CVS Health Corporation (CVS)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

CVS Health is a giant healthcare machine: it sells insurance, pharmacy, and related health services, with 219,000 employees and revenue of $106.1B in fiscal Q2 2026, the quarter ended 2026-06-30. That quarter produced net income of $3.0B and diluted EPS of $2.31, a sharp improvement from fiscal Q2 2025, when net income was $1.0B and diluted EPS was $0.80. For fiscal year 2025, however, revenue was $402.1B, but net income was only $1.8B, or $1.39 per diluted share, down from $4.6B and $3.66 in fiscal 2024. The long-term record is not beautiful: FairStock's Lynch category is SLOW GROWER — Shrinking, with profit down 24.4% a year over five years and revenue up 8.4%. Scale and a broad healthcare footprint give it a moat, but the profit margin is thin; in fiscal Q2 2026 net margin was 2.81%. Financial health is mixed. Free cash flow is strong at $11.8B trailing twelve months, a 10.5% FCF yield, and Piotroski F-Score is 6/9. But debt-to-equity is 0.96, Altman Z-Score is 1.17, ROE is 6.21%, and ROCE is 2.97%—not the returns of a high-quality compounder. At the 2026-10-13 close of $87.55, FairStock's P/E is 23.10, P/B is 1.40, EV/EBITDA is 13.19, and Graham Number is $72.92, leaving a negative 20.06% margin of safety. FairStock Score is 48/100. I see a cheap-looking cash-flow yield but a business with weak historical profit growth and only fair valuation. I'd want evidence that recent profit recovery is durable before calling it a bargain.

In plain English: CVS Health runs health insurance and pharmacy-related health services in the United States. The business looks mixed: it is huge and generates a lot of cash, but profits have been weak and it carries meaningful debt. At $87.55, the price looks roughly fair, though it is above one old-school value measure.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer