CVS HEALTH CORP (1CVS.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1CVS • US1266501006
62.26 EUR
-6.14 (-8.98%)
Last: Jan 29, 2026, 07:00 PM
We assign a fundamental rating of 4 out of 10 to 1CVS. 1CVS was compared to 33 industry peers in the Health Care Providers & Services industry. 1CVS may be in some trouble as it scores bad on both profitability and health. 1CVS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1CVS was profitable.
- 1CVS had a positive operating cash flow in the past year.
- 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
- With a Return On Assets value of 0.18%, 1CVS is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
- The Return On Equity of 1CVS (0.64%) is worse than 72.73% of its industry peers.
- 1CVS has a Return On Invested Capital of 4.90%. This is comparable to the rest of the industry: 1CVS outperforms 45.45% 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 5.90%.
| 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
- The Profit Margin of 1CVS (0.12%) is worse than 69.70% of its industry peers.
- In the last couple of years the Profit Margin of 1CVS has declined.
- 1CVS's Operating Margin of 2.73% is on the low side compared to the rest of the industry. 1CVS is outperformed by 72.73% of its industry peers.
- 1CVS's Operating Margin has declined in the last couple of years.
- 1CVS has a Gross Margin of 13.88%. This is in the lower half of the industry: 1CVS underperforms 66.67% of its industry peers.
- In the last couple of years the Gross Margin of 1CVS has declined.
| 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 1CVS is destroying value.
- The number of shares outstanding for 1CVS has been reduced compared to 1 year ago.
- Compared to 5 years ago, 1CVS has less shares outstanding
- The debt/assets ratio for 1CVS is higher compared to a year ago.
2.2 Solvency
- 1CVS has an Altman-Z score of 2.24. 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.
- 1CVS's Altman-Z score of 2.24 is fine compared to the rest of the industry. 1CVS outperforms 72.73% of its industry peers.
- 1CVS has a debt to FCF ratio of 10.46. This is a negative value and a sign of low solvency as 1CVS would need 10.46 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 10.46, 1CVS is in line with its industry, outperforming 54.55% of the companies in the same industry.
- 1CVS has a Debt/Equity ratio of 0.85. This is a neutral value indicating 1CVS is somewhat dependend on debt financing.
- 1CVS's Debt to Equity ratio of 0.85 is in line compared to the rest of the industry. 1CVS outperforms 51.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.61
WACC8%
2.3 Liquidity
- 1CVS has a Current Ratio of 0.83. 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 has a Current ratio of 0.83. This is comparable to the rest of the industry: 1CVS outperforms 45.45% of its industry peers.
- 1CVS has a Quick Ratio of 0.83. 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 0.63 is on the low side compared to the rest of the industry. 1CVS is outperformed by 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.87% over the past year.
- 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.
- 1CVS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.82%.
- 1CVS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.74% yearly.
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
- Based on estimates for the next years, 1CVS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.81% on average per year.
- Based on estimates for the next years, 1CVS will show a small growth in Revenue. The Revenue will grow by 4.65% on average per year.
EPS Next Y23.97%
EPS Next 2Y15.58%
EPS Next 3Y15.17%
EPS Next 5Y13.81%
Revenue Next Year7.59%
Revenue Next 2Y5.06%
Revenue Next 3Y5.17%
Revenue Next 5Y4.65%
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
- 1CVS is valuated reasonably with a Price/Earnings ratio of 10.83.
- 1CVS's Price/Earnings ratio is a bit cheaper when compared to the industry. 1CVS is cheaper than 78.79% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, 1CVS is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.25, which indicates a very decent valuation of 1CVS.
- 1CVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1CVS is cheaper than 81.82% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 1CVS to the average of the S&P500 Index (25.57), we can say 1CVS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 10.25 |
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 | 14.97 | ||
| 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.
- 1CVS's earnings are expected to grow with 15.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y15.58%
EPS Next 3Y15.17%
5. Dividend
5.1 Amount
- 1CVS has a Yearly Dividend Yield of 3.22%.
- 1CVS's Dividend Yield is rather good when compared to the industry average which is at 1.60. 1CVS pays more dividend than 90.91% of the companies in the same industry.
- 1CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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 722.81% 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.
DP722.81%
EPS Next 2Y15.58%
EPS Next 3Y15.17%
CVS HEALTH CORP / 1CVS.MI FAQ
What is the fundamental rating for 1CVS stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1CVS.MI.
What is the valuation status of CVS HEALTH CORP (1CVS.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to CVS HEALTH CORP (1CVS.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for CVS HEALTH CORP?
CVS HEALTH CORP (1CVS.MI) has a profitability rating of 3 / 10.
How financially healthy is CVS HEALTH CORP?
The financial health rating of CVS HEALTH CORP (1CVS.MI) is 3 / 10.
Is the dividend of CVS HEALTH CORP sustainable?
The dividend rating of CVS HEALTH CORP (1CVS.MI) is 6 / 10 and the dividend payout ratio is 722.81%.