CVS Stock Analysis: CVS Health | NYSE
Healthcare Plans | NYSE, USA | Market Cap: 111.283m USD | 12M Return: 17.7% | US1266501006 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 705M
EPS Trend: -38.4%
Qual. Beats: 2
Rev. Trend: 99.4%
Qual. Beats: 2
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
CVS Health Corporation is a U.S. healthcare company headquartered in Woonsocket, Rhode Island, founded in 1963 and publicly traded on the NYSE under the ticker CVS. It operates as an integrated healthcare enterprise spanning three core segments: Health Care Benefits (insurance products and related services such as medical, pharmacy, dental, behavioral health, Medicare Advantage, and Medicaid plans), Health Services (pharmacy benefit management, specialty and mail-order pharmacy, and clinical/administrative services), and Pharmacy & Consumer Wellness (retail pharmacy operations, OTC drug sales, and general merchandise). The companys customers include employers, individuals, government entities, health plans, unions, and other sponsors of health benefit programs. Originally named CVS Caremark Corporation, the company adopted its current name in September 2014.
CVS Health is classified within the Health Care sector, specifically the Health Care Services sub-industry, and is considered a large-cap stock. Its vertically integrated business model-combining a major PBM (Caremark), a large health insurer (Aetna, acquired in 2018), and one of the largest U.S. retail pharmacy chains-makes it a notable player in the managed care and pharmacy services space, a sector characterized by scale-driven bargaining power with drug manufacturers and providers.
- Aetna Medicare Advantage medical costs trend above expectations
- Caremark PBM margins face regulatory and legislative pressure on rebates
- Retail pharmacy front-store sales pressured by Amazon and Walgreens competition
| Net Income: 4.91b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 2.78 > 1.0 |
| NWC/Revenue: -2.82% < 20% (prev -4.79%; Δ 1.97% < -1%) |
| CFO/TA 0.06 > 3% & CFO 14.8b > Net Income 4.91b |
| Net Debt (77.2b) to EBITDA (13.4b): 5.76 < 3 |
| Current Ratio: 0.87 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.28b) vs 12m ago 1.02% < -2% |
| Gross Margin: 14.15% > 18% (prev 13.82%; Δ 0.33% > 0.5%) |
| Asset Turnover: 162.1% > 50% (prev 149.7%; Δ 12.45% > 0%) |
| Interest Coverage Ratio: 2.87 > 6 (EBIT TTM 8.89b / Interest Expense TTM 3.10b) |
| A: -0.05 (Total Current Assets 75.3b - Total Current Liabilities 87.0b) / Total Assets 254b |
| B: 0.26 (Retained Earnings 65.4b / Total Assets 254b) |
| C: 0.03 (EBIT TTM 8.89b / Avg Total Assets 256b) |
| D: 0.46 (Book Value of Equity 79.7b / Total Liabilities 174b) |
| Altman-Z'' = 1.25 = BB |
| DSRI: 0.92 (Receivables 40.3b/40.7b, Revenue 415b/387b) |
| GMI: 0.98 (GM 13.82% / 14.15%) |
| AQI: 0.99 (AQ_t 0.59 / AQ_t-1 0.60) |
| SGI: 1.07 (Revenue 415b / 387b) |
| TATA: -0.04 (NI 4.91b - CFO 14.8b) / TA 254b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of October 08, 2026, the stock is trading at USD 87.95 with a total of 8,467,392 shares traded. Over the past week, the price has changed by +2.64%, over one month by -8.45%, over three months by -15.18% and over the past year by +17.66%.
Current recommended Stop Loss: 85.30 (which is 3% or 1.3 ATR below the current price).
CVS Health has received a consensus analysts rating of 4.59. Therefore, it is recommended to buy CVS.
- StrongBuy: 18
- Buy: 7
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 116.2 | 32.1% |
P/E Trailing = 22.8974
P/E Forward = 10.6724
P/S = 0.2697
P/B = 1.4486
P/EG = 0.2113
Revenue TTM = 415b USD
EBIT TTM = 8.89b USD
EBITDA TTM = 13.4b USD
Long Term Debt = 59.5b USD (from longTermDebt, last quarter)
Short Term Debt = 3.87b USD (from shortTermDebt, last quarter)
Debt = 91.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 14.9b
Net Debt = 77.2b USD (calculated: Debt 91.2b - CCE 14.0b)
Enterprise Value = 189b USD (111b + Debt 91.2b - CCE 14.0b)
Interest Coverage Ratio = 2.87 (Ebit TTM 8.89b / Interest Expense TTM 3.10b)
EV/FCF = 16.03x (Enterprise Value 189b / FCF TTM 11.8b)
FCF Yield = 6.24% (FCF TTM 11.8b / Enterprise Value 189b)
FCF Margin = 2.83% (FCF TTM 11.8b / Revenue TTM 415b)
Net Margin = 1.18% (Net Income TTM 4.91b / Revenue TTM 415b)
Gross Margin = 14.15% ((Revenue TTM 415b - Cost of Revenue TTM 356b) / Revenue TTM)
Gross Margin QoQ = 14.84% (prev 15.56%)
Tobins Q-Ratio = 0.74 (Enterprise Value 189b / Total Assets 254b)
Interest Expense / Debt = 3.40% (Interest Expense 3.10b / Debt 91.2b)
Taxrate = 15.83% (916.0m / 5.79b)
NOPAT = 7.48b (EBIT 8.89b * (1 - 15.83%))
Current Ratio = 0.87 (Total Current Assets 75.3b / Total Current Liabilities 87.0b)
Debt / Equity = 1.14 (Debt 91.2b / totalStockholderEquity, last quarter 79.7b)
Debt / EBITDA = 5.76 (Net Debt 77.2b / EBITDA 13.4b)
Debt / FCF = 6.57 (Net Debt 77.2b / FCF TTM 11.8b)
Total Stockholder Equity = 76.3b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.92% (Net Income 4.91b / Total Assets 254b)
RoE = 6.43% (Net Income TTM 4.91b / Total Stockholder Equity 76.3b)
RoCE = 6.55% (EBIT 8.89b / Capital Employed (Equity 76.3b + L.T.Debt 59.5b))
RoIC = 4.78% (NOPAT 7.48b / Invested Capital 157b)
WACC = 4.66% (E(111b)/V(202b) * Re(6.13%) + D(91.2b)/V(202b) * Rd(3.40%) * (1-Tc(0.16)))
Discount Rate = 6.13% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.99 | Cagr: 0.56%
[DCF] Terminal Value 77.97% ; FCFF base≈8.97b ; Y1≈10.3b ; Y5≈15.1b
[DCF] Fair Price = 117.6 (EV 228b - Net Debt 77.2b = Equity 150b / Shares 1.28b; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -38.37 | EPS CAGR: -5.80% | SUE: 2.54 | # QB: 2
Revenue Correlation: 99.40 | Revenue CAGR: 6.41% | SUE: 3.16 | # QB: 2
EPS current Quarter (2026-09-30): EPS=1.63 | Chg30d=+0.51% | Revisions=-10% | Analysts=23
EPS current Year (2026-12-31): EPS=8.04 | Chg30d=+0.61% | Revisions=+38% | GrowthEPS=+19.2% | GrowthRev=+4.0%
EPS next Year (2027-12-31): EPS=8.53 | Chg30d=+0.26% | Revisions=+38% | GrowthEPS=+6.1% | GrowthRev=+2.9%
[Analyst] Revisions Ratio: +25% (up=11, down=6)