CVS HEALTH CORP (1CVS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CVS - US1266501006 - Common Stock
68.4 EUR
-0.1 (-0.15%)
Overall 1CVS gets a fundamental rating of 4 out of 10. We evaluated 1CVS against 30 industry peers in the Health Care Providers & Services industry. 1CVS has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
- Each year in the past 5 years 1CVS has been profitable.
- 1CVS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of 1CVS (0.18%) is worse than 66.67% of its industry peers.
- 1CVS has a Return On Equity of 0.64%. This is in the lower half of the industry: 1CVS underperforms 70.00% of its industry peers.
- 1CVS has a Return On Invested Capital (4.90%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for 1CVS is in line with the industry average of 6.46%.
| 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
- Looking at the Profit Margin, with a value of 0.12%, 1CVS is doing worse than 66.67% of the companies in the same industry.
- 1CVS's Profit Margin has declined in the last couple of years.
- The Operating Margin of 1CVS (2.73%) is worse than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of 1CVS has declined.
- 1CVS has a Gross Margin of 13.88%. This is in the lower half of the industry: 1CVS underperforms 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.
- Compared to 1 year ago, 1CVS has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.27 indicates that 1CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1CVS has a Altman-Z score (2.27) which is comparable to the rest of the industry.
- 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 50.00% 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.
- With a Debt to Equity ratio value of 0.85, 1CVS perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.61
WACC8.06%
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 (0.83) which is in line with 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 has a Quick ratio of 0.63. This is in the lower half of the industry: 1CVS underperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- 1CVS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.87%.
- 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%.
- 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)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
- The Earnings Per Share is expected to grow by 13.81% 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 4.65% yearly.
EPS Next Y23.97%
EPS Next 2Y15.58%
EPS Next 3Y15.14%
EPS Next 5Y13.81%
Revenue Next Year7.58%
Revenue Next 2Y5.09%
Revenue Next 3Y5.2%
Revenue Next 5Y4.65%
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
- 1CVS is valuated reasonably with a Price/Earnings ratio of 11.69.
- 83.33% of the companies in the same industry are more expensive than 1CVS, based on the Price/Earnings ratio.
- 1CVS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
- With a Price/Forward Earnings ratio of 11.06, the valuation of 1CVS can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CVS indicates a somewhat cheap valuation: 1CVS is cheaper than 80.00% of the companies listed in the same industry.
- 1CVS is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 11.06 |
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 | 16.15 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- 1CVS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as 1CVS's earnings are expected to grow with 15.14% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y15.58%
EPS Next 3Y15.14%
5. Dividend
5.1 Amount
- 1CVS has a Yearly Dividend Yield of 3.27%.
- 1CVS's Dividend Yield is rather good when compared to the industry average which is at 1.73. 1CVS pays more dividend than 90.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1CVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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 3Y15.14%
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%.