CVS HEALTH Corp (CVS) Stock Analysis

Analysis from 10-Q filed 2025-10-29. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 3.7%. FCF margin 1.8%. D/E 0.8x. Source: 10-Q filed 2025-10-29.

Metric	Value	Context
ROIC	3.7%	Below expectations
FCF Margin	1.8%	Cash flow pressure
Debt/Equity	0.8x	Moderate leverage

ROIC 3.7% — Bottom 50% of sector peers. FCF margin 1.8% — Bottom 50%.

Explore CVS HEALTH Corp: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for CVS: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: CVS HEALTH Corp earns 3.7% ROIC, Bottom 50% in Consumer Discretionary

ROIC TTM 3.7%, sector median 8.0%, Bottom 50%. DuPont: NOPAT margin 1.2% × asset turnover 1.6x. Gross margin 44.7%. Operating margin 1.5%. Source: 10-Q filed 2025-10-29.

Metric	CVS	Rating	Context
Return on Invested Capital (ROIC)	3.7%	Red flag	Below sector median of 8.0%
Return on Equity (ROE)	3.9%	Warning	Moderate equity returns
Gross Margin	44.7%	Good	Strong pricing power
Operating Margin	1.5%	Warning	Moderate operational efficiency

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Cash Flow: CVS HEALTH Corp generates $7.4B FCF at 1.8% margin, positive NaN/8 quarters

FCF TTM $7.4B. FCF margin 1.8%, Bottom 50%. OCF/Net income 3.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-29.

Metric	CVS	Rating	Context
Free Cash Flow Margin	1.8%	Warning	Thin cash margins
Free Cash Flow (TTM)	$7.4B	Good	Positive cash generation
OCF/Net Income	3.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: CVS HEALTH Corp at 0.8x leverage

Debt/Equity 0.8x. Total debt $60.5B, cash & investments $12.0B. Source: 10-Q filed 2025-10-29.

Metric	CVS	Rating	Context
Debt to Equity	0.8x	Adequate	Moderate leverage
Net Cash Position	$-48.5B	Warning	Net debt position

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Valuation: CVS HEALTH Corp trades at 30.4x earnings

P/E 30.4x. EV/Sales 0.3x. FCF yield 8.3%. Dividend yield 3.8%. Source: 10-Q filed 2025-10-29.

Metric	CVS	Rating	Context
P/E Ratio	30.4x	Adequate	Premium valuation
EV/Sales	0.3x	Excellent	Attractive revenue multiple
FCF Yield	8.3%	Excellent	Attractive cash return
Dividend Yield	3.8%	Adequate	Meaningful income

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Capital Allocation: CVS HEALTH Corp returns 3.8% shareholder yield

Total shareholder yield 3.8% (div 3.8%). Capital returned $3.4B TTM. Source: 10-Q filed 2025-10-29.

Metric	CVS	Rating	Context
Total Shareholder Yield	3.8%	Good	Dividend + buyback yield combined
Total Capital Returned (TTM)	$3.4B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	3.7%	Bottom 50%	0.5x below
Free Cash Flow Margin	1.8%	Bottom 50%	0.8x below
Gross Margin	44.7%	Top 50%	1.1x above
Operating Margin	1.5%	Bottom 50%	0.3x below
Return on Equity (ROE)	3.9%	Bottom 50%	0.4x below
P/E Ratio	30.4x	N/A	-

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Financial Scorecard

Metric	CVS	Rating	Sector Context
Return on Invested Capital (ROIC)	3.7%	Red flag	Bottom 50% of sector (median: 8.0%)
Free Cash Flow Margin	1.8%	Warning	Bottom 50% of sector (median: 2.2%)
Gross Margin	44.7%	Good	Top 50% of sector (median: 39.0%)
Debt to Equity Ratio	78.1%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	30.4x	Adequate	Growth premium
Free Cash Flow Yield	8.3%	Excellent	High cash return

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Frequently Asked Questions

Q: What is CVS HEALTH Corp's Return on Invested Capital (ROIC)?

CVS HEALTH Corp (CVS) has a trailing twelve-month Return on Invested Capital (ROIC) of 3.7%. Sector median 8.0%. Source: 10-Q filed 2025-10-29.

Q: What is CVS HEALTH Corp's Free Cash Flow Margin?

CVS HEALTH Corp (CVS) has a free cash flow margin of 1.8%, generating $7.4 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-29.

Q: What is CVS HEALTH Corp's P/E ratio and how does it compare to peers?

CVS HEALTH Corp (CVS) trades at a P/E ratio of 30.4x, which is above the sector median of N/A. EV/Sales 0.3x. FCF yield 8.3%. Source: 10-Q filed 2025-10-29.

Q: Does CVS HEALTH Corp pay a dividend?

CVS HEALTH Corp (CVS) currently pays a dividend yield of 3.8%. Total shareholder yield (dividend + buybacks) 3.8%. Source: 10-Q filed 2025-10-29.

Q: How much debt does CVS HEALTH Corp have?

CVS HEALTH Corp (CVS) has a debt-to-equity ratio of 0.8x with total debt of $60.5 billion. Net debt $48.5 billion. Source: 10-Q filed 2025-10-29.

Q: What is CVS HEALTH Corp's revenue and earnings growth?

CVS HEALTH Corp (CVS) grew revenue by 7.6% year-over-year. EPS -45.1% YoY. Source: 10-Q filed 2025-10-29.

Q: How does CVS HEALTH Corp compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, CVS HEALTH Corp (CVS) shows: ROIC 3.7%, sector median 8.0% (Bottom 50%). FCF margin 1.8%, sector median 2.2% (Bottom 50%). Gross margin 44.7%, 5.7pp above sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with CVS HEALTH Corp?

Quantitative warning flags for CVS HEALTH Corp (CVS): 1) FCF margin 1.8% (below 5%). Source: 10-Q filed 2025-10-29.

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Data Source: Data sourced from 10-Q filed 2025-10-29. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.