CVS HEALTH CORP (CVS) Stock Fundamental Analysis
USA - NYSE:CVS - US1266501006 - Common Stock
81.93 USD
+0.86 (+1.06%)
81.92 USD
-0.01 (-0.01%)
Taking everything into account, CVS scores 4 out of 10 in our fundamental rating. CVS was compared to 101 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of CVS while its profitability can be described as average. CVS is valued correctly, but it does not seem to be growing. Finally CVS also has an excellent dividend rating.
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.
In the past 5 years CVS has always been profitable.
In the past 5 years CVS always reported a positive cash flow from operatings.
1.2 Ratios
CVS has a Return On Assets of 1.75%. This is comparable to the rest of the industry: CVS outperforms 56.44% of its industry peers.
CVS has a Return On Equity of 5.86%. This is in the better half of the industry: CVS outperforms 63.37% of its industry peers.
With a Return On Invested Capital value of 4.57%, CVS perfoms like the industry average, outperforming 54.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CVS is below the industry average of 9.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | 5.86% | ||
| ROIC | 4.57% |
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 has a Profit Margin (1.17%) which is comparable to the rest of the industry.
CVS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.65%, CVS is in line with its industry, outperforming 51.49% of the companies in the same industry.
CVS's Operating Margin has declined in the last couple of years.
CVS's Gross Margin of 13.82% is on the low side compared to the rest of the industry. CVS is outperformed by 67.33% of its industry peers.
CVS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.65% | ||
| PM (TTM) | 1.17% | ||
| GM | 13.82% |
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.
CVS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CVS has been reduced compared to 5 years ago.
CVS has a worse debt/assets ratio than last year.
2.2 Solvency
CVS has an Altman-Z score of 2.23. This is not the best score and indicates that CVS is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CVS (2.23) is comparable to the rest of the industry.
The Debt to FCF ratio of CVS is 13.91, which is on the high side as it means it would take CVS, 13.91 years of fcf income to pay off all of its debts.
CVS's Debt to FCF ratio of 13.91 is in line compared to the rest of the industry. CVS outperforms 44.55% of its industry peers.
CVS has a Debt/Equity ratio of 0.78. This is a neutral value indicating CVS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.78, CVS perfoms like the industry average, outperforming 44.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 13.91 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.6
WACC7.67%
2.3 Liquidity
A Current Ratio of 0.80 indicates that CVS may have some problems paying its short term obligations.
With a Current ratio value of 0.80, CVS is not doing good in the industry: 84.16% of the companies in the same industry are doing better.
CVS has a Quick Ratio of 0.80. 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 (0.62) is worse than 85.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
CVS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.13%.
Measured over the past years, CVS shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.20% on average per year.
Looking at the last year, CVS shows a small growth in Revenue. The Revenue has grown by 6.44% in the last year.
Measured over the past years, CVS shows a small growth in Revenue. The Revenue has been growing by 7.74% on average per year.
EPS 1Y (TTM)-15.13%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%-1.09%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%8.42%
3.2 Future
CVS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.91% yearly.
CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.71% yearly.
EPS Next Y18.7%
EPS Next 2Y15.58%
EPS Next 3Y14.55%
EPS Next 5Y10.91%
Revenue Next Year6.16%
Revenue Next 2Y5%
Revenue Next 3Y5.09%
Revenue Next 5Y4.71%
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
A Price/Earnings ratio of 12.92 indicates a correct valuation of CVS.
87.13% of the companies in the same industry are more expensive than CVS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.91. CVS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.32, the valuation of CVS can be described as very reasonable.
84.16% of the companies in the same industry are more expensive than CVS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CVS to the average of the S&P500 Index (22.92), we can say CVS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
63.37% of the companies in the same industry are more expensive than CVS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.74 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CVS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CVS's earnings are expected to grow with 14.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)N/A
EPS Next 2Y15.58%
EPS Next 3Y14.55%
5. Dividend
5.1 Amount
CVS has a Yearly Dividend Yield of 3.28%.
CVS's Dividend Yield is rather good when compared to the industry average which is at 2.42. CVS pays more dividend than 98.02% of the companies in the same industry.
CVS's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
The dividend of CVS has a limited annual growth rate of 5.72%.
CVS has paid a dividend for at least 10 years, which is a reliable track record.
CVS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.72%
Div Incr Years3
Div Non Decr Years28
5.3 Sustainability
74.62% 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.
