Is the business good?
How good a business is CVS?
CVS Health earns 5.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.1%
Return on invested capital · cost of capital 9.0% · 3.9 points below what the capital costs: growth destroys value
- Operating margin
- 2.0%
Operating margin · Healthcare Plans median 2.0% · 12 months to Q2 2026
- Cash conversion
- 2.40×
Cash conversion · 1.05× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +1.3%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 5.2% |
| FY2021 | 4.6% |
| FY2022 | 2.5% |
| FY2023 | 3.8% |
| FY2024 | 2.3% |
| FY2025 | 1.2% |
Details›
- Gross margin12 months to Q2 2026
- 44%
- Operating margin12 months to Q2 2026
- 2.0%
- Net margin12 months to Q2 2026
- 1.2%
- Free cash flow margin
- 2.8%
- Revenue, trailing twelve months
- $415.1B
- Free cash flow, trailing twelve months
- $11.8B
- Net income, trailing twelve months
- $4.89B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Healthcare Plans
Ranks #7 of 11 by Smart Score