CVS HealthMEX:CVS 70 Gross Margin % is 15.56% as of Mar. 2026, which is 4% below its 10-year median of 16.23. GuruFocus rates MEX:CVS with a GF Score™ of 70/100 and a GF Value™ of MXN1,330.95 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 14 Healthcare Plans companies, CVS Health ranks worse than 71.43% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. CVS Health's Gross Profit for the
three
months ended in Mar. 2026 was MXN281,743 Mil. CVS Health's Revenue for the
three
months ended in Mar. 2026 was MXN1,810,952 Mil. Therefore, CVS Health's Gross Margin % for the quarter that ended in Mar. 2026 was 15.56%.
Warning Sign:
CVS Health Corp gross margin has been in long-term decline. The average rate of decline per year is -6.3%.
The historical rank and industry rank for CVS Health's Gross Margin % or its related term are showing as below:
MEX:CVS'
s Gross Margin % Range Over the Past 10 Years
Min: 13.77 Med: 16.23 Max: 18.25
Current: 13.87
During the past 13 years, the highestGross Margin % of CVS Health was 18.25%. The lowest was 13.77%. And the median was 16.23%.
MEX:CVS's Gross Margin % is ranked worse than 71.43% of 14
companies
in the Healthcare Plans industry
Industry Median: 18.595
vs MEX:CVS: 13.87
CVS Health had a gross margin of 15.56% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for CVS Health was -6.30% per year.
CVS Health (MEX:CVS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
CVS Health had a gross margin of 15.56% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
CVS Health Gross Margin % Related Terms
CVS Health Gross Margin % Historical Data
* Premium members only.
The historical data trend for CVS Health's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:CVS vs ELV, CI, HUM: Gross Margin % Comparison
For the Healthcare Plans subindustry, CVS Health's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CVS Health Gross Margin % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, CVS Health's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CVS Health's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
CVS Health (MEX:CVS) has a Gross Margin % of 15.56% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on CVS Health and its competitors. This is near median its historical median of 16.23. Over the past decade, CVS Health's Gross Margin % has ranged from 13.77 to 18.25. According to the industry distribution chart, CVS Health ranks #10 out of 14 companies in the Healthcare Plans industry, placing it in the top 71.4%.
Is CVS Health's Gross Margin % too high?
CVS Health's current Gross Margin % of 15.56% is near median its 10-year median of 16.23. Over the past 10 years, this metric has ranged from a low of 13.77 to a high of 18.25. The Healthcare Plans industry median Gross Margin % is 18.60. CVS Health's value of 15.56% is 16.3% below this industry median. Based on the distribution chart, CVS Health ranks #10 out of 14 companies in the Healthcare Plans industry, which is below the industry midpoint. Overall, CVS Health has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CVS Health's Gross Margin % compare to ELV and CI?
According to the Healthcare Plans industry distribution chart, CVS Health ranks #10 out of 14 companies for Gross Margin %. This places CVS Health in the lower half of its industry. The industry median Gross Margin % is 18.60. CVS Health's value of 15.56% is 16.3% below this benchmark. Historically, CVS Health's own Gross Margin % has ranged from 13.77 to 18.25 over the past decade. While the company's 10-year median is 16.23 vs. the industry median of 18.60, CVS Health has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Healthcare Plans company?
The median Gross Margin % among Healthcare Plans companies is 18.60, based on 14 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CVS Health's current Gross Margin % of 15.56% is 16.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on CVS Health and its competitors. For the Healthcare Plans industry, the median Gross Margin % is 18.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CVS Health's current Gross Margin % is 15.56%, which is near median its own 10-year median of 16.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CVS Health stock overvalued right now?
Based on GuruFocus' analysis, CVS Health (MEX:CVS) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN1,330.95, compared to a current price of MXN1,787.51 — trading 34.3% above its estimated fair value. The current Gross Margin % is 15.56%, which is near median its 10-year median of 16.23 and 16.3% below the Healthcare Plans industry median of 18.60. CVS Health's overall GF Score™ is 70/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For CVS Health (MEX:CVS), the current Gross Margin % is 15.56% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CVS Health (MEX:CVS) Overvalued in 2026?
Based on GuruFocus' analysis, CVS Health stock appears to be overvalued.
The current stock price of MXN1,787.51 is trading 34.3% above its estimated GF Value™ of MXN1,330.95.
GuruFocus considers CVS Health to be Significantly Overvalued.
Key valuation signals for MEX:CVS:
Gross Margin %: 15.56% (near median its 10-year median of 16.23)
GF Value™: MXN1,330.95 vs. price of MXN1,787.51 (34.3% above fair value)
Industry Position: 16.3% below the Healthcare Plans median (#10 of 14)
No single metric tells the full story. See the MEX:CVS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates around 9,000 stores primarily in the US. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It operates a top-tier health insurer (acquired through Aetna) through which it serves about 27 million medical members. The acquisition of Oak Street Health added primary care services to the mix, which could have significant synergies with all existing business lines.
70GF Score
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