(CVS) CVS Health - Overview
Sector: Healthcare | Industry: Healthcare Plans | Exchange: NYSE (USA) | Market Cap: 116.084m USD | Total Return: 45.9% in 12m
Avg Turnover: 778M
EPS Trend: -65.5%
Qual. Beats: 1
Rev. Trend: 99.3%
Qual. Beats: 1
Warnings
Choppy Below Avwap Earnings
Tailwinds
Idiosyncratic Leader, Confidence
CVS Health Corporation is an integrated healthcare provider operating through three primary segments: Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness. The company provides a comprehensive suite of services including health insurance plans, pharmacy benefit management (PBM), and retail pharmacy operations. Historically, CVS transitioned from a traditional drugstore chain to a diversified healthcare entity, notably through its acquisition of Aetna and the expansion of its clinical service offerings.
The business model relies on vertical integration to capture value across the patient care continuum, from insurance underwriting to drug dispensing and primary care delivery. In the Health Care Services sector, this integration aims to lower overall medical costs by managing pharmacy spend and improving patient adherence through its vast retail footprint. The company serves a diverse client base ranging from individual consumers and employer groups to government entities like Medicare and Medicaid.
For a more granular look at the company’s financial health and valuation metrics, consider reviewing the detailed data available on ValueRay. CVS Health remains a central player in the U.S. healthcare infrastructure, leveraging its 1963 founding roots and Rhode Island headquarters to maintain its position as a leading provider of medical and pharmacy solutions.
- Medicare Advantage utilization rates and Star Ratings impact health benefits segment profitability
- Pharmacy Benefit Management regulatory scrutiny threatens traditional drug pricing and rebate models
- Vertical integration of primary care assets drives long-term medical cost ratio reduction
- Retail pharmacy margin compression persists due to declining reimbursement rates and competition
- High debt levels from recent acquisitions influence capital allocation and dividend growth
| Net Income: 2.93b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 0.60 > 1.0 |
| NWC/Revenue: -2.84% < 20% (prev -4.16%; Δ 1.32% < -1%) |
| CFO/TA 0.04 > 3% & CFO 10.3b > Net Income 2.93b |
| Net Debt (81.8b) to EBITDA (11.1b): 7.35 < 3 |
| Current Ratio: 0.87 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.28b) vs 12m ago 1.19% < -2% |
| Gross Margin: 13.87% > 18% (prev 14.05%; Δ -0.17% > 0.5%) |
| Asset Turnover: 160.4% > 50% (prev 148.3%; Δ 12.14% > 0%) |
| Interest Coverage Ratio: 2.11 > 6 (EBIT TTM 6.57b / Interest Expense TTM 3.11b) |
| A: -0.05 (Total Current Assets 74.8b - Total Current Liabilities 86.4b) / Total Assets 253b |
| B: 0.25 (Retained Earnings 63.3b / Total Assets 253b) |
| C: 0.03 (EBIT TTM 6.57b / Avg Total Assets 254b) |
| D: 0.44 (Book Value of Equity 77.5b / Total Liabilities 175b) |
| Altman-Z'' = 1.15 = BB |
| DSRI: 0.96 (Receivables 41.0b/39.6b, Revenue 408b/379b) |
| GMI: 1.01 (GM 14.05% / 13.87%) |
| AQI: 0.99 (AQ_t 0.59 / AQ_t-1 0.60) |
| SGI: 1.08 (Revenue 408b / 379b) |
| TATA: -0.03 (NI 2.93b - CFO 10.3b) / TA 253b) |
| Beneish M = -3.00 (Cap -4..+1) = AA |
As of June 03, 2026, the stock is trading at USD 89.50 with a total of 5,648,793 shares traded.
Over the past week, the price has changed by -1.36%,
over one month by +9.13%,
over three months by +10.56% and
over the past year by +45.87%.
CVS Health has received a consensus analysts rating of 4.21. Therefore, it is recommended to buy CVS.
- StrongBuy: 13
- Buy: 8
- Hold: 7
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 102.1 | 14.1% |
P/E Trailing = 39.9035
P/E Forward = 12.5
P/S = 0.2896
P/B = 1.5167
P/EG = 0.2592
Revenue TTM = 408b USD
EBIT TTM = 6.57b USD
EBITDA TTM = 11.1b USD
Long Term Debt = 60.5b USD (from longTermDebt, last quarter)
Short Term Debt = 4.48b USD (from shortTermDebt, last quarter)
Debt = 93.6b USD (from shortLongTermDebtTotal, last quarter) + Leases 15.2b
Net Debt = 81.8b USD (calculated: Debt 93.6b - CCE 11.8b)
Enterprise Value = 198b USD (116b + Debt 93.6b - CCE 11.8b)
Interest Coverage Ratio = 2.11 (Ebit TTM 6.57b / Interest Expense TTM 3.11b)
EV/FCF = 26.76x (Enterprise Value 198b / FCF TTM 7.39b)
FCF Yield = 3.74% (FCF TTM 7.39b / Enterprise Value 198b)
FCF Margin = 1.81% (FCF TTM 7.39b / Revenue TTM 408b)
Net Margin = 0.72% (Net Income TTM 2.93b / Revenue TTM 408b)
Gross Margin = 13.87% ((Revenue TTM 408b - Cost of Revenue TTM 351b) / Revenue TTM)
Gross Margin QoQ = 15.56% (prev 12.84%)
Tobins Q-Ratio = 0.78 (Enterprise Value 198b / Total Assets 253b)
Interest Expense / Debt = 3.32% (Interest Expense 3.11b / Debt 93.6b)
Taxrate = 16.43% (568.0m / 3.46b)
NOPAT = 5.49b (EBIT 6.57b * (1 - 16.43%))
Current Ratio = 0.87 (Total Current Assets 74.8b / Total Current Liabilities 86.4b)
Debt / Equity = 1.21 (Debt 93.6b / totalStockholderEquity, last quarter 77.5b)
Debt / EBITDA = 7.35 (Net Debt 81.8b / EBITDA 11.1b)
Debt / FCF = 11.06 (Net Debt 81.8b / FCF TTM 7.39b)
Total Stockholder Equity = 75.7b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.15% (Net Income 2.93b / Total Assets 253b)
RoE = 3.87% (Net Income TTM 2.93b / Total Stockholder Equity 75.7b)
RoCE = 4.82% (EBIT 6.57b / Capital Employed (Equity 75.7b + L.T.Debt 60.5b))
RoIC = 3.45% (NOPAT 5.49b / Invested Capital 159b)
WACC = 5.23% (E(116b)/V(210b) * Re(7.20%) + D(93.6b)/V(210b) * Rd(3.32%) * (1-Tc(0.16)))
Discount Rate = 7.20% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 35.96 | Cagr: -0.48%
[DCF] Terminal Value 77.97% ; FCFF base≈6.81b ; Y1≈7.81b ; Y5≈11.5b
[DCF] Fair Price = 71.47 (EV 173b - Net Debt 81.8b = Equity 91.2b / Shares 1.28b; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -65.47 | EPS CAGR: -10.20% | SUE: 1.06 | # QB: 1
Revenue Correlation: 99.33 | Revenue CAGR: 6.48% | SUE: 2.93 | # QB: 1
EPS current Quarter (2026-06-30): EPS=1.82 | Chg30d=+1.81% | Revisions=+62% | Analysts=19
EPS next Quarter (2026-09-30): EPS=1.71 | Chg30d=-5.94% | Revisions=-40% | Analysts=19
EPS current Year (2026-12-31): EPS=7.43 | Chg30d=+3.80% | Revisions=+84% | GrowthEPS=+10.1% | GrowthRev=+1.8%
EPS next Year (2027-12-31): EPS=8.36 | Chg30d=+2.21% | Revisions=+85% | GrowthEPS=+12.5% | GrowthRev=+4.0%
[Analyst] Revisions Ratio: +85%