Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on CVS

CVS Health's recent performance was driven by strong Q4 earnings, with revenue jumping 8% year-over-year to $105.69 billion, beating consensus estimates. The company's turnaround plan, led by CEO David Joyner, shows steady progress. CVS reaffirmed its 2026 profit guidance, which previously impressed investors. A robust revenue beat and stable sales and adjusted profits provide a solid foundation. According to analysts, CVS presents multiple growth levers for 2026, with margin recovery expected to accelerate, supported by Medicare Advantage four-star ratings and repricing of group MA contracts.

1.c. Company Highlights

2. CVS Health's Strong Q4 2025 Earnings: A Closer Look

CVS Health delivered a robust fourth quarter in 2025, with revenues reaching over $105 billion, an 8% increase year-over-year, driven by growth across all operating segments. Adjusted operating income came in at $2.6 billion, and adjusted earnings per share (EPS) were $1.09, beating estimates of $1. The company's Pharmacy Services businesses continued to drive savings, with the HUMIRA biosimilar strategy resulting in over $1.5 billion in savings for clients and members. For the full year 2025, CVS Health reported revenue of over $400 billion and adjusted EPS of $6.75.

Publication Date: Feb -11

📋 Highlights
  • Strong Q4 Performance:: Adjusted operating income reached $2.6 billion, and adjusted EPS hit $1.09, with full-year 2025 EPS at $6.75, exceeding initial expectations by 15%.
  • Aetna Financial Recovery:: Aetna’s adjusted operating income improved by $2.6 billion YoY, driven by leadership changes and enhanced service capabilities.
  • Cost-Saving Biosimilars:: HUMIRA biosimilar adoption saved $1.5 billion for clients and members, with 80% of members paying $0 out of pocket.
  • Revenue Growth:: Q4 revenue hit $105 billion (+8% YoY), and full-year 2025 revenue surpassed $400 billion, with operating cash flow at $10.6 billion.
  • 2026 Guidance Affirmed:: Full-year 2026 revenue target set at ≥$400 billion, with adjusted EPS guidance of $7–$7.20, reflecting confidence in margin stability and growth.

Segment Performance

The Health Services segment generated revenues of over $51 billion, a 9% year-over-year increase, primarily driven by pharmacy drug mix and brand inflation. The Pharmacy & Consumer Wellness segment delivered revenues of nearly $38 billion, a 12% increase, with same-store pharmacy sales growing 19% and same-store prescription volumes increasing by nearly 10%. The Aetna business showed significant improvement, with adjusted operating income improving by over $2.6 billion year-over-year.

Guidance and Outlook

CVS Health reaffirmed its guidance for full-year 2026 revenue of at least $400 billion and adjusted EPS in the range of $7 to $7.20. The company expects to continue driving momentum, with a focus on improving connectivity between its businesses and leveraging technology to enhance the healthcare experience. Management is confident in its ability to drive the Medicare business back to target margins in 2026 and 2027.

Valuation and Metrics

With a Price-to-Earnings (P/E) Ratio of 54.38 and a Price-to-Book (P/B) Ratio of 1.28, CVS Health's valuation appears to reflect a premium for its growth prospects. The company's Return on Equity (ROE) of 2.34% and Return on Invested Capital (ROIC) of 2.21% indicate room for improvement in capital efficiency. The Dividend Yield of 3.51% provides a relatively attractive income component to shareholders. Analysts estimate revenue growth of 5.4% for the next year, which, combined with the current valuation metrics, suggests that the market has priced in a moderate growth trajectory for CVS Health.

3. NewsRoom

Card image cap

SVP & GM of ServiceNow (NOW) on Moveworks, CVS & AI Future

Mar -03

Source: youtube.com

Card image cap

111 Capital Invests $1.13 Million in CVS Health Corporation $CVS

Mar -02

Source: defenseworld.net

Card image cap

Andra AP fonden Takes $27.96 Million Position in CVS Health Corporation $CVS

Feb -27

Source: defenseworld.net

Card image cap

2 Top Healthcare Stocks to Buy in February

Feb -26

Source: fool.com

Card image cap

Lansforsakringar Fondforvaltning AB publ Increases Position in CVS Health Corporation $CVS

