CVS Health Corp. cash flow to debt ratio of 11.37% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

CVS Health Corp.'s free cash flow has increased 23.41% from $6.33B last year to $7.81B, signaling increasing performance

CVS Health Corp.'s debt to equity ratio is 0.96, which means that the company's assets are unhealthy financed, signaling financial risk.

CVS Health Corp.'s debt has decreased relative to shareholder equity from 1.10 last year to 0.96 today, signaling strengthened financials

CVS Health Corp. has a net debt to EBITDA ratio of 8.41x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

CVS Health Corp.'s interest coverage ratio of 2.67 indicates that earnings with margin can cover interest payments on company debt

CVS Health Corp.'s profit margin has decreased (4.50%) in the last year from 1.24% to 1.18%, signaling decreasing performance

CVS Health Corp.'s short-term liabilities of $88.69B exceed its short-term assets of $74.71B, signaling financial risk

CVS Health Corp.'s return on assets of 1.93% is lower than the 5.00% threshold, indicating inefficient asset utilization

CVS Health Corp.'s return on equity of 6.43%, is lower than 15.00%, indicating bad performance

CVS Health Corp.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

CVS Health Corp. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

CVS Health Corp. has positive free cash flow, indicating the company generates cash after capital expenditures

CVS Health Corp. has a free cash flow yield of 6.40%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

CVS Health Corp.'s yearly earnings has decreased 61.68% since last year from $4.61B to $1.77B, signaling decreasing performance

CVS Health Corp.'s yearly revenue has increased 7.85% since last year from $372.81B to $402.07B, signaling increasing performance

ROIC 4.09% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

CVS Health Corp.'s 3-year revenue CAGR of 7.63% is positive, indicating growing revenue over the past 3 years

CVS Health Corp. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

CVS Health Corp. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

CVS Health Corp. has insufficient data to evaluate this check.

CVS Health Corp. has an earnings yield of 4.02%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

CVS Health Corp. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

CVS Health Corp. has an EV/EBITDA ratio of 20.79x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

CVS Health Corp. is undervalued relative to its fair value price of 162.21 based on Earnings Fair Value model

CVS Health Corp.'s earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

CVS Health Corp. has a price-to-book ratio of 1.53x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

CVS Health Corp. has a price-to-sales ratio of 0.29x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue