Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of CVS Health Corp

CVS · NYSE · Healthcare

Fundamental quality

WEAK

27

out of 100

CVS Health Corp's profile is defined by leverage: it carries high debt (5.22× EBITDA) on thin margins (0.7%), which makes it more sensitive to rates and the cycle. On fundamental quality it scores 27 out of 100, profiling it as a company with demanding fundamentals. Its weakest area is its growth (revenue +8.3%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

CVS Health is a healthcare conglomerate: the largest U.S. pharmacy chain, a major insurer (Aetna) and a pharmacy-benefit manager (Caremark). Vertical integration promised synergies; so far it has delivered complexity and debt.

What will shape its future

  • Aetna's medical costs (especially Medicare), which have punished results.
  • Structural pressure on physical pharmacies and on middlemen (PBMs).
  • Its debt and the ongoing restructuring: close stores and simplify, or keep drifting.

Breakdown by area

I.Growth
21

EPS growth: -15.7% · Revenue growth: 8.3%

II.Profitability
28

Net margin: 0.7% · ROE: 3.8% · ROIC: 3.8%

III.Financial health
31

Net debt/EBITDA: 5.22x · FCF: 1.8%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 57 Healthcare companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 11%
ROEbeats 16%
Growthbeats 49%
Cash generationbeats 11%
Less debtbeats 7%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

CVS Health Corp strengths

  • Revenue rising without interruption since 2020.
  • Revenue growing (8.3% annualized).
  • Positive free cash flow year after year, a self-funding business.

CVS Health Corp risks and weaknesses

  • Very high leverage (net debt of 5.22× EBITDA): more exposed to rates and to a rough patch.
  • Declining earnings per share (-15.7% annualized).
  • Thin margins (net margin of 0.7%), little cushion for setbacks.
  • Low return on equity (ROE of 3.8%).

CVS Health Corp historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020268,7067,17913,42851,353
2021292,1118,00115,74542,563
2022322,4674,31113,45039,312
2023357,7768,34410,39553,414
2024372,8094,6146,32657,684
2025402,0671,7687,80756,117

Between 2020 and 2025, revenue went from $268,706M to $402,067M (+50%) and net income went from $7,179M to $1,768M (-75%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+6.2%
  • Net income+65.4%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$2

per share, yearly

192.1% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is CVS Health Corp cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is CVS Health Corp a good company to invest in?

In terms of business quality, CVS Health Corp scores 27 out of 100 in our analysis, placing it as a company with demanding fundamentals. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is CVS Health Corp a profitable company?

CVS Health Corp is profitable, with a net margin of 0.7%, though a thin one.

Does CVS Health Corp have a lot of debt?

Yes, its leverage is high: net debt is 5.22 times its EBITDA.

Is CVS Health Corp growing?

Its revenue has grown 8.3% annualized in recent years, and without interruption since 2020.

Does CVS Health Corp generate cash?

Yes. It converts about 1.8% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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