CVS HEALTH CORP (CVS) Fundamental Analysis & Valuation

NYSE:CVS • US1266501006

Current stock price

70.08 USD
-1.1 (-1.55%)
At close:
70.07 USD
-0.01 (-0.01%)
After Hours:

This CVS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. CVS Profitability Analysis

1.1 Basic Checks

  • CVS had positive earnings in the past year.
  • In the past year CVS had a positive cash flow from operations.
  • 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.
CVS Yearly Net Income VS EBIT VS OCF VS FCFCVS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

1.2 Ratios

  • The Return On Assets of CVS (0.70%) is comparable to the rest of the industry.
  • Looking at the Return On Equity, with a value of 2.35%, CVS is in line with its industry, outperforming 55.00% of the companies in the same industry.
  • With a Return On Invested Capital value of 4.90%, CVS perfoms like the industry average, outperforming 52.00% 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 8.85%.
Industry RankSector 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%
CVS Yearly ROA, ROE, ROICCVS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

1.3 Margins

  • With a Profit Margin value of 0.44%, CVS perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CVS has declined.
  • CVS's Operating Margin of 2.58% is in line compared to the rest of the industry. CVS outperforms 50.00% of its industry peers.
  • In the last couple of years the Operating Margin of CVS has declined.
  • Looking at the Gross Margin, with a value of 13.77%, CVS is doing worse than 66.00% of the companies in the same industry.
  • CVS's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
CVS Yearly Profit, Operating, Gross MarginsCVS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

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3

2. CVS Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CVS is destroying value.
  • The number of shares outstanding for CVS has been increased compared to 1 year ago.
  • Compared to 5 years ago, CVS has less shares outstanding
  • Compared to 1 year ago, CVS has an improved debt to assets ratio.
CVS Yearly Shares OutstandingCVS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
CVS Yearly Total Debt VS Total AssetsCVS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B 250B

2.2 Solvency

  • CVS has an Altman-Z score of 2.29. 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 has a Altman-Z score of 2.29. This is comparable to the rest of the industry: CVS outperforms 56.00% of its industry peers.
  • CVS has a debt to FCF ratio of 8.27. This is a slightly negative value and a sign of low solvency as CVS would need 8.27 years to pay back of all of its debts.
  • The Debt to FCF ratio of CVS (8.27) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.80 indicates that CVS is somewhat dependend on debt financing.
  • CVS has a Debt to Equity ratio (0.80) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF 8.27
Altman-Z 2.29
ROIC/WACC0.62
WACC7.89%
CVS Yearly LT Debt VS Equity VS FCFCVS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 0.84 indicates that CVS may have some problems paying its short term obligations.
  • CVS has a Current ratio of 0.84. This is amonst the worse of the industry: CVS underperforms 82.00% of its industry peers.
  • A Quick Ratio of 0.63 indicates that CVS may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.63, CVS is doing worse than 81.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.63
CVS Yearly Current Assets VS Current LiabilitesCVS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. CVS Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 24.54% over the past year.
  • The Earnings Per Share has been decreasing by -2.11% on average over the past years.
  • The Revenue has been growing slightly by 7.85% in the past year.
  • The Revenue has been growing by 8.39% on average over the past years. This is quite good.
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 10.88% on average over the next years. This is quite good.
  • Based on estimates for the next years, CVS will show a small growth in Revenue. The Revenue will grow by 4.08% on average per year.
EPS Next Y7.45%
EPS Next 2Y10.69%
EPS Next 3Y12.48%
EPS Next 5Y10.88%
Revenue Next Year1.39%
Revenue Next 2Y2.92%
Revenue Next 3Y3.5%
Revenue Next 5Y4.08%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
CVS Yearly Revenue VS EstimatesCVS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 100B 200B 300B 400B 500B
CVS Yearly EPS VS EstimatesCVS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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6

4. CVS Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.38, the valuation of CVS can be described as reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of CVS indicates a rather cheap valuation: CVS is cheaper than 90.00% of the companies listed in the same industry.
  • CVS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.88.
  • With a Price/Forward Earnings ratio of 9.66, the valuation of CVS can be described as very reasonable.
  • Based on the Price/Forward Earnings ratio, CVS is valued cheaper than 90.00% of the companies in the same industry.
  • CVS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.38
Fwd PE 9.66
CVS Price Earnings VS Forward Price EarningsCVS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, CVS is valued a bit cheaper than the industry average as 78.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 11.42
EV/EBITDA N/A
CVS Per share dataCVS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 100 200 300

4.3 Compensation for Growth

  • The 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 12.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)N/A
EPS Next 2Y10.69%
EPS Next 3Y12.48%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. CVS Dividend Analysis

5.1 Amount

  • CVS has a Yearly Dividend Yield of 3.74%. 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 0.50. CVS pays more dividend than 98.00% of the companies in the same industry.
  • CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.74%

5.2 History

  • The dividend of CVS has a limited annual growth rate of 5.96%.
  • 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)5.96%
Div Incr Years3
Div Non Decr Years28
CVS Yearly Dividends per shareCVS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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 2Y10.69%
EPS Next 3Y12.48%
CVS Yearly Income VS Free CF VS DividendCVS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B
CVS Dividend Payout.CVS Dividend Payout, showing the Payout Ratio.CVS Dividend Payout.PayoutRetained Earnings

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CVS Fundamentals: All Metrics, Ratios and Statistics

CVS HEALTH CORP

NYSE:CVS (3/27/2026, 8:09:58 PM)

After market: 70.07 -0.01 (-0.01%)

70.08

-1.1 (-1.55%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-10
Earnings (Next)04-29
Inst Owners90.76%
Inst Owner Change3.4%
Ins Owners0.98%
Ins Owner Change-0.79%
Market Cap89.16B
Revenue(TTM)402.07B
Net Income(TTM)1.77B
Analysts79.39
Price Target95.74 (36.62%)
Short Float %1.4%
Short Ratio1.96
Dividend
Industry RankSector Rank
Dividend Yield 3.74%
Yearly Dividend2.68
Dividend Growth(5Y)5.96%
DP192.14%
Div Incr Years3
Div Non Decr Years28
Ex-Date01-22
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%
PT rev (3m)0.25%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-1.71%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.34%
Valuation
Industry RankSector Rank
PE 10.38
Fwd PE 9.66
P/S 0.22
P/FCF 11.42
P/OCF 8.38
P/B 1.19
P/tB N/A
EV/EBITDA N/A
EPS(TTM)6.75
EY9.63%
EPS(NY)7.25
Fwd EY10.35%
FCF(TTM)6.14
FCFY8.76%
OCF(TTM)8.36
OCFY11.93%
SpS316.04
BVpS59.12
TBVpS-28.12
PEG (NY)1.39
PEG (5Y)N/A
Graham Number94.76
Profitability
Industry RankSector 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 RankSector 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 2.29
F-Score6
WACC7.89%
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 Y7.45%
EPS Next 2Y10.69%
EPS Next 3Y12.48%
EPS Next 5Y10.88%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y7.63%
Revenue growth 5Y8.39%
Sales Q2Q%8.17%
Revenue Next Year1.39%
Revenue Next 2Y2.92%
Revenue Next 3Y3.5%
Revenue Next 5Y4.08%
EBIT growth 1Y6.02%
EBIT growth 3Y-13.61%
EBIT growth 5Y-5.55%
EBIT Next Year24.52%
EBIT Next 3Y15.26%
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 Fundamental Analysis 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 7.45% 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%.