CVS HEALTH CORP (CVS) Fundamental Analysis & Valuation
NYSE:CVS • US1266501006
Current stock price
79.33 USD
+0.49 (+0.62%)
At close:
79.2 USD
-0.13 (-0.16%)
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.
- 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.
1.2 Ratios
- The Return On Assets of CVS (0.70%) is comparable to the rest of the industry.
- CVS's Return On Equity of 2.35% is in line compared to the rest of the industry. CVS outperforms 55.00% of its industry peers.
- CVS has a Return On Invested Capital of 4.90%. This is comparable to the rest of the industry: CVS outperforms 53.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CVS is below the industry average of 8.74%.
| 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.
- Looking at the Operating Margin, with a value of 2.58%, CVS is in line with its industry, outperforming 50.00% of the companies in the same industry.
- CVS's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 13.77%, CVS is doing worse than 66.00% of the companies in the same industry.
- CVS's Gross Margin has declined in the last couple of years.
| 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
- 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.
- The debt/assets ratio for CVS has been reduced compared to a year ago.
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.
- With a Altman-Z score value of 2.33, CVS perfoms like the industry average, outperforming 58.00% 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.
- Looking at the Debt to FCF ratio, with a value of 8.27, CVS is in line with its industry, outperforming 42.00% of the companies in the same industry.
- 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
WACC7.98%
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 82.00% 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.
- The Quick ratio of CVS (0.63) is worse 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.
- The Revenue has been growing slightly by 7.85% in the past year.
- Measured over the past years, CVS shows a quite strong growth in Revenue. The Revenue has been growing by 8.39% on average per year.
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
- The Earnings Per Share is expected to grow by 10.88% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.08% on average over the next years.
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
- 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. CVS Valuation Analysis
4.1 Price/Earnings Ratio
- CVS is valuated reasonably with a Price/Earnings ratio of 11.75.
- Based on the Price/Earnings ratio, CVS is valued cheaper than 87.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.78. CVS is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 10.96, the valuation of CVS can be described as reasonable.
- 87.00% of the companies in the same industry are more expensive than CVS, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.54, CVS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, CVS is valued a bit cheaper than 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.02 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The 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)1.62
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.
- Compared to an average industry Dividend Yield of 0.47, CVS pays a better dividend. On top of this CVS pays more dividend than 97.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, CVS pays a better dividend.
| 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.
- CVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP192.14%
EPS Next 2Y10.6%
EPS Next 3Y12.01%
CVS Fundamentals: All Metrics, Ratios and Statistics
79.33
+0.49 (+0.62%)
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 Change0%
Ins Owners0.05%
Ins Owner Change5.62%
Market Cap101.67B
Revenue(TTM)402.07B
Net Income(TTM)1.77B
Analysts80.61
Price Target95.66 (20.58%)
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 | 11.75 | ||
| Fwd PE | 10.96 | ||
| P/S | 0.25 | ||
| P/FCF | 13.02 | ||
| P/OCF | 9.56 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.75
EY8.51%
EPS(NY)7.24
Fwd EY9.13%
FCF(TTM)6.09
FCFY7.68%
OCF(TTM)8.3
OCFY10.46%
SpS313.72
BVpS58.69
TBVpS-27.91
PEG (NY)1.62
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
WACC7.98%
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 11.75 and the Price/Book (PB) ratio is 1.35.
What is the financial health of CVS HEALTH CORP (CVS) stock?
The financial health rating of CVS HEALTH CORP (CVS) is 3 / 10.