CVS HEALTH CORP (CVS) Fundamental Analysis & Valuation

NYSE:CVS • US1266501006

Current stock price

75.84 USD
-0.29 (-0.38%)
At close:
75.98 USD
+0.14 (+0.18%)
Pre-Market:

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.
  • 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.
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

  • CVS has a Return On Assets of 0.70%. This is comparable to the rest of the industry: CVS outperforms 51.49% of its industry peers.
  • With a Return On Equity value of 2.35%, CVS perfoms like the industry average, outperforming 57.43% of the companies in the same industry.
  • CVS has a Return On Invested Capital (4.90%) which is comparable to the rest of the industry.
  • CVS had an Average Return On Invested Capital over the past 3 years of 5.46%. This is below the industry average of 8.92%.
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

  • CVS has a Profit Margin (0.44%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of CVS has declined.
  • CVS has a Operating Margin (2.58%) which is in line with its industry peers.
  • CVS's Operating Margin has declined in the last couple of years.
  • CVS's Gross Margin of 13.77% is on the low side compared to the rest of the industry. CVS is outperformed by 66.34% of its industry peers.
  • In the last couple of years the Gross Margin of CVS has declined.
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.
  • Compared to 1 year ago, CVS has more shares outstanding
  • CVS has less shares outstanding than it did 5 years ago.
  • CVS has a better debt/assets ratio than last year.
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

  • 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.
  • Looking at the Altman-Z score, with a value of 2.32, CVS is in line with its industry, outperforming 56.44% 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.
  • With a Debt to FCF ratio value of 8.27, CVS perfoms like the industry average, outperforming 47.52% of the companies in the same industry.
  • A Debt/Equity ratio of 0.80 indicates that 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 48.51% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF 8.27
Altman-Z 2.32
ROIC/WACC0.63
WACC7.74%
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's Current ratio of 0.84 is on the low side compared to the rest of the industry. CVS is outperformed by 82.18% of its industry peers.
  • A Quick Ratio of 0.63 indicates that CVS may have some problems paying its short term obligations.
  • CVS's Quick ratio of 0.63 is on the low side compared to the rest of the industry. CVS is outperformed by 81.19% of its industry peers.
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.
  • CVS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.11% yearly.
  • CVS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.85%.
  • 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

  • CVS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.88% yearly.
  • 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 Year1.4%
Revenue Next 2Y2.97%
Revenue Next 3Y3.58%
Revenue Next 5Y4.08%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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

  • With a Price/Earnings ratio of 11.24, the valuation of CVS can be described as very reasonable.
  • 89.11% of the companies in the same industry are more expensive than CVS, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 25.96, CVS is valued rather cheaply.
  • A Price/Forward Earnings ratio of 10.46 indicates a reasonable valuation of CVS.
  • CVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 88.12% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, CVS is valued rather cheaply.
Industry RankSector Rank
PE 11.24
Fwd PE 10.46
CVS Price Earnings VS Forward Price EarningsCVS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • 78.22% of the companies in the same industry are more expensive than CVS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12.36
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.
  • A more expensive valuation may be justified as CVS's earnings are expected to grow with 12.48% in the coming years.
PEG (NY)1.51
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 3.50%.
  • CVS's Dividend Yield is rather good when compared to the industry average which is at 0.50. CVS pays more dividend than 97.03% of the companies in the same industry.
  • CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 3.5%

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
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

  • CVS pays out 192.14% of its income as dividend. 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 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 (3/16/2026, 8:17:08 PM)

Premarket: 75.98 +0.14 (+0.18%)

75.84

-0.29 (-0.38%)

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 Change3.39%
Ins Owners0.98%
Ins Owner Change-0.81%
Market Cap96.48B
Revenue(TTM)402.07B
Net Income(TTM)1.77B
Analysts79.39
Price Target95.74 (26.24%)
Short Float %1.4%
Short Ratio1.96
Dividend
Industry RankSector Rank
Dividend Yield 3.5%
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)0.08%
PT rev (3m)3.53%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-4.98%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)-1.61%
Revenue NQ rev (3m)-4.36%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)-3.2%
Valuation
Industry RankSector Rank
PE 11.24
Fwd PE 10.46
P/S 0.24
P/FCF 12.36
P/OCF 9.07
P/B 1.28
P/tB N/A
EV/EBITDA N/A
EPS(TTM)6.75
EY8.9%
EPS(NY)7.25
Fwd EY9.56%
FCF(TTM)6.14
FCFY8.09%
OCF(TTM)8.36
OCFY11.03%
SpS316.04
BVpS59.12
TBVpS-28.12
PEG (NY)1.51
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 2.32
F-Score6
WACC7.74%
ROIC/WACC0.63
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 Year1.4%
Revenue Next 2Y2.97%
Revenue Next 3Y3.58%
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%.