Explain this page
Arphra AIPlain-English read on CVS Health Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
CMixed
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin13.8%
Operating margin2.6%
Net margin0.4%
ROE2.3%
ROA0.7%
ROIC5.2%
Liquidity & leverage
Current ratio0.84×
Quick ratio0.63×
Debt / equity1.24×
Net debt / EBITDA8.63×
Interest coverage3×
Efficiency & per-share
Asset turnover1.54×
Inventory days20
Days sales out.36
FCF / share$6.14
Book value / share$59.31
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $56.52B | $100.55B | — | — | — | — |
| Enterprise value | — | — | — | $130.85B | $185.63B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 0.35 | 0.46 | — | — | — | — |
| EV / FCF | — | — | — | 20.68 | 23.78 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +8.16% | +1.76% | — | — | — | — |
| Free cash flow yield | — | — | — | +11.19% | +7.76% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +17.84% | +16.90% | +15.21% | +13.79% | +13.77% | +13.87% | +13.84% | +13.90% | +14.06% |
| Operating margin | +4.56% | +2.47% | +3.84% | +2.28% | +2.58% | +2.94% | +2.89% | +2.85% | +2.91% |
| EBITDA margin | +6.00% | +3.83% | +5.09% | +3.67% | +2.45% | +3.74% | +3.67% | +3.63% | +3.82% |
| EBIT margin | +4.46% | +2.52% | +3.87% | +2.44% | +1.31% | +2.47% | +2.56% | +2.58% | +2.47% |
| Pre-tax margin | +3.61% | +1.81% | +3.12% | +1.65% | +0.53% | +1.76% | +1.72% | +1.73% | +1.72% |
| Net margin | +2.74% | +1.34% | +2.33% | +1.24% | +0.44% | +1.37% | +1.31% | +1.38% | +1.37% |
| Cost structure | |||||||||
| Cost of revenue / sales | +82.16% | +83.10% | +84.79% | +86.21% | +86.23% | +85.55% | +86.00% | +86.24% | +87.98% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | 0.00% | 0.00% | 0.00% | +11.06% | 0.00% | +3.60% | +3.62% | +3.79% | +3.58% |
| Effective tax rate | +24.18% | +25.86% | +25.11% | +25.41% | +19.10% | +23.42% | +24.12% | +23.87% | +23.45% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +10.61% | +6.01% | +10.89% | +6.09% | +2.35% | +6.97% | +6.53% | +6.72% | +6.99% |
| Return on assets (ROA) | +3.43% | +1.89% | +3.34% | +1.82% | +0.68% | +2.07% | +1.99% | +1.99% | +1.97% |
| Return on capital (ROC) | +8.79% | +5.58% | +8.81% | +5.37% | +6.15% | +6.90% | +6.81% | +6.65% | +6.94% |
| Return on invested capital (ROIC) | +5.29% | +3.03% | +5.35% | +2.91% | +1.05% | +3.22% | +3.07% | +3.21% | +3.27% |
| Asset turnover | +125.37% | +141.26% | +143.27% | +147.23% | +154.01% | +150.41% | +152.56% | +144.87% | +143.73% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +2.74% | +1.34% | +2.33% | +1.24% | +0.44% | +1.37% | +1.31% | +1.38% | +1.37% |
| Asset turnover (× revenue / assets) | +125.37% | +141.26% | +143.27% | +147.23% | +154.01% | +150.41% | +152.56% | +144.87% | +143.73% |
| Equity multiplier (× assets / equity) | +309.10% | +318.07% | +325.86% | +334.37% | +346.32% | +337.26% | +327.83% | +337.30% | +354.70% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 1.25 | 1.41 | 1.43 | 1.47 | 1.54 | 1.50 | 1.53 | 1.45 | 1.44 |
| Fixed-asset turnover | 9.12 | 10.49 | 11.76 | 12.88 | 14.33 | — | — | — | — |
| Inventory turnover | 13.51 | 14.04 | 16.83 | 17.75 | 18.01 | — | — | — | — |
| Receivables turnover | 11.96 | 11.82 | 10.16 | 10.22 | 10.11 | — | — | — | — |
| Payables turnover | 19.13 | 18.06 | 20.36 | 20.22 | 5.84 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 30.53 | 30.87 | 35.94 | 35.71 | 36.11 | — | — | — | — |
| Days inventory outstanding (DIO) | 27.01 | 26.00 | 21.69 | 20.56 | 20.26 | — | — | — | — |
| Days payables outstanding (DPO) | 19.08 | 20.21 | 17.92 | 18.05 | 62.52 | — | — | — | — |
| Cash conversion cycle | 38.46 | 36.67 | 39.70 | 38.22 | -6.14 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 2.28 | 3.75 | 1.61 | 1.97 | 6.02 | 2.09 | 2.29 | 2.11 | 2.15 |
| FCF / Net income | 1.97 | 3.12 | 1.25 | 1.37 | 4.42 | 1.59 | 1.69 | 1.58 | 1.60 |
| FCF margin | +5.39% | +4.17% | +2.91% | +1.70% | +1.94% | +2.18% | +2.21% | +2.18% | +2.20% |
| OCF margin | +6.25% | +5.02% | +3.75% | +2.44% | +2.65% | +2.87% | +2.99% | +2.90% | +2.94% |
