CVS HEALTH CORP (CVS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CVS - US1266501006 - Common Stock
79.42 USD
-1.41 (-1.74%)
79.51 USD
+0.09 (+0.11%)
CVS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 100 industry peers in the Health Care Providers & Services industry. CVS has a bad profitability rating. Also its financial health evaluation is rather negative. CVS is valued quite cheap, while showing a decent growth score. This is a good combination! Finally 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.
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
Looking at the Return On Assets, with a value of 0.18%, CVS is in line with its industry, outperforming 49.00% of the companies in the same industry.
CVS has a Return On Equity (0.64%) which is comparable to the rest of the industry.
CVS has a Return On Invested Capital (4.90%) which is in line with its industry peers.
CVS had an Average Return On Invested Capital over the past 3 years of 6.22%. This is below the industry average of 9.44%.
| 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 49.00% of its industry peers.
CVS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.73%, CVS is in line with its industry, outperforming 54.00% of the companies in the same industry.
CVS's Operating Margin has declined in the last couple of years.
CVS's Gross Margin of 13.88% is on the low side compared to the rest of the industry. CVS is outperformed by 68.00% of its industry peers.
In the last couple of years the Gross Margin of CVS has declined.
| 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.
CVS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVS has less shares outstanding
CVS has a worse debt/assets ratio than last year.
2.2 Solvency
CVS has an Altman-Z score of 2.27. 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.
CVS has a Altman-Z score (2.27) which is in line with its industry peers.
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.
The Debt to FCF ratio of CVS (10.46) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.85 indicates that CVS is somewhat dependend on debt financing.
CVS's Debt to Equity ratio of 0.85 is in line compared to the rest of the industry. CVS outperforms 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.61
WACC8.01%
2.3 Liquidity
A Current Ratio of 0.83 indicates that CVS may have some problems paying its short term obligations.
With a Current ratio value of 0.83, CVS is not doing good in the industry: 82.00% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.63, CVS is doing worse than 81.00% of the companies in the same industry.
| 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.
Looking at the last year, CVS shows a small growth in Revenue. The Revenue has grown by 6.82% in the last year.
CVS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.74% yearly.
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.
The Revenue is expected to grow by 5.00% on average over the next years.
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.
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
CVS is valuated reasonably with a Price/Earnings ratio of 11.59.
Compared to the rest of the industry, the Price/Earnings ratio of CVS indicates a rather cheap valuation: CVS is cheaper than 85.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CVS to the average of the S&P500 Index (26.54), we can say CVS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.00, the valuation of CVS can be described as reasonable.
Based on the Price/Forward Earnings ratio, CVS is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
CVS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 11 |
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 73.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.02 | ||
| 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)0.5
PEG (5Y)N/A
EPS Next 2Y15.41%
EPS Next 3Y14.66%
5. Dividend
5.1 Amount
CVS has a Yearly Dividend Yield of 3.29%. 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 0.67. 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 1.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
5.2 History
The dividend of CVS has a limited annual growth rate of 5.72%.
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)5.72%
Div Incr Years3
Div Non Decr Years28
5.3 Sustainability
CVS pays out 722.81% 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.
DP722.81%
EPS Next 2Y15.41%
EPS Next 3Y14.66%
79.42
-1.41 (-1.74%)
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 Change2.37%
Ins Owners0.99%
Ins Owner Change-1.12%
Market Cap100.82B
Revenue(TTM)394.08B
Net Income(TTM)469.00M
Analysts80.61
Price Target92.47 (16.43%)
Short Float %1.54%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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)13.13%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)2.87%
EPS NY rev (1m)1.15%
EPS NY rev (3m)3.85%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 11 | ||
| P/S | 0.26 | ||
| P/FCF | 16.02 | ||
| P/OCF | 11.07 | ||
| P/B | 1.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)6.85
EY8.63%
EPS(NY)7.22
Fwd EY9.09%
FCF(TTM)4.96
FCFY6.24%
OCF(TTM)7.18
OCFY9.04%
SpS310.44
BVpS57.45
TBVpS-30.36
PEG (NY)0.5
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 | 2.27 |
F-Score6
WACC8.01%
ROIC/WACC0.61
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 11.59 and the Price/Book (PB) ratio is 1.38.
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%.