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.
CVS Health Corporation (CVS) reported trailing twelve months revenue of $407.90B as of March 2026, a 7.6% increase year-over-year. Quarterly revenue reached $100.43B, reflecting continued top-line momentum.
CVS Health Corporation generated $2.93B in TTM net income, with quarterly EBITDA of $5.79B. The operating margin expanded from 3.6% to 4.7%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (4.7%) and net margin (2.9%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 1.9% a year ago, signaling stronger bottom-line efficiency.
CVS trades at a P/E of 30.5x (a premium multiple) and a P/S of 0.2x. The price-to-book ratio of 1.2x reflects a moderate premium to book value.
The company generated $3.40B in free cash flow over the trailing twelve months, a 10.8% decrease year-over-year, indicating strong cash generation ability. The balance sheet shows $252.97B in total assets with $60.53B in long-term debt against $77.46B in stockholders equity for a debt-to-equity ratio of 0.8. Data based on the most recent quarterly reports.
Competitive analysis based on 21 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 21 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.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation