CVS HEALTH CORP (CVS) Stock Fundamental Analysis
NYSE:CVS • US1266501006
76.69 USD
-0.63 (-0.81%)
At close: Feb 20, 2026
76.8831 USD
+0.19 (+0.25%)
After Hours: 2/20/2026, 8:26:13 PM
Overall CVS gets a fundamental rating of 4 out of 10. We evaluated CVS against 101 industry peers in the Health Care Providers & Services industry. CVS has a bad profitability rating. Also its financial health evaluation is rather negative. CVS has a correct valuation and a medium growth rate. 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.
- CVS had positive earnings in each of the past 5 years.
- Each year in the past 5 years CVS had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 0.70%, CVS perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
- With a Return On Equity value of 2.35%, CVS perfoms like the industry average, outperforming 53.92% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 4.90%, CVS is in line with its industry, outperforming 55.88% of the companies in the same industry.
- CVS had an Average Return On Invested Capital over the past 3 years of 5.46%. This is below the industry average of 9.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 2.35% | ||
| ROIC | 4.9% |
ROA(3y)1.95%
ROA(5y)2.24%
ROE(3y)6.46%
ROE(5y)7.21%
ROIC(3y)5.46%
ROIC(5y)6.31%
1.3 Margins
- Looking at the Profit Margin, with a value of 0.44%, CVS is in line with its industry, outperforming 48.04% of the companies in the same industry.
- CVS's Profit Margin has declined in the last couple of years.
- The Operating Margin of CVS (2.58%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of CVS has declined.
- CVS's Gross Margin of 13.77% is on the low side compared to the rest of the industry. CVS is outperformed by 66.67% of its industry peers.
- In the last couple of years the Gross Margin of CVS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.58% | ||
| PM (TTM) | 0.44% | ||
| GM | 13.77% |
OM growth 3Y-19.74%
OM growth 5Y-12.87%
PM growth 3Y-30.97%
PM growth 5Y-30.29%
GM growth 3Y-6.6%
GM growth 5Y-5.48%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVS is destroying value.
- The number of shares outstanding for CVS has been increased compared to 1 year ago.
- The number of shares outstanding for CVS has been reduced compared to 5 years ago.
- CVS has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.32 indicates that CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.32, CVS perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
- The Debt to FCF ratio of CVS is 8.27, which is on the high side as it means it would take CVS, 8.27 years of fcf income to pay off all of its debts.
- CVS has a Debt to FCF ratio of 8.27. This is comparable to the rest of the industry: CVS outperforms 50.00% of its industry peers.
- CVS has a Debt/Equity ratio of 0.80. This is a neutral value indicating CVS is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.80, CVS is in line with its industry, outperforming 47.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 8.27 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.62
WACC7.85%
2.3 Liquidity
- CVS has a Current Ratio of 0.84. 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 has a worse Current ratio (0.84) than 80.39% of its industry peers.
- CVS has a Quick Ratio of 0.84. This is a bad value and indicates that CVS is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.63, CVS is not doing good in the industry: 81.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 24.54% over the past year.
- CVS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.11% yearly.
- Looking at the last year, CVS shows a small growth in Revenue. The Revenue has grown by 7.85% in the last year.
- CVS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.39% yearly.
EPS 1Y (TTM)24.54%
EPS 3Y-8.11%
EPS 5Y-2.11%
EPS Q2Q%-8.4%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y7.63%
Revenue growth 5Y8.39%
Sales Q2Q%8.17%
3.2 Future
- The Earnings Per Share is expected to grow by 9.08% 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 4.27% yearly.
EPS Next Y7.28%
EPS Next 2Y10.96%
EPS Next 3Y11.47%
EPS Next 5Y9.08%
Revenue Next Year1.49%
Revenue Next 2Y3.12%
Revenue Next 3Y3.88%
Revenue Next 5Y4.27%
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
- Based on the Price/Earnings ratio of 11.36, the valuation of CVS can be described as reasonable.
- Based on the Price/Earnings ratio, CVS is valued cheaper than 88.24% of the companies in the same industry.
- CVS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.99.
- The Price/Forward Earnings ratio is 10.59, which indicates a very decent valuation of CVS.
- Based on the Price/Forward Earnings ratio, CVS is valued cheaper than 87.25% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, CVS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVS indicates a somewhat cheap valuation: CVS is cheaper than 78.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.47 | ||
| 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.
PEG (NY)1.56
PEG (5Y)N/A
EPS Next 2Y10.96%
EPS Next 3Y11.47%
5. Dividend
5.1 Amount
- CVS has a Yearly Dividend Yield of 3.44%.
- CVS's Dividend Yield is rather good when compared to the industry average which is at 0.49. CVS pays more dividend than 97.06% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, CVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
- The dividend of CVS has a limited annual growth rate of 5.96%.
