CVS HEALTH CORP (CVS) Stock Fundamental Analysis
NYSE:CVS - New York Stock Exchange, Inc. - US1266501006 - Common Stock - Currency: USD
Overall CVS gets a fundamental rating of 4 out of 10. We evaluated CVS against 108 industry peers in the Health Care Providers & Services industry. While CVS is still in line with the averages on profitability rating, there are concerns on its financial health. CVS is valued quite cheap, but it does not seem to be growing. CVS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CVS was profitable.
In the past year CVS had a positive cash flow from operations.
Each year in the past 5 years CVS has 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 1.82%. This is in the better half of the industry: CVS outperforms 61.68% of its industry peers.
CVS has a Return On Equity of 6.11%. This is in the better half of the industry: CVS outperforms 67.29% of its industry peers.
CVS has a Return On Invested Capital of 4.29%. This is comparable to the rest of the industry: CVS outperforms 52.34% of its industry peers.
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 8.14%.
| 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 has a better Profit Margin (1.24%) than 62.62% 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 53.27% of the companies in the same industry.
In the last couple of years the Operating Margin of CVS has declined.
Looking at the Gross Margin, with a value of 13.79%, CVS is doing worse than 75.70% of the companies in the same industry.
In the last couple of years the Gross Margin of CVS has declined.
| 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
CVS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CVS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVS has less shares outstanding
Compared to 1 year ago, CVS has a worse debt to assets ratio.
2.2 Solvency
CVS has an Altman-Z score of 2.15. 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.
CVS's Altman-Z score of 2.15 is in line compared to the rest of the industry. CVS outperforms 50.47% 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 in line with its industry, outperforming 57.94% of the companies in the same industry.
CVS has a Debt/Equity ratio of 0.83. This is a neutral value indicating CVS is somewhat dependend on debt financing.
CVS's Debt to Equity ratio of 0.83 is on the low side compared to the rest of the industry. CVS is outperformed by 61.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 10.48 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.56
WACC7.72%
2.3 Liquidity
A Current Ratio of 0.81 indicates that CVS may have some problems paying its short term obligations.
CVS's Current ratio of 0.81 is on the low side compared to the rest of the industry. CVS is outperformed by 84.11% of its industry peers.
A Quick Ratio of 0.60 indicates that CVS may have some problems paying its short term obligations.
The Quick ratio of CVS (0.60) is worse than 84.11% 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.
The Revenue has been growing slightly by 4.20% in the past 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)-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 14.43% on average over the next years. This is quite good.
CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y10.12%
EPS Next 2Y13.27%
EPS Next 3Y13.46%
EPS Next 5Y14.43%
Revenue Next Year4.44%
Revenue Next 2Y4.79%
Revenue Next 3Y4.96%
Revenue Next 5Y4.95%
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
CVS is valuated reasonably with a Price/Earnings ratio of 11.74.
87.85% 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 30.30. CVS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.66, which indicates a very decent valuation of CVS.
Based on the Price/Forward Earnings ratio, CVS is valued cheaply inside the industry as 88.78% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.06, CVS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 10.66 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CVS is valued cheaper than 86.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.66 | ||
| 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.
CVS's earnings are expected to grow with 13.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)N/A
EPS Next 2Y13.27%
EPS Next 3Y13.46%
5. Dividend
5.1 Amount
CVS has a Yearly Dividend Yield of 4.01%, which is a nice return.
CVS's Dividend Yield is rather good when compared to the industry average which is at 2.95. CVS pays more dividend than 96.26% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, CVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
5.2 History
The dividend of CVS has a limited annual growth rate of 5.72%.
CVS has been paying a dividend for at least 10 years, so it has a reliable track record.
CVS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.72%
Div Incr Years3
Div Non Decr Years28
5.3 Sustainability
CVS pays out 73.10% of its income as dividend. This is not a sustainable payout ratio.
CVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP73.1%
EPS Next 2Y13.27%
EPS Next 3Y13.46%
NYSE:CVS (2/21/2025, 9:54:08 AM)
63.635
-1.46 (-2.24%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners83.45%
Inst Owner Change3.07%
Ins Owners0.05%
Ins Owner Change0.27%
Market Cap80.08B
Analysts75.76
Price Target70.14 (10.22%)
Short Float %1.7%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend2.65
Dividend Growth(5Y)5.72%
DP73.1%
Div Incr Years3
Div Non Decr Years28
Ex-Date
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)-2.33%
PT rev (3m)-4.53%
EPS NQ rev (1m)-12.56%
EPS NQ rev (3m)-33.84%
EPS NY rev (1m)-1.75%
EPS NY rev (3m)-12.53%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 10.66 | ||
| P/S | 0.21 | ||
| P/FCF | 12.66 | ||
| P/OCF | 8.79 | ||
| P/B | 1.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)5.42
EY8.52%
EPS(NY)5.97
Fwd EY9.38%
FCF(TTM)5.03
FCFY7.9%
OCF(TTM)7.24
OCFY11.37%
SpS296.25
BVpS60.04
TBVpS-34.2
PEG (NY)1.16
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
WACC7.72%
ROIC/WACC0.56
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 Y10.12%
EPS Next 2Y13.27%
EPS Next 3Y13.46%
EPS Next 5Y14.43%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%4.15%
Revenue Next Year4.44%
Revenue Next 2Y4.79%
Revenue Next 3Y4.96%
Revenue Next 5Y4.95%
EBIT growth 1Y-35.07%
EBIT growth 3Y-12.98%
EBIT growth 5Y-4.24%
EBIT Next Year38.84%
EBIT Next 3YN/A
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%