
CVS is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CVS is valued a bit cheaper than the industry average as 73.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.76 | ||
| 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
With a Yearly Dividend Yield of 3.38%, 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 97.00% of the companies listed in the same industry.
CVS's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
5.2 History
The dividend of CVS has a limited annual growth rate of 5.72%.
CVS has paid a dividend for at least 10 years, which is 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
722.81% 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.
DP722.81%
EPS Next 2Y15.57%
EPS Next 3Y14.75%
NYSE:CVS (11/14/2025, 3:40:09 PM)
78.21
-1.03 (-1.3%)
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 Change-0.33%
Ins Owners0.99%
Ins Owner Change2.43%
Market Cap99.20B
Revenue(TTM)394.08B
Net Income(TTM)469.00M
Analysts80
Price Target86.52 (10.63%)
Short Float %1.56%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Yearly Dividend2.65
Dividend Growth(5Y)5.72%
DP722.81%
Div Incr Years3
Div Non Decr Years28
Ex-Date
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)4.64%
PT rev (3m)7.47%
EPS NQ rev (1m)2.19%
EPS NQ rev (3m)0.26%
EPS NY rev (1m)2.51%
EPS NY rev (3m)6.36%
Revenue NQ rev (1m)1.21%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)2.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 10.8 | ||
| P/S | 0.25 | ||
| P/FCF | 15.76 | ||
| P/OCF | 10.89 | ||
| P/B | 1.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.85
EY8.76%
EPS(NY)7.24
Fwd EY9.26%
FCF(TTM)4.96
FCFY6.34%
OCF(TTM)7.18
OCFY9.18%
SpS310.71
BVpS57.5
TBVpS-30.38
PEG (NY)0.53
PEG (5Y)N/A
Graham Number94.14
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
WACC8.33%
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 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 FAQ
What is the fundamental rating for CVS stock?
ChartMill assigns a fundamental rating of 4 / 10 to CVS.
What is the valuation status for CVS stock?
ChartMill assigns a valuation rating of 7 / 10 to CVS HEALTH CORP (CVS). This can be considered as Undervalued.
What is the profitability of CVS stock?
CVS HEALTH CORP (CVS) has a profitability rating of 3 / 10.
What are the PE and PB ratios of CVS HEALTH CORP (CVS) stock?
The Price/Earnings (PE) ratio for CVS HEALTH CORP (CVS) 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) is 6 / 10 and the dividend payout ratio is 722.81%.