CVS HEALTH CORP (CVS)
US1266501006 - Common Stock
Overall CVS gets a fundamental rating of 5 out of 10. We evaluated CVS against 114 industry peers in the Health Care Providers & Services industry. CVS has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past 5 years CVS has always been profitable.
CVS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CVS has a better Return On Assets (1.99%) than 65.79% of its industry peers.
The Return On Equity of CVS (6.69%) is better than 71.05% of its industry peers.
CVS has a better Return On Invested Capital (4.94%) than 63.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CVS is in line with the industry average of 8.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 6.69% | ||
| ROIC | 4.94% |
ROA(3y)2.89%
ROA(5y)2.95%
ROE(3y)9.2%
ROE(5y)9.67%
ROIC(3y)7.03%
ROIC(5y)6.55%
1.3 Margins
With a decent Profit Margin value of 1.36%, CVS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CVS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.03%, CVS perfoms like the industry average, outperforming 56.14% of the companies in the same industry.
In the last couple of years the Operating Margin of CVS has declined.
CVS has a worse Gross Margin (14.20%) than 75.44% of its industry peers.
In the last couple of years the Gross Margin of CVS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.03% | ||
| PM (TTM) | 1.36% | ||
| GM | 14.2% |
OM growth 3Y-6.75%
OM growth 5Y-4.2%
PM growth 3Y-4.43%
PM growth 5YN/A
GM growth 3Y-26.92%
GM growth 5Y-4.94%
2. Health
2.1 Basic Checks
CVS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CVS has been reduced compared to 1 year ago.
Compared to 5 years ago, CVS has less shares outstanding
Compared to 1 year ago, CVS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.11 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 2.11, CVS is in line with its industry, outperforming 57.02% of the companies in the same industry.
The Debt to FCF ratio of CVS is 38.85, which is on the high side as it means it would take CVS, 38.85 years of fcf income to pay off all of its debts.
CVS has a Debt to FCF ratio (38.85) which is in line with its industry peers.
CVS has a Debt/Equity ratio of 0.81. This is a neutral value indicating CVS is somewhat dependend on debt financing.
CVS's Debt to Equity ratio of 0.81 is on the low side compared to the rest of the industry. CVS is outperformed by 61.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 38.85 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.78
WACC6.31%
2.3 Liquidity
CVS has a Current Ratio of 0.80. 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's Current ratio of 0.80 is on the low side compared to the rest of the industry. CVS is outperformed by 81.58% of its industry peers.
CVS has a Quick Ratio of 0.80. 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's Quick ratio of 0.59 is on the low side compared to the rest of the industry. CVS is outperformed by 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
CVS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.25%.
CVS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.42% yearly.
CVS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.07%.
The Revenue has been growing by 12.95% on average over the past years. This is quite good.
EPS 1Y (TTM)-26.25%
EPS 3Y5.19%
EPS 5Y4.42%
EPS Q2Q%-50.68%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y10.01%
Revenue growth 5Y12.95%
Sales Q2Q%6.31%
3.2 Future
The Earnings Per Share is expected to grow by 3.94% on average over the next years.
Based on estimates for the next years, CVS will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.
EPS Next Y-31.66%
EPS Next 2Y-11.09%
EPS Next 3Y-3.92%
EPS Next 5Y3.94%
Revenue Next Year4.54%
Revenue Next 2Y4.51%
Revenue Next 3Y4.95%
Revenue Next 5Y4.99%
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 stable.
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
The Price/Earnings ratio is 8.51, which indicates a very decent valuation of CVS.
CVS's Price/Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 96.49% of the companies in the same industry.
CVS is valuated cheaply when we compare the Price/Earnings ratio to 29.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.82, the valuation of CVS can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVS indicates a rather cheap valuation: CVS is cheaper than 96.49% of the companies listed in the same industry.
CVS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 7.82 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than CVS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.3 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as CVS's earnings are expected to decrease with -3.92% in the coming years.
PEG (NY)N/A
PEG (5Y)1.92
EPS Next 2Y-11.09%
EPS Next 3Y-3.92%
5. Dividend
5.1 Amount
CVS has a Yearly Dividend Yield of 4.79%, which is a nice return.
CVS's Dividend Yield is rather good when compared to the industry average which is at 3.12. CVS pays more dividend than 95.61% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.21, CVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
5.2 History
On average, the dividend of CVS grows each year by 6.52%, which is quite nice.
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)6.52%
Div Incr Years2
Div Non Decr Years27
5.3 Sustainability
CVS pays out 66.07% of its income as dividend. This is not a sustainable payout ratio.
CVS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP66.07%
EPS Next 2Y-11.09%
EPS Next 3Y-3.92%
CVS HEALTH CORP
NYSE:CVS (11/12/2024, 5:01:57 PM)
After market: 54.03 0 (0%)54.03
-1.78 (-3.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap67.99B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 7.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 6.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.03% | ||
| PM (TTM) | 1.36% | ||
| GM | 14.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-26.25%
EPS 3Y5.19%
EPS 5Y
EPS Q2Q%
EPS Next Y-31.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.07%
Revenue growth 3Y10.01%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y