|CVS Overview
CVS

CVS HEALTH Corp

Consumer Discretionary • CIK: 0000064803

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Market Cap
$95.33B
P/E (TTM)
188.5x
Rev Growth (TTM)
+6.8%
Net Margin (TTM)
0.1%
FCF Yield (TTM)
6.6%
FCF Margin (TTM)
1.6%

LATEST EARNINGS

Q4 FY2025
3 days ago
View source
Revenue
Net Income
EPS
  • 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.

Cash Flow Health

Free Cash Flow6/8 positive
TTM$6.3B
Q3 '25
$98M-92%
Q2 '25
$1.3B-66%
FCF Margin
TTM1.6%
Q3 '250.1%-93%
Sector: 4.9%Below Avg
OCF Margin2.3%
OCF/NI19.42x
CapEx Coverage3.2x
FCF Yield6.6%
FCF Growth (2Y)-31%
Cash Conversion Cycle
66 days
DSO: 36+DIO: 30DPO: 0

Capital Allocation & Returns

Balanced
Total Shareholder YieldFY
FY3.5%
Div Yield3.5%
+
Buyback (FY)5.3%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)3.5%
FCF Payout Ratio53.4%
Free Cash Flow (TTM)$6.3B
Stock Repurchases (FY)$3.0B
Capital Return / FCF53.9%
Est. Dividends Paid (TTM)$3.4B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
0.5%
Moderate
-0.9% YoY-10.5%
P25MedianP75
75th pctl (med: 0.2%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
0.2%
8Q: 1.8%
Asset Turnover
1.54x
8Q: 1.50x
Leverage (1+D/E)
1.85x
D/E: 0.85x
DuPont: 0.5%0.5% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
30.63x
8Q:29.46x
+397.8%
Invested Cap Turn
3.05x
8Q:2.86x
+61.1%
CapEx Intensity
2.2%
8Q:2.1%
CapEx/Depreciation
0.61x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2023
Revenue
$394.1B
$102.9B4.0%
$98.9B4.6%
$94.6B3.2%
$97.7B2.4%
$95.4B4.6%
$91.2B3.2%
$88.4B5.7%
$93.8B
Operating Income
$4.9B
$-3.2B234.7%
$2.4B29.4%
$3.4B42.5%
$2.4B184.6%
$832.0M72.7%
$3.0B34.1%
$2.3B32.7%
$3.4B
Net Income
$469.0M
$-4.0B489.3%
$1.0B42.6%
$1.8B8.2%
$1.6B1789.7%
$87.0M95.1%
$1.8B59.0%
$1.1B45.6%
$2.0B
Operating Cash Flow
$9.1B
$796.0M58.0%
$1.9B58.4%
$4.6B144.9%
$1.9B349.7%
$-745.0M124.1%
$3.1B37.0%
$4.9B286.0%
$-2.6B
Free Cash Flow
$6.3B
$98.0M92.4%
$1.3B66.2%
$3.8B249.2%
$1.1B177.2%
$-1.4B157.7%
$2.5B41.6%
$4.2B218.4%
$-3.5B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
188.5x
Volatile
8Q: 48.9x-11576%
High PEG ratio (10.0x) suggests expensive for growth
Valuation Lenses
Earnings
188.5x
vs sector
Cash Flow
20.3x
EV/FCF vs
Growth-Adj
10.0xPEG
Expensive for growth
Quality-Adj
357.0P/E per %ROIC
ROIC: 0.5%
Shareholder Returns
Dividend
3.5%
Buyback
Total Yield
3.5%
Market Cap$95.33B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
52/100
Average

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

Returns on Capital

Return on Equity (ROE)Bottom 25%
0.6%
8Q:
Return on Invested Capital (ROIC)Top 25%
0.5%
8Q:
-10.5%
vs Sector:0.2%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 0.2%
Asset Turnover: 1.54x

Earnings Quality

Cash Conversion

19.42x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin44.8%

Capital Efficiency

Invested Capital Turnover3.05x

Working Capital

Cash Conversion Cycle66 days

Growth Quality & Momentum

Low Quality
Growth Quality Score
47/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
6.8%
OpInc Growth YoY
-485.5%
EPS Growth YoY
-90.1%
FCF 3Y CAGR
-31.4%

Growth Quality Analysis

Working Capital Drag: FCF growth lagging revenue by 38.2%
Sustainability Index: 3.0/10 - Growth sustainability concerns

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
44.8%
Operating
1.2%
Below Avg in sector
Net
0.1%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+1.5 pts
FCF: 1.6% | Net: 0.1%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $50.27B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.85x
Balance sheet risk & solvency analysis