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 25 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 on the other hand it scores bad on growth.
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.
In the past 5 years 1CVS has always been profitable.
1CVS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1CVS's Return On Assets of 1.82% is in line compared to the rest of the industry. 1CVS outperforms 57.14% of its industry peers.
Looking at the Return On Equity, with a value of 6.11%, 1CVS is in line with its industry, outperforming 53.57% of the companies in the same industry.
The Return On Invested Capital of 1CVS (4.29%) is better than 60.71% of its industry peers.
1CVS had an Average Return On Invested Capital over the past 3 years of 6.22%. This is in line with the industry average of 5.61%.
| 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 64.29% of its industry peers.
In the last couple of years the Profit Margin of 1CVS has declined.
1CVS has a Operating Margin of 2.63%. This is in the lower half of the industry: 1CVS underperforms 64.29% of its industry peers.
In the last couple of years the Operating Margin of 1CVS has declined.
The Gross Margin of 1CVS (13.79%) is worse than 67.86% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1CVS is destroying value.
The number of shares outstanding for 1CVS has been reduced compared to 1 year ago.
The number of shares outstanding for 1CVS has been reduced compared to 5 years ago.
1CVS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.17 indicates that 1CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.17, 1CVS belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
1CVS has a debt to FCF ratio of 10.48. This is a negative value and a sign of low solvency as 1CVS would need 10.48 years to pay back of all of its debts.
1CVS has a Debt to FCF ratio of 10.48. This is in the lower half of the industry: 1CVS underperforms 64.29% of its industry peers.
1CVS has a Debt/Equity ratio of 0.83. This is a neutral value indicating 1CVS is somewhat dependend on debt financing.
1CVS has a Debt to Equity ratio (0.83) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.57
WACC7.49%
2.3 Liquidity
1CVS has a Current 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.
Looking at the Current ratio, with a value of 0.81, 1CVS is in line with its industry, outperforming 42.86% of the companies in the same industry.
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.
With a Quick ratio value of 0.60, 1CVS is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for 1CVS have decreased strongly by -37.99% in the last year.
1CVS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.20% yearly.
1CVS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.20%.
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
The Earnings Per Share is expected to grow by 12.74% on average over the next years. This is quite good.
1CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.22% yearly.
EPS Next Y10.02%
EPS Next 2Y12.96%
EPS Next 3Y13.58%
EPS Next 5Y12.74%
Revenue Next Year4.67%
Revenue Next 2Y4.78%
Revenue Next 3Y4.95%
Revenue Next 5Y4.22%
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
Based on the Price/Earnings ratio of 11.49, the valuation of 1CVS can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of 1CVS indicates a somewhat cheap valuation: 1CVS is cheaper than 75.00% of the companies listed in the same industry.
1CVS is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
1CVS is valuated reasonably with a Price/Forward Earnings ratio of 10.44.
Based on the Price/Forward Earnings ratio, 1CVS is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 1CVS to the average of the S&P500 Index (36.44), we can say 1CVS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as 1CVS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.43 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 13.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y12.96%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.95%, 1CVS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.81, 1CVS pays a better dividend. On top of this 1CVS pays more dividend than 96.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, 1CVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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
1CVS pays out 73.10% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1CVS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.1%
EPS Next 2Y12.96%
EPS Next 3Y13.58%
BIT:1CVS (7/16/2025, 7:00:00 PM)
54.81
-5.7 (-9.42%)
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 Cap69.19B
Analysts76.36
Price Target66.15 (20.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Yearly Dividend2.33
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)-3.71%
PT rev (3m)3.35%
EPS NQ rev (1m)4.02%
EPS NQ rev (3m)24.9%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-3.92%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 10.44 | ||
| P/S | 0.21 | ||
| P/FCF | 12.43 | ||
| P/OCF | 8.63 | ||
| P/B | 1.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)4.77
EY8.7%
EPS(NY)5.25
Fwd EY9.58%
FCF(TTM)4.41
FCFY8.05%
OCF(TTM)6.35
OCFY11.59%
SpS259.97
BVpS52.69
TBVpS-30.01
PEG (NY)1.15
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 | 2.17 |
F-Score5
WACC7.49%
ROIC/WACC0.57
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 Y10.02%
EPS Next 2Y12.96%
EPS Next 3Y13.58%
EPS Next 5Y12.74%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%4.15%
Revenue Next Year4.67%
Revenue Next 2Y4.78%
Revenue Next 3Y4.95%
Revenue Next 5Y4.22%
EBIT growth 1Y-35.07%
EBIT growth 3Y-12.98%
EBIT growth 5Y-4.24%
EBIT Next Year40.63%
EBIT Next 3Y19.8%
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%