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CVS Health

CVS
28
Medical - Healthcare Plans · Healthcare
Price
$107.47
+0.97 (+0.91%)
Market Cap
$137.12B
Winston Score
28
Winston is worried
Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

4.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.33B (2021) → 1.27B (2025)

CVS Health is one of the largest healthcare companies in the United States. It runs thousands of retail pharmacies where people pick up prescriptions and buy everyday health products. It also owns Aetna, a major health insurance company, and operates MinuteClinic locations inside its stores where patients can see a nurse for basic medical care.

CVS makes money in three main ways: selling insurance plans through Aetna, filling prescriptions and selling products in its roughly 9,000 retail pharmacies, and running a pharmacy benefits management business called Caremark, which helps employers and insurers manage drug costs. The company operates almost entirely in the United States and generates over $350 billion in annual revenue, making it one of the largest companies in the country by sales. Its main challenge right now is thin profit margins — the numbers above show the business keeps very little of each dollar it earns — and rising medical costs in its insurance segment have pressured earnings in recent years.

Winston Score History

Politician Trades

23 trades / 12mo

14 Congressional buys and 9 sells on CVS in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+8.2% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+77.1% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (18%)

Research and development spending

Insider Activity

0.2%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$8.5B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

CVS Health is growing revenue at 8% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
12.8%
Thin — 12.8% gross margin
Operating Margin
2.0%
Thin — 2.0% operating margin
ROCE
1.4%
Weak — 1.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+7.8%
Steady sales growth (7.8% YoY)
EPS YoY
-61.6%
Earnings shrinking (-61.6% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
602%
Turns 602% of profit into real cash
FCF Margin
1.9%
Thin free cash flow (1.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
1.05
Elevated debt (1.05)
Interest Cover
1.49x
Dangerous — barely covers interest (1.5x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
76.2x
Expensive — P/E 76.2

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+65.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (76.2 → 10.8)

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Dividends

Dividend Yield
2.55%
Moderate income — 2.55% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+0.0%
Dividend flat

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