CVS Health Corporation(CVS)NASDAQ
Fundamental Analysis & Financials
Valuation Snapshot
What the multiples imply about expectations
The market considers the company to be a mid-cap company with a significant market presence. At current multiples, it trades moderately valued—balancing growth expectations with current fundamentals.
Valuation Metrics
Ratios and multiples
Financial Health
Liquidity and leverage
The company's financial health appears moderate. Moderate ROE and moderate ROA reflect reasonably efficient capital use. Debt is elevated but represents structural leverage for shareholder return strategy (buybacks) rather than operational stress.
Valuation Multiples
Current valuation metrics
Quarterly Earnings History
Recent quarterly financial performance and trends
| Quarter | Revenue | Net Income | Gross Profit | EPS (Basic) | EPS (Diluted) | Gross Margin | Net Margin |
|---|---|---|---|---|---|---|---|
| Q1 2026(Latest) | $100.43B | $2.94B | $15.62B | $2.31 | $2.30 | 15.6% | 2.9% |
| Q4 2025 | $105.69B | $2.94B | $13.57B | $2.32 | $2.30 | 12.8% | 2.8% |
| Q3 2025 | $102.87B | $-3.98B | $13.81B | $-3.13 | $-3.13 | 13.4% | -3.9% |
| Q2 2025 | $98.92B | $1.02B | $13.59B | $0.81 | $0.80 | 13.7% | 1.0% |
| Q1 2025 | $94.59B | $1.78B | $14.40B | $1.41 | $1.41 | 15.2% | 1.9% |
Key Insights:
- Revenue decreased by 5.0% from previous quarter
- Net margin of 2.9% indicates low profitability
Financial Efficiency
Utilization and collections performance
Asset Turnover 1.60 indicates high efficiency. Receivables Turnover 24.86 and DSO 14.68 reflect excellent collections. Working Capital Turnover -29.02 is highly efficient (negative due to negative working capital model). ROIC 2.1% highlights weak capital returns.
Efficiency Metrics
* Negative working capital indicates the company operates efficiently with vendors funding operations
Profitability & Growth
Margins and earnings power
Efficiency Performance Matrix
4-quadrant analysis of operational efficiency vs profitability
Efficiency vs Profitability Quadrants
High Margin
Low Margin
High Margin
Low Margin
Efficiency Analysis
Asset Turnover
Receivables Turnover
Working Capital
Overall Efficiency Score
Mixed efficiency profile requiring targeted improvements
⚠️ Thresholds are benchmark-based heuristics derived from long-term industry averages, not strict valuation rules.
• Bubble size represents ROIC magnitude
• Green (Optimal): Excellent efficiency-profitability balance
• Blue (Efficiency-Driven): High turnover, room to improve margins
• Yellow (Margin-Driven): Strong margins, opportunity to improve efficiency
• Red (Weak Operations): Areas needing improvement on both dimensions
Market Data & Share Structure
Comprehensive valuation metrics and ownership breakdown
Market Data & Capitalization
Share Statistics & Ownership
Profitability Margin Pyramid
Hierarchical view of margin compression from revenue to net income
Margin Hierarchy by Profitability Level
Margin Analysis
Total Revenue
Gross Profit
EBITDA
Net Income
Margin Quality Assessment
Thin margins indicating potential profitability challenges
• Larger circles represent higher dollar amounts
• Margin percentages show profitability at each level
• Blue: Revenue base
• Green: Gross profitability
• Yellow: Operating performance
• Red: Net profitability
Operating Cash & Liquidity
Core cash generation and short-term solvency
Cash Flow Analysis
Operating Cash Flow (TTM)
$10.33B
Cash from core operations
Free Cash Flow (TTM)
$5.20B
Available after capex
Financial Position & Liquidity
Current Ratio
0.87
Concerning
Quick Ratio
0.61
Weak
Net Cash
$-66.54B
Net debtor
Total Cash
$11.80B
Balance sheet cash
Total Debt
$78.35B
Outstanding borrowings
Ownership & Shareholder Sentiment
Insider, institutional, and short interest positions
Insider Ownership
6.20%
Moderate stake
Institutional Ownership
90.28%
Majority backing
Short % of Float
183.00%
Heavy bearish
Short Ratio (Days)
2.9d
days to cover
Ownership structure shows strong insider confidence and institutional majority backing.
Dividends & Shareholder Returns
Policy stance and implications
The company maintains a very sustainable dividend policy with a payout ratio of 116.7% (FCF coverage: 1.5x). Cash flow provides adequate dividend support with room for continued payments.