NYSE
CVS
Last Price
US $103.45
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
CVS Health Corp. cash flow to debt ratio of 11.37% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
CVS Health Corp.'s free cash flow has increased 23.41% from $6.33G last year to $7.81G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
CVS Health Corp.'s debt to equity ratio is 1.01, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
CVS Health Corp.'s debt has decreased relative to shareholder equity from 1.10 last year to 1.01 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
CVS Health Corp. has a net debt to EBITDA ratio of 8.63x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial risk - ICR.
CVS Health Corp.'s interest coverage ratio is 1.92, which means that the company struggles to meet interest obligations, signaling financial risk.
Financial risk - Profit margin growth.
CVS Health Corp.'s profit margin has decreased (-41.92%) in the last year from 1.24% to 0.72%, signaling decreasing performance
Financial risk - Short term assets vs short term liabilities.
CVS Health Corp.'s short-term liabilities of $88.69G exceed its short-term assets of $74.71G, signaling financial risk
Decreasing performance - ROA.
CVS Health Corp.'s return on assets of 1.16% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
CVS Health Corp.'s return on equity of 3.87%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
CVS Health Corp.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
CVS Health Corp. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
CVS Health Corp. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
CVS Health Corp. has a free cash flow yield of 5.86%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
CVS Health Corp.'s yearly earnings has decreased -61.68% since last year from $4.61G to $1.77G, signaling decreasing performance
Increasing performance - Healthy revenue growth.
CVS Health Corp.'s yearly revenue has increased 7.85% since last year from $372.81G to $402.07G, signaling increasing performance
Decreasing performance - ROIC.
ROIC 2.91% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Increasing performance - 3-year revenue CAGR.
CVS Health Corp.'s 3-year revenue CAGR of 7.63% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
CVS Health Corp. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
CVS Health Corp. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
CVS Health Corp. has insufficient data to evaluate this check.
Overvalued - Earnings yield.
CVS Health Corp. has an earnings yield of 2.21%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
CVS Health Corp. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model
Undervalued - EV/EBITDA.
CVS Health Corp. has an EV/EBITDA ratio of 18.14x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
CVS Health Corp. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
CVS Health Corp. has a price-to-book ratio of 1.71x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
CVS Health Corp. has a price-to-sales ratio of 0.33x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
3.87%
Return on equity
ROIC: 2.91%
Valuation History
45.2X
Price to Earnings
EV/EBITDA: 18.1X
Cash flow
Profit margin
-10.44%
(FY vs FY)
Cash flow Y/Y
-10.28%
(FY vs FY)
Fair Value
Market $103.45
56.80%
Default assumptions
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