CVS

CVS HEALTH Corp

Consumer Discretionary • CIK: 0000064803

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Market Cap
$100.51B
P/E (TTM)
55.9x
Rev Growth (TTM)
+7.8%
Net Margin (TTM)
0.4%
FCF Yield (TTM)
7.8%
FCF Margin (TTM)
1.9%

Filing Intelligence

6.0/10
10-K filed Feb 10, 2026 • FY 2025

Executive Summary

CVS has ongoing lease guarantees for former subsidiaries, with potential future costs stemming from bankruptcies like Linens 'n Things.. Significant goodwill impairment in Health Services Segment See...

Key Concerns

  • ●CVS Health reported revenue growth of 7.8% driven by all segments, but operating income declined significantly by 45.3% due to substantial...
  • ●Management expresses mixed sentiment, highlighting liquidity strength and commitment to dividends, but also cautioning about persistent...
  • ●Despite revenue growth, operational challenges and significant impairment charges led to a decline in profitability, while strategic...

Key Strengths

  • ●The company is strategically investing in technology and digital initiatives (77% of CapEx) alongside facility improvements, aiming for...
View Full Quarterly Insights →

LATEST EARNINGS

•
Q4 FY2025
•
about 2 months ago
•View source
Revenue
$105.69B
+8.2%
Net Income
$2.92B
Flat
EPS
$2.30
+76.9%
Operating
2.0%↓ -0.4%
Net
2.8%↑ +1.1%
  • •Total revenues increased 8.2% in Q4 2025 to $105.7 billion and 7.8% for the full year 2025 to a record $402.1 billion, driven by growth across all operating segments.
  • •Health Services segment adjusted operating income increased 9.2% in Q4 2025, driven by improved purchasing economics.
  • •Pharmacy & Consumer Wellness segment adjusted operating income increased 8.7% in Q4 2025, driven by increased prescription volume and favorable drug mix.
  • •Aetna® is improving the experience for health care professionals and patients, approving over 95% of eligible prior authorizations within 24 hours.
View Full Earnings →

Cash Flow Health

Free Cash Flow7/8 positive
TTM$7.8B
Q4 '25
$2.6B+2559%
Q3 '25
$98M-92%
FCF Margin
TTM1.9%
Q4 '252.5%+2488%
Sector: 2.7%Below Avg
OCF Margin2.6%
OCF/NI6.02x
CapEx Coverage3.8x
FCF Yield7.8%
FCF Growth (2Y)-17%
Cash Conversion Cycle
67 days
DSO: 37+DIO: 30−DPO: 0
View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Balanced
Total Shareholder Yield
TTM3.4%
Div Yield3.4%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)3.4%
FCF Payout Ratio43.2%
Free Cash Flow (TTM)$7.8B
Stock Repurchases ()$0
Capital Return / FCF43.5%
Est. Dividends Paid (TTM)$3.4B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
2.8%
Moderate
-0.0% YoY-1.4%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
0.9%
8Q: 1.8%
Asset Turnover
1.57x
8Q: 1.53x
Leverage (1+D/E)
1.80x
D/E: 0.80x
DuPont: 2.7% ≈ 2.8% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
31.19x
8Q:30.01x
+518.6%
Invested Cap Turn
3.15x
8Q:2.93x
+77.2%
CapEx Intensity
2.2%
8Q:2.1%
CapEx/Depreciation
0.61x
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$402.1B
$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↑3.2%
$88.4B
Operating Income
$4.7B
$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↑34.1%
$2.3B
Net Income
$1.8B
$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↑59.0%
$1.1B
Operating Cash Flow
$10.6B
$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↓37.0%
$4.9B
Free Cash Flow
$7.8B
$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↓41.6%
$4.2B
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
55.9x
Volatile
8Q: 45.0x-26262%
High PEG ratio (7.1x) suggests expensive for growth
Valuation Lenses
Earnings
55.9x
vs – sector
Cash Flow
19.1x
EV/FCF vs –
Growth-Adj
7.1xPEG
Expensive for growth
Quality-Adj
20.3P/E per %ROIC
ROIC: 2.8%
Shareholder Returns
Dividend
3.4%
Buyback
–
Total Yield
3.4%
Market Cap$100.51B
EV$149.03B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
55/100
Average

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Below Avg
2.3%
8Q:–
Return on Invested Capital (ROIC)Top 25%
2.8%
8Q:–
Flat
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 0.9%
Asset Turnover: 1.57x

Earnings Quality

Cash Conversion

6.02x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin45.0%

Capital Efficiency

Invested Capital Turnover3.15x

Working Capital

Cash Conversion Cycle67 days

Growth Quality & Momentum

Low Quality
Growth Quality Score
50/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
7.8%
OpInc Growth YoY
-10.8%
EPS Growth YoY
-61.9%
FCF 3Y CAGR
-16.6%

Growth Quality Analysis

⚠Working Capital Drag: FCF growth lagging revenue by 24.4%
⚠Sustainability Index: 3.0/10 - Growth sustainability concerns

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
45.0%
Operating
1.2%
Below Avg in sector
Net
0.4%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+1.5 pts
FCF: 1.9% | Net: 0.4%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
–Net Debt: $49.65B
Interest Coverage
–
Balance sheet risk & solvency analysis

Research

All research