CVS HEALTH CORP (1CVS.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1CVS • US1266501006
62.26 EUR
-6.24 (-9.11%)
Last: Jan 29, 2026, 07:00 PM
Overall 1CVS gets a fundamental rating of 4 out of 10. We evaluated 1CVS against 26 industry peers in the Health Care Providers & Services industry. Both the profitability and financial health of 1CVS have multiple concerns. 1CVS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- 1CVS had positive earnings in the past year.
- In the past year 1CVS had a positive cash flow from operations.
- Each year in the past 5 years 1CVS has been profitable.
- Each year in the past 5 years 1CVS had a positive operating cash flow.
1.2 Ratios
- 1CVS's Return On Assets of 0.18% is on the low side compared to the rest of the industry. 1CVS is outperformed by 66.67% of its industry peers.
- 1CVS's Return On Equity of 0.64% is on the low side compared to the rest of the industry. 1CVS is outperformed by 70.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.90%, 1CVS is in line with its industry, outperforming 50.00% 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 6.45%.
| 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 66.67% of its industry peers.
- In the last couple of years the Profit Margin of 1CVS has declined.
- 1CVS has a worse Operating Margin (2.73%) than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of 1CVS has declined.
- The Gross Margin of 1CVS (13.88%) is worse than 60.00% of its industry peers.
- 1CVS's Gross Margin has declined in the last couple of years.
| 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
- 1CVS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- 1CVS has less shares outstanding than it did 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
- 1CVS has an Altman-Z score of 2.27. 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.
- The Altman-Z score of 1CVS (2.27) is comparable to the rest of the industry.
- The Debt to FCF ratio of 1CVS is 10.46, which is on the high side as it means it would take 1CVS, 10.46 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 10.46, 1CVS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.85 indicates that 1CVS is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1CVS (0.85) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.61
WACC8.04%
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's Current ratio of 0.83 is in line compared to the rest of the industry. 1CVS outperforms 43.33% of its industry peers.
- A Quick Ratio of 0.63 indicates that 1CVS may have some problems paying its short term obligations.
- With a Quick ratio value of 0.63, 1CVS is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
| 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.
- The Earnings Per Share has been decreasing by -5.20% on average over the past years.
- The Revenue has been growing slightly by 6.82% in the past year.
- The Revenue has been growing slightly by 7.74% on average over the past years.
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
- 1CVS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.81% yearly.
- The Revenue is expected to grow by 4.65% on average over the next years.
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.
- 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
- Based on the Price/Earnings ratio of 10.68, the valuation of 1CVS can be described as reasonable.
- 1CVS's Price/Earnings ratio is rather cheap when compared to the industry. 1CVS is cheaper than 83.33% of the companies in the same industry.
- When comparing the Price/Earnings ratio of 1CVS to the average of the S&P500 Index (28.39), we can say 1CVS is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.10, the valuation of 1CVS can be described as reasonable.
- 1CVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1CVS is cheaper than 83.33% 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 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 10.1 |
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 | 14.75 | ||
| 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%.
- Compared to an average industry Dividend Yield of 1.72, 1CVS pays a better dividend. On top of this 1CVS pays more dividend than 90.00% 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 1.82.
| 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
- 722.81% 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.
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%.