CVS Health Corporation — Healthcare Plans. Scored on the same transparent model behind the daily rankings.
★
CVS
CVS Health Corporation · Healthcare Plans
FCF$11.8bA-
Rev+7.4%B
D/E0.96C
P/E24.7xB
PEG0.26A
57.8Score
$93.50$119.6B
1Y Target$115.80Analyst consensus · 25 analysts
5Y Target$146.19Compound horizon
10Y Target$187.49Long-dated conviction
FCF$11.8bTTMA-
FCF $11.8b — top-quartile, exceptional for any sector
Rev+7.4%TTM YoYB
Revenue +7.4% — at or above S&P median
D/E0.96C
D/E 0.96 — more levered than most Healthcare peers (≈90th pctile)
P/E24.7xB
P/E 24.7 — near the Healthcare median (≈60th pctile)
PEG0.26A
PEG 0.26 — exceptional; paying well under fair value for growth
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 57.8
Quality0.45
Growth0.63
Value0.69
Entry · Margin of safety
52-week rangeMid-range
16% off the 12-month high
vs DCF fair value57% belowest. fair value ~$219
What the price assumes: free cash flow compounding at ~-14% a year for the next decade — vs the ~7% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability73% · Agross profit ÷ total assets (Novy-Marx)
ROIC4.3% · C+return on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
Healthcare Plans · market cap $119.6b. 16% off the 52-week high of $110.68. PEG 0.26 — paying under fair value for the growth rate. 25 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $115.80 (implying +24% upside).
Moat
Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $119.6b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Net margin 1.2% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE 6% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
Horizon
1-3 yr $115.80 (25-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $146.19 at ~9% CAGR — dividend + buyback compounding. 10 yr $187.49 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
CVS vs the Top Picks average
Pillar
CVS
Book avg
Diff
Quality
0.45
0.84
-0.40
Growth
0.63
0.92
-0.29
Value
0.69
0.75
-0.06
Averaged across the 30 names in today's Top Picks (mean score 82.9). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · CVS
Trend
+4.0 over 38 daily scores
From 53.8 (Jun 22) → 57.8 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · CVS
$
%
%
Shares to buy
21
Position size
$1,964
3.9% of portfolio
Stop price
$70.13
25% below $93.50
$ at risk if stopped
$490.88
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
CVS Health Corporation (CVS): score, valuation & FAQ
CVS Health Corporation (CVS) is a Healthcare Plans company that scores 57.8 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are PEG (A) and FCF (A-). On valuation, CVS sits about 57% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -14% annual free-cash-flow growth over the next decade.
Is CVS a good stock to buy?
Bull Rankings scores CVS 57.8 out of 100 on its quality-growth model, which is a middling reading. That is driven by PEG (A) and FCF (A-). A score is a quantitative screen of CVS Health Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does CVS score 57.8 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). CVS earns its highest marks on PEG (A) and FCF (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is CVS overvalued or undervalued?
Based on $93.50, CVS sits about 57% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -14% annual free-cash-flow growth over the next decade. It trades at a 24.7x× P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in CVS?
Net margin 1.2% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE 6% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.