CVS HEALTH CORP (CVS) Fundamental Analysis & Valuation
NYSE:CVS • US1266501006
Current stock price
78.09 USD
-1.24 (-1.56%)
At close:
78.05 USD
-0.04 (-0.05%)
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
- In the past year CVS was profitable.
- CVS had a positive operating cash flow in the past year.
- 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 (0.70%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 2.35%, CVS is in line with its industry, outperforming 55.00% of the companies in the same industry.
- With a Return On Invested Capital value of 4.90%, CVS perfoms like the industry average, outperforming 53.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CVS is below the industry average of 8.51%.
| 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 in line with its industry peers.
- In the last couple of years the Profit Margin of CVS has declined.
- CVS's Operating Margin of 2.58% is in line compared to the rest of the industry. CVS outperforms 50.00% of its industry peers.
- CVS's Operating Margin has declined in the last couple of years.
- CVS has a worse Gross Margin (13.77%) than 66.00% 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. CVS Health Analysis
2.1 Basic Checks
- CVS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- CVS has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CVS has less shares outstanding
- The debt/assets ratio for CVS has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.33 indicates that CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CVS has a Altman-Z score of 2.33. This is comparable to the rest of the industry: CVS outperforms 58.00% of its industry peers.
- 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.
- CVS has a Debt to FCF ratio (8.27) which is in line with 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 46.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 8.27 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.61
WACC8.04%
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.
- CVS has a Current ratio of 0.84. This is amonst the worse of the industry: CVS underperforms 82.00% of its industry peers.
- A Quick Ratio of 0.63 indicates that CVS may have some problems paying its short term obligations.
- CVS has a worse Quick ratio (0.63) than 82.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.63 |
3. CVS Growth Analysis
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.
- The Earnings Per Share has been decreasing by -2.11% on average over the past years.
- CVS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.85%.
- 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 10.88% yearly.
- Based on estimates for the next years, CVS will show a small growth in Revenue. The Revenue will grow by 4.08% on average per year.
EPS Next Y7.26%
EPS Next 2Y10.6%
EPS Next 3Y12.01%
EPS Next 5Y10.88%
Revenue Next Year1.36%
Revenue Next 2Y2.88%
Revenue Next 3Y3.45%
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.
- 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
- CVS is valuated reasonably with a Price/Earnings ratio of 11.57.
- 87.00% 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 27.18, CVS is valued rather cheaply.
- With a Price/Forward Earnings ratio of 10.79, the valuation of CVS can be described as very reasonable.
- 87.00% of the companies in the same industry are more expensive than CVS, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 37.96. CVS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVS indicates a somewhat cheap valuation: CVS is cheaper than 76.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.82 | ||
| 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.
- CVS's earnings are expected to grow with 12.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.59
PEG (5Y)N/A
EPS Next 2Y10.6%
EPS Next 3Y12.01%
5. CVS Dividend Analysis
5.1 Amount
- CVS has a Yearly Dividend Yield of 3.37%. 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 0.47. CVS pays more dividend than 97.00% 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 | 3.37% |
5.2 History
- The dividend of CVS has a limited annual growth rate of 5.96%.
- 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)5.96%
Div Incr Years0
Div Non Decr Years29
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 2Y10.6%
EPS Next 3Y12.01%
CVS Fundamentals: All Metrics, Ratios and Statistics
78.09
-1.24 (-1.56%)
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)05-06 2026-05-06/bmo
Inst Owners90.77%
Inst Owner Change-0.03%
Ins Owners0.05%
Ins Owner Change5.62%
Market Cap100.08B
Revenue(TTM)402.07B
Net Income(TTM)1.77B
Analysts80.61
Price Target95.66 (22.5%)
Short Float %1.42%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend2.68
Dividend Growth(5Y)5.96%
DP192.14%
Div Incr Years0
Div Non Decr Years29
Ex-Date04-23 2026-04-23 (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)-0.08%
PT rev (3m)0.16%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 10.79 | ||
| P/S | 0.25 | ||
| P/FCF | 12.82 | ||
| P/OCF | 9.41 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.75
EY8.64%
EPS(NY)7.24
Fwd EY9.27%
FCF(TTM)6.09
FCFY7.8%
OCF(TTM)8.3
OCFY10.63%
SpS313.72
BVpS58.69
TBVpS-27.91
PEG (NY)1.59
PEG (5Y)N/A
Graham Number94.41
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
WACC8.04%
ROIC/WACC0.61
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 Y7.26%
EPS Next 2Y10.6%
EPS Next 3Y12.01%
EPS Next 5Y10.88%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y7.63%
Revenue growth 5Y8.39%
Sales Q2Q%8.17%
Revenue Next Year1.36%
Revenue Next 2Y2.88%
Revenue Next 3Y3.45%
Revenue Next 5Y4.08%
EBIT growth 1Y6.02%
EBIT growth 3Y-13.61%
EBIT growth 5Y-5.55%
EBIT Next Year24.76%
EBIT Next 3Y14.94%
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 11.57 and the Price/Book (PB) ratio is 1.33.
What is the financial health of CVS HEALTH CORP (CVS) stock?
The financial health rating of CVS HEALTH CORP (CVS) is 3 / 10.