CVS HEALTH Corp (CVS)
Health Care · Health Care Services · US stock · S&P 500 component
$94.48
▲ +1.70 (1.83%)
Fair valueUndervalued
$111 +17.6% to fair value
$56fair band $95–$135$167
Day's range
$92.49 – $94.84
52-week range
$69.51 – $110.68
About CVS HEALTH Corp
CVS Health combines a large pharmacy chain, a pharmacy benefit manager, a health insurer and a growing set of care delivery services. Customers fill prescriptions at its stores, employers and health plans use its benefit management services, and Aetna covers members with health insurance. Revenue is generated from prescription sales, insurance premiums and service fees, and results depend on medical costs, drug pricing and reimbursement rates.
The company reported trailing revenue of $415.1 billion and three-year growth of 7.6% a year. Profitability figures show an operating margin of 2.0% and a return on invested capital of 6%. Its net debt to EBITDA ratio stands at 3.7 times. The dividend yield is 3.5%. Its X-Ray Score is 52 out of 100. The figures are a snapshot of reported results rather than a forecast.
Price chart
52-wk range $69.51 – $110.68Volume 7,224,667Daily, split-adjusted
Vitals
Market cap$121.6B
52-week range$69.51 – $110.68
Volume (last day)7,224,667
P/E (TTM)24.7
EBIT / EV yield4.9%
Free-cash-flow yield9.7%
Dividend yield3.5%
Revenue (TTM)$415.1B
Net income (TTM)$4.9B
Operating margin2.0%
Return on capital5.5%
Debt incl. leases$61.4B
Cash & securities$14.0B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$111middle half of models $91 – $124
Undervalued
+17.6% to fair value
Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $94
Undervalued < $95Fair $95 – $135Overvalued > $135
P/E multiple
$90
P/B multiple
$93
P/S multiple
$162
EV/EBITDA multiple
$85
EV/EBIT multiple
$75
EV/revenue multiple
$170
10-year DCF, EBITDA exit
$119
5-year DCF, EBITDA exit
$111
10-year DCF, revenue exit
$129
5-year DCF, revenue exit
$125
10-year DCF, growth exit
$95
5-year DCF, growth exit
$83
Dividend discount, stable
$104
Dividend discount, multi-stage · not used
$204
Earnings power value
$114
Growth the price implies
12.8%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, but the price is low
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Health Care peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
79/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield4.9%
Free-cash-flow yield9.7%
Fair value vs price1.2×
Growth
Weak
40/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)7.6%
EPS growth (3y)-24.7%
Growth consistency100%
Profitability
Weak
49/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital5.5%
Operating margin2.0%
Gross profitability72.8%
Financial health
Weak
29/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA3.7×
Interest cover2.7×
Dividends
Fair
63/100
Dividend is typical for its sector.
See the numbers →
Dividend yield3.5%
Dividends vs free cash flow36%
Dividend growth5.3%
Quarterly results: last 6 quarters
+7.0%
Mar '25
+8.4%
Jun '25
+7.8%
Sep '25
+8.2%
Dec '25
+6.2%
Mar '26
+7.3%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $106.1B, diluted EPS $2.31.
Compare with peers
DVA Davita Inc.67 CI Cigna Group66 DGX Quest Diagnostics Inc56 LH Labcorp Holdings Inc.44Other Health Care Services companies by X-Ray Score.
SWOT analysis: CVS HEALTH Corp
Strengthsinside the company
- Free cash flow equals 9.7% of the market value, which funds dividends, buybacks or debt paydown.
- Passes 7 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- Return on invested capital is only 5.5% (median 10.9% for industry peers), so the business earns little above its cost of capital.
- Operating margin of 2.0% is thin against 12.3% for industry peers.
- Earnings per share have declined 24.7% a year over three years.
- Net debt is 3.7x EBITDA, above the 3x level that lenders usually watch.
Opportunitiesvaluation and setting
- Dividends use only 36% of free cash flow, which leaves room to raise them.
- The price is 18% below our fair value estimate, with the gap larger than the margin we allow for error.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare CVS with peers and sector
Medians of 4 Health Care Services peers and of 59 Health Care stocks in our universe.
Largest peers (X-Ray Score): CI 66, DGX 56, LH 44, DVA 67.
