CVS HEALTH CORP (CVS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVS - US1266501006 - Common Stock
79.61 USD
+0.49 (+0.62%)
79.61 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CVS. CVS was compared to 102 industry peers in the Health Care Providers & Services industry. CVS has a bad profitability rating. Also its financial health evaluation is rather negative. A decent growth rate in combination with a cheap valuation! Better keep an eye on CVS. Finally 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.
CVS had positive earnings in each of the past 5 years.
Each year in the past 5 years CVS had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.18%, CVS perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
CVS has a Return On Equity (0.64%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 4.90%, CVS is in line with its industry, outperforming 56.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CVS is below the industry average of 9.61%.
| 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 of 0.12%. This is comparable to the rest of the industry: CVS outperforms 49.02% of its industry peers.
In the last couple of years the Profit Margin of CVS has declined.
With a Operating Margin value of 2.73%, CVS perfoms like the industry average, outperforming 53.92% of the companies in the same industry.
CVS's Operating Margin has declined in the last couple of years.
CVS has a worse Gross Margin (13.88%) than 68.63% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CVS is destroying value.
Compared to 1 year ago, CVS has less shares outstanding
Compared to 5 years ago, CVS has less shares outstanding
The debt/assets ratio for CVS is higher compared to a year ago.
2.2 Solvency
CVS has an Altman-Z score of 2.26. 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.
The Altman-Z score of CVS (2.26) is comparable to the rest of the industry.
The Debt to FCF ratio of CVS is 10.46, which is on the high side as it means it would take CVS, 10.46 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.46, CVS perfoms like the industry average, outperforming 44.12% of the companies in the same industry.
CVS has a Debt/Equity ratio of 0.85. This is a neutral value indicating CVS is somewhat dependend on debt financing.
CVS has a Debt to Equity ratio (0.85) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.6
WACC8.13%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CVS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.83, CVS is doing worse than 82.35% of the companies in the same industry.
CVS has a Quick Ratio of 0.83. 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 0.63 is on the low side compared to the rest of the industry. CVS is outperformed by 81.37% of its industry peers.
| 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.
Measured over the past years, CVS shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.20% on average per year.
The Revenue has been growing slightly by 6.82% in the past year.
The Revenue has been growing slightly by 7.74% on average over the past years.
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.
CVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y22.97%
EPS Next 2Y15.41%
EPS Next 3Y14.66%
EPS Next 5Y12.34%
Revenue Next Year7.26%
Revenue Next 2Y6.15%
Revenue Next 3Y5.94%
Revenue Next 5Y5%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 11.62.
Based on the Price/Earnings ratio, CVS is valued cheaper than 85.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of CVS to the average of the S&P500 Index (26.57), we can say CVS is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.03, the valuation of CVS can be described as very reasonable.
88.24% of the companies in the same industry are more expensive than CVS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CVS to the average of the S&P500 Index (24.04), we can say CVS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 11.03 |
4.2 Price Multiples
CVS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CVS is cheaper than 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.06 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CVS's earnings are expected to grow with 14.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y15.41%
EPS Next 3Y14.66%
5. Dividend
5.1 Amount
CVS has a Yearly Dividend Yield of 3.42%.
Compared to an average industry Dividend Yield of 0.58, CVS pays a better dividend. On top of this CVS pays more dividend than 98.04% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, CVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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
722.81% of the earnings are spent on dividend by CVS. 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 2Y15.41%
EPS Next 3Y14.66%
79.61
+0.49 (+0.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.68%
Inst Owner Change2.38%
Ins Owners0.99%
Ins Owner Change-1.12%
Market Cap101.06B
Revenue(TTM)394.08B
Net Income(TTM)469.00M
Analysts80.61
Price TargetN/A
Short Float %1.56%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly Dividend2.65
Dividend Growth(5Y)5.72%
DP722.81%
Div Incr Years3
Div Non Decr Years28
Ex-Date
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)6.89%
PT rev (3m)12.43%
EPS NQ rev (1m)2.81%
EPS NQ rev (3m)5.34%
EPS NY rev (1m)1.15%
EPS NY rev (3m)3.85%
Revenue NQ rev (1m)1.01%
Revenue NQ rev (3m)2.27%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 11.03 | ||
| P/S | 0.26 | ||
| P/FCF | 16.06 | ||
| P/OCF | 11.09 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.85
EY8.6%
EPS(NY)7.22
Fwd EY9.07%
FCF(TTM)4.96
FCFY6.23%
OCF(TTM)7.18
OCFY9.01%
SpS310.44
BVpS57.45
TBVpS-30.36
PEG (NY)0.51
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 | 2.26 |
F-Score6
WACC8.13%
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 Y22.97%
EPS Next 2Y15.41%
EPS Next 3Y14.66%
EPS Next 5Y12.34%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y8.47%
Revenue growth 5Y7.74%
Sales Q2Q%7.8%
Revenue Next Year7.26%
Revenue Next 2Y6.15%
Revenue Next 3Y5.94%
Revenue Next 5Y5%
EBIT growth 1Y-3.81%
EBIT growth 3Y-12.98%
EBIT growth 5Y-4.24%
EBIT Next Year46.12%
EBIT Next 3Y19.3%
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 for 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.
What are the PE and PB ratios of CVS HEALTH CORP (CVS) stock?
The Price/Earnings (PE) ratio for CVS HEALTH CORP (CVS) is 11.62 and the Price/Book (PB) ratio is 1.39.
Is the dividend of CVS HEALTH CORP sustainable?
The dividend rating of CVS HEALTH CORP (CVS) is 7 / 10 and the dividend payout ratio is 722.81%.