CVS Health Corporation

Healthcare Plans

CVSStrained9 of 11 basics passed

$86.44

-1.55%

Market cap $111B

$86.44

-1.55%

Market cap $111B

CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates around 9,000 stores primarily in the US.

It is a $111B healthcare company. Revenue grew 7.4% over the last year, it keeps 1¢ of every dollar of sales as profit, and its net debt equals ~4.2 years of free cash flow. It trades at 22.5× earnings — around the middle of its own history.

Website: cvshealth.com
Location: Woonsocket, RI
Employees: 300 000
Sector: Healthcare
Founded: 1963

Share price · 3 years

$71.73 → $86.44+20.5%

price only — dividends excluded

Key facts · TTM

Revenue: total sales; $415B
Profit: keeps 1¢ of every $1 sold; $4.89B
Free cash flow: cash left after running the business; $11.8B
Net debt: debt minus cash on hand; $49.9B
P/E: years of profit in the price; 22.5
EPS: earnings per share, TTM; $3.85
Dividend: pays out 29% of profit · 29% of FCF; 3.10%
Shares: up 18% since 2016 — dilution; 1.27B
Volatility: beta vs the market — under 1 swings less; 0.59

Revenue, last 10 years

52-week range

Low $70.08$86.44High $110.60

Today's price is 40% of the way from the year's low to its high.

P/E vs its history5y

22.5×median 17.5×

Higher than 62% of past days — around the middle of its own history.

Valuation vs own history

P/E

22.5×

39%

P/S

0.3×

52%

EV/EBITDA

13.9×

51%

P/B

1.4×

40%

FCF yield

10.7%

49%

Share of the last ~5 years that was pricier than today (in line with its own history). Based on the daily valuation record.

Standing in Healthcare

Size$111Btop 18%
Revenue growth+8%top 49%
Net margin1%top 70%
Return on equity6%top 67%
P/E22.5×top 38%
Dividend yield3.10%top 11%

Ranked against 98 Healthcare companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Strong quality; Growth, Profitability, Health and Moat lag behind.

Valuation67

P/E vs own history62th pct · 5/25
FCF yield10.6% · 25/25
P/S0.3x · 25/25
EV/EBITDA18.3x · 12/25

Growth37

Revenue CAGR8.3% · 12/25
Net income CAGR-31.2% · 0/25
EPS CAGR ~5Y-23.9% · 0/25
Fwd implied growth117.3% · 25/25

Profitability21

ROIC1.4% · 5/25
ROE6.4% · 5/25
Net margin1.2% · 6/25
Operating margin2.1% · 5/25

Health21

Altman Zn/a · 0/25
Current ratio0.87 · 6/25
Interest coverage1.7x · 3/25
Net cash / debtD/A 20% · 12/25

Quality97

Piotroski F7/9 · 22/25
Beneish M-2.58 · 25/25
FCF conversion240% · 25/25
Margin stabilityσ 1.4% · 25/25

Moat43

ROIC >12% years2/10 yrs · 0/25
Median gross margin39.0% · 13/25
FCF-positive years10/10 yrs · 25/25
Worst-year net marginworst -0.3% · 5/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

FY2023Financial
Best year on record
$8.34B net income
Feb 8, 2023Acquisition
The company announced it has entered into a definitive agreement to acquire Oak Street Health…
FY2016Financial
First recorded profitable year
$5.32B net income
FY2016Financial
Revenue already above $100B
$178B in first reported year
FY2016Financial
Positive free cash flow every year since
10-year streak
2014Acquisition
CVS Caremark acquired Coram in 2014, the specialty infusion services and enteral nutrition business unit of Apria…
2004Acquisition
CVS purchased 1,268 Eckerd drug stores and Eckerd Health Services, Eckerd's PBM/Mail-order pharmacy business, from…
2000Acquisition
CVS acquired Stadtlander pharmacy from Bergen Brunswig Corporation, making CVS ProCare the largest…
1998Acquisition
The company acquired 207 stores from Arbor Drugs, giving CVS its first stores in Michigan
1990Acquisition
Merlo joined CVS/pharmacy in 1990, through the acquisition of Peoples Drug
1988Acquisition
The company acquired Heartland Drug in 1988, a small pharmacy company in the Boston area giving it stores in the…
1977Acquisition
CVS acquired 36 New Jersey–based Mack Drug stores
1972Acquisition
CVS acquired 84 Clinton Drug and Discount Stores
1963Founded
The first Consumer Value Store (CVS), selling health and beauty products, was founded in 1963, in Lowell,…

Achievements

Verifiable track record, straight from the reported numbers.

#18 largest of 98 Healthcare companies by market cap

$10 000 invested in 2021 would be worth ~$10 304 today — price return only

$402.1B revenue in FY2025

Revenue up 7.4% year over year

Profitable 7 years in a row

Positive free cash flow 10 years in a row

300 000 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

Piotroski F-Score 7/9 — fundamentally strong checklist

Watch-outs

Thin interest coverage (1.7×)
Loss-making in 1 of the recent years

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

9 of 11 checks passed

Revenue growing — the company sells more than a year ago+7.4% YoY
Profitable — makes more than it spends$4.89B TTM
Profit growing — earnings are higher than last year-24.7% YoY
Generates cash — cash left after running and investing$11.8B TTM
Debt under control — could handle its obligations~4.2y of cash flow to repay
Established company — not a micro-cap — lower blow-up risk$111B market cap
Not printing shares — share count not ballooning — you keep your slice-3.3% shares over ~5y
Proven track record — years of profitability behind it9/10 profitable years
Financially stable — balance sheet not near distresshealth score 9/100
Pays a dividend — returns cash to shareholdersyield 3.10%
Valuation not extreme — price not wildly above earningsP/E 22.5

Peer comparisonCVS Health Corporation vs 6 largest healthcare peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
CVS this company	$110.5B	22.5	+7.4%	1.2%	Strained
LLY Eli Lilly & Co.	$1.0T	41.6	+49.6%	33.5%	Solid
JNJ Johnson & Johnson	$630.9B	29.9	+8.1%	21.5%	Mixed
ABBV Abbvie Inc.	$488.5B	77.4	+10.4%	9.8%	Mixed
MRK Merck & Co., Inc.	$361.0B	113.2	+4.6%	4.8%	Mixed
UNH UNITEDHEALTH GROUP INCORPORATED (Delaware)	$340.7B	24.1	+6.5%	3.1%	Mixed
NVS Novartis AG	$273.2B	20.3	+9.6%	24.7%	Solid

Head-to-head: CVS vs LLY · CVS vs JNJ · CVS vs ABBV

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 8Buy 20Hold 5

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Profit & lossRevenue $415B · net income $4.89B (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2025 revenue flows to profit

RevenueNet income

Revenue (TTM)

$415B

YoY 7.4%

Net income (TTM)

$4.89B

Margin 1.2%

Gross margin

14.2%

Operating margin

2.1%

P/E ratio

22.5

Dividend yield

3.10%

Income statement — full detail

Figures in USD billions · EPS in USD

	2020	2021	2022	2023	2024	2025
Revenue	268.7	292.1	322.5	357.8	372.8	402.1
Gross profit	104.7	116.3	125.6	140.7	166.5	180.9
Operating income (EBIT)	13.9	13.2	15.7	13.7	8.5	10.0
Net income	7.2	7.9	4.1	8.3	4.6	1.8
EPS (diluted)	5.46	5.95	3.14	6.47	3.66	1.39

Cash flowFree cash flow $11.8B · operating cash flow $14.8B (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

$11.8B

Margin 2.8%

Operating cash flow (TTM)

$14.8B

FCF margin

2.8%

Cash flow statement — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Operating cash flow	15.9	18.3	16.2	13.4	9.1	10.6
Capital expenditure	-2.4	-2.5	-2.7	-3.0	-2.8	-2.8
Free cash flow	13.4	15.7	13.4	10.4	6.3	7.8
FCF margin	5.0%	5.4%	4.2%	2.9%	1.7%	1.9%

Balance sheetAssets $254B · net debt $49.9B (FY2025)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $254B of assets is financed

70%

30%

Liabilities $178B — borrowed moneyEquity $75.2B — owners' stake

Cash vs debt

Total debt $60.5B − cash $10.6B = net debt $49.9B

Cash on hand covers 18% of debt.

Debt repayment

0.0 yrs

Years of free cash flow to clear net debt

Interest coverage

1.7x

EBIT ÷ interest expense

ROE

6.4%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Cash & equivalents	10.9	12.5	15.7	11.5	11.0	10.6
Total assets	230.7	233.0	228.3	249.7	253.2	253.5
Total liabilities	161.0	157.6	157.0	173.1	177.5	178.2
Total debt	64.6	56.2	52.3	58.8	62.6	60.5
Equity	69.4	75.1	71.0	76.5	75.6	75.2
Net debt	53.8	43.7	36.5	47.4	51.7	49.9

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of CVS on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $86.44 · market cap $111B.