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 24 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1CVS had positive earnings in the past year.
1CVS had a positive operating cash flow in the past year.
1CVS had positive earnings in each of the past 5 years.
1CVS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1CVS (1.82%) is comparable to the rest of the industry.
With a Return On Equity value of 6.11%, 1CVS perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.29%, 1CVS is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1CVS is in line with the industry average of 6.16%.
| 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.
1CVS's Profit Margin has declined in the last couple of years.
1CVS's Operating Margin of 2.63% is on the low side compared to the rest of the industry. 1CVS is outperformed by 64.29% of its industry peers.
In the last couple of years the Operating Margin of 1CVS has declined.
With a Gross Margin value of 13.79%, 1CVS is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
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.
The number of shares outstanding for 1CVS has been reduced compared to 1 year ago.
1CVS has less shares outstanding than it did 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.
Looking at the Altman-Z score, with a value of 2.17, 1CVS belongs to the top 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.
With a Debt to FCF ratio value of 10.48, 1CVS is not doing good in the industry: 64.29% 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 of 0.83. This is comparable 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
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.
1CVS's Current ratio of 0.81 is in line compared to the rest of the industry. 1CVS outperforms 42.86% of its industry peers.
A Quick Ratio of 0.60 indicates that 1CVS may have some problems paying its short term obligations.
1CVS has a worse Quick ratio (0.60) than 60.71% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -5.20% on average over the past years.
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
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
With a Price/Earnings ratio of 12.80, 1CVS is valued correctly.
75.00% of the companies in the same industry are more expensive than 1CVS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.29. 1CVS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.63, the valuation of 1CVS can be described as reasonable.
1CVS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1CVS is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.74. 1CVS is valued slightly cheaper when compared to this.
| 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
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 13.58% 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%.
1CVS's Dividend Yield is rather good when compared to the industry average which is at 2.77. 1CVS pays more dividend than 96.43% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, 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.
1CVS's earnings are growing more than its dividend. This makes the dividend growth 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%