CVS HEALTH CORP (CVS)
US1266501006 - Common Stock
CVS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 113 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 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.
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's Return On Assets of 1.99% is fine compared to the rest of the industry. CVS outperforms 65.49% of its industry peers.
CVS has a better Return On Equity (6.69%) than 70.80% of its industry peers.
CVS has a Return On Invested Capital of 4.94%. This is in the better half of the industry: CVS outperforms 62.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CVS is in line with the industry average of 8.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 6.69% | ||
| ROIC | 4.94% |
ROA(3y)2.89%
ROA(5y)2.95%
ROE(3y)9.2%
ROE(5y)9.67%
ROIC(3y)7.03%
ROIC(5y)6.55%
1.3 Margins
The Profit Margin of CVS (1.36%) is better than 65.49% of its industry peers.
CVS's Profit Margin has declined in the last couple of years.
CVS has a Operating Margin (3.03%) which is comparable to the rest of the industry.
CVS's Operating Margin has declined in the last couple of years.
CVS's Gross Margin of 14.20% is on the low side compared to the rest of the industry. CVS is outperformed by 75.22% of its industry peers.
CVS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.03% | ||
| PM (TTM) | 1.36% | ||
| GM | 14.2% |
OM growth 3Y-6.75%
OM growth 5Y-4.2%
PM growth 3Y-4.43%
PM growth 5YN/A
GM growth 3Y-26.92%
GM growth 5Y-4.94%
2. Health
2.1 Basic Checks
CVS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CVS has been reduced compared to 1 year ago.
CVS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CVS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.11 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 2.11, CVS is in line with its industry, outperforming 56.64% of the companies in the same industry.
CVS has a debt to FCF ratio of 38.85. This is a negative value and a sign of low solvency as CVS would need 38.85 years to pay back of all of its debts.
CVS has a Debt to FCF ratio of 38.85. This is comparable to the rest of the industry: CVS outperforms 54.87% of its industry peers.
CVS has a Debt/Equity ratio of 0.81. This is a neutral value indicating CVS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, CVS is doing worse than 60.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 38.85 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.77
WACC6.45%
2.3 Liquidity
CVS has a Current 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 Current ratio of CVS (0.80) is worse than 83.19% of its industry peers.
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 (0.59) is worse than 84.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for CVS have decreased strongly by -26.25% in the last year.
Measured over the past 5 years, CVS shows a small growth in Earnings Per Share. The EPS has been growing by 4.42% on average per year.
CVS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.07%.
The Revenue has been growing by 12.95% on average over the past years. This is quite good.
EPS 1Y (TTM)-26.25%
EPS 3Y5.19%
EPS 5Y4.42%
EPS Q2Q%-50.68%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y10.01%
Revenue growth 5Y12.95%
Sales Q2Q%6.31%
3.2 Future
The Earnings Per Share is expected to grow by 3.94% on average over the next years.
CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.99% yearly.
EPS Next Y-31.66%
EPS Next 2Y-11.09%
EPS Next 3Y-3.92%
EPS Next 5Y3.94%
Revenue Next Year4.54%
Revenue Next 2Y4.51%
Revenue Next 3Y4.95%
Revenue Next 5Y4.99%
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 stable.
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 8.99, the valuation of CVS can be described as reasonable.
CVS's Price/Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 95.58% 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 28.65.
The Price/Forward Earnings ratio is 8.26, which indicates a very decent valuation of CVS.
CVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 94.69% of the companies in the same industry.
CVS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 8.26 |
4.2 Price Multiples
CVS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CVS is cheaper than 65.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.59 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CVS's earnings are expected to decrease with -3.92% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.03
EPS Next 2Y-11.09%
EPS Next 3Y-3.92%
5. Dividend
5.1 Amount
CVS has a Yearly Dividend Yield of 4.83%, which is a nice return.
Compared to an average industry Dividend Yield of 3.16, CVS pays a better dividend. On top of this CVS pays more dividend than 95.58% of the companies listed in the same industry.
CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
5.2 History
The dividend of CVS is nicely growing with an annual growth rate of 6.52%!
CVS has paid a dividend for at least 10 years, which is a reliable track record.
CVS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.52%
Div Incr Years2
Div Non Decr Years27
5.3 Sustainability
66.07% of the earnings are spent on dividend by CVS. This is not a sustainable payout ratio.
The dividend of CVS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP66.07%
EPS Next 2Y-11.09%
EPS Next 3Y-3.92%
CVS HEALTH CORP
NYSE:CVS (11/21/2024, 5:24:06 PM)
After market: 57.0114 -0.09 (-0.16%)57.1
+0.27 (+0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap71.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 8.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 6.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.03% | ||
| PM (TTM) | 1.36% | ||
| GM | 14.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-26.25%
EPS 3Y5.19%
EPS 5Y
EPS Q2Q%
EPS Next Y-31.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.07%
Revenue growth 3Y10.01%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y