Feb -23

Source: defenseworld.net

Card image cap

NewEdge Wealth LLC Sells 18,855 Shares of CVS Health Corporation $CVS

Feb -23

Source: defenseworld.net

Card image cap

Bleakley Financial Group LLC Buys 37,721 Shares of CVS Health Corporation $CVS

Feb -23

Source: defenseworld.net

Card image cap

China Universal Asset Management Co. Ltd. Has $1.76 Million Holdings in CVS Health Corporation $CVS

Feb -21

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.21%)

6. Segments

Health Services

Expected Growth: 6.3%

CVS Health's growth is driven by its diversified healthcare services, including pharmacy benefit management, specialty pharmacy, and retail pharmacy, as well as its expanding healthcare offerings, such as Medicare Advantage and Medicaid plans.

Health Care Benefits

Expected Growth: 7.4%

CVS Health's growth is driven by its strategic acquisitions, increasing demand for prescription benefits, and expansion of its healthcare services offerings, positioning it as a leader in the healthcare industry.

Pharmacy & Consumer Wellness

Expected Growth: 7.4%

Growing demand for healthcare services, expansion of healthcare access, and increasing adoption of digital health solutions drive CVS Health Corporation's pharmacy and consumer wellness products and services segment growth.

Corporate/Other

Expected Growth: 6.4%

CVS Health's Corporate/Other segment growth is driven by its Omnicare long-term care business and expanding services in specialty pharmacy and infusion therapies.

Intersegment Eliminations

Expected Growth: 5.3%

CVS Health's intersegment eliminations are expected to grow steadily driven by the company's diversified healthcare services, including pharmacy benefit management and retail pharmacy operations, as well as its strategic acquisitions and partnerships.

7. Detailed Products

Retail Pharmacy

CVS Health operates a chain of retail pharmacies that offer prescription filling, health clinics, and other health-related services.

Pharmacy Benefit Management (PBM)

CVS Health's PBM business, CVS Caremark, manages prescription drug benefits for health plans, employers, and government programs.

Specialty Pharmacy

CVS Health's specialty pharmacy business provides medications and services for complex, chronic, and rare conditions.

MinuteClinic

MinuteClinic is a retail health clinic chain that provides walk-in medical care for minor illnesses and injuries.

Long-Term Care Pharmacy

CVS Health's long-term care pharmacy business provides medications and services to residents of long-term care facilities.

Coram Infusion Services

Coram is a home infusion services company that provides medications and care to patients with complex conditions.

8. CVS Health Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

CVS Health Corporation operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand recognition and extensive network of pharmacies and clinics help to mitigate the threat of substitutes.

Bargaining Power Of Customers

CVS Health Corporation's customers have some bargaining power due to the availability of substitutes, but the company's strong brand recognition and extensive network of pharmacies and clinics help to reduce this power.

Bargaining Power Of Suppliers

CVS Health Corporation's suppliers have some bargaining power due to the company's reliance on them for pharmaceuticals and other products. However, the company's large size and scale of operations help to mitigate this power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the healthcare industry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry in the healthcare industry is high due to the presence of many competitors, including other pharmacy benefit managers, retail pharmacies, and healthcare providers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.94%
Debt Cost 4.47%
Equity Weight 49.06%
Equity Cost 6.71%
WACC 5.57%
Leverage 103.82%

11. Quality Control: CVS Health Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
McKesson

A-Score: 6.1/10

Value: 5.4

Growth: 8.3

Quality: 4.5

Yield: 0.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
CVS Health

A-Score: 5.6/10

Value: 5.0

Growth: 3.9

Quality: 2.6

Yield: 6.0

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Elevance Health

A-Score: 5.0/10

Value: 6.4

Growth: 5.7

Quality: 6.8

Yield: 3.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
UnitedHealth

A-Score: 4.3/10

Value: 5.3

Growth: 6.1

Quality: 5.2

Yield: 4.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Humana

A-Score: 3.9/10

Value: 5.3

Growth: 5.2

Quality: 4.1

Yield: 2.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Centene

A-Score: 3.8/10

Value: 9.5

Growth: 5.6

Quality: 3.3

Yield: 0.0

Momentum: 0.5

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

80.49$

Current Price

80.49$

Potential

-0.00%

Expected Cash-Flows