CVS Health (CVS) AI Stock Analysis

• Market Cap: $98.77B
• Dividend Yield: 3.42%
• Average Volume (3M): 7.59M
• Price to Earnings (P/E): 203.3
• Beta (1Y): 0.44
• 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: 6,615,706
• 30 Day Avg. Volume: 7,587,132
• 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: 1.68
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 3.04
• Enterprise Value/Ebitda: 15.69
• 1Y Price Target: $89.31
• Price Target Upside: 14.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 6.58
• Revenue Forecast (FY): $397.64B

• Rating: 74 Outperform
• Price Target: $90.00 ▲(15.67% Upside)

CVS Health's overall stock score reflects strong earnings call performance and positive technical indicators, which are offset by moderate financial performance and valuation concerns. The company's ability to manage profitability challenges and leverage will be crucial for future performance.

Positive Factors

Revenue Growth

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

Cash Flow Generation

Strong cash flow generation enhances CVS's ability to reinvest in growth opportunities and manage debt, contributing to financial stability.

Health Care Benefits Performance

Growth in the Health Care Benefits segment underscores CVS's competitive position and ability to capture market share in a key area.

Negative Factors

Goodwill Impairment

Significant goodwill impairment indicates potential overvaluation of past acquisitions, affecting balance sheet strength and future earnings.

Profitability Challenges

Declining profit margins reflect operational inefficiencies and cost pressures, which may hinder future profitability and investment capacity.

Pharmacy Benefit Management (PBM) Challenges

Challenges in the PBM segment could impact CVS's revenue and market position as industry shifts affect pricing and profitability.

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 through multiple streams. The retail pharmacy segment earns money by selling prescription medications and a wide range of health and wellness products in its stores. The pharmacy services segment derives income from managing prescription drug benefits for employers, insurance companies, and other health plan sponsors. Additionally, CVS Health's health care benefits segment, which includes its Aetna subsidiary, provides health insurance products and services, contributing significantly to overall revenue. Key partnerships with pharmaceutical manufacturers and collaborations with various healthcare providers enhance its service offerings and can lead to increased earnings. The integration of in-store clinics and telehealth services also plays a role in diversifying revenue and attracting more customers.

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: Neutral
• Last Price: 77.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVS, the sentiment is Neutral. The current price of 77.81 is below the 20-day moving average (MA) of 79.80, above the 50-day MA of 77.26, and above the 200-day MA of 67.33, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 46.61 is Neutral, neither overbought nor oversold. The STOCH value of 50.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CVS.

CVS Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNH	76 Outperform	$291.55B	16.80	18.48%	2.66%	10.48%	24.25%
CVS	74 Outperform	$98.77B	203.32	0.63%	3.42%	6.71%	-90.11%
HUM	69 Neutral	$28.52B	22.22	7.15%	1.21%	9.87%	-5.58%
ELV	63 Neutral	$72.41B	13.33	12.61%	1.93%	11.96%	-11.11%
CNC	61 Neutral	$17.88B	―	-21.93%	―	14.92%	-286.72%
MOH	61 Neutral	$7.07B	8.52	19.71%	―	13.71%	-18.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

CVS Health Corporate Events

CVS Health Reports Record Revenue Despite Impairment

CVS Health Corporation, a leading health solutions company, operates in the healthcare sector with a focus on retail pharmacy, medical clinics, and pharmacy benefits management. In its third quarter of 2025, CVS Health reported record revenues of $102.9 billion, a 7.8% increase from the previous year, despite a GAAP diluted loss per share of $3.13 due to a $5.7 billion goodwill impairment charge. Adjusted earnings per share rose to $1.60, reflecting improved performance in the Health Care Benefits segment. Key highlights include Aetna’s high Medicare Advantage Star Ratings and a successful vaccination campaign. The company updated its full-year guidance, adjusting its GAAP earnings outlook to a loss but raising its adjusted EPS forecast. Looking ahead, CVS Health remains focused on enhancing operational efficiency and financial performance, with a commitment to providing integrated healthcare solutions.

CVS Health Earnings Call Highlights Robust Growth and Strategic Adjustments

The recent earnings call of CVS Health Corp showcased a generally positive sentiment, underscored by robust revenue growth and an upward revision in guidance. The company reported significant advancements across various segments, notably in Health Care Benefits and Medicare Advantage. However, this optimistic outlook was somewhat moderated by challenges such as a goodwill impairment in Health Care Delivery and short-term headwinds in the Pharmacy Benefit Management (PBM) sector.

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.

The most recent analyst rating on (CVS) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on CVS Health stock, see the CVS Stock Forecast page.

CVS Health Issues $4 Billion in Senior Notes

On August 11, 2025, CVS Health Corporation entered into an Underwriting Agreement to issue and sell $4 billion in senior notes with varying maturity dates and interest rates, including 5.000% Senior Notes due 2032 and 6.250% Senior Notes due 2065. The issuance, completed on August 15, 2025, is expected to yield net proceeds of approximately $3.96 billion, which may impact the company’s financial strategy and market positioning by potentially enhancing its capital structure.

The most recent analyst rating on (CVS) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on CVS Health stock, see the CVS Stock Forecast page.

CVS Health Earnings Call Highlights Growth Amid Challenges

CVS Health Corp’s latest earnings call painted a picture of robust financial health and growth, particularly in its pharmacy services and retail segments. While challenges persist in the health care delivery segment, notably with Oak Street Health, and cost pressures in the Group Medicare Advantage business, the overall sentiment was positive. The company’s strong financial outlook and strategic growth initiatives contribute to a balanced perspective on its future prospects.

CVS Health Reports Strong Q2 Revenue Growth Amid Challenges

CVS Health Corp is a leading health solutions company operating in the healthcare sector, known for its extensive network of retail pharmacies, medical clinics, and pharmacy benefits management services. In its second-quarter earnings report for 2025, CVS Health Corp reported an 8.4% increase in total revenues, reaching $98.9 billion, with an adjusted EPS of $1.81. The company highlighted significant operational achievements, including advancements in care navigation by Aetna and the acquisition of prescription files and store locations from Rite Aid. Key financial metrics showed a mixed performance, with a notable increase in total revenues driven by growth across all segments. However, operating income decreased by 21.8% due to litigation charges. Adjusted operating income saw a slight increase, supported by improvements in the Health Care Benefits and Pharmacy & Consumer Wellness segments. Looking forward, CVS Health has revised its full-year guidance, lowering its GAAP EPS expectations but raising its adjusted EPS and cash flow from operations guidance. The company remains focused on delivering a connected and simpler healthcare experience, with strategic initiatives aimed at long-term value creation.