CVS HEALTH Corp (CVS) Stock Analysis

Analysis from 10-Q filed 2025-10-29. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 5.0%. FCF margin 2.8%. D/E 0.8x. Source: 10-Q filed 2025-10-29.

Metric	Value	Context
ROIC	5.0%	Below expectations
FCF Margin	2.8%	Cash flow pressure
Debt/Equity	0.8x	Moderate leverage

ROIC 5.0% — Bottom 50% of sector peers. FCF margin 2.8% — Top 50%.

Explore CVS HEALTH Corp: Earnings History | Filings

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.

---

Profitability: CVS HEALTH Corp earns 5.0% ROIC, Bottom 50% in Consumer Discretionary

ROIC TTM 5.0%, sector median 7.1%, Bottom 50%. DuPont: NOPAT margin 1.7% × asset turnover 1.6x. Gross margin 44.5%. Operating margin 2.0%. Source: 10-Q filed 2025-10-29.

Metric	CVS	Rating	Context
Return on Invested Capital (ROIC)	5.0%	Warning	Below sector median of 7.1%
Return on Equity (ROE)	6.4%	Warning	Moderate equity returns
Gross Margin	44.5%	Good	Strong pricing power
Operating Margin	2.0%	Warning	Moderate operational efficiency

---

Cash Flow: CVS HEALTH Corp generates $11.8B FCF at 2.8% margin, positive NaN/8 quarters

FCF TTM $11.8B. FCF margin 2.8%, Top 50%. OCF/Net income 3.0x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-29.

Metric	CVS	Rating	Context
Free Cash Flow Margin	2.8%	Warning	Thin cash margins
Free Cash Flow (TTM)	$11.8B	Good	Positive cash generation
OCF/Net Income	3.0x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: CVS HEALTH Corp at 0.8x leverage

Debt/Equity 0.8x. Total debt $61.4B, cash & investments $14.0B. Source: 10-Q filed 2025-10-29.

Metric	CVS	Rating	Context
Debt to Equity	0.8x	Adequate	Moderate leverage
Net Cash Position	$-47.5B	Warning	Net debt position

---

Valuation: CVS HEALTH Corp trades at 26.9x earnings

P/E 26.9x. EV/Sales 0.4x. FCF yield 8.9%. Dividend yield 2.6%. Source: 10-Q filed 2025-10-29.

Metric	CVS	Rating	Context
P/E Ratio	26.9x	Adequate	Premium valuation
EV/Sales	0.4x	Excellent	Attractive revenue multiple
FCF Yield	8.9%	Excellent	Attractive cash return
Dividend Yield	2.6%	Adequate	Growth focus over income

---

Capital Allocation: CVS HEALTH Corp returns 2.6% shareholder yield

Total shareholder yield 2.6% (div 2.6%). Capital returned $3.4B TTM. Source: 10-Q filed 2025-10-29.

Metric	CVS	Rating	Context
Total Shareholder Yield	2.6%	Adequate	Dividend + buyback yield combined
Total Capital Returned (TTM)	$3.4B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	5.0%	Bottom 50%	0.7x below
Free Cash Flow Margin	2.8%	Top 50%	1.1x above
Gross Margin	44.5%	Top 50%	1.2x above
Operating Margin	2.0%	Bottom 50%	0.5x below
Return on Equity (ROE)	6.4%	Bottom 50%	0.5x below
P/E Ratio	26.9x	N/A	-

---

Financial Scorecard

Metric	CVS	Rating	Sector Context
Return on Invested Capital (ROIC)	5.0%	Warning	Bottom 50% of sector (median: 7.1%)
Free Cash Flow Margin	2.8%	Warning	Top 50% of sector (median: 2.5%)
Gross Margin	44.5%	Good	Top 50% of sector (median: 38.5%)
Debt to Equity Ratio	77.0%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	26.9x	Adequate	Growth premium
Free Cash Flow Yield	8.9%	Excellent	High cash return

---

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 5.0%. Sector median 7.1%. 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 2.8%, generating $11.8 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 26.9x, which is above the sector median of N/A. EV/Sales 0.4x. FCF yield 8.9%. 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 2.6%. Total shareholder yield (dividend + buybacks) 2.6%. 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 $61.4 billion. Net debt $47.5 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 7.4% year-over-year. EPS +6.5% 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 5.0%, sector median 7.1% (Bottom 50%). FCF margin 2.8%, sector median 2.5% (Top 50%). Gross margin 44.5%, 6.0pp 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 2.8% (below 5%). Source: 10-Q filed 2025-10-29.

---

Data Source: Data sourced from 10-Q filed 2025-10-29. TTM metrics as of Q2 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.