CVS HEALTH CORP (CVS) Stock Fundamental Analysis
NYSE:CVS - US1266501006 - Common Stock
72 USD
+0.57 (+0.8%)
Taking everything into account, CVS scores 4 out of 10 in our fundamental rating. CVS was compared to 104 industry peers in the Health Care Providers & Services industry. CVS has a medium profitability rating, but doesn't score so well on its financial health evaluation. CVS is valued quite cheap, but it does not seem to be growing. Finally CVS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CVS had positive earnings in the past year.
In the past year CVS had a positive cash flow from operations.
CVS had positive earnings in each of the past 5 years.
In the past 5 years CVS always reported a positive cash flow from operatings.
1.2 Ratios
CVS has a Return On Assets (1.75%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.86%, CVS is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
CVS has a Return On Invested Capital (4.57%) which is in line with its industry peers.
CVS had an Average Return On Invested Capital over the past 3 years of 6.22%. This is below the industry average of 9.61%.
| 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 has a Profit Margin (1.17%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CVS has declined.
CVS has a Operating Margin (2.65%) which is in line with 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 67.31% of the companies in the same industry.
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
CVS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CVS has been reduced compared to 1 year ago.
CVS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CVS has a worse debt to assets ratio.
2.2 Solvency
CVS has an Altman-Z score of 2.19. This is not the best score and indicates that CVS is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CVS (2.19) is comparable to the rest of the 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.
The Debt to FCF ratio of CVS (13.91) is comparable to the rest of the industry.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 13.91 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.62
WACC7.4%
2.3 Liquidity
A Current Ratio of 0.80 indicates that CVS may have some problems paying its short term obligations.
The Current ratio of CVS (0.80) is worse than 79.81% of its industry peers.
A Quick Ratio of 0.62 indicates that CVS may have some problems paying its short term obligations.
CVS has a worse Quick ratio (0.62) than 83.65% 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%.
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.
CVS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.44%.
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
Based on estimates for the next years, CVS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.99% on average per year.
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
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
With a Price/Earnings ratio of 11.36, the valuation of CVS can be described as very reasonable.
87.50% of the companies in the same industry are more expensive than CVS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.76. CVS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.15, which indicates a very decent valuation of CVS.
CVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 85.58% 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 34.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 10.15 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CVS is valued a bit cheaper than the industry average as 68.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.05 | ||
| 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 14.23% in the coming years.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y14.4%
EPS Next 3Y14.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.99%, CVS has a reasonable but not impressive dividend return.
CVS's Dividend Yield is rather good when compared to the industry average which is at 2.90. CVS pays more dividend than 97.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
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 2Y14.4%
EPS Next 3Y14.23%
NYSE:CVS (8/22/2025, 9:48:10 AM)
72
+0.57 (+0.8%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.14%
Inst Owner Change-0.54%
Ins Owners0.99%
Ins Owner Change7.41%
Market Cap91.08B
Analysts77.58
Price Target80.5 (11.81%)
Short Float %1.25%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
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)0.48%
PT rev (3m)1.61%
EPS NQ rev (1m)-2.58%
EPS NQ rev (3m)-14.21%
EPS NY rev (1m)0%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 10.15 | ||
| P/S | 0.24 | ||
| P/FCF | 19.05 | ||
| P/OCF | 12.04 | ||
| P/B | 1.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.34
EY8.81%
EPS(NY)7.09
Fwd EY9.85%
FCF(TTM)3.78
FCFY5.25%
OCF(TTM)5.98
OCFY8.31%
SpS305.64
BVpS61.17
TBVpS-31.66
PEG (NY)0.79
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 | 2.19 |
F-Score5
WACC7.4%
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%