CVS HEALTH CORP (CVS)
US1266501006 - Common Stock
CVS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 109 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 is valued correctly, but it does not seem to be growing. CVS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CVS was profitable.
CVS had a positive operating cash flow in the past year.
CVS had positive earnings in each of the past 5 years.
CVS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.99%, CVS is doing good in the industry, outperforming 63.89% of the companies in the same industry.
With a decent Return On Equity value of 6.69%, CVS is doing good in the industry, outperforming 68.52% of the companies in the same industry.
CVS has a Return On Invested Capital of 4.94%. This is in the better half of the industry: CVS outperforms 60.19% of its industry peers.
CVS had an Average Return On Invested Capital over the past 3 years of 7.03%. This is in line with the industry average of 8.15%.
| 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
CVS has a better Profit Margin (1.36%) than 63.89% of its industry peers.
In the last couple of years the Profit Margin of CVS has declined.
With a Operating Margin value of 3.03%, CVS perfoms like the industry average, outperforming 54.63% of the companies in the same industry.
In the last couple of years the Operating Margin of CVS has declined.
CVS has a Gross Margin of 14.20%. This is in the lower half of the industry: CVS underperforms 74.07% of its industry peers.
CVS's Gross Margin has declined in the last couple of years.
| 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.
CVS has less shares outstanding than it did 5 years ago.
CVS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.06 indicates that CVS is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVS's Altman-Z score of 2.06 is in line compared to the rest of the industry. CVS outperforms 51.85% of its industry peers.
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.
The Debt to FCF ratio of CVS (38.85) is comparable to the rest of the industry.
CVS has a Debt/Equity ratio of 0.81. This is a neutral value indicating CVS is somewhat dependend on debt financing.
CVS has a worse Debt to Equity ratio (0.81) than 60.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 38.85 | ||
| Altman-Z | 2.06 |
ROIC/WACC0.76
WACC6.51%
2.3 Liquidity
A Current Ratio of 0.80 indicates that CVS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.80, CVS is doing worse than 84.26% of the companies in the same industry.
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.
With a Quick ratio value of 0.59, CVS is not doing good in the industry: 84.26% of the companies in the same industry are doing better.
| 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%.
Measured over the past 5 years, CVS shows a small growth in Earnings Per Share. The EPS has been growing by 4.42% on average per year.
CVS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.07%.
Measured over the past years, CVS shows a quite strong growth in Revenue. The Revenue has been growing by 12.95% on average per year.
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
CVS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.09% yearly.
Based on estimates for the next years, CVS will show a small growth in Revenue. The Revenue will grow by 4.80% on average per year.
EPS Next Y-38.83%
EPS Next 2Y-15.69%
EPS Next 3Y-6.45%
EPS Next 5Y3.09%
Revenue Next Year5.05%
Revenue Next 2Y4.73%
Revenue Next 3Y4.77%
Revenue Next 5Y4.8%
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 decreasing.
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
With a Price/Earnings ratio of 6.99, the valuation of CVS can be described as very cheap.
CVS's Price/Earnings ratio is rather cheap when compared to the industry. CVS is cheaper than 97.22% of the companies in the same industry.
CVS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
Based on the Price/Forward Earnings ratio of 7.14, the valuation of CVS can be described as very cheap.
Based on the Price/Forward Earnings ratio, CVS is valued cheaply inside the industry as 98.15% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CVS to the average of the S&P500 Index (22.83), we can say CVS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 7.14 |
4.2 Price Multiples
64.81% 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 | 33.09 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as CVS's earnings are expected to decrease with -6.45% in the coming years.
PEG (NY)N/A
PEG (5Y)1.58
EPS Next 2Y-15.69%
EPS Next 3Y-6.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.08%, CVS is a good candidate for dividend investing.
The stock price of CVS dropped by -22.87% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CVS's Dividend Yield is rather good when compared to the industry average which is at 3.17. CVS pays more dividend than 97.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, CVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
5.2 History
On average, the dividend of CVS grows each year by 6.52%, which is quite nice.
