CVS HEALTH CORP (CVS.DE) Stock Fundamental Analysis
FRA:CVS - Deutsche Boerse Ag - US1266501006 - Common Stock - Currency: EUR
CVS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 23 industry peers in the Health Care Providers & Services industry. CVS has a medium profitability rating, but doesn't score so well on its financial health evaluation. CVS has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CVS had positive earnings in the past year.
CVS had a positive operating cash flow in the past year.
CVS had positive earnings in each of the past 5 years.
In the past 5 years CVS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CVS (1.82%) is better than 60.87% of its industry peers.
CVS has a Return On Equity (6.11%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 4.29%, CVS is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
CVS had an Average Return On Invested Capital over the past 3 years of 6.22%. This is in line with the industry average of 5.35%.
| 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
CVS's Profit Margin of 1.24% is in line compared to the rest of the industry. CVS outperforms 43.48% of its industry peers.
In the last couple of years the Profit Margin of CVS has declined.
With a Operating Margin value of 2.63%, CVS perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
In the last couple of years the Operating Margin of CVS has declined.
CVS has a worse Gross Margin (13.79%) than 69.57% of its industry peers.
CVS'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVS is destroying value.
Compared to 1 year ago, CVS has less shares outstanding
The number of shares outstanding for CVS has been reduced compared to 5 years ago.
The debt/assets ratio for CVS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.15 indicates that CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVS's Altman-Z score of 2.15 is fine compared to the rest of the industry. CVS outperforms 78.26% of its industry peers.
The Debt to FCF ratio of CVS is 10.48, which is on the high side as it means it would take CVS, 10.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.48, CVS is doing worse than 60.87% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that CVS is somewhat dependend on debt financing.
CVS has a better Debt to Equity ratio (0.83) than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.59
WACC7.25%
2.3 Liquidity
CVS has a Current Ratio of 0.81. This is a bad value and indicates that CVS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CVS (0.81) is comparable to the rest of the industry.
CVS has a Quick Ratio of 0.81. This is a bad value and indicates that CVS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CVS (0.60) is worse than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
CVS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.99%.
CVS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.20% yearly.
Looking at the last year, CVS shows a small growth in Revenue. The Revenue has grown by 4.20% in the last year.
CVS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.74% yearly.
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
Based on estimates for the next years, CVS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.74% on average per year.
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
CVS is valuated correctly with a Price/Earnings ratio of 12.12.
CVS's Price/Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 82.61% of the companies in the same industry.
CVS is valuated cheaply when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.02, the valuation of CVS can be described as reasonable.
Based on the Price/Forward Earnings ratio, CVS is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CVS to the average of the S&P500 Index (21.44), we can say CVS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as CVS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.11 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CVS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CVS's earnings are expected to grow with 13.58% in the coming years.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y12.96%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.95%, CVS has a reasonable but not impressive dividend return.
CVS's Dividend Yield is rather good when compared to the industry average which is at 2.92. CVS pays more dividend than 95.65% of the companies in the same industry.
CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
5.2 History
The dividend of CVS has a limited annual growth rate of 5.72%.
Dividend Growth(5Y)5.72%
Div Incr Years3
Div Non Decr Years5
5.3 Sustainability
73.10% of the earnings are spent on dividend by CVS. This is not a sustainable payout ratio.
The dividend of CVS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP73.1%
EPS Next 2Y12.96%
EPS Next 3Y13.58%
FRA:CVS (4/23/2025, 7:00:00 PM)
57.56
+0.37 (+0.65%)
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 Cap72.66B
Analysts76.36
Price Target67.06 (16.5%)
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 Years3
Div Non Decr Years5
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)-2.31%
PT rev (3m)4.12%
EPS NQ rev (1m)2.98%
EPS NQ rev (3m)24.9%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-3.92%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 11.02 | ||
| P/S | 0.22 | ||
| P/FCF | 13.11 | ||
| P/OCF | 9.11 | ||
| P/B | 1.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)4.75
EY8.25%
EPS(NY)5.22
Fwd EY9.08%
FCF(TTM)4.39
FCFY7.63%
OCF(TTM)6.32
OCFY10.98%
SpS258.71
BVpS52.44
TBVpS-29.86
PEG (NY)1.21
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 | 2.15 |
F-Score5
WACC7.25%
ROIC/WACC0.59
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%