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CVS

S&P 500
Weak · 32/100

CVS Health

Health Care
Health Care Services

$101.30

3.0%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 47.1% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$125.45B

P/E

42.47x

Forward P/E (est.)

60.67x

ROE

3.9%

Revenue Growth

7.6%

EPS Growth

-46.0%

Profit Margin

0.7%

FCF Yield

9.9%

Debt / Equity

0.86x

ROIC

3.0%

Interest Coverage

1.75x

Current Ratio

0.87x

Dividend Yield

2.6%

Implied Growth (rev. DCF)

2.6%

Rating Score

32/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what CVS's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. CVS trades near $101.30, above its 50-day average ($88.74) and 200-day average ($80.22). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 71 it is overbought — the recent rally is stretched and can cool off.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. CVS's is $2.44 (~2.4% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month CVS found buyers near $89.42 (support) and sellers near $102.77 (resistance); its 52-week range is $58.50–$102.77. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 2.6× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

CVS Health (CVS) is a large-cap company in the Health Care Services industry, part of the Health Care sector of the S&P 500, with a market value around $125.45B.

In its latest reported year it generated about $402.07B in revenue and $1.77B in net profit.

Our model rates CVS Weak (32/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

8.3%

Revenue moved from $292.11B in 2021 to $402.07B in 2025, a 8.3% compound annual growth rate. The most recent year grew a steady 7.6% year over year. Slower, mature growth is common for established businesses.

Profitability
Research

Gross Margin

13.9%

Operating Margin

1.2%

Net Margin

0.4%

ROE

3.9%

CVS Health keeps about 0.7% of each sales dollar as net profit, with a 13.9% gross margin and 1.2% operating margin. Return on equity is 3.9% and return on invested capital about 3.0%. Thin margins leave less cushion if costs rise.

Debt Analysis
Research

Total Debt

$69.05B

Net Debt

$59.51B

Net Debt / EBITDA

12.77x

Debt / Equity

0.86x

Leverage: debt-to-equity is 0.9x, and operating profit covers interest about 1.8x, with a current ratio of 0.9x. That is a moderate, manageable debt load for most businesses. It carries roughly $69.05B of total debt against $9.54B of cash.

Cash Flow Analysis
Research

Operating CF

$10.64B

Free Cash Flow

$7.81B

FCF Margin

1.9%

In the latest year CVS Health produced about $10.64B of operating cash flow and $7.81B of free cash flow after capital spending. That is a free-cash-flow yield of about 9.9% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research

P/E

42.47x

P/S

0.32x

P/B

1.31x

EV / EBITDA

20.29x

CVS trades at 42.5x trailing earnings (about 60.7x on estimated forward earnings), 0.3x sales, and 1.3x book value. Reverse-engineering today's price implies the market expects roughly 2.6% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
42.5xExpensive
Forward P/E
60.7xExpensive
P/S ratio
0.3xCheap
Revenue growth
7.6%Strong
EPS growth
-46.0%Weak
Gross margin
13.9%Weak
Net margin
0.7%Weak
ROE
3.9%Weak

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How CVS stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.

In the Health Care sector (59 S&P 500 companies), CVS ranks #53 of 59 by our overall rating. It trades at a premium versus the sector on earnings (42.5x P/E vs. 25.4x median) with a lower return on equity (3.9% vs. 14.9%) and slower revenue growth (7.6% vs. 7.9%).

P/E vs sector

42.5x

median 25.4x

ROE vs sector

3.9%

median 14.9%

Growth vs sector

7.6%

median 7.9%

Sector rank

#53

of 59 by rating

CompanyP/ERev Gr.Rating
CVSThis stock42.5x7.6%Weak· 32
CI11.7x8.8%Favorable· 60
DGX21x11.0%Neutral· 57
LH22.3x7.3%Favorable· 58
DVA17.1x6.7%Neutral· 53
DHR34x4.0%Neutral· 48
SYK35.1x8.8%Neutral· 52
VRTX26.3x10.1%Favorable· 67
Health Care median25.4x7.9%52/100

Valuation vs. quality map

sector medianCIDGXLHDVADHRSYKVRTXCVSP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 59 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$347.26$583.39

vs. $101.30 today · expected CAGR 28%42%

Metric20262027202820292030
Revenue$434.23B$468.97B$506.49B$547.01B$590.77B
Net income$13.03B$14.07B$15.19B$16.41B$17.72B
EPS$10.21$11.03$11.91$12.86$13.89
Share price (low)$255.25$275.66$297.72$321.54$347.26
Share price (high)$428.81$463.12$500.17$540.18$583.39
CAGR (low–high)152% / 323%65% / 114%43% / 70%33% / 52%28% / 42%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for CVS:

  • Healthy free-cash-flow yield (~9.9%) funds buybacks and dividends.
  • Pays a 2.6% dividend on top of any price gains.
Bear Case

The case against CVS:

  • Thin net margins (0.7%) leave little room for error.
  • Interest coverage is thin (1.8x), so debt costs bite.
  • A rich 42.5x earnings multiple prices in a lot of growth.
  • Our model's overall read is Weak (32/100).
Key Risks
Research

Valuation risk — at 42.5x earnings, disappointing results could compress the multiple.

Margin risk — thin profitability (0.7%) is vulnerable to cost or pricing pressure.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen weakly: CVS Health is a large-cap health care business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 42.5x earnings, which our model scores Weak (32/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.