CVS HEALTH CORP (CVS) Stock Fundamental Analysis
NYSE:CVS • US1266501006
78.2 USD
-0.28 (-0.36%)
At close: Feb 17, 2026
78.2 USD
0 (0%)
After Hours: 2/17/2026, 4:26:30 PM
Taking everything into account, CVS scores 4 out of 10 in our fundamental rating. CVS was compared to 102 industry peers in the Health Care Providers & Services industry. CVS may be in some trouble as it scores bad on both profitability and health. CVS has a correct valuation and a medium growth rate. Finally 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.
- CVS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CVS has a Return On Assets of 0.70%. This is comparable to the rest of the industry: CVS outperforms 49.02% of its industry peers.
- CVS has a Return On Equity (2.35%) which is in line with its industry peers.
- The Return On Invested Capital of CVS (4.90%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for CVS is below the industry average of 8.98%.
| 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
- With a Profit Margin value of 0.44%, CVS perfoms like the industry average, outperforming 48.04% of the companies in the same industry.
- CVS's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 2.58%, CVS is in line with its industry, outperforming 52.94% of the companies in the same industry.
- In the last couple of years the Operating Margin of CVS has declined.
- CVS has a Gross Margin of 13.77%. This is in the lower half of the industry: CVS underperforms 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CVS is destroying value.
- CVS has more shares outstanding than it did 1 year ago.
- CVS has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CVS has an improved debt to assets ratio.
2.2 Solvency
- CVS has an Altman-Z score of 2.33. 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 (2.33) which is comparable to the rest of the 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.
- CVS's Debt to FCF ratio of 8.27 is in line compared to the rest of the industry. CVS outperforms 50.00% of its industry peers.
- 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 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 8.27 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.63
WACC7.83%
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 80.39% of the companies in the same industry.
- A Quick Ratio of 0.63 indicates that CVS may have some problems paying its short term obligations.
- With a Quick ratio value of 0.63, CVS is not doing good in the industry: 81.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- CVS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.54%, which is quite impressive.
- CVS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.11% yearly.
- The Revenue has been growing slightly by 7.85% in the past year.
- CVS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.39% yearly.
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 9.08% yearly.
- 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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- CVS is valuated reasonably with a Price/Earnings ratio of 11.59.
- CVS's Price/Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 86.27% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.19, CVS is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.80, which indicates a very decent valuation of CVS.
- 87.25% of the companies in the same industry are more expensive than CVS, based on the Price/Forward Earnings ratio.
- CVS is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, CVS is valued a bit cheaper than the industry average as 78.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.72 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- CVS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.59
PEG (5Y)N/A
EPS Next 2Y10.96%
EPS Next 3Y11.47%
5. Dividend
5.1 Amount
- CVS has a Yearly Dividend Yield of 3.39%. 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 0.48. CVS pays more dividend than 97.06% of the companies in the same industry.
- CVS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
- CVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP192.14%
EPS Next 2Y10.96%
EPS Next 3Y11.47%
78.2
-0.28 (-0.36%)
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 Cap99.27B
Revenue(TTM)402.07B
Net Income(TTM)1.77B
Analysts80
Price Target95.66 (22.33%)
Short Float %1.62%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
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 | 11.59 | ||
| Fwd PE | 10.8 | ||
| P/S | 0.25 | ||
| P/FCF | 12.72 | ||
| P/OCF | 9.33 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.75
EY8.63%
EPS(NY)7.24
Fwd EY9.26%
FCF(TTM)6.15
FCFY7.86%
OCF(TTM)8.38
OCFY10.72%
SpS316.73
BVpS59.25
TBVpS-28.18
PEG (NY)1.59
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 | 2.33 |
F-Score6
WACC7.83%
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 Y7.28%
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%.