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 |
| 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 | 141.12 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) | 85.99% | 17.01% |
| Total Return (3Y, Annualized) | 17.98% | -0.94% |
| Total Return (5Y, Annualized) | 9.46% | -4.33% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 31.02% | 49.85% |
| Beta (5Y) | 0.61 | 0.87 |
| Max Drawdown (5Y) | -56.79% | -71.62% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 2.64 | 0.28 |
| Sortino Ratio (1Y) | 3.78 | 0.45 |
Profitability
ROE (TTM)
CVS Health (CVS) posts ROE of 3.75%, 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
3.75%
Group distribution
- Max
- 53.65%
- Q3
- 13.93%
- CVS
- 3.75%
- Median
- 3.71%
- Q1
- -16.92%
- Min
- -59.21%
Largest peers
- ISRG
- 17.42%
- SYK
- 15.20%
- UNH
- 14.15%
- MDT
- 9.84%
- CVS
- 3.75%
- ABT
- --
- MCK
- --
Net Margin (TTM)
CVS Health (CVS) keeps 0.72% 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
0.72%
Group distribution
- Max
- 30.40%
- Q3
- 8.56%
- Median
- 1.55%
- CVS
- 0.72%
- Q1
- -9.20%
- Min
- -34.34%
Largest peers
- ISRG
- 28.45%
- SYK
- 13.21%
- MDT
- 13.20%
- ABT
- 11.65%
- UNH
- 3.14%
- MCK
- 1.18%
- CVS
- 0.72%
Operating Margin (TTM)
CVS Health (CVS) turns 4.12% 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
4.12%
Group distribution
- Max
- 37.54%
- Q3
- 12.86%
- Median
- 5.54%
- CVS
- 4.12%
- Q1
- -4.10%
- Min
- -25.61%
Largest peers
- ISRG
- 33.75%
- MDT
- 22.05%
- SYK
- 17.82%
- ABT
- 14.15%
- UNH
- 7.13%
- CVS
- 4.12%
- MCK
- 2.21%
Profitability Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| ROE (TTM) | 3.75% | 3.71% |
| ROA (TTM) | 2.67% | 3.01% |
| Net Margin (TTM) | 0.72% | 1.55% |
| Operating Margin (TTM) | 4.12% | 5.54% |
| Gross Margin (TTM) | 13.39% | 54.20% |
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% | 11.75% |
| Revenue Growth (3Y CAGR) | 7.63% | 11.37% |
| 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
- 7.79
- Q3
- 4.32
- Median
- 2.03
- Q1
- 1.34
- CVS
- 0.87
- Min
- 0.04
Largest peers
- ISRG
- 6.43
- MDT
- 2.13
- SYK
- 2.11
- CVS
- 0.87
- MCK
- 0.85
- UNH
- 0.78
- ABT
- --
Debt / Equity (MRQ)
CVS Health (CVS) has debt-to-equity ratio of 1.01, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.
CVS
Health Care Equipment & Services industry group
1.01
Group distribution
- Max
- 2.02
- CVS
- 1.01
- Q3
- 0.99
- Median
- 0.58
- Q1
- 0.15
- Min
- 0.00
Largest peers
- CVS
- 1.01
- UNH
- 0.69
- SYK
- 0.66
- ABT
- 0.65
- MDT
- 0.58
- ISRG
- --
- MCK
- --
Financial Strength Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.87 | 2.03 |
| Debt / Equity (MRQ) | 1.01 | 0.58 |
| Net Debt / EBITDA | 4.32 | 2.02 |
Dividends
Dividend Yield (TTM)
CVS Health (CVS) has dividend yield of 2.47%, 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
2.47%
Group distribution
- CVS
- 2.47%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MDT
- 3.41%
- CVS
- 2.47%
- ABT
- 2.44%
- SYK
- 1.08%
- UNH
- 1.05%
- MCK
- 0.38%
- ISRG
- 0.00%
Dividend Payout Ratio (TTM)
CVS Health (CVS) has payout ratio of 116.67%, meaning dividends exceeded current-period earnings. The gap would need to be covered by cash, retained earnings, financing, or other sources, so earnings alone do not support the payout.
CVS
Health Care Equipment & Services industry group
116.67%
Group distribution
- CVS
- 116.67%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- CVS
- 116.67%
- ABT
- 78.96%
- MDT
- 76.14%
- UNH
- 66.57%
- SYK
- 39.81%
- MCK
- 8.26%
- ISRG
- 0.00%
Dividend Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.47% | 0.00% |
| Dividend Payout Ratio (TTM) | 116.67% | 0.00% |
Valuation
P/E Ratio (TTM)
CVS Health (CVS) trades at P/E ratio of 47.26, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
CVS
Health Care Equipment & Services industry group
47.26
Group distribution
- Max
- 73.47
- CVS
- 47.26
- Q3
- 45.86
- Median
- 30.56
- Q1
- 21.37
- Min
- 0.91
Largest peers
- CVS
- 47.26
- ISRG
- 40.47
- SYK
- 36.88
- ABT
- 32.89
- UNH
- 31.73
- MDT
- 22.32
- MCK
- 21.65
P/S Ratio (TTM)
CVS Health (CVS) trades at 0.35 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
0.35
Group distribution
- Max
- 8.58
- Q3
- 4.23
- Median
- 2.05
- Q1
- 1.10
- CVS
- 0.35
- Min
- 0.04
Largest peers
- ISRG
- 11.24
- SYK
- 4.77
- ABT
- 3.73
- MDT
- 2.90
- UNH
- 0.88
- CVS
- 0.35
- MCK
- 0.24
P/B Ratio (MRQ)
CVS Health (CVS) trades at 1.82 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
CVS
Health Care Equipment & Services industry group
1.82
Group distribution
- Max
- 12.13
- Q3
- 5.82
- Median
- 2.96
- CVS
- 1.82
- Q1
- 1.56
- Min
- -2.02
Largest peers
- ISRG
- 7.10
- SYK
- 5.25
- UNH
- 3.78
- ABT
- 3.33
- MDT
- 2.13
- CVS
- 1.82
- MCK
- -45.79
Valuation Metrics
| Metric | Current stock: CVS | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 47.26 | 30.56 |
| P/S Ratio (TTM) | 0.35 | 2.05 |
| P/B Ratio (MRQ) | 1.82 | 2.96 |
| Free Cash Flow Yield (TTM) | 3.69% | 3.73% |