CVS HEALTH CORP (CVS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CVS • US1266501006
74.52 USD
+0.08 (+0.11%)
At close: Jan 30, 2026
74.3699 USD
-0.15 (-0.2%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, CVS scores 4 out of 10 in our fundamental rating. CVS was compared to 102 industry peers in the Health Care Providers & Services industry. CVS may be in some trouble as it scores bad on both profitability and health. CVS may be a bit undervalued, certainly considering the very reasonable score on growth Finally 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.
- Each year in the past 5 years CVS had a positive operating cash flow.
1.2 Ratios
- CVS has a Return On Assets (0.18%) which is comparable to the rest of the industry.
- CVS's Return On Equity of 0.64% is in line compared to the rest of the industry. CVS outperforms 54.37% of its industry peers.
- With a Return On Invested Capital value of 4.90%, CVS perfoms like the industry average, outperforming 57.28% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CVS is below the industry average of 9.16%.
| 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
- CVS has a Profit Margin (0.12%) which is comparable to the rest of the industry.
- CVS's Profit Margin has declined in the last couple of years.
- CVS's Operating Margin of 2.73% is in line compared to the rest of the industry. CVS outperforms 54.37% of its industry peers.
- CVS's Operating Margin has declined in the last couple of years.
- The Gross Margin of CVS (13.88%) is worse than 66.99% of its industry peers.
- In the last couple of years the Gross Margin of CVS has declined.
| 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
- CVS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, CVS has less shares outstanding
- 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
- An Altman-Z score of 2.24 indicates that CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.24, CVS is in line with its industry, outperforming 54.37% of the companies in the same industry.
- The Debt to FCF ratio of CVS is 10.46, which is on the high side as it means it would take CVS, 10.46 years of fcf income to pay off all of its debts.
- CVS has a Debt to FCF ratio of 10.46. This is comparable to the rest of the industry: CVS outperforms 44.66% of its industry peers.
- A Debt/Equity ratio of 0.85 indicates that CVS is somewhat dependend on debt financing.
- CVS has a Debt to Equity ratio of 0.85. This is comparable to the rest of the industry: CVS outperforms 46.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.61
WACC8.04%
2.3 Liquidity
- A Current Ratio of 0.83 indicates that CVS may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.83, CVS is doing worse than 80.58% of the companies in the same industry.
- CVS has a Quick Ratio of 0.83. This is a bad value and indicates that CVS is not financially healthy enough and could expect problems in meeting its short term obligations.
- CVS's Quick ratio of 0.63 is on the low side compared to the rest of the industry. CVS is outperformed by 79.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.87% over the past year.
- The Earnings Per Share has been decreasing by -5.20% on average over the past years.
- CVS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.82%.
- The Revenue has been growing slightly by 7.74% on average over the past years.
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
- Based on estimates for the next years, CVS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.81% on average per year.
- CVS 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 3Y15.17%
EPS Next 5Y13.81%
Revenue Next Year7.59%
Revenue Next 2Y5.06%
Revenue Next 3Y5.17%
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
- With a Price/Earnings ratio of 10.88, the valuation of CVS can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of CVS indicates a rather cheap valuation: CVS is cheaper than 87.38% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, CVS is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.29, the valuation of CVS can be described as reasonable.
- Based on the Price/Forward Earnings ratio, CVS is valued cheaper than 87.38% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CVS to the average of the S&P500 Index (25.57), we can say CVS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
- 75.73% 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 | 15.03 | ||
| 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.
- A more expensive valuation may be justified as CVS's earnings are expected to grow with 15.17% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y15.58%
EPS Next 3Y15.17%
5. Dividend
5.1 Amount
- CVS has a Yearly Dividend Yield of 3.57%. Purely for dividend investing, there may be better candidates out there.
- CVS's Dividend Yield is rather good when compared to the industry average which is at 0.47. CVS pays more dividend than 98.06% of the companies in the same industry.
- CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
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
- 722.81% 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.
DP722.81%
EPS Next 2Y15.58%
EPS Next 3Y15.17%
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 of CVS HEALTH CORP (CVS) stock?
ChartMill assigns a valuation rating of 7 / 10 to CVS HEALTH CORP (CVS). This can be considered as Undervalued.
What is the profitability of CVS stock?
CVS HEALTH CORP (CVS) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for CVS stock?
The Earnings per Share (EPS) of CVS HEALTH CORP (CVS) is expected to grow by 23.97% in the next year.
Can you provide the dividend sustainability for CVS stock?
The dividend rating of CVS HEALTH CORP (CVS) is 7 / 10 and the dividend payout ratio is 722.81%.