| Metric | CVS | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 52 | 61 | 49 |
| Valuation | 79 | 76 | 52 |
| Growth | 40 | 58 | 48 |
| Profitability | 49 | 48 | 51 |
| Financial health | 29 | 53 | 48 |
| Dividends | 63 | 55 | 50 |
Sector leaders: highest X-Ray Score in Health Care
CVS ranks #27 of 60 in Health Care and #4 of 5 in Health Care Services by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for CVS
Each factor is rated by where CVS stands among the 60 Health Care stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 8 Good · 4 Average · 11 Bad of 23
Growth: 0 · 2 · 1
Profitability: 0 · 0 · 5
Financial strength: 0 · 1 · 3
Valuation: 5 · 0 · 0
Cash flow: 1 · 1 · 2
Efficiency: 2 · 0 · 0
| Factor | CVS | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +7.6% | Average beats 61% | +5.5% | – | – |
| Revenue growth, last year | +7.8% | Average beats 54% | +7.1% | +8.7% | ≈ In line |
| EPS growth, 3 years a year | −24.7% | Bad beats 6% | +5.0% | – | – |
| Profitability | |||||
| Gross margin | 44.5% | Bad beats 29% | 65.0% | 39.8% | ▲ Better |
| Operating margin | 2.0% | Bad beats 16% | 16.4% | 2.5% | ≈ In line |
| Net margin | 1.2% | Bad beats 18% | 11.1% | 1.3% | ≈ In line |
| Return on invested capital | 5.5% | Bad beats 21% | 12.2% | – | – |
| Return on equity | 6.1% | Bad beats 20% | 13.7% | 6.1% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 3.7x | Bad beats 19% | 2.0x | 3.0x | ▼ Worse |
| Interest cover | 2.7x | Bad beats 13% | 9.4x | 3.5x | ≈ In line |
| Current ratio | 0.87 | Bad beats 11% | 1.52 | 0.86 | ≈ In line |
| Piotroski F-score | 7 / 9 | Average beats 62% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 24.9x | Good beats 69% | 28.2x | 17.1x | ▼ Worse |
| Price / book | 1.5x | Good beats 92% | 3.7x | 1.3x | ≈ In line |
| Price / sales | 0.3x | Good beats 94% | 3.7x | 0.3x | ≈ In line |
| EV / EBITDA | 13.2x | Good beats 80% | 17.6x | 10.2x | ▼ Worse |
| Free cash flow yield | 9.7% | Good beats 95% | 4.4% | 10.9% | ▼ Worse |
| Cash flow | |||||
| Free cash flow margin | 2.8% | Bad beats 11% | 16.3% | 2.9% | ≈ In line |
| Cash from operations / net income | 3.02 | Good beats 89% | 1.61 | 2.28 | ▲ Better |
| Free cash flow growth, 3 years a year | −16.6% | Bad beats 9% | +4.3% | – | – |
| Accruals (lower is better) | −3.9% | Average beats 49% | −3.9% | – | – |
| Efficiency | |||||
| Inventory turnover | 13.1x | Good beats 87% | 2.9x | 11.4x | ▲ Better |
| Days sales outstanding | 35 days | Good beats 88% | 62 days | 36 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 5 Good · ● 3 Average · ● 8 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldGood
Risk models
Altman Z''Bad
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Bad
Free-cash-flow growth (3y)Bad
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverBad
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalBad
Operating marginBad
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 46/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $292.1B | $322.5B | $357.8B | $372.8B | $402.1B |
| Operating income | $13.3B | $8.0B | $13.7B | $8.5B | $4.7B |
| Net income | $8.0B | $4.3B | $8.3B | $4.6B | $1.8B |
| Operating cash flow | $18.3B | $16.2B | $13.4B | $9.1B | $10.6B |
| Operating margin | 4.6% | 2.5% | 3.8% | 2.3% | 1.2% |
| Free cash flow | $15.7B | $13.5B | $10.4B | $6.3B | $7.8B |
| Diluted EPS | $6.02 | $3.26 | $6.47 | $3.66 | $1.39 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
11 bullish · 1 neutral · 4 bearish
Weekly
Strongly bullish
9 bullish · 1 neutral · 2 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 90.88 | Bullish |
| EMA 10 | 91.56 | Bullish |
| SMA 20 | 88.97 | Bullish |
| EMA 20 | 90.54 | Bullish |
| SMA 50 | 91.57 | Bullish |
| EMA 50 | 91.84 | Bullish |
| SMA 100 | 96.60 | Bearish |
| EMA 100 | 92.18 | Bullish |
| SMA 200 | 87.81 | Bullish |
| EMA 200 | 88.35 | Bullish |
Oscillators (daily)
| RSI (14) | 62.10 | Neutral |
| MACD (12, 26) | 0.58 | Bullish |
| Momentum (12) | 9.31 | Bullish |
| Stochastic %K (14) | 96.18 | Bearish |
| Williams %R (14) | -3.82 | Bearish |
| CCI (20) | 144.5 | Bearish |
Pivot points (classic, last session)
S3 90.69 | S2 91.59 | S1 93.04 | Pivot 93.94 | R1 95.38 | R2 96.28 | R3 97.73 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
3.33 USD
Yield on today's price
3.52%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.6650 | |
| 0.6650 | |
| 0.6650 | |
| 0.6650 | |
| 0.6650 | |
| 0.6650 | |
| 0.6650 | |
| 0.6650 | |
| 0.6650 | |
| 0.6650 | |
| 0.6650 | |
| 0.6650 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold CVS
| ETF | Share of the fund |
|---|---|
| IHF iShares U.S. Healthcare Providers | 14.79% |
| IYK iShares US Consumer Staples | 4.57% |
| GQGU The Advisors’ Inner Circle Fund III | 2.53% |
| RWL Invesco S&P 500 Revenue | 2.37% |
| XLV Health Care Select Sector SPDR | 2.30% |
| RPV Invesco S&P 500 Pure Value | 2.07% |
| FHLC Fidelity MSCI Health Care Index | 1.92% |
| VHT Vanguard Health Care | 1.83% |
The eight funds with the largest weight in CVS among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
CVS stock splits
CVS has split its stock 2 times since 1998. The latest was a 2-for-1 split on 7 Jun 2005.
Full CVS stock split history →CVS SEC filings
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change; Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
8-KSEC EDGAR
Director or officer change
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.