CVS HEALTH CORP (1CVS.MI) Stock Fundamental Analysis
BIT:1CVS - Euronext Milan - US1266501006 - Common Stock - Currency: EUR
Taking everything into account, 1CVS scores 4 out of 10 in our fundamental rating. 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1CVS was profitable.
1CVS had a positive operating cash flow in the past year.
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'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.
The Return On Equity of 1CVS (6.11%) is comparable to the rest of the industry.
1CVS's Return On Invested Capital of 4.29% is fine compared to the rest of the industry. 1CVS outperforms 60.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1CVS is in line with the industry average of 5.77%.
| 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 worse Operating Margin (2.63%) than 64.29% of its industry peers.
1CVS's Operating Margin has declined in the last couple of years.
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
1CVS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, 1CVS has less shares outstanding
The number of shares outstanding for 1CVS has been reduced compared to 5 years ago.
The debt/assets ratio for 1CVS is higher compared to a year ago.
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.
1CVS has a Altman-Z score of 2.17. This is amongst the best in the industry. 1CVS outperforms 82.14% of its industry peers.
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.
1CVS's Debt to FCF ratio of 10.48 is on the low side compared to the rest of the industry. 1CVS is outperformed by 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's Debt to Equity ratio of 0.83 is in line compared to the rest of the industry. 1CVS outperforms 53.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.57
WACC7.49%
2.3 Liquidity
A Current Ratio of 0.81 indicates that 1CVS may have some problems paying its short term obligations.
1CVS has a Current ratio (0.81) which is comparable to the rest of the industry.
A Quick Ratio of 0.60 indicates that 1CVS may have some problems paying 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
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.
Looking at the last year, 1CVS shows a small growth in Revenue. The Revenue has grown by 4.20% in the last 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
The Earnings Per Share is expected to grow by 12.74% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.22% on average over the next years.
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.
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
A Price/Earnings ratio of 12.80 indicates a correct valuation of 1CVS.
Based on the Price/Earnings ratio, 1CVS is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
1CVS is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.63, which indicates a very decent valuation of 1CVS.
Based on the Price/Forward Earnings ratio, 1CVS is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1CVS to the average of the S&P500 Index (21.90), we can say 1CVS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.8 | ||
| Fwd PE | 11.63 |
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 | 13.84 | ||
| 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)1.28
PEG (5Y)N/A
EPS Next 2Y12.96%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
1CVS has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.78, 1CVS pays a better dividend. On top of this 1CVS pays more dividend than 96.43% 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 2.38.
| 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 (4/9/2025, 7:00:00 PM)
61.04
+0.53 (+0.88%)
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 Cap77.06B
Analysts76.36
Price Target66.15 (8.37%)
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 | 12.8 | ||
| Fwd PE | 11.63 | ||
| P/S | 0.23 | ||
| P/FCF | 13.84 | ||
| P/OCF | 9.61 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)4.77
EY7.81%
EPS(NY)5.25
Fwd EY8.6%
FCF(TTM)4.41
FCFY7.23%
OCF(TTM)6.35
OCFY10.4%
SpS259.97
BVpS52.69
TBVpS-30.01
PEG (NY)1.28
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%