# CVS HEALTH CORPORATION (CVS) — Stock CV

CVS Health Corporation 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.

> 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.

## Identity

- **Ticker**: CVS
- **Sector**: Healthcare
- **Industry**: Healthcare Plans
- **Headquarters**: WOONSOCKET, RI
- **Employees**: 300 000
- **Website**: https://www.cvshealth.com
- **Market cap**: $111B
- **Last price**: $86.44
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $415B
- **Net income**: $4.89B
- **Free cash flow**: $11.8B
- **Net debt**: $49.9B
- **P/E**: 22.5
- **Revenue growth (YoY)**: 7.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 67 |
| Growth | 37 |
| Profitability | 21 |
| Health | 21 |
| Quality | 97 |
| Moat | 43 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +7.4% YoY
- [x] Profitable — $4.89B TTM
- [ ] Profit growing — -24.7% YoY
- [x] Generates cash — $11.8B TTM
- [x] Debt under control — ~4.2y of cash flow to repay
- [x] Established company — $111B market cap
- [x] Not printing shares — -3.3% shares over ~5y
- [x] Proven track record — 9/10 profitable years
- [ ] Financially stable — health score 9/100
- [x] Pays a dividend — yield 3.10%
- [x] Valuation not extreme — P/E 22.5

## Experience (career milestones)

- **FY2023** — Best year on record: $8.34B net income
- **Feb 8, 2023** — The company announced it has entered into a definitive agreement to acquire Oak Street Health…
- **FY2016** — First recorded profitable year: $5.32B net income
- **FY2016** — Revenue already above $100B: $178B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2014** — CVS Caremark acquired Coram in 2014, the specialty infusion services and enteral nutrition business unit of Apria…
- **2004** — CVS purchased 1,268 Eckerd drug stores and Eckerd Health Services, Eckerd's PBM/Mail-order pharmacy business, from…
- **2000** — CVS acquired Stadtlander pharmacy from Bergen Brunswig Corporation, making CVS ProCare the largest…
- **1998** — The company acquired 207 stores from Arbor Drugs, giving CVS its first stores in Michigan
- **1990** — Merlo joined CVS/pharmacy in 1990, through the acquisition of Peoples Drug
- **1988** — The company acquired Heartland Drug in 1988, a small pharmacy company in the Boston area giving it stores in the…
- **1977** — CVS acquired 36 New Jersey–based Mack Drug stores
- **1972** — CVS acquired 84 Clinton Drug and Discount Stores
- **1963** — The first Consumer Value Store (CVS), selling health and beauty products, was founded in 1963, in Lowell,…

## Strengths

- Piotroski F-Score 7/9 — fundamentally strong checklist

## Watch-outs

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

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $292B | $7.91B | $15.7B |
| FY2022 | $322B | $4.15B | $13.4B |
| FY2023 | $358B | $8.34B | $10.4B |
| FY2024 | $373B | $4.61B | $6.33B |
| FY2025 | $402B | $1.77B | $7.81B |

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Source: https://stockcv.com/CVS — derived from company filings; may be delayed or incomplete. Information, not investment advice.