CVS Health (CVS)
Health Care · $112B market cap · SEC CIK 0000064803
fundamentals score out of 100
Next reports on Oct 27, 2026, before the open, with analysts expecting $1.64 in earnings per share.
The case for CVS
- Pays a 3.5% dividend while you wait.
- Moves less than the market (beta 0.57).
- Price/sales of 0.3× is lower than 91% of Health Care companies.
- Free-cash-flow yield of 7.0% is higher than 85% of Health Care companies.
The case against
- Return on equity of only 6%.
- A PEG of 4.4: a P/E of 22.9× is a lot to pay for EPS growing 5%.
- Net margin of 1.2% leaves very little room for error.
- Current liabilities exceed current assets (ratio 0.87).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 80 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 53 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 27 |
| Momentumhow the price has behaved lately | 46 |
| Stabilityhow violently it moves, what it owes and what it pays you | 77 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 22.9× |
|---|---|
| Price / book | 1.66× |
| Price / sales | 0.3× |
| Revenue growth (YoY) | +7.4% |
| EPS growth (YoY) | +5.3% |
| Gross margin | 14% |
| Operating margin | 2% |
| Net margin | 1% |
| Return on equity | 6% |
| Debt / equity | 0.77× |
| Current ratio | 0.87 |
| Dividend yield | 3.49% |
| Beta | 0.57 |
| 52-week range | $69.51 – $110.68 |
| Position in that range | 43% of the way up |
| 3-month return | -10.9% |
| 1-year return | +16.9% |
Five years of financials, as filed
Pulled from CVS Health's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $402B | $373B | $358B | $322B | $292B |
| Operating income | $4.7B | $8.5B | $13.7B | $8.0B | $13.3B |
| Net income | $1.8B | $4.6B | $8.3B | $4.3B | $8.0B |
| Operating cash flow | $10.6B | $9.1B | $13.4B | $16.2B | $18.3B |
| Capital expenditure | $2.8B | $2.8B | $3.0B | $2.7B | $2.5B |
| Total assets | $254B | $253B | $250B | $228B | $233B |
| Total liabilities | $178B | $177B | $173B | $157B | $158B |
| Shareholder equity | $75.2B | $75.6B | $76.5B | $71.5B | $74.5B |
| Cash | $8.5B | $8.6B | $8.2B | $12.9B | $9.4B |
| Free cash flow | $7.8B | $6.3B | $10.4B | $13.4B | $15.7B |
| Operating margin | 1.2% | 2.3% | 3.8% | 2.5% | 4.6% |
| Net margin | 0.4% | 1.2% | 2.3% | 1.3% | 2.7% |
| Diluted shares | 1.3B | 1.3B | 1.3B | 1.3B | 1.3B |
Share count is down 4.4% over 4 years. Buybacks have been shrinking the pie.
What CVS Health says it does
Overview CVS Health Corporation, together with its subsidiaries (collectively, "CVS Health," the "Company," "we," "our" or "us"), is a leading health solutions company building a world of health around every consumer it serves and connecting care so that it works for people wherever they are. As of December 31, 2025, we had approximately 9,000 retail locations, more than 1,000 walk-in and primary care medical clinics and a leading pharmacy benefits manager with approximately 87 million plan members and expanding specialty pharmacy solutions. We serve an estimated more than 37 million people through traditional, voluntary and consumer-directed health insurance products and related services, including expanding Medicare Advantage offerings and a leading standalone Medicare Part D prescription drug plan ("PDP"). We are creating new sources of value through our integrated model allowing us to expand into personalized, technology driven…
Risk factors CVS lists in its 10-K
- Risks From Changes in Public Policy and Other Legal and Regulatory Risks
- Risks Related to Our Relationships with Manufacturers, Providers, Suppliers and Vendors
- Adverse economic conditions in the U.S. and abroad can materially and adversely impact our businesses, operating results, cash flows and financial condition
- Each of our segments operates in a highly competitive and evolving business environment; and operating income in the industries in which we compete may decline
- A change in our Health Care Benefits product mix may adversely affect our profit margins
- Our Health Care Delivery businesses face unique risks
- Negative public perception of the industries in which we operate, or of our industries’ or our practices, can adversely affect our businesses, operating results, cash flows and prospects
- We must maintain and improve our relationships with our retail and specialty pharmacy customers and increase the demand for our products and services, including proprietary brands
- We face risks relating to the availability, pricing and safety profiles of prescription drugs that we purchase and sell
- Extreme events, or the threat of extreme events, could materially impact our businesses
- We may be unable to achieve our corporate responsibility and sustainability goals
- If we fail to comply with applicable laws and regulations, many of which are highly complex, we could be subject to significant adverse regulatory actions, including monetary penalties, or suffer brand and reputational harm
- If our compliance or other systems and processes fail or are deemed inadequate, we may suffer brand and reputational harm and become subject to contractual damages, regulatory actions and/or litigation
- We may face increased regulatory risks related to our vertical integration strategy