CVS Health (CVS) Stock Analysis
This is a peer-relative look at CVS Health (CVS): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Health Care Equipment & Services peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | CVS |
|---|---|
| Name | CVS Health Corporation Common Stock |
| Country/Region | United States |
| GICS Sector | Health Care |
| GICS Industry Group | Health Care Equipment & Services |
| GICS Industry | Health Care Providers & Services |
| GICS Sub-Industry | Health Care Services |
| Market Capitalization | 123.73 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | February 21, 1973 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| Total Return (1Y) | 35.45% | 13.93% |
| Total Return (3Y, Annualized) | 18.21% | 3.86% |
| Total Return (5Y, Annualized) | 5.48% | -5.90% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 31.24% | 49.97% |
| Beta (5Y) | 0.59 | 0.89 |
| Max Drawdown (5Y) | -56.79% | -71.88% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 1.00 | 0.23 |
| Sortino Ratio (1Y) | 1.39 | 0.36 |
Profitability
ROE (TTM)
CVS Health (CVS) posts ROE of 6.21%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
CVS
Health Care Equipment & Services industry group
6.21%
Group distribution
- Max
- 47.06%
- Q3
- 14.51%
- CVS
- 6.21%
- Median
- 4.31%
- Q1
- -15.70%
- Min
- -56.60%
Largest peers
- ISRG
- 17.42%
- SYK
- 16.51%
- UNH
- 14.15%
- MDT
- 10.65%
- ABT
- 10.58%
- CVS
- 6.21%
- MCK
- --
Net Margin (TTM)
CVS Health (CVS) keeps 1.19% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
CVS
Health Care Equipment & Services industry group
1.19%
Group distribution
- Max
- 29.35%
- Q3
- 9.14%
- Median
- 1.95%
- CVS
- 1.19%
- Q1
- -7.34%
- Min
- -30.69%
Largest peers
- ISRG
- 28.45%
- SYK
- 14.43%
- MDT
- 13.93%
- ABT
- 11.65%
- UNH
- 3.14%
- CVS
- 1.19%
- MCK
- 1.12%
Operating Margin (TTM)
CVS Health (CVS) turns 3.86% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
CVS
Health Care Equipment & Services industry group
3.86%
Group distribution
- Max
- 38.55%
- Q3
- 13.91%
- Median
- 6.64%
- CVS
- 3.86%
- Q1
- -2.87%
- Min
- -27.93%
Largest peers
- ISRG
- 33.60%
- SYK
- 27.02%
- MDT
- 19.33%
- ABT
- 14.71%
- UNH
- 7.13%
- CVS
- 3.86%
- MCK
- 1.35%
Profitability Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| ROE (TTM) | 6.21% | 4.31% |
| ROA (TTM) | 2.97% | 3.44% |
| Net Margin (TTM) | 1.19% | 1.95% |
| Operating Margin (TTM) | 3.86% | 6.64% |
| Gross Margin (TTM) | 13.65% | 55.79% |
Growth
Revenue Growth
CVS Health (CVS) grew revenue 7.85%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
CVS Health (CVS) grew earnings per share -62.02%, in the lower peer quartile. Per-share profits are advancing more slowly than at most peers, so margins, costs, or share count deserve a closer look.
Growth Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 7.85% | 11.65% |
| Revenue Growth (3Y CAGR) | 7.63% | 10.88% |
| EPS Growth (YoY) | -62.02% | 4.84% |
| EPS Growth (3Y CAGR) | -24.73% | 13.94% |
Financial Strength
Current Ratio (MRQ)
CVS Health (CVS) has current ratio of 0.87, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
CVS
Health Care Equipment & Services industry group
0.87
Group distribution
- Max
- 7.62
- Q3
- 4.06
- Median
- 1.95
- Q1
- 1.34
- CVS
- 0.87
- Min
- 0.46
Largest peers
- ISRG
- 4.96
- SYK
- 2.16
- MDT
- 2.07
- ABT
- 1.38
- MCK
- 0.89
- CVS
- 0.87
- UNH
- 0.78
Debt / Equity (MRQ)
CVS Health (CVS) has debt-to-equity ratio of 0.96, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
CVS
Health Care Equipment & Services industry group
0.96
Group distribution
- Max
- 1.96
- Q3
- 1.01
- CVS
- 0.96
- Median
- 0.64
- Q1
- 0.15
- Min
- 0.00
Largest peers
- CVS
- 0.96
- UNH
- 0.69
- SYK
- 0.64
- ABT
- 0.63
- MDT
- 0.55
- ISRG
- --
- MCK
- --
Financial Strength Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.87 | 1.95 |
| Debt / Equity (MRQ) | 0.96 | 0.64 |
| Net Debt / EBITDA | 3.74 | 2.12 |
Dividends
Dividend Yield (TTM)
CVS Health (CVS) has dividend yield of 2.74%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.
CVS
Health Care Equipment & Services industry group
2.74%
Group distribution
- CVS
- 2.74%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MDT
- 3.06%
- CVS
- 2.74%
- ABT
- 2.28%
- UNH
- 2.23%
- SYK
- 1.13%
- MCK
- 0.36%
- ISRG
- 0.00%
Dividend Payout Ratio (TTM)
CVS Health (CVS) has payout ratio of 70.18%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.
CVS
Health Care Equipment & Services industry group
70.18%
Group distribution
- CVS
- 70.18%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- ABT
- 78.96%
- MDT
- 70.20%
- CVS
- 70.18%
- UNH
- 57.52%
- SYK
- 36.06%
- MCK
- 8.80%
- ISRG
- 0.00%
Dividend Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.74% | 0.00% |
| Dividend Payout Ratio (TTM) | 70.18% | 0.00% |
Valuation
P/E Ratio (TTM)
CVS Health (CVS) trades at P/E ratio of 25.53, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
CVS
Health Care Equipment & Services industry group
25.53
Group distribution
- Max
- 79.35
- Q3
- 45.56
- Median
- 27.58
- CVS
- 25.53
- Q1
- 20.24
- Min
- 1.56
Largest peers
- ISRG
- 42.00
- ABT
- 35.06
- SYK
- 31.45
- CVS
- 25.53
- UNH
- 25.51
- MCK
- 24.33
- MDT
- 23.19
P/S Ratio (TTM)
CVS Health (CVS) trades at 0.30 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.
CVS
Health Care Equipment & Services industry group
0.30
Group distribution
- Max
- 9.55
- Q3
- 4.54
- Median
- 2.26
- Q1
- 1.13
- CVS
- 0.30
- Min
- 0.03
Largest peers
- ISRG
- 11.91
- SYK
- 4.50
- ABT
- 4.05
- MDT
- 3.21
- UNH
- 0.79
- CVS
- 0.30
- MCK
- 0.26
P/B Ratio (MRQ)
CVS Health (CVS) trades at 1.55 on P/B ratio, in the lower book-value quartile for its industry. Investors are paying less for the balance-sheet equity than they pay for most peers, with returns on that equity still central to the read.
CVS
Health Care Equipment & Services industry group
1.55
Group distribution
- Max
- 12.65
- Q3
- 6.10
- Median
- 3.23
- Q1
- 1.71
- CVS
- 1.55
- Min
- -2.21
Largest peers
- ISRG
- 7.14
- SYK
- 4.85
- ABT
- 3.67
- UNH
- 3.65
- MDT
- 2.44
- CVS
- 1.55
- MCK
- -24.84
Valuation Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 25.53 | 27.58 |
| P/S Ratio (TTM) | 0.30 | 2.26 |
| P/B Ratio (MRQ) | 1.55 | 3.23 |
| Free Cash Flow Yield (TTM) | 6.53% | 3.36% |