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)6.52%
Div Incr Years3
Div Non Decr Years28
5.3 Sustainability
CVS pays out 66.07% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CVS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP66.07%
EPS Next 2Y-15.69%
EPS Next 3Y-6.45%
CVS HEALTH CORP
NYSE:CVS (12/20/2024, 8:04:31 PM)
After market: 44.4 +0.04 (+0.09%)44.36
+0.58 (+1.32%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners83.45%
Inst Owner Change0.01%
Ins Owners0.05%
Ins Owner Change0.26%
Market Cap55.82B
Analysts75.15
Price Target68.37 (54.13%)
Short Float %1.41%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.08% |
Dividend Growth(5Y)6.52%
DP66.07%
Div Incr Years3
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.86%
Min EPS beat(2)-28.4%
Max EPS beat(2)4.69%
EPS beat(4)2
Avg EPS beat(4)-10.43%
Min EPS beat(4)-28.4%
Max EPS beat(4)5.45%
EPS beat(8)6
Avg EPS beat(8)-3.58%
EPS beat(12)10
Avg EPS beat(12)-0.99%
EPS beat(16)14
Avg EPS beat(16)2.24%
Revenue beat(2)1
Avg Revenue beat(2)0.3%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)1.87%
Revenue beat(4)2
Avg Revenue beat(4)0.37%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)2.74%
Revenue beat(8)6
Avg Revenue beat(8)2.17%
Revenue beat(12)10
Avg Revenue beat(12)2.31%
Revenue beat(16)14
Avg Revenue beat(16)2.12%
PT rev (1m)-0.42%
PT rev (3m)2.95%
EPS NQ rev (1m)-24.34%
EPS NQ rev (3m)-45.35%
EPS NY rev (1m)-10.5%
EPS NY rev (3m)-19.01%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 7.14 | ||
| P/S | 0.15 | ||
| P/FCF | 33.09 | ||
| P/OCF | 12.11 | ||
| P/B | 0.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.35
EY14.31%
EPS(NY)6.21
Fwd EY14%
FCF(TTM)1.34
FCFY3.02%
OCF(TTM)3.66
OCFY8.26%
SpS293.16
BVpS59.55
TBVpS-35.08
PEG (NY)N/A
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 6.69% | ||
| ROCE | 6.66% | ||
| ROIC | 4.94% | ||
| ROICexc | 5.24% | ||
| ROICexgc | 20.91% | ||
| OM | 3.03% | ||
| PM (TTM) | 1.36% | ||
| GM | 14.2% | ||
| FCFM | 0.46% |
ROA(3y)2.89%
ROA(5y)2.95%
ROE(3y)9.2%
ROE(5y)9.67%
ROIC(3y)7.03%
ROIC(5y)6.55%
ROICexc(3y)7.66%
ROICexc(5y)7.07%
ROICexgc(3y)28.23%
ROICexgc(5y)25.21%
ROCE(3y)9.44%
ROCE(5y)8.79%
ROICexcg growth 3Y9.49%
ROICexcg growth 5Y3.72%
ROICexc growth 3Y2.28%
ROICexc growth 5Y6.42%
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%
F-Score5
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 38.85 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | -4.05 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 33.63% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 2.06 |
F-Score5
WACC6.51%
ROIC/WACC0.76
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.85%
Cap/Sales(5y)0.88%
Profit Quality(3y)211.12%
Profit Quality(5y)195.41%
High Growth Momentum
Growth
EPS 1Y (TTM)-26.25%
EPS 3Y5.19%
EPS 5Y4.42%
EPS Q2Q%-50.68%
EPS Next Y-38.83%
EPS Next 2Y-15.69%
EPS Next 3Y-6.45%
EPS Next 5Y3.09%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y10.01%
Revenue growth 5Y12.95%
Sales Q2Q%6.31%
Revenue Next Year5.05%
Revenue Next 2Y4.73%
Revenue Next 3Y4.77%
Revenue Next 5Y4.8%
EBIT growth 1Y-25.47%
EBIT growth 3Y2.59%
EBIT growth 5Y8.21%
EBIT Next Year-11.93%
EBIT Next 3Y1.15%
EBIT Next 5YN/A
FCF growth 1Y-91.35%
FCF growth 3Y-8.18%
FCF growth 5Y8.77%
OCF growth 1Y-79.17%
OCF growth 3Y-5.41%
OCF growth 5Y8.66%