NYSE · Healthcare

CVS Health Corporation

CVS · Healthcare Plans

$98.32

▼ -0.84 (-0.85%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

F⤢

Gross Profit Margin 15.6%

Operating Margin 4.7%

Net Income Margin 2.9%

Fin. Health

F⤢

Years to Pay Off Debt 26.6 yrs

Working Capital vs Long-Term Debt -$72.1B

Working Capital -$11.6B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.62x

Cash Flow

B⤢

Free Cash Flow $3.4B

CapEx % of Net Income 28.8%

Owner Earnings $4.9B

Profitability

Gross Profit Margin 15.6%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 4.7%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 2.9%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 26.6 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$72.1B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$11.6B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $3.4B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 28.8%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $4.9B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

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

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.

Market Data

Market Cap $125.4B

Enterprise Value $195.2B

P/E (TTM) 43.12

Dividend Yield 2.68%

Exchange NYSE

Key Margins

Gross Profit 15.6%

Operating Margin 4.7%

Net Margin 2.9%

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 $98.32.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $98.32, the stock trades at a 75% premium to its Graham Number of $56.05. 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: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	15.6%▲	12.8%•	N/A
Operating Margin %	4.7%▲	2.0%•	N/A
Net Income %	2.9%▲	2.8%•	N/A
Diluted EPS	2.30→	2.30•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$253.0B	$253.5B	N/A
Total Debt	$78.3B▼	$80.0B•	N/A
Working Capital	-$11.6B▲	-$14.0B•	N/A
Years to Pay Debt	26.62	27.17	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$3.4B▲	$2.6B•	N/A
Owner Earnings	$4.9B	$4.9B	N/A
CapEx % of Net Income	28.8%	26.6%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	0	0
Tax Rate For Calcs	0	0
Normalized EBITDA	5,827,000	3,288,000
Total Unusual Items		0	381,000
Total Unusual Items Excluding Goodwill		0	381,000
Net Income From Continuing Operation Net Minority Interest	2,943,000	2,943,000
Reconciled Depreciation	1,115,000	1,147,000
Reconciled Cost Of Revenue	84,802,000	92,126,000
EBITDA	5,827,000	3,288,000
EBIT	4,712,000	2,141,000
Net Interest Income	-774,000	-787,000
Interest Expense	774,000	787,000
Normalized Income	2,943,000	2,943,000
Net Income From Continuing And Discontinued Operation	2,943,000	2,943,000
Total Expenses	95,746,000	103,581,000
Total Operating Income As Reported	4,680,000	2,112,000
Diluted Average Shares	1,279,000	1,277,000
Basic Average Shares	1,273,000	1,270,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	2,943,000	2,943,000
Net Income Common Stockholders	2,943,000	2,943,000
Net Income	2,943,000	2,943,000
Minority Interests	-14,000	20,000
Net Income Including Noncontrolling Interests	2,957,000	2,923,000
Net Income Continuous Operations	2,957,000	2,923,000
Tax Provision	981,000	-1,569,000
Pretax Income	3,938,000	1,354,000
Other Income Expense	32,000	29,000
Other Non Operating Income Expenses	32,000	29,000
Special Income Charges		0	381,000
Gain On Sale Of Business		0
Impairment Of Capital Assets		0
Restructuring And Mergern Acquisition		0	10,000
Net Non Operating Interest Income Expense	-774,000	-787,000
Interest Expense Non Operating	774,000	787,000
