CVS Stock Analysis: CVS Health | NYSE
Healthcare Plans | NYSE, USA | Market Cap: 129.251m USD | 12M Return: 55.5% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 799M
EPS Trend: -65.5%
Qual. Beats: 1
Rev. Trend: 99.3%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
CVS Health Corporation is a U.S. healthcare company operating through three segments: Health Care Benefits (insurance products including medical, dental, behavioral health, Medicare Advantage, Medicare Supplement, and Medicaid plans), Health Services (pharmacy benefit management, or PBM, solutions such as plan design, formulary management, specialty and mail-order pharmacy, and clinical services), and Pharmacy & Consumer Wellness (retail sale of prescription and over-the-counter drugs, consumer health products, and related pharmacy services to care facilities). The company serves a broad customer base spanning employer groups, individuals, health plans, government programs, labor unions, and expatriates.
Founded in 1963 and headquartered in Woonsocket, Rhode Island, the company was originally known as CVS Caremark Corporation before adopting its current name in September 2014. It trades on the NYSE under the ticker CVS and is classified within the Health Care sector as a large-cap Health Care Services company.
CVS operates a vertically integrated healthcare model, combining a major PBM (Caremark) with a large retail pharmacy footprint and a health insurance carrier, an uncommon structure in the U.S. healthcare industry that allows it to coordinate benefits, drug pricing, and point-of-care delivery within a single company.
- Aetna Medicare Advantage margins hinge on star ratings and MA reimbursement rates
- GLP-1 drug spending boosts pharmacy revenue while pressuring medical loss ratios
- PBM rebate model faces escalating federal and state regulatory scrutiny
| 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 July 01, 2026, the stock is trading at USD 103.45 with a total of 5,531,515 shares traded. Over the past week, the price has changed by +1.85%, over one month by +14.16%, over three months by +45.30% and over the past year by +55.46%.
Current recommended Stop Loss: 100.40 (which is 2.9% or 1.2 ATR below the current price).
CVS Health has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy CVS.
- StrongBuy: 18
- Buy: 6
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 105 | 1.5% |
P/E Trailing = 44.4298
P/E Forward = 13.7363
P/S = 0.3187
P/B = 1.6687
P/EG = 0.2852
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 = 211b USD (129b + Debt 93.6b - CCE 11.8b)
Interest Coverage Ratio = 2.11 (Ebit TTM 6.57b / Interest Expense TTM 3.11b)
EV/FCF = 28.54x (Enterprise Value 211b / FCF TTM 7.39b)
FCF Yield = 3.50% (FCF TTM 7.39b / Enterprise Value 211b)
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 = 0.83 (Enterprise Value 211b / 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 = 5.20% (E(129b)/V(223b) * Re(6.95%) + D(93.6b)/V(223b) * Rd(3.32%) * (1-Tc(0.16)))
Discount Rate = 6.95% (= 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 next Quarter (2026-09-30): EPS=1.71 | Chg30d=+0.05% | Revisions=-55% | Analysts=21
EPS current Year (2026-12-31): EPS=7.43 | Chg30d=+0.01% | Revisions=+85% | GrowthEPS=+10.1% | GrowthRev=+1.8%
EPS next Year (2027-12-31): EPS=8.38 | Chg30d=+0.25% | Revisions=+85% | GrowthEPS=+12.8% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: +85%