NYSE · Healthcare

CVS Health Corporation

CVS · Healthcare Plans

$82.17

▲ 0.09 (0.1%)

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Mr. Market is currently offering CVS Health Corporation at $82.17.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability F

Gross Profit Margin 13.8%

Operating Margin 2.6%

Net Income Margin 0.4%

Fin. Health F

Years to Pay Off Debt 45.2 yrs

Working Capital vs Long-Term Debt -$74.5B

Working Capital -$14.0B

Valuation F

Margin of Safety 0.0%

Price-to-Book 1.40x

Cash Flow C

Free Cash Flow $7.8B

CapEx % of Net Income 160.2%

Owner Earnings $9.2B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $105.3B

Enterprise Value $174.0B

P/E (TTM) 59.12

Dividend Yield 3.24%

Exchange NYSE

Key Margins

Gross Profit 13.8%

Operating Margin 2.6%

Net Margin 0.4%

Company Info

Sector Healthcare

Industry Healthcare Plans

Employees 219000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering CVS Health Corporation at $82.17.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $82.17, the stock trades at a 92% premium to its Graham Number of $42.84. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About CVS Health Corporation

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.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	13.8% ▼	13.8%	15.2%	16.9%	N/A
Operating Margin %	2.6% ▼	2.6%	4.1%	5.1%	N/A
Net Income %	0.4% ▼	1.2%	2.3%	1.3%	N/A
Diluted EPS	1.39 ▼	3.66	6.47	3.26	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$253.5B	$253.2B	$249.7B	$228.3B	N/A
Total Debt	$80.0B ↓	$82.9B	$79.4B	$70.7B	N/A
Working Capital	-$14.0B ▲	-$16.0B	-$11.3B	-$3.8B	N/A
Years to Pay Debt	45.22	17.97	9.51	16.41	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$7.8B ▲	$6.3B	$10.4B	$13.4B	N/A
Owner Earnings	$9.2B	$12.0B	$15.7B	$11.3B	N/A
CapEx % of Net Income	160.2%	60.3%	36.3%	63.3%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-1,001,222	-174,752	-214,856	-2,159,024
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	15,103,000	14,391,000	19,053,000	20,683,000
Total Unusual Items	-5,242,000	-688,000	-856,000	-8,336,000
Total Unusual Items Excluding Goodwill	-5,242,000	-688,000	-856,000	-8,336,000
Net Income From Continuing Operation Net Minority Interest	1,768,000	4,614,000	8,344,000	4,311,000
Reconciled Depreciation	4,606,000	4,597,000	4,366,000	4,224,000
Reconciled Cost Of Revenue	346,705,000	321,408,000	303,345,000	267,965,000
EBITDA	9,861,000	13,703,000	18,197,000	12,347,000
EBIT	5,255,000	9,106,000	13,831,000	8,123,000
Net Interest Income	-3,119,000	-2,958,000	-2,658,000	-2,287,000
Interest Expense	3,119,000	2,958,000	2,658,000	2,287,000
Normalized Income	6,008,778	5,127,248	8,985,144	10,487,976
Net Income From Continuing And Discontinued Operation	1,768,000	4,614,000	8,344,000	4,311,000
Total Expenses	391,682,000	363,114,000	343,177,000	306,177,000
Total Operating Income As Reported	4,660,000	8,516,000	13,743,000	7,954,000
Diluted Average Shares	1,271,000	1,262,000	1,290,000	1,323,000
Basic Average Shares	1,267,000	1,259,000	1,285,000	1,312,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	1,768,000	4,614,000	8,344,000	4,311,000
Net Income Common Stockholders	1,768,000	4,614,000	8,344,000	4,311,000
Net Income	1,768,000	4,614,000	8,344,000	4,311,000
Minority Interests	40,000	28,000	-24,000	-16,000
Net Income Including Noncontrolling Interests	1,728,000	4,586,000	8,368,000	4,327,000
Net Income Continuous Operations	1,728,000	4,586,000	8,368,000	4,327,000
Tax Provision	408,000	1,562,000	2,805,000	1,509,000
Pretax Income	2,136,000	6,148,000	11,173,000	5,836,000
Other Income Expense	-5,130,000	-589,000	-768,000	-8,167,000
Other Non Operating Income Expenses	112,000	99,000	88,000	169,000
Special Income Charges	-5,242,000	-688,000	-856,000	-8,336,000
Gain On Sale Of Ppe	0	0	-349,000	-2,533,000
Gain On Sale Of Business	483,000	0	0
Other Special Charges		-491,000		5,803,000	452,000
Impairment Of Capital Assets	5,725,000	0	0	0
Restructuring And Mergern Acquisition	0	1,179,000	507,000	0
Net Non Operating Interest Income Expense	-3,119,000	-2,958,000	-2,658,000	-2,287,000
Interest Expense Non Operating	3,119,000	2,958,000	2,658,000	2,287,000
Operating Income	10,385,000	9,695,000	14,599,000	16,290,000
Operating Expense	44,977,000	41,706,000	39,832,000	38,212,000
Other Operating Expenses	44,977,000	41,706,000	39,832,000	38,212,000
Gross Profit	55,362,000	51,401,000	54,431,000	54,502,000
Cost Of Revenue	346,705,000	321,408,000	303,345,000	267,965,000
Total Revenue	402,067,000	372,809,000	357,776,000	322,467,000
Operating Revenue	402,067,000	372,809,000	357,776,000	322,467,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	516,000	518,000	480,000	458,000
Ordinary Shares Number	1,271,000	1,260,000	1,288,000	1,300,000
