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
CVS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 102 industry peers in the Health Care Providers & Services industry. Both the profitability and financial health of CVS have multiple concerns. CVS has a correct valuation and a medium growth rate. CVS also has an excellent dividend rating.
1. Profitability
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.
- In the past 5 years CVS always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of CVS (0.70%) is comparable to the rest of the industry.
- CVS's Return On Equity of 2.35% is in line compared to the rest of the industry. CVS outperforms 53.92% of its industry peers.
- CVS has a Return On Invested Capital (4.90%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CVS 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
- The Profit Margin of CVS (0.44%) 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 52.94% of the companies in the same 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.
- CVS has more shares outstanding than it did 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.
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.
- The Altman-Z score of CVS (2.32) is comparable to the rest of the industry.
- 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.
- With a Debt to FCF ratio value of 8.27, CVS perfoms like the industry average, outperforming 50.00% 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.
- With a Debt to Equity ratio value of 0.80, CVS perfoms like the industry average, 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
- A Current Ratio of 0.84 indicates that CVS may have some problems paying 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.
- The Quick ratio of CVS (0.63) is worse than 81.37% of its industry peers.
| 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.
- 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 9.08% 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 4.27% on average per year.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- CVS is valuated reasonably with a Price/Earnings ratio of 11.36.
- CVS's Price/Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 88.24% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.99, CVS is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.59, the valuation of CVS can be described as reasonable.
- CVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 87.25% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. CVS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, CVS is valued a bit cheaper than 78.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.47 | ||
| 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.
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 3.40%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.48, CVS pays a better dividend. On top of this CVS pays more dividend than 97.06% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, CVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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
- CVS pays out 192.14% of its income as dividend. 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 | 3.4% |
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%.