CVS HEALTH CORP (CVS) Fundamental Analysis & Valuation
NYSE:CVS • US1266501006
Current stock price
73.49 USD
+1 (+1.38%)
At close:
73.68 USD
+0.19 (+0.26%)
After Hours:
This CVS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- 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 (0.70%) which is in line with its industry peers.
- The Return On Equity of CVS (2.35%) is comparable to the rest of the 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 8.63%.
| 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
- CVS has a Profit Margin (0.44%) which is comparable to the rest of the industry.
- CVS's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 2.58%, CVS perfoms like the industry average, outperforming 49.00% 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 13.77%, CVS is doing worse than 67.00% 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 | 2.58% | ||
| 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. CVS Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVS is destroying value.
- Compared to 1 year ago, CVS has more shares outstanding
- The number of shares outstanding for CVS has been reduced compared to 5 years ago.
- Compared to 1 year ago, CVS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.31 indicates that CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CVS has a Altman-Z score (2.31) which is in line with its industry peers.
- 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.
- With a Debt to FCF ratio value of 8.27, CVS perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
- CVS has a Debt/Equity ratio of 0.80. This is a neutral value indicating CVS is somewhat dependend on debt financing.
- CVS has a Debt to Equity ratio of 0.80. This is comparable to the rest of the industry: CVS outperforms 48.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 8.27 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.62
WACC7.86%
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.
- Looking at the Current ratio, with a value of 0.84, CVS is doing worse than 81.00% of the companies in the same industry.
- 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.
- CVS has a Quick ratio of 0.63. This is amonst the worse of the industry: CVS underperforms 81.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.63 |
3. CVS Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 24.54% over the past year.
- Measured over the past years, CVS shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.11% on average per year.
- The Revenue has been growing slightly by 7.85% in the past year.
- Measured over the past years, CVS shows a quite strong growth in Revenue. The Revenue has been growing by 8.39% on average per year.
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.
- The Revenue is expected to grow by 4.08% on average over the next years.
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. CVS Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 10.89, which indicates a very decent valuation of CVS.
- CVS's Price/Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 89.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 25.60. CVS is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 10.13 indicates a reasonable valuation of CVS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CVS indicates a rather cheap valuation: CVS is cheaper than 90.00% of the companies listed in the same industry.
- CVS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
- CVS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CVS is cheaper than 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.98 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as CVS's earnings are expected to grow with 12.48% in the coming years.
PEG (NY)1.46
PEG (5Y)N/A
EPS Next 2Y10.69%
EPS Next 3Y12.48%
5. CVS Dividend Analysis
5.1 Amount
- CVS has a Yearly Dividend Yield of 3.74%.
- CVS's Dividend Yield is rather good when compared to the industry average which is at 0.50. CVS pays more dividend than 99.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.88, CVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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.
- CVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP192.14%
EPS Next 2Y10.69%
EPS Next 3Y12.48%
CVS Fundamentals: All Metrics, Ratios and Statistics
73.49
+1 (+1.38%)
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 Owners90.76%
Inst Owner Change3.4%
Ins Owners0.98%
Ins Owner Change-0.79%
Market Cap93.49B
Revenue(TTM)402.07B
Net Income(TTM)1.77B
Analysts79.39
Price Target95.74 (30.28%)
Short Float %1.42%
Short Ratio1.94
Dividend
| Industry Rank | Sector 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 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%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 10.13 | ||
| P/S | 0.23 | ||
| P/FCF | 11.98 | ||
| P/OCF | 8.79 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.75
EY9.18%
EPS(NY)7.25
Fwd EY9.87%
FCF(TTM)6.14
FCFY8.35%
OCF(TTM)8.36
OCFY11.38%
SpS316.04
BVpS59.12
TBVpS-28.12
PEG (NY)1.46
PEG (5Y)N/A
Graham Number94.76
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 | 2.31 |
F-Score6
WACC7.86%
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.
How profitable is CVS HEALTH CORP (CVS) stock?
CVS HEALTH CORP (CVS) has a profitability rating of 3 / 10.
What is the valuation of CVS HEALTH CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CVS HEALTH CORP (CVS) is 10.89 and the Price/Book (PB) ratio is 1.24.
What is the financial health of CVS HEALTH CORP (CVS) stock?
The financial health rating of CVS HEALTH CORP (CVS) is 3 / 10.