CVS Health (CVS) AI Stock Analysis

• Market Cap: $101.06B
• Dividend Yield: 3.41%
• Average Volume (3M): 6.73M
• Price to Earnings (P/E): 208.0
• Beta (1Y): 0.45
• Revenue Growth: 6.71%
• EPS Growth: -90.11%
• Country: US
• Employees: 219,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 1.60
• Shares Outstanding: 1,269,432,500
• 10 Day Avg. Volume: 4,999,226
• 30 Day Avg. Volume: 6,725,294
• PEG Ratio: -0.28
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 8.93
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 3.04
• Enterprise Value/Ebitda: 15.69
• 1Y Price Target: $96.29
• Price Target Upside: 20.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 6.66
• Revenue Forecast (FY): $399.37B

• Rating: 64 Neutral
• Price Target: $81.00 ▲(1.75% Upside)

CVS Health's overall stock score reflects stable financial performance with strong cash flow, but challenges in profitability and leverage. The technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation. Positive earnings call highlights and strategic corporate events provide some optimism, but are offset by significant challenges such as the Omnicare Chapter 11 filing.

Positive Factors

Revenue Growth

Strong revenue growth across all segments indicates robust demand and effective business strategies, supporting long-term financial health.

Strategic Vision

The strategic focus on transforming consumer experiences and leveraging enterprise capabilities positions CVS for sustained growth and industry leadership.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling CVS to invest in growth opportunities and manage debt effectively.

Negative Factors

Goodwill Impairment

Significant goodwill impairment reflects challenges in asset valuation and strategic execution, potentially impacting future profitability.

PBM Challenges

Challenges in the PBM segment could pressure margins and growth, necessitating strategic adjustments to maintain competitive advantage.

Omnicare Chapter 11

Omnicare's financial struggles and restructuring efforts may strain CVS's resources and distract from core business operations.

CVS Health Business Overview & Revenue Model

Company Description

CVS Health Corporation provides health services in the United States. The company's Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related 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. Its Pharmacy Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, mail order pharmacy, specialty pharmacy and infusion, clinical, and disease and medical spend management services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, plans offered on public health insurance and private health insurance exchanges, other sponsors of health benefit plans, and individuals. This segment operates retail specialty pharmacy stores; and specialty mail-order, mail-order dispensing, and compounding pharmacies, as well as branches for infusion and enteral nutrition services. The company's Retail/LTC segment sells prescription and over-the-counter drugs, consumer health and beauty products, and personal care products; and provides health care services through its MinuteClinic walk-in medical clinics. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. As of December 31, 2021, it operated approximately 9,900 retail locations and 1,200 MinuteClinic locations, as well as online retail pharmacy websites, LTC pharmacies, and onsite pharmacies. 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.

How the Company Makes Money

CVS Health generates revenue primarily through three key streams: retail pharmacy sales, pharmacy benefits management (PBM), and health insurance services. Retail pharmacy sales contribute significantly to revenue through the dispensing of prescription medications and over-the-counter products. The PBM segment, which manages prescription drug benefits for employers and health plans, generates revenue through service fees and rebates from drug manufacturers. The health insurance division, primarily through Aetna, earns revenue from premiums paid by members for various health plans. Additionally, CVS Health benefits from strategic partnerships with pharmaceutical companies, healthcare providers, and other stakeholders, enhancing its service offerings and revenue potential.

CVS Health Financial Statement Overview

Summary

CVS Health demonstrates stable revenue growth and strong cash flow generation, but faces challenges in profitability and leverage. The company needs to focus on improving operational efficiency and managing debt levels to enhance financial performance.