Operating Income	4,680,000	2,112,000
Operating Expense	10,944,000	11,455,000
Other Operating Expenses	10,944,000	11,455,000
Gross Profit	15,624,000	13,567,000
Cost Of Revenue	84,802,000	92,126,000
Total Revenue	100,426,000	105,693,000
Operating Revenue	100,426,000	105,693,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	515,000	516,000
Ordinary Shares Number	1,273,000	1,271,000
Share Issued	1,788,000	1,787,000
Net Debt	53,569,000	56,117,000
Total Debt	78,345,000	79,950,000
Tangible Book Value	-33,092,000	-35,772,000
Invested Capital	140,567,000	139,784,000
Working Capital	-11,589,000	-13,978,000
Net Tangible Assets	-33,092,000	-35,772,000
Capital Lease Obligations	15,234,000	15,380,000
Common Stock Equity	77,456,000	75,214,000
Total Capitalization	137,987,000	135,716,000
Total Equity Gross Minority Interest	77,637,000	75,382,000
Minority Interest	181,000	168,000
Stockholders Equity	77,456,000	75,214,000
Gains Losses Not Affecting Retained Earnings	201,000	406,000
Other Equity Adjustments	201,000	406,000
Treasury Stock	36,706,000	36,790,000
Retained Earnings	63,282,000	61,196,000
Capital Stock	50,679,000	50,402,000
Common Stock	50,679,000	50,402,000
Total Liabilities Net Minority Interest	175,337,000	178,156,000
Total Non Current Liabilities Net Minority Interest	88,931,000	89,464,000
Other Non Current Liabilities	11,299,000	9,493,000
Employee Benefits		1,994,000	3,311,000
Non Current Pension And Other Postretirement Benefit Plans		1,994,000	3,311,000
Non Current Deferred Liabilities	3,771,000	3,832,000
Non Current Deferred Taxes Liabilities	3,771,000	3,832,000
Long Term Debt And Capital Lease Obligation	73,861,000	74,145,000
Long Term Capital Lease Obligation	13,330,000	13,643,000
Long Term Debt	60,531,000	60,502,000
Current Liabilities	86,406,000	88,692,000
Other Current Liabilities	1,075,000	1,116,000
Current Debt And Capital Lease Obligation	4,484,000	5,805,000
Current Capital Lease Obligation	1,904,000	1,737,000
Current Debt	2,580,000	4,068,000
Other Current Borrowings	2,580,000	4,068,000
Commercial Paper		0	2,119,000
Payables And Accrued Expenses	80,847,000	81,771,000
Current Accrued Expenses	22,258,000	22,387,000
Payables	58,589,000	59,384,000
Other Payable	41,667,000	41,743,000
Accounts Payable	16,922,000	17,641,000
Total Assets	252,974,000	253,538,000
Total Non Current Assets	178,157,000	178,824,000
Other Non Current Assets	7,424,000	5,119,000
Defined Pension Benefit		1,994,000	3,311,000
Investments And Advances	32,407,000	32,669,000
Other Investments	4,781,000	4,572,000
Investmentin Financial Assets	27,626,000	28,097,000
Held To Maturity Securities	1,339,000	1,376,000
Available For Sale Securities	26,287,000	26,721,000
Goodwill And Other Intangible Assets	110,548,000	110,986,000
Other Intangible Assets	25,070,000	25,508,000
Goodwill	85,478,000	85,478,000
Net PPE	27,778,000	28,056,000
Accumulated Depreciation		-24,744,000	-23,447,000
Gross PPE	27,778,000	52,800,000
Leases		6,812,000	6,725,000
Other Properties	27,778,000	14,973,000
Machinery Furniture Equipment		24,613,000	23,236,000
Buildings And Improvements		4,593,000	4,632,000
Land And Improvements		1,809,000	1,847,000
Current Assets	74,817,000	74,714,000
Other Current Assets	4,253,000	5,091,000
Inventory	17,770,000	19,246,000
Receivables	40,992,000	39,779,000
Other Receivables	20,848,000	23,463,000
Accounts Receivable	20,144,000	16,316,000
Cash Cash Equivalents And Short Term Investments	11,802,000	10,598,000
Other Short Term Investments	2,260,000	2,145,000
Cash And Cash Equivalents	9,542,000	8,453,000

