CVS
CVS HEALTH Corp
Consumer Discretionary • CIK: 0000064803
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Market Cap
$89.04B
P/E (TTM)
30.4x
Rev Growth (TTM)
+7.6%
Net Margin (TTM)
0.7%
FCF Yield (TTM)
8.3%
FCF Margin (TTM)
1.8%
Cash Flow Health
Free Cash Flow7/8 positive
TTM$7.4B
Q1 '26
$3.4B+30%
Q4 '25
$2.6B+2559%
FCF Margin
TTM1.8%
Q1 '263.4%+37%
Sector: 2.2%Below Avg
OCF Margin2.5%
OCF/NI3.52x
CapEx Coverage3.5x
FCF Yield8.3%
FCF Growth (2Y)-25%
Cash Conversion Cycle
66 days
DSO: 37+DIO: 30−DPO: 0
Capital Allocation & Returns
Balanced
Total Shareholder Yield
TTM3.8%
Div Yield3.8%
Balancing returns with reinvestment
Dividend & Payout Metrics
Dividend Yield (TTM)3.8%
FCF Payout Ratio45.7%
Free Cash Flow (TTM)$7.4B
Stock Repurchases ()$0
Capital Return / FCF46.0%
Est. Dividends Paid (TTM)$3.4B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
3.7%
Moderate
-0.0% YoY+2.8%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
1.2%
8Q: 2.1%
Asset Turnover
1.60x
8Q: 1.54x
Leverage (1+D/E)
1.78x
D/E: 0.78x
DuPont: 3.5% ≈ 3.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
31.56x
8Q:30.57x
+340.1%
Invested Cap Turn
3.23x
8Q:3.02x
+61.9%
CapEx Intensity
2.3%
8Q:2.2%
CapEx/Depreciation
0.64x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $407.9B | $100.4B↓5.0% | $105.7B↑2.7% | $102.9B↑4.0% | $98.9B↑4.6% | $94.6B↓3.2% | $97.7B↑2.4% | $95.4B↑4.6% | $91.2B |
Operating Income | $6.0B | $4.7B↑121.6% | $2.1B↑165.9% | $-3.2B↓234.7% | $2.4B↓29.4% | $3.4B↑42.5% | $2.4B↑184.6% | $832.0M↓72.7% | $3.0B |
Net Income | $2.9B | $2.9B↓0.0% | $2.9B↑174.0% | $-4.0B↓489.3% | $1.0B↓42.6% | $1.8B↑8.2% | $1.6B↑1789.7% | $87.0M↓95.1% | $1.8B |
Operating Cash Flow | $10.3B | $4.2B↑25.3% | $3.4B↑325.9% | $796.0M↓58.0% | $1.9B↓58.4% | $4.6B↑144.9% | $1.9B↑349.7% | $-745.0M↓124.1% | $3.1B |
Free Cash Flow | $7.4B | $3.4B↑30.5% | $2.6B↑2559.2% | $98.0M↓92.4% | $1.3B↓66.2% | $3.8B↑249.2% | $1.1B↑177.2% | $-1.4B↓157.7% | $2.5B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
30.4x
Volatile
8Q: 38.2x-37828%
High PEG ratio (4.0x) suggests expensive for growth
Valuation Lenses
Earnings
30.4x
vs – sector
Cash Flow
18.6x
EV/FCF vs –
Growth-Adj
4.0xPEG
Expensive for growth
Quality-Adj
8.3P/E per %ROIC
ROIC: 3.7%
Shareholder Returns
Dividend
3.8%
Buyback
–
Total Yield
3.8%
Market Cap$89.04B
EV$137.48B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
57/100
Average
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Below Avg
3.9%
8Q:–
Return on Invested Capital (ROIC)Top 25%
3.7%
8Q:–
+2.8%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 1.2%
Asset Turnover: 1.60x
Earnings Quality
Cash Conversion
3.52x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin44.7%
Capital Efficiency
Invested Capital Turnover3.23x
Working Capital
Cash Conversion Cycle66 days
Growth Quality & Momentum
Low Quality
Growth Quality Score
48/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
7.6%
OpInc Growth YoY
38.7%
EPS Growth YoY
-45.1%
FCF 3Y CAGR
-24.8%
Growth Quality Analysis
⚠Working Capital Drag: FCF growth lagging revenue by 32.4%
⚠Sustainability Index: 3.0/10 - Growth sustainability concerns
Margin Quality & Sustainability
Low Quality
Profitability Cascade
Gross
44.7%
Operating
1.5%
Below Avg in sector
Net
0.7%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+1.1 pts
FCF: 1.8% | Net: 0.7%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Adequate
Net Debt / EBITDA
–Net Debt: $48.50B
Interest Coverage
–
Leverage Metrics
Debt-to-Equity
0.78x
Balance sheet risk & solvency analysis