Share Issued	1,787,000	1,778,000	1,768,000	1,758,000
Net Debt	56,117,000	57,684,000	53,414,000	39,309,000
Total Debt	79,950,000	82,920,000	79,385,000	70,732,000
Tangible Book Value	-35,772,000	-43,035,000	-44,045,000	-31,484,000
Invested Capital	139,784,000	141,830,000	138,071,000	123,723,000
Working Capital	-13,978,000	-15,964,000	-11,331,000	-3,788,000
Net Tangible Assets	-35,772,000	-43,035,000	-44,045,000	-31,484,000
Capital Lease Obligations	15,380,000	16,650,000	17,775,000	18,478,000
Common Stock Equity	75,214,000	75,560,000	76,461,000	71,469,000
Total Capitalization	135,716,000	136,087,000	135,099,000	121,945,000
Total Equity Gross Minority Interest	75,382,000	75,730,000	76,636,000	71,769,000
Minority Interest	168,000	170,000	175,000	300,000
Stockholders Equity	75,214,000	75,560,000	76,461,000	71,469,000
Gains Losses Not Affecting Retained Earnings	406,000	-120,000	-297,000	-1,264,000
Other Equity Adjustments	406,000	-120,000	-297,000	-1,264,000
Treasury Stock	36,790,000	36,818,000	33,838,000	31,858,000
Retained Earnings	61,196,000	62,837,000	61,604,000	56,398,000
Capital Stock	50,402,000	49,661,000	48,992,000	48,193,000
Common Stock	50,402,000	49,661,000	48,992,000	48,193,000
Total Liabilities Net Minority Interest	178,156,000	177,485,000	173,092,000	156,506,000
Total Non Current Liabilities Net Minority Interest	89,464,000	92,876,000	93,903,000	87,085,000
Other Non Current Liabilities	9,493,000	10,333,000	11,670,000	12,565,000
Employee Benefits	1,994,000	3,311,000	3,250,000	3,228,000
Non Current Pension And Other Postretirement Benefit Plans	1,994,000	3,311,000	3,250,000	3,228,000
Non Current Deferred Liabilities	3,832,000	3,806,000	4,311,000	4,016,000
Non Current Deferred Taxes Liabilities	3,832,000	3,806,000	4,311,000	4,016,000
Long Term Debt And Capital Lease Obligation	74,145,000	75,426,000	74,672,000	67,276,000
Long Term Capital Lease Obligation	13,643,000	14,899,000	16,034,000	16,800,000
Long Term Debt	60,502,000	60,527,000	58,638,000	50,476,000
Current Liabilities	88,692,000	84,609,000	79,189,000	69,421,000
Other Current Liabilities	1,116,000	1,183,000	1,141,000	2,817,000
Current Debt And Capital Lease Obligation	5,805,000	7,494,000	4,713,000	3,456,000
Current Capital Lease Obligation	1,737,000	1,751,000	1,741,000	1,678,000
Current Debt	4,068,000	5,743,000	2,972,000	1,778,000
Other Current Borrowings	4,068,000	3,624,000	2,772,000	1,778,000
Commercial Paper	0	2,119,000	200,000	0
Payables And Accrued Expenses	81,771,000	75,932,000	73,335,000	63,148,000
Current Accrued Expenses	22,387,000	20,810,000	23,515,000	18,745,000
Payables	59,384,000	55,122,000	49,820,000	44,403,000
Other Payable	41,743,000	39,230,000	34,923,000	29,565,000
Accounts Payable	17,641,000	15,892,000	14,897,000	14,838,000
Total Assets	253,538,000	253,215,000	249,728,000	228,275,000
Total Non Current Assets	178,824,000	184,570,000	181,870,000	162,642,000
Other Non Current Assets	5,119,000	4,793,000	4,660,000	4,620,000
Defined Pension Benefit	1,994,000	3,311,000	3,250,000	3,228,000
Investments And Advances	32,669,000	28,934,000	23,019,000	21,096,000
Other Investments	4,572,000	3,803,000	3,254,000	2,545,000
Investmentin Financial Assets	28,097,000	25,131,000	19,765,000	18,551,000
Held To Maturity Securities	1,376,000	1,354,000	1,183,000	989,000
Available For Sale Securities	26,721,000	23,777,000	18,582,000	17,562,000
Goodwill And Other Intangible Assets	110,986,000	118,595,000	120,506,000	102,953,000
Other Intangible Assets	25,508,000	27,323,000	29,234,000	24,803,000
Goodwill	85,478,000	91,272,000	91,272,000	78,150,000
Net PPE	28,056,000	28,937,000	30,435,000	30,745,000
Accumulated Depreciation	-24,744,000	-23,447,000	-20,699,000	-21,483,000
Gross PPE	52,800,000	52,384,000	51,134,000	52,228,000
Leases	6,812,000	6,725,000	6,511,000	6,238,000
Other Properties	14,973,000	15,944,000	17,252,000	17,628,000
Machinery Furniture Equipment	24,613,000	23,236,000	20,842,000	21,821,000
Buildings And Improvements	4,593,000	4,632,000	4,571,000	4,545,000
Land And Improvements	1,809,000	1,847,000	1,958,000	1,996,000
Current Assets	74,714,000	68,645,000	67,858,000	65,633,000
Other Current Assets	5,091,000	3,076,000	3,151,000	2,636,000
Assets Held For Sale Current			0	908,000	0
Inventory	19,246,000	18,107,000	18,025,000	19,090,000
Inventories Adjustments Allowances			-607,000	-559,000
Other Inventories			18,632,000	19,649,000
Receivables	39,779,000	36,469,000	35,227,000	27,276,000
Other Receivables	23,463,000	21,857,000	19,605,000	15,617,000
Accounts Receivable	16,316,000	14,612,000	15,622,000	11,659,000
Cash Cash Equivalents And Short Term Investments	10,598,000	10,993,000	11,455,000	15,723,000
Other Short Term Investments	2,145,000	2,407,000	3,259,000	2,778,000
Cash And Cash Equivalents	8,453,000	8,586,000	8,196,000	12,945,000

