Logo image of 1CVS.MI

CVS HEALTH CORP (1CVS.MI) Stock Fundamental Analysis

BIT:1CVS - Euronext Milan - US1266501006 - Common Stock - Currency: EUR

54.81  -5.7 (-9.42%)

Fundamental Rating

4

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.


Dividend Valuation Growth Profitability Health

3

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.
1CVS.MI Yearly Net Income VS EBIT VS OCF VS FCF1CVS.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

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 RankSector 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%
1CVS.MI Yearly ROA, ROE, ROIC1CVS.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

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 RankSector 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%
1CVS.MI Yearly Profit, Operating, Gross Margins1CVS.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

3

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.
1CVS.MI Yearly Shares Outstanding1CVS.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
1CVS.MI Yearly Total Debt VS Total Assets1CVS.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B 250B

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 RankSector Rank
Debt/Equity 0.83
Debt/FCF 10.48
Altman-Z 2.17
ROIC/WACC0.57
WACC7.49%
1CVS.MI Yearly LT Debt VS Equity VS FCF1CVS.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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 RankSector Rank
Current Ratio 0.81
Quick Ratio 0.6
1CVS.MI Yearly Current Assets VS Current Liabilites1CVS.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

3

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.
1CVS.MI Yearly Revenue VS Estimates1CVS.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 100B 200B 300B 400B 500B
1CVS.MI Yearly EPS VS Estimates1CVS.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

5

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 RankSector Rank
PE 11.49
Fwd PE 10.44
1CVS.MI Price Earnings VS Forward Price Earnings1CVS.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

The rest of the industry has a similar Price/Free Cash Flow ratio as 1CVS.
Industry RankSector Rank
P/FCF 12.43
EV/EBITDA N/A
1CVS.MI Per share data1CVS.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150 200 250

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%

6

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 RankSector 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%
1CVS.MI Yearly Income VS Free CF VS Dividend1CVS.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B
1CVS.MI Dividend Payout.1CVS.MI Dividend Payout, showing the Payout Ratio.1CVS.MI Dividend Payout.PayoutRetained Earnings

CVS HEALTH CORP

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)02-12 2025-02-12/bmo
Earnings (Next)05-01 2025-05-01/bmo
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%