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CVS Health

CVS
35
Medical - Healthcare Plans · Healthcare
Also trades as: 0HRS.L · CVS.DE
Winston Score
35
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Mixed
Cash Flow
Strong
Stability
Good
Valuation
Strong
Dividends
Mixed

Winston Score History

The full picture

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.

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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

+7.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+187.7% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

0.2%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$47.2B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth context

CVS Health is growing revenue at 7% 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

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Quality

Profit per sale
Gross Margin
14.8%
Thin — 14.8% gross margin
Profit after running costs
Operating Margin
4.4%
Thin — 4.4% operating margin
Return on the money invested
ROCE
5.9%
Weak — 5.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+7.4%
Steady sales growth (+7.4% YoY)
Profit growth
EPS YoY
+6.4%
Modest earnings growth (+6.4% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
388%
Turns 388% of profit into real cash
Spare cash per sale
FCF Margin
3.7%
Thin free cash flow (3.7%)

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

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Stability

What it owes vs what it owns
Debt / Equity
0.77
Moderate — manageable debt (0.77)
Covers its interest
Interest Cover
2.67x
Tight — interest eats into profit (2.7x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
24.3x
no trend
Growth-priced — P/E 24.3

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+13.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (24.3 → 11.2)

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Dividends

Dividend
Dividend Yield
2.45%
no trend
Moderate income — 2.45% yield

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

Dividend record
Dividend Growth
+0.0%
no trend
Dividend flat

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