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CVS Health (CVS) Stock Analysis

Here is a fundamental analysis of CVS Health (CVS), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

CVS
GSPC
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CVS Health (CVS) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for CVS Health (CVS) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

CVS Health (CVS) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: CVSIndustry group median
1-Year Return59.29%6.07%

Risk

Drawdown

CVS
GSPC
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CVS Health (CVS) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

CVS Health (CVS) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: CVSIndustry group median
1-Year Volatility31.11%49.54%
Beta0.600.89

Company Profile

Company profile fields for CVS Health (CVS)
Profile ItemCVS
NameCVS Health Corporation
Country/RegionUnited States
GICS SectorHealth Care
GICS Industry GroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
GICS Sub-IndustryHealth Care Services
Market Capitalization130.09 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateFebruary 21, 1973
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

CVS Health (CVS) trades at P/E ratio of 44.72, 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

44.72

Group distribution
Max
80.40
CVS
44.72
Q3
44.58
Median
28.09
Q1
19.76
Min
0.91
Largest peers
ISRG
50.01
CVS
44.72
SYK
36.09
UNH
30.76
ABT
24.70
MDT
21.50
MCK
20.41
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Where CVS Health (CVS) stands on P/E ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

CVS Health (CVS) trades at 0.32 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

0.32

Group distribution
Max
8.62
Q3
4.20
Median
1.94
Q1
1.01
CVS
0.32
Min
0.04
Largest peers
ISRG
13.76
SYK
4.74
ABT
3.40
MDT
2.83
UNH
0.82
CVS
0.32
MCK
0.23
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Where CVS Health (CVS) stands on P/S ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

CVS Health (CVS) trades at 1.68 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

1.68

Group distribution
Max
11.03
Q3
5.50
Median
2.78
CVS
1.68
Q1
1.47
Min
-2.18
Largest peers
ISRG
8.34
SYK
5.33
UNH
3.79
ABT
2.95
MDT
2.10
CVS
1.68
MCK
-43.32
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Where CVS Health (CVS) stands on P/B ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

CVS Health (CVS) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: CVSIndustry group median
Price-to-Earnings Ratio (TTM)44.7228.09
Price-to-Sales Ratio (TTM)0.321.94
Price-to-Book Ratio (MRQ)1.682.78
Free Cash Flow Yield4.00%4.00%

Profitability

Return on Equity (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
12.73%
CVS
3.75%
Median
3.57%
Q1
-17.96%
Min
-59.21%
Largest peers
ISRG
17.23%
SYK
15.20%
ABT
12.33%
UNH
12.18%
MDT
9.93%
CVS
3.75%
MCK
--
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Where CVS Health (CVS) stands on ROE within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Profit 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
7.96%
Median
1.27%
CVS
0.72%
Q1
-9.77%
Min
-34.34%
Largest peers
ISRG
28.15%
ABT
13.91%
SYK
13.21%
MDT
13.20%
UNH
2.68%
MCK
1.18%
CVS
0.72%
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Where CVS Health (CVS) stands on net margin within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit 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
35.33%
Q3
11.89%
Median
5.44%
CVS
4.12%
Q1
-4.59%
Min
-25.61%
Largest peers
ISRG
30.87%
MDT
21.30%
SYK
17.82%
ABT
13.47%
UNH
8.05%
CVS
4.12%
MCK
2.21%
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Where CVS Health (CVS) stands on operating margin within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

CVS Health (CVS) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: CVSIndustry group median
Return on Equity (TTM)3.75%3.57%
Return on Assets (TTM)2.67%3.10%
Net Profit Margin (TTM)0.72%1.27%
Operating Profit Margin (TTM)4.12%5.44%
Gross Profit Margin (TTM)13.39%52.99%

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
4.29
Median
1.95
Q1
1.33
CVS
0.87
Min
0.04
Largest peers
ISRG
4.61
SYK
2.11
ABT
1.39
CVS
0.87
MCK
0.85
UNH
0.80
MDT
--
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Where CVS Health (CVS) stands on current ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

CVS Health (CVS) has debt-to-equity ratio of 1.01, 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

1.01

Group distribution
Max
2.02
CVS
1.01
Q3
1.01
Median
0.60
Q1
0.16
Min
0.00
Largest peers
CVS
1.01
UNH
0.74
SYK
0.66
ABT
0.65
MDT
0.57
ISRG
--
MCK
--
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Where CVS Health (CVS) stands on debt-to-equity ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

CVS Health (CVS) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: CVSIndustry group median
Current Ratio (MRQ)0.871.95
Debt-to-Equity Ratio (MRQ)1.010.60
Net Debt / EBITDA4.322.21

Dividends

Dividend Yield (TTM)

CVS Health (CVS) has dividend yield of 2.61%, 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

2.61%

Group distribution
CVS
2.61%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MDT
3.59%
ABT
2.86%
CVS
2.61%
UNH
2.27%
SYK
1.13%
MCK
0.42%
ISRG
0.00%
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Where CVS Health (CVS) stands on dividend yield within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

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%
MDT
76.14%
ABT
67.23%
UNH
66.57%
SYK
39.81%
MCK
8.26%
ISRG
0.00%
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Where CVS Health (CVS) stands on payout ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

CVS Health (CVS) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: CVSIndustry group median
Dividend Yield (TTM)2.61%0.00%
Dividend Payout Ratio (TTM)116.67%0.00%