CVS HEALTH CORP (1CVS.MI) Stock Fundamental Analysis
BIT:1CVS - Euronext Milan - US1266501006 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1CVS. 1CVS was compared to 24 industry peers in the Health Care Providers & Services industry. Both the profitability and financial health of 1CVS have multiple concerns. 1CVS has a valuation in line with the averages, but it does not seem to be growing. 1CVS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1CVS was profitable.
In the past year 1CVS had a positive cash flow from operations.
1CVS had positive earnings in each of the past 5 years.
Each year in the past 5 years 1CVS had a positive operating cash flow.
1.2 Ratios
1CVS has a Return On Assets of 1.82%. This is comparable to the rest of the industry: 1CVS outperforms 47.83% of its industry peers.
With a Return On Equity value of 6.11%, 1CVS perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
With a Return On Invested Capital value of 4.29%, 1CVS perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1CVS is in line with the industry average of 5.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 6.11% | ||
| ROIC | 4.29% |
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
The Profit Margin of 1CVS (1.24%) is worse than 60.87% of its industry peers.
1CVS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 2.63%, 1CVS is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
1CVS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 13.79%, 1CVS is doing worse than 73.91% of the companies in the same industry.
1CVS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.63% | ||
| PM (TTM) | 1.24% | ||
| GM | 13.79% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1CVS is destroying value.
1CVS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1CVS has been reduced compared to 5 years ago.
Compared to 1 year ago, 1CVS has a worse debt to assets ratio.
2.2 Solvency
1CVS has an Altman-Z score of 2.14. This is not the best score and indicates that 1CVS is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.14, 1CVS is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
The Debt to FCF ratio of 1CVS is 10.48, which is on the high side as it means it would take 1CVS, 10.48 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.48, 1CVS is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.83 indicates that 1CVS is somewhat dependend on debt financing.
1CVS has a Debt to Equity ratio (0.83) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.56
WACC7.64%
2.3 Liquidity
A Current Ratio of 0.81 indicates that 1CVS may have some problems paying its short term obligations.
1CVS's Current ratio of 0.81 is in line compared to the rest of the industry. 1CVS outperforms 43.48% of its industry peers.
1CVS has a Quick Ratio of 0.81. This is a bad value and indicates that 1CVS is not financially healthy enough and could expect problems in meeting its short term obligations.
1CVS's Quick ratio of 0.60 is on the low side compared to the rest of the industry. 1CVS is outperformed by 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
1CVS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.99%.
Measured over the past years, 1CVS shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.20% on average per year.
The Revenue has been growing slightly by 4.20% in the past year.
Measured over the past years, 1CVS shows a small growth in Revenue. The Revenue has been growing by 7.74% on average per year.
EPS 1Y (TTM)-37.99%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%-43.87%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%4.15%
3.2 Future
Based on estimates for the next years, 1CVS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.43% on average per year.
1CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y10.12%
EPS Next 2Y13.27%
EPS Next 3Y13.46%
EPS Next 5Y14.43%
Revenue Next Year4.44%
Revenue Next 2Y4.79%
Revenue Next 3Y4.96%
Revenue Next 5Y4.95%
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
1CVS is valuated reasonably with a Price/Earnings ratio of 11.73.
Compared to the rest of the industry, the Price/Earnings ratio of 1CVS indicates a rather cheap valuation: 1CVS is cheaper than 82.61% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.43. 1CVS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.64 indicates a reasonable valuation of 1CVS.
1CVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1CVS is cheaper than 82.61% of the companies in the same industry.
1CVS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 10.64 |
4.2 Price Multiples
1CVS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.64 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
1CVS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1CVS's earnings are expected to grow with 13.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)N/A
EPS Next 2Y13.27%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.09%, 1CVS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.95, 1CVS pays a better dividend. On top of this 1CVS pays more dividend than 95.65% of the companies listed in the same industry.
1CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
5.2 History
The dividend of 1CVS has a limited annual growth rate of 5.72%.
Dividend Growth(5Y)5.72%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
73.10% of the earnings are spent on dividend by 1CVS. This is not a sustainable payout ratio.
1CVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP73.1%
EPS Next 2Y13.27%
EPS Next 3Y13.46%
BIT:1CVS (2/24/2025, 7:00:00 PM)
60.51
-2.18 (-3.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners85.02%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap76.15B
Analysts75.76
Price Target59.54 (-1.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
Yearly Dividend2.65
Dividend Growth(5Y)5.72%
DP73.1%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.57%
Min EPS beat(2)-28.4%
Max EPS beat(2)27.26%
EPS beat(4)2
Avg EPS beat(4)-4.97%
Min EPS beat(4)-28.4%
Max EPS beat(4)27.26%
EPS beat(8)6
Avg EPS beat(8)-0.48%
EPS beat(12)10
Avg EPS beat(12)1.15%
EPS beat(16)14
Avg EPS beat(16)3.69%
Revenue beat(2)1
Avg Revenue beat(2)0.71%
Min Revenue beat(2)-0.46%
Max Revenue beat(2)1.87%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)1.87%
Revenue beat(8)5
Avg Revenue beat(8)1%
Revenue beat(12)9
Avg Revenue beat(12)2.25%
Revenue beat(16)13
Avg Revenue beat(16)2.08%
PT rev (1m)-6.98%
PT rev (3m)-3.85%
EPS NQ rev (1m)16.18%
EPS NQ rev (3m)-1.14%
EPS NY rev (1m)-3.83%
EPS NY rev (3m)-13.61%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 10.64 | ||
| P/S | 0.21 | ||
| P/FCF | 12.64 | ||
| P/OCF | 8.78 | ||
| P/B | 1.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)5.16
EY8.53%
EPS(NY)5.69
Fwd EY9.4%
FCF(TTM)4.79
FCFY7.91%
OCF(TTM)6.89
OCFY11.39%
SpS282.23
BVpS57.2
TBVpS-32.58
PEG (NY)1.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 6.11% | ||
| ROCE | 5.81% | ||
| ROIC | 4.29% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 17.8% | ||
| OM | 2.63% | ||
| PM (TTM) | 1.24% | ||
| GM | 13.79% | ||
| FCFM | 1.7% |
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 Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 10.48 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | -3.37 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 137.1% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.14 |
F-Score5
WACC7.64%
ROIC/WACC0.56
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)-37.99%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%-43.87%
EPS Next Y10.12%
EPS Next 2Y13.27%
EPS Next 3Y13.46%
EPS Next 5Y14.43%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%4.15%
Revenue Next Year4.44%
Revenue Next 2Y4.79%
Revenue Next 3Y4.96%
Revenue Next 5Y4.95%
EBIT growth 1Y-35.07%
EBIT growth 3Y-12.98%
EBIT growth 5Y-4.24%
EBIT Next Year38.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-39.14%
FCF growth 3Y-26.21%
FCF growth 5Y-9.45%
OCF growth 1Y-32.17%
OCF growth 3Y-20.7%
OCF growth 5Y-6.65%