DP74.62%
EPS Next 2Y15.58%
EPS Next 3Y14.55%
81.93
+0.86 (+1.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners88.11%
Inst Owner Change-0.27%
Ins Owners0.99%
Ins Owner Change2.43%
Market Cap103.91B
Revenue(TTM)386.64B
Net Income(TTM)4.53B
Analysts80
Price Target82.68 (0.92%)
Short Float %1.51%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Yearly Dividend2.65
Dividend Growth(5Y)5.72%
DP74.62%
Div Incr Years3
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.87%
Min EPS beat(2)22.99%
Max EPS beat(2)30.76%
EPS beat(4)3
Avg EPS beat(4)13.15%
Min EPS beat(4)-28.4%
Max EPS beat(4)30.76%
EPS beat(8)6
Avg EPS beat(8)5.23%
EPS beat(12)10
Avg EPS beat(12)4.69%
EPS beat(16)14
Avg EPS beat(16)4.93%
Revenue beat(2)2
Avg Revenue beat(2)1.83%
Min Revenue beat(2)0.02%
Max Revenue beat(2)3.64%
Revenue beat(4)3
Avg Revenue beat(4)1.27%
Min Revenue beat(4)-0.46%
Max Revenue beat(4)3.64%
Revenue beat(8)5
Avg Revenue beat(8)0.67%
Revenue beat(12)9
Avg Revenue beat(12)2.1%
Revenue beat(16)13
Avg Revenue beat(16)2.16%
PT rev (1m)0.53%
PT rev (3m)2.71%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-5.25%
EPS NY rev (1m)0.09%
EPS NY rev (3m)3.84%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 11.32 | ||
| P/S | 0.27 | ||
| P/FCF | 21.74 | ||
| P/OCF | 13.73 | ||
| P/B | 1.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.34
EY7.74%
EPS(NY)7.24
Fwd EY8.84%
FCF(TTM)3.77
FCFY4.6%
OCF(TTM)5.97
OCFY7.28%
SpS304.84
BVpS61.01
TBVpS-31.58
PEG (NY)0.69
PEG (5Y)N/A
Graham Number93.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | 5.86% | ||
| ROCE | 6.23% | ||
| ROIC | 4.57% | ||
| ROICexc | 5% | ||
| ROICexgc | 21.47% | ||
| OM | 2.65% | ||
| PM (TTM) | 1.17% | ||
| GM | 13.82% | ||
| FCFM | 1.24% |
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%
ROICexgc growth 3Y-10.65%
ROICexgc 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 Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 13.91 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | -3.41 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 105.5% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 2.23 |
F-Score5
WACC7.67%
ROIC/WACC0.6
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)-15.13%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%-1.09%
EPS Next Y18.7%
EPS Next 2Y15.58%
EPS Next 3Y14.55%
EPS Next 5Y10.91%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%8.42%
Revenue Next Year6.16%
Revenue Next 2Y5%
Revenue Next 3Y5.09%
Revenue Next 5Y4.71%
EBIT growth 1Y-20.52%
EBIT growth 3Y-12.98%
EBIT growth 5Y-4.24%
EBIT Next Year40.75%
EBIT Next 3Y19.75%
EBIT Next 5Y18.23%
FCF growth 1Y-72.95%
FCF growth 3Y-26.21%
FCF growth 5Y-9.45%
OCF growth 1Y-63.11%
OCF growth 3Y-20.7%
OCF growth 5Y-6.65%
CVS HEALTH CORP / CVS FAQ
What is the fundamental rating for CVS stock?
ChartMill assigns a fundamental rating of 4 / 10 to CVS.
What is the valuation status for CVS stock?
ChartMill assigns a valuation rating of 6 / 10 to CVS HEALTH CORP (CVS). This can be considered as Fairly Valued.
What is the profitability of CVS stock?
CVS HEALTH CORP (CVS) has a profitability rating of 4 / 10.
What are the PE and PB ratios of CVS HEALTH CORP (CVS) stock?
The Price/Earnings (PE) ratio for CVS HEALTH CORP (CVS) is 12.92 and the Price/Book (PB) ratio is 1.34.
Is the dividend of CVS HEALTH CORP sustainable?
The dividend rating of CVS HEALTH CORP (CVS) is 7 / 10 and the dividend payout ratio is 74.62%.