| CapEx / Revenue | +0.86% | +0.85% | +0.85% | +0.75% | +0.70% | +0.76% | +0.77% | +0.76% | +0.77% |
| CapEx / D&A | 0.56 | 0.65 | 0.69 | 0.60 | — | — | — | — | — |
| Stock-based comp / Revenue | +0.17% | +0.14% | +0.16% | +0.14% | 0.00% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 5.95 | 3.26 | 6.47 | 3.66 | 1.39 | 7.42 | 8.39 | 9.65 | 10.93 |
| EPS · basic | 6.00 | 3.29 | 6.49 | 3.66 | 1.40 | 7.41 | 8.29 | 9.70 | 11.12 |
| Book value / share | 56.72 | 54.25 | 59.41 | 60.01 | 59.31 | 63.08 | 67.38 | 72.52 | 73.60 |
| Tangible BV / share | -24.65 | -23.57 | -34.01 | -33.97 | -28.01 | 63.08 | 67.38 | 72.52 | 73.60 |
| Sales / share | 219.80 | 243.74 | 277.35 | 295.41 | 316.34 | 319.97 | 336.99 | 354.37 | 375.20 |
| Operating CF / share | 13.74 | 12.23 | 10.41 | 7.22 | 8.37 | 9.17 | 10.06 | 10.26 | 11.04 |
| Free cash flow / share | 11.85 | 10.17 | 8.06 | 5.01 | 6.14 | 6.96 | 7.44 | 7.72 | 8.24 |
| Dividends / share | 1.98 | 2.20 | 2.43 | 2.67 | 2.67 | 2.86 | 2.99 | 3.15 | 3.26 |
| Payout ratio | +32.81% | +67.43% | +37.54% | +73.10% | +192.14% | +65.08% | +67.92% | +64.60% | +63.35% |
| Retention ratio | +67.19% | +32.57% | +62.46% | +26.90% | -92.14% | +34.92% | +32.08% | +35.40% | +36.65% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +10.39% | +10.95% | +4.20% | +7.85% | +1.60% | +4.27% | +5.47% | +6.44% | +6.35% |
| Gross profit · YoY | — | +4.57% | -0.13% | -5.57% | +7.71% | +2.35% | +4.07% | +5.89% | +7.67% | +3.23% |
| Profit | ||||||||||
| Operating income · YoY | — | -40.24% | +72.78% | -38.03% | +21.95% | +15.74% | +2.50% | +4.08% | +8.58% | +0.56% |
| EBITDA · YoY | — | -29.55% | +47.38% | -24.81% | -27.93% | +55.09% | +2.18% | +4.25% | +12.03% | +0.51% |
| Net income · YoY | — | -46.12% | +93.55% | -44.70% | -61.68% | +217.25% | -0.87% | +11.16% | +6.02% | -2.46% |
| Operating | ||||||||||
| EBIT · YoY | — | -37.71% | +70.27% | -34.16% | -42.29% | +91.83% | +8.24% | +6.25% | +1.95% | -1.22% |
| R&D · YoY | — | — | — | — | — | — | — | — | — | — |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -45.21% | +98.47% | -43.43% | -62.02% | +433.83% | +13.08% | +15.01% | +13.29% | +7.90% |
| EPS · basic · YoY | — | -45.17% | +97.26% | -43.61% | -61.75% | +428.97% | +12.00% | +16.94% | +14.63% | +8.02% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $76B | $70.73B | $79.39B | $82.92B | $93.59B | $93.59B | $95.8B | $100.79B | $106.87B |
| Net debt | $66.59B | $57.79B | $71.19B | $74.33B | $85.08B | $84.26B | $86.29B | $90.67B | $96.37B |
| Net debt / EBITDA | 3.80 | 4.68 | 3.91 | 5.43 | 8.63 | 5.51 | 5.52 | 5.57 | 5.28 |
| Debt / equity | 1.01 | 0.99 | 1.04 | 1.09 | 1.24 | 1.16 | 1.12 | 1.10 | 1.14 |
| Debt / assets | +32.62% | +30.99% | +31.79% | +32.75% | +35.85% | +34.46% | +34.31% | +32.50% | +32.12% |
| Equity / assets | +32.35% | +31.44% | +30.69% | +29.91% | +28.87% | +29.65% | +30.50% | +29.65% | +28.19% |
| Coverage | |||||||||
| EBITDA / interest expense | 7.00 | 5.40 | 6.85 | 4.63 | 3.16 | 4.78 | 4.64 | 4.57 | 4.85 |
| Operating income / interest | 5.32 | 3.48 | 5.17 | 2.88 | 3.33 | 3.76 | 3.66 | 3.60 | 3.70 |
| Interest expense | $2.5B | $2.29B | $2.66B | $2.96B | $3.12B | $3.2B | $3.37B | $3.56B | $3.77B |
| Liquidity | |||||||||
| Current ratio | 0.88 | 0.95 | 0.86 | 0.81 | 0.84 | — | — | — | — |
| Quick ratio | 0.55 | 0.62 | 0.59 | 0.56 | 0.57 | — | — | — | — |
| Cash ratio | 0.14 | 0.19 | 0.10 | 0.10 | 0.10 | — | — | — | — |
| Working capital | -$7.8B | -$3.79B | -$11.33B | -$15.96B | -$13.98B | — | — | — | — |
| Working capital / revenue | -2.67% | -1.17% | -3.17% | -4.28% | -3.48% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 0.46x | 0.35x |
| Earnings yield | 1.8% | 8.2% |
| FCF yield | 7.8% | 11.2% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 2.4% | 6.1% |
| ROA | 0.7% | 1.8% |
| ROIC | 4.7% | 3.6% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 8.63 | 5.43 |
| Interest coverage | — | — |
| Current ratio | 0.84x | 0.81x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).