Cash Flow

	2026	2025	2024
Free Cash Flow	3,400,000	2,606,000
Repayment Of Debt	-1,518,000	-1,267,000
Issuance Of Debt		0	4,273,000
Capital Expenditure	-849,000	-784,000
End Cash Position	9,769,000	8,712,000
Beginning Cash Position	8,712,000	9,352,000
Changes In Cash	1,057,000	-640,000
Financing Cash Flow	-2,318,000	-2,032,000
Cash Flow From Continuing Financing Activities	-2,318,000	-2,032,000
Net Other Financing Charges	-56,000	-6,000
Proceeds From Stock Option Exercised	103,000	86,000
Cash Dividends Paid	-847,000	-845,000
Common Stock Dividend Paid	-847,000	-845,000
Net Issuance Payments Of Debt	-1,518,000	-1,267,000
Net Short Term Debt Issuance	0	-1,247,000
Short Term Debt Payments		-1,247,000	0
Short Term Debt Issuance			1,319,000
Net Long Term Debt Issuance	-1,518,000	-20,000
Long Term Debt Payments	-1,518,000	-20,000
Long Term Debt Issuance		0	2,954,000
Investing Cash Flow	-874,000	-1,998,000
Cash Flow From Continuing Investing Activities	-874,000	-1,998,000
Net Other Investing Changes	7,000	17,000
Net Investment Purchase And Sale	-27,000	-1,224,000
Sale Of Investment	4,159,000	2,743,000
Purchase Of Investment	-4,186,000	-3,967,000
Net Business Purchase And Sale	-5,000	-7,000
Purchase Of Business	-5,000	-7,000
Net PPE Purchase And Sale	-849,000	-784,000
Purchase Of PPE	-849,000	-784,000
Operating Cash Flow	4,249,000	3,390,000
Cash Flow From Continuing Operating Activities	4,249,000	3,390,000
Change In Working Capital	2,000	-1,021,000
Change In Other Current Liabilities	-196,000	-855,000
Change In Other Current Assets	479,000	-2,005,000
Change In Payables And Accrued Expense	-552,000	-1,915,000
Change In Payable	-552,000	-1,915,000
Change In Account Payable	-562,000	-1,197,000
Change In Inventory	1,476,000	-285,000
Change In Receivables	-1,205,000	4,039,000
Changes In Account Receivables	-1,205,000	4,039,000
Stock Based Compensation	266,000	135,000
Deferred Tax	-91,000	542,000
Deferred Income Tax	-91,000	542,000
Depreciation Amortization Depletion	1,115,000	1,147,000
Depreciation And Amortization	1,115,000	1,147,000
Operating Gains Losses		0
Gain Loss On Sale Of Business	0	0
Net Income From Continuing Operations	2,957,000	2,923,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $94.6B ▲ $100.4B +6.2%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 15.2% ▲ 15.6% +0.3pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 4.9% ▲ 4.7% -0.3pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 1.9% ▲ 2.9% +1.0pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$100.4B/qtr (≈$401.7B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.87x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$3.4B

vs Positive

Operating Cash Flow

$4.2B

Latest quarter · Buffett's cash reality check

ROIC

2.2%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

1.6x

Net Assets: $77.6B

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

0.06%

Low — management has little skin in the game

Return on Equity (ROE)

3.8%

Weak — poor returns on equity

Return on Assets (ROA)

1.2%

Poor — assets are not generating adequate returns

Debt Trend YoY

-2.0% YoY

Debt is declining — management is deleveraging

Leadership Team

David Joyner CEBS

CEO, President & Chairman

Age 60

Pay: $6,649,509

0.226% of net income

Brian Newman

Executive VP & CFO

Age 56

Pay: $2,817,842

0.096% of net income

Prem Shah Pharm.D

Executive VP & Group President

Age 45

Pay: $4,379,297

0.149% of net income

Steven Hale Nelson

Executive VP & President of Aetna

Age 66

Pay: $4,337,201

0.147% of net income

Samrat Khichi Esq.

Executive Vice President, Corporate Services & Chief Legal Officer

Age 58

Pay: $3,386,559

0.115% of net income

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	9.87%	125,919,853
Vanguard Capital Management LLC	6.48%	82,650,076
Capital World Investors	6.05%	77,248,642
State Street Corporation	4.65%	59,322,181
Dodge & Cox Inc.	4.06%	51,780,116
FMR, LLC	2.45%	31,196,890
JPMORGAN CHASE & CO	2.31%	29,527,125
Geode Capital Management, LLC	2.31%	29,459,042

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.62

Low volatility — more stable than the market

Short Interest

1.4% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.01x

Moderate leverage

Current Ratio

0.87x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $58.50 Current: $98.32 High: $102.77

Currently at 90% of 52-week range

CVS Health Corporation

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis