CVS HEALTH CORP (CVS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVS - US1266501006 - Common Stock
80.44 USD
+0.02 (+0.02%)
Overall CVS gets a fundamental rating of 4 out of 10. We evaluated CVS against 101 industry peers in the Health Care Providers & Services industry. Both the profitability and financial health of CVS have multiple concerns. CVS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. CVS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CVS had positive earnings in the past year.
CVS had a positive operating cash flow in the past year.
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 0.18% is in line compared to the rest of the industry. CVS outperforms 49.51% of its industry peers.
With a Return On Equity value of 0.64%, CVS perfoms like the industry average, outperforming 54.46% 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.
The Average Return On Invested Capital over the past 3 years for CVS is below the industry average of 9.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.18% | ||
| ROE | 0.64% | ||
| ROIC | 4.9% |
ROA(3y)2.35%
ROA(5y)2.72%
ROE(3y)7.68%
ROE(5y)8.81%
ROIC(3y)6.22%
ROIC(5y)6.35%
1.3 Margins
CVS has a Profit Margin (0.12%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CVS has declined.
The Operating Margin of CVS (2.73%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CVS has declined.
CVS's Gross Margin of 13.88% is on the low side compared to the rest of the industry. CVS is outperformed by 67.33% of its industry peers.
CVS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.73% | ||
| PM (TTM) | 0.12% | ||
| GM | 13.88% |
OM growth 3Y-19.77%
OM growth 5Y-11.12%
PM growth 3Y-23.26%
PM growth 5Y-13.69%
GM growth 3Y-8.24%
GM growth 5Y-4.91%
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for CVS has been reduced compared to 5 years ago.
CVS has a worse debt/assets ratio than last year.
2.2 Solvency
CVS has an Altman-Z score of 2.27. 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 (2.27) which is comparable to the rest of the industry.
CVS has a debt to FCF ratio of 10.46. This is a negative value and a sign of low solvency as CVS would need 10.46 years to pay back of all of its debts.
CVS has a Debt to FCF ratio (10.46) which is in line with its industry peers.
A Debt/Equity ratio of 0.85 indicates that CVS is somewhat dependend on debt financing.
CVS's Debt to Equity ratio of 0.85 is in line compared to the rest of the industry. CVS outperforms 45.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.6
WACC8.2%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CVS may have some problems paying its short term obligations.
CVS's Current ratio of 0.83 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.
Looking at the Quick ratio, with a value of 0.63, CVS is doing worse than 81.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.87% over the past year.
CVS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.20% yearly.
The Revenue has been growing slightly by 6.82% in the past year.
Measured over the past years, CVS shows a small growth in Revenue. The Revenue has been growing by 7.74% on average per year.
EPS 1Y (TTM)7.87%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%46.79%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%7.8%
3.2 Future
The Earnings Per Share is expected to grow by 12.34% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y23.97%
EPS Next 2Y15.58%
EPS Next 3Y15.14%
EPS Next 5Y12.34%
Revenue Next Year7.57%
Revenue Next 2Y5.14%
Revenue Next 3Y5.22%
Revenue Next 5Y5%
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. Valuation
4.1 Price/Earnings Ratio
CVS is valuated reasonably with a Price/Earnings ratio of 11.74.
Based on the Price/Earnings ratio, CVS is valued cheaper than 87.13% of the companies in the same industry.
When comparing the Price/Earnings ratio of CVS to the average of the S&P500 Index (26.87), we can say CVS is valued rather cheaply.
The Price/Forward Earnings ratio is 11.11, which indicates a very decent 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 88.12% of the companies listed in the same industry.
CVS is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CVS is valued a bit cheaper than the industry average as 73.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.23 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CVS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CVS's earnings are expected to grow with 15.14% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y15.58%
EPS Next 3Y15.14%
5. Dividend
5.1 Amount
CVS has a Yearly Dividend Yield of 3.35%. 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 0.60. 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
The dividend of CVS has a limited annual growth rate of 5.72%.
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)5.72%
Div Incr Years3
Div Non Decr Years28
5.3 Sustainability
CVS pays out 722.81% 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.
DP722.81%
EPS Next 2Y15.58%
EPS Next 3Y15.14%
NYSE:CVS (1/6/2026, 9:53:06 AM)
80.44
+0.02 (+0.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.6%
Inst Owner Change0%
Ins Owners0.99%
Ins Owner Change-1.12%
Market Cap102.11B
Revenue(TTM)394.08B
Net Income(TTM)469.00M
Analysts80.61
Price Target95.5 (18.72%)
Short Float %1.83%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend2.65
Dividend Growth(5Y)5.72%
DP722.81%
Div Incr Years3
Div Non Decr Years28
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.34%
Min EPS beat(2)15.69%
Max EPS beat(2)22.99%
EPS beat(4)4
Avg EPS beat(4)24.17%
Min EPS beat(4)15.69%
Max EPS beat(4)30.76%
EPS beat(8)6
Avg EPS beat(8)6.87%
EPS beat(12)10
Avg EPS beat(12)5.67%
EPS beat(16)14
Avg EPS beat(16)5.3%
Revenue beat(2)2
Avg Revenue beat(2)3.34%
Min Revenue beat(2)3.04%
Max Revenue beat(2)3.64%
Revenue beat(4)3
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-0.46%
Max Revenue beat(4)3.64%
Revenue beat(8)5
Avg Revenue beat(8)0.97%
Revenue beat(12)9
Avg Revenue beat(12)1.97%
Revenue beat(16)13
Avg Revenue beat(16)2.12%
PT rev (1m)3.28%
PT rev (3m)15.51%
EPS NQ rev (1m)3.07%
EPS NQ rev (3m)5.22%
EPS NY rev (1m)0.81%
EPS NY rev (3m)4.53%
Revenue NQ rev (1m)1.11%
Revenue NQ rev (3m)2.37%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 11.11 | ||
| P/S | 0.26 | ||
| P/FCF | 16.23 | ||
| P/OCF | 11.21 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.85
EY8.52%
EPS(NY)7.24
Fwd EY9%
FCF(TTM)4.96
FCFY6.16%
OCF(TTM)7.18
OCFY8.92%
SpS310.44
BVpS57.45
TBVpS-30.36
PEG (NY)0.49
PEG (5Y)N/A
Graham Number94.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.18% | ||
| ROE | 0.64% | ||
| ROCE | 6.61% | ||
| ROIC | 4.9% | ||
| ROICexc | 5.26% | ||
| ROICexgc | 19.51% | ||
| OM | 2.73% | ||
| PM (TTM) | 0.12% | ||
| GM | 13.88% | ||
| FCFM | 1.6% |
ROA(3y)2.35%
ROA(5y)2.72%
ROE(3y)7.68%
ROE(5y)8.81%
ROIC(3y)6.22%
ROIC(5y)6.35%
ROICexc(3y)6.76%
ROICexc(5y)6.87%
ROICexgc(3y)25.87%
ROICexgc(5y)25.07%
ROCE(3y)8.35%
ROCE(5y)8.51%
ROICexgc growth 3Y-10.65%
ROICexgc growth 5Y-1.15%
ROICexc growth 3Y-14.28%
ROICexc growth 5Y-4.08%
OM growth 3Y-19.77%
OM growth 5Y-11.12%
PM growth 3Y-23.26%
PM growth 5Y-13.69%
GM growth 3Y-8.24%
GM growth 5Y-4.91%
F-Score6
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 10.46 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | -3.53 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 1341.79% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 2.27 |
F-Score6
WACC8.2%
ROIC/WACC0.6
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.81%
Cap/Sales(5y)0.84%
Profit Quality(3y)191.23%
Profit Quality(5y)191.5%
High Growth Momentum
Growth
EPS 1Y (TTM)7.87%
EPS 3Y-13.62%
EPS 5Y-5.2%
EPS Q2Q%46.79%
EPS Next Y23.97%
EPS Next 2Y15.58%
EPS Next 3Y15.14%
EPS Next 5Y12.34%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%7.8%
Revenue Next Year7.57%
Revenue Next 2Y5.14%
Revenue Next 3Y5.22%
Revenue Next 5Y5%
EBIT growth 1Y-3.81%
EBIT growth 3Y-12.98%
EBIT growth 5Y-4.24%
EBIT Next Year46.72%
EBIT Next 3Y19.51%
EBIT Next 5Y17.54%
FCF growth 1Y-44.32%
FCF growth 3Y-26.21%
FCF growth 5Y-9.45%
OCF growth 1Y-35.44%
OCF growth 3Y-20.7%
OCF growth 5Y-6.65%
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 7 / 10 to CVS HEALTH CORP (CVS). This can be considered as Undervalued.
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 23.97% 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 722.81%.