Cash Flow

	2025	2024	2023	2022
Free Cash Flow	7,807,000	6,326,000	10,395,000	13,450,000
Repurchase Of Capital Stock	0	-3,023,000	-2,012,000	-3,500,000
Repayment Of Debt	-5,748,000	-4,773,000	-8,166,000	-4,211,000
Issuance Of Debt	3,969,000	9,832,000	16,098,000	0
Capital Expenditure	-2,832,000	-2,781,000	-3,031,000	-2,727,000
End Cash Position	8,712,000	8,884,000	8,525,000	13,305,000
Beginning Cash Position	8,884,000	8,525,000	13,305,000	12,691,000
Changes In Cash	-172,000	359,000	-4,780,000	614,000
Financing Cash Flow	-4,940,000	-1,135,000	2,683,000	-10,516,000
Cash Flow From Continuing Financing Activities	-4,940,000	-1,135,000	2,683,000	-10,516,000
Net Other Financing Charges	-158,000	-159,000	-382,000	-449,000
Proceeds From Stock Option Exercised	394,000	361,000	277,000	551,000
Cash Dividends Paid	-3,397,000	-3,373,000	-3,132,000	-2,907,000
Common Stock Dividend Paid	-3,397,000	-3,373,000	-3,132,000	-2,907,000
Net Common Stock Issuance	0	-3,023,000	-2,012,000	-3,500,000
Common Stock Payments	0	-3,023,000	-2,012,000	-3,500,000
Net Issuance Payments Of Debt	-1,779,000	5,059,000	7,932,000	-4,211,000
Net Short Term Debt Issuance	-2,119,000	1,919,000	200,000	0
Short Term Debt Payments	-2,119,000	0	-5,000,000	0
Short Term Debt Issuance	0	1,919,000	5,200,000	0
Net Long Term Debt Issuance	340,000	3,140,000	7,732,000	-4,211,000
Long Term Debt Payments	-3,629,000	-4,773,000	-3,166,000	-4,211,000
Long Term Debt Issuance	3,969,000	7,913,000	10,898,000	0
Investing Cash Flow	-5,871,000	-7,613,000	-20,889,000	-5,047,000
Cash Flow From Continuing Investing Activities	-5,871,000	-7,613,000	-20,889,000	-5,047,000
Net Other Investing Changes	26,000	101,000	68,000	85,000
Net Investment Purchase And Sale	-2,629,000	-4,838,000	-1,314,000	-1,017,000
Sale Of Investment	12,383,000	10,353,000	7,729,000	6,729,000
Purchase Of Investment	-15,012,000	-15,191,000	-9,043,000	-7,746,000
Net Business Purchase And Sale	-436,000	-95,000	-16,612,000	-1,388,000
Purchase Of Business	-436,000	-95,000	-16,612,000	-1,388,000
Net PPE Purchase And Sale	-2,832,000	-2,781,000	-3,031,000	-2,727,000
Purchase Of PPE	-2,832,000	-2,781,000	-3,031,000	-2,727,000
Operating Cash Flow	10,639,000	9,107,000	13,426,000	16,177,000
Cash Flow From Continuing Operating Activities	10,639,000	9,107,000	13,426,000	16,177,000
Change In Working Capital	-1,474,000	109,000	15,000	6,818,000
Change In Other Current Liabilities	2,013,000	-3,542,000	1,540,000	6,463,000
Change In Other Current Assets	-2,593,000	-38,000	-510,000	-491,000
Change In Payables And Accrued Expense	3,871,000	5,092,000	4,012,000	5,252,000
Change In Payable	3,871,000	5,092,000	4,012,000	5,252,000
Change In Account Payable	3,855,000	2,335,000	3,618,000	4,260,000
Change In Inventory	-1,267,000	-102,000	1,233,000	-1,435,000
Change In Receivables	-3,498,000	-1,301,000	-6,260,000	-2,971,000
Changes In Account Receivables	-3,498,000	-1,301,000	-6,260,000	-2,971,000