Income Statement

CVS Health shows moderate revenue growth with a TTM increase of 1.93%. However, the net profit margin has significantly decreased to 0.12% in TTM from 1.24% in 2024, indicating pressure on profitability. The gross profit margin remains stable around 13.88%, but the EBIT and EBITDA margins have declined, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio has slightly increased to 1.12 in TTM, indicating a moderate level of leverage. Return on equity has decreased to 0.62% in TTM, suggesting reduced efficiency in generating profits from equity. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Free cash flow growth is strong at 31.65% in TTM, showing improved cash generation. The operating cash flow to net income ratio is 0.10, indicating a stable cash conversion. However, the free cash flow to net income ratio has decreased slightly, reflecting some pressure on cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	394.08B	372.81B	357.78B	322.47B	292.11B	268.71B
Gross Profit	54.69B	51.40B	54.43B	54.50B	52.12B	49.05B
EBITDA	10.60B	13.68B	18.20B	12.35B	17.53B	17.12B
Net Income	469.00M	4.61B	8.34B	4.31B	8.00B	7.18B
Balance Sheet
Total Assets	255.33B	253.22B	249.73B	228.28B	233.00B	230.72B
Cash, Cash Equivalents and Short-Term Investments	11.29B	10.99B	11.46B	15.72B	12.53B	10.85B
Total Debt	81.75B	82.92B	79.39B	70.73B	76.00B	85.04B
Total Liabilities	182.22B	177.49B	173.09B	156.51B	157.62B	161.01B
Stockholders Equity	72.93B	75.56B	76.46B	71.47B	75.08B	69.39B
Cash Flow
Free Cash Flow	6.29B	6.33B	10.39B	13.45B	15.74B	13.43B
Operating Cash Flow	9.11B	9.11B	13.43B	16.18B	18.27B	15.87B
Investing Cash Flow	-4.42B	-7.61B	-20.89B	-5.05B	-5.26B	-5.53B
Financing Cash Flow	-2.48B	-1.14B	2.68B	-10.52B	-11.36B	-7.70B

CVS Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVS, the sentiment is Positive. The current price of 79.61 is above the 20-day moving average (MA) of 78.25, above the 50-day MA of 78.94, and above the 200-day MA of 69.82, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 55.41 is Neutral, neither overbought nor oversold. The STOCH value of 54.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVS.

CVS Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELV	76 Outperform	$77.76B	14.31	12.61%	1.99%	11.96%	-11.11%
UNH	72 Outperform	$300.58B	17.32	18.48%	2.69%	10.48%	24.25%
MOH	71 Outperform	$8.47B	10.22	19.71%	―	13.71%	-18.02%
HUM	69 Neutral	$31.13B	24.26	7.15%	1.38%	9.87%	-5.58%
CVS	64 Neutral	$101.06B	208.02	0.63%	3.41%	6.71%	-90.11%
CNC	58 Neutral	$19.91B	-3.74	-21.93%	―	14.92%	-286.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

CVS Health Corporate Events

CVS Health Unveils Strategic Vision at Investor Day

On December 9, 2025, CVS Health held its 2025 Investor Day, where it updated its financial guidance for 2025 and provided projections for 2026, highlighting a strategic focus on transforming consumer experiences and leveraging its enterprise capabilities. The company aims for a mid-teens Adjusted EPS CAGR through 2028 and announced a new open consumer engagement platform to simplify care and improve health. This strategic direction is expected to enhance CVS Health’s role in the healthcare sector, offering significant value to stakeholders and positioning the company as a central player in shaping the future of healthcare.

CVS Health Appoints J. David Joyner as Board Chair

On November 20, 2025, CVS Health announced the appointment of J. David Joyner as Chair of the Board, effective January 1, 2026. Joyner, who became President and CEO in October 2024, has driven significant improvements in the company’s performance. The Board believes his leadership will help execute long-term strategies and create stockholder value. This move reflects CVS Health’s commitment to simplifying healthcare and delivering better health outcomes across the country.

Omnicare Initiates Chapter 11 Amid Financial Challenges

On September 22, 2025, Omnicare, a subsidiary of CVS Health, initiated voluntary Chapter 11 proceedings to address financial challenges and resolve litigation issues from a recent court ruling that imposed significant monetary damages. This process aims to explore restructuring or sale options while ensuring the continued delivery of pharmacy services to long-term care facilities. Omnicare has secured $110 million in debtor-in-possession financing to maintain operations during the proceedings, ensuring liquidity to meet business obligations and uphold commitments to stakeholders.