CVS Health CorporationCVS
NYSE•Healthcare•Healthcare Plans
CVS Health Corporation provides health solutions in the United States. The company operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, medical management capabilities, Medicare Advantage and Medicare Supplement plans, PDPS and Medicaid health care management services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail order pharmacy, clinical, disease management, medical spend management services, pharmacy and other administrative services. It serves employers, insurance companies, unions, government employee groups, health plans, PDPS, Medicaid managed care plans, CMS, plans offered on public health insurance, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, personal care products, and other general merchandise products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was founded in 1963 and is headquartered in Woonsocket, Rhode Island.
as of March 2026
Are revenues and earnings expanding?
$407.90B in TTM revenue grew 7.6% YoY, reaching $100.43B last quarter. TTM EBITDA of $10.53B on operating income of $4.68B shows growth is flowing through. Net income of $2.93B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 4.7% is up 1.1% YoY — cost efficiency is improving. Net margin at 2.9% and gross margin of 44.8%. ROE of 3.8% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 43.1x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 0.3x and P/B of 1.6x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $252.97B in assets and $60.53B in long-term debt, the D/E of 0.8 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $3.40B on $4.25B in operating cash flow. The FCF / Net Income ratio of 1.2x means earnings are well backed by actual cash — high-quality earnings. Cash reserves of $9.54B provide financial flexibility. Share count is stable — no dilution or buyback activity.
Competitive analysis based on 68 quarters of fundamental data
Operating margins are under pressure, averaging 2.0%. The business may lack pricing power or face rising costs.'
ROE is positive at ~5.2% on average, adequate but below the threshold typically associated with wide moats.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~12.3% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 68 quarters
Operating margins dropped 41.7% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.8 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.