Other Non Cash Items	-336,000	-502,000	264,000	332,000
Stock Based Compensation	535,000	540,000	588,000	447,000
Asset Impairment Charge	5,725,000	840,000	152,000	0
Deferred Tax	102,000	-572,000	-676,000	-2,029,000
Deferred Income Tax	102,000	-572,000	-676,000	-2,029,000
Depreciation Amortization Depletion	4,606,000	4,597,000	4,366,000	4,224,000
Depreciation And Amortization	4,606,000	4,597,000	4,366,000	4,224,000
Operating Gains Losses	-247,000	-491,000	349,000	2,058,000
Gain Loss On Sale Of Business	-247,000	0	0	-475,000
Net Income From Continuing Operations	1,728,000	4,586,000	8,368,000	4,327,000

These metrics estimate what CVS Health Corporation is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$42.84

Margin of Safety

Market Cap ÷ Company Value

1.80

P/B Ratio

1.40

Warren's Owner Earnings

$9.2B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$402.1B

vs > $1.5B revenue

❌ Strong Financial Condition

0.84x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

3.24%

vs Uninterrupted dividends

❌ Earnings Growth

-57.4% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

59.1x

vs P/E ≤ 15.0x

✅ Moderate Price-to-Book

1.40x P/B (P/E×P/B: 82.8)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-80.71

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$90.03

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	160.2%	60.3%	36.3%	63.3%	N/A
Repurchase of Capital Stock	$0M	-$3.0B	-$2.0B	-$3.5B	N/A
Free Cash Flow	$7.8B ▲	$6.3B ▼	$10.4B ▼	$13.4B •	N/A •
Warren's Owner Earnings	$9.2B	$12.0B	$15.7B	$11.3B	N/A

Peers & Industry

No auto-detected peers for Healthcare Plans. You can manually compare CVS against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.07%

Low — management has little skin in the game

Return on Equity (ROE)

2.4%

Weak — poor returns on equity

Return on Assets (ROA)

0.7%

Poor — assets are not generating adequate returns

Debt Trend YoY

-3.6% YoY

Debt is declining — management is deleveraging

Leadership Team

David Joyner CEBS

CEO, President & Chairman

Age 60

Pay: $6,649,509

0.376% of net income

Brian Newman

Executive VP & CFO

Age 56

Pay: $2,817,842

0.159% of net income

Prem Shah Pharm.D

Executive VP & Group President

Age 45

Pay: $4,379,297

0.248% of net income

Steven Hale Nelson

Executive VP & President of Aetna

Age 66

Pay: $4,337,201

0.245% of net income

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	9.44%	120,994,474
Vanguard Group Inc	9.42%	120,709,530
Capital World Investors	5.28%	67,662,911
Dodge & Cox Inc.	4.88%	62,509,988
State Street Corporation	4.70%	60,183,743
FMR, LLC	3.20%	41,017,981
JPMORGAN CHASE & CO	2.43%	31,202,668
Geode Capital Management, LLC	2.27%	29,040,271

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.59

Low volatility — more stable than the market

Short Interest

1.4% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.06x

Moderate leverage

Current Ratio