- CVS has been paying a dividend for at least 10 years, so it has 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)5.96%
Div Incr Years3
Div Non Decr Years28
5.3 Sustainability
- 192.14% 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.
DP192.14%
EPS Next 2Y10.96%
EPS Next 3Y11.47%
76.69
-0.63 (-0.81%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-10 2026-02-10/bmo
Earnings (Next)04-29 2026-04-29/bmo
Inst Owners89.6%
Inst Owner Change0.59%
Ins Owners0.99%
Ins Owner Change-1.15%
Market Cap97.35B
Revenue(TTM)402.07B
Net Income(TTM)1.77B
Analysts80
Price Target95.66 (24.74%)
Short Float %1.62%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend2.68
Dividend Growth(5Y)5.96%
DP192.14%
Div Incr Years3
Div Non Decr Years28
Ex-Date01-22 2026-01-22 (0.665)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.24%
Min EPS beat(2)8.8%
Max EPS beat(2)15.69%
EPS beat(4)4
Avg EPS beat(4)19.56%
Min EPS beat(4)8.8%
Max EPS beat(4)30.76%
EPS beat(8)6
Avg EPS beat(8)7.29%
EPS beat(12)10
Avg EPS beat(12)6.2%
EPS beat(16)14
Avg EPS beat(16)5.76%
Revenue beat(2)2
Avg Revenue beat(2)2.03%
Min Revenue beat(2)1.02%
Max Revenue beat(2)3.04%
Revenue beat(4)4
Avg Revenue beat(4)1.93%
Min Revenue beat(4)0.02%
Max Revenue beat(4)3.64%
Revenue beat(8)5
Avg Revenue beat(8)0.75%
Revenue beat(12)9
Avg Revenue beat(12)1.31%
Revenue beat(16)13
Avg Revenue beat(16)2.17%
PT rev (1m)0.16%
PT rev (3m)10.57%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)3.18%
EPS NY rev (1m)0.04%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 10.59 | ||
| P/S | 0.24 | ||
| P/FCF | 12.47 | ||
| P/OCF | 9.15 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.75
EY8.8%
EPS(NY)7.24
Fwd EY9.44%
FCF(TTM)6.15
FCFY8.02%
OCF(TTM)8.38
OCFY10.93%
SpS316.73
BVpS59.25
TBVpS-28.18
PEG (NY)1.56
PEG (5Y)N/A
Graham Number94.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 2.35% | ||
| ROCE | 6.3% | ||
| ROIC | 4.9% | ||
| ROICexc | 5.23% | ||
| ROICexgc | 18.66% | ||
| OM | 2.58% | ||
| PM (TTM) | 0.44% | ||
| GM | 13.77% | ||
| FCFM | 1.94% |
ROA(3y)1.95%
ROA(5y)2.24%
ROE(3y)6.46%
ROE(5y)7.21%
ROIC(3y)5.46%
ROIC(5y)6.31%
ROICexc(3y)5.85%
ROICexc(5y)6.83%
ROICexgc(3y)22.7%
ROICexgc(5y)25.24%
ROCE(3y)7.06%
ROCE(5y)8.13%
ROICexgc growth 3Y-15.72%
ROICexgc growth 5Y-3.91%
ROICexc growth 3Y-15.74%
ROICexc growth 5Y-5.12%
OM growth 3Y-19.74%
OM growth 5Y-12.87%
PM growth 3Y-30.97%
PM growth 5Y-30.29%
GM growth 3Y-6.6%
GM growth 5Y-5.48%
F-Score6
Asset Turnover1.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 8.27 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.7% | ||
| Interest Coverage | -3.47 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 441.57% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 2.32 |
F-Score6
WACC7.85%
ROIC/WACC0.62
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.77%
Cap/Sales(5y)0.8%
Profit Quality(3y)234.42%
Profit Quality(5y)242.41%
High Growth Momentum
Growth
EPS 1Y (TTM)24.54%
EPS 3Y-8.11%
EPS 5Y-2.11%
EPS Q2Q%-8.4%
EPS Next Y7.28%
EPS Next 2Y10.96%
EPS Next 3Y11.47%
EPS Next 5Y9.08%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y7.63%
Revenue growth 5Y8.39%
Sales Q2Q%8.17%
Revenue Next Year1.49%
Revenue Next 2Y3.12%
Revenue Next 3Y3.88%
Revenue Next 5Y4.27%
EBIT growth 1Y6.02%
EBIT growth 3Y-13.61%
EBIT growth 5Y-5.55%
EBIT Next Year23.87%
EBIT Next 3Y14.96%
EBIT Next 5YN/A
FCF growth 1Y23.41%
FCF growth 3Y-16.58%
FCF growth 5Y-10.28%
OCF growth 1Y16.82%
OCF growth 3Y-13.04%
OCF growth 5Y-7.68%
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 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 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 7.28% 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 192.14%.