CVS HealthXSWX:CVS -0.93%77 Return-on-Tangible-Asset is 8.21% as of Mar. 2026, which is 28% above its 10-year median of 6.39. GuruFocus rates XSWX:CVS with a GF Score™ of 77/100 and a GF Value™ of CHF63.19. The stock has 10 warning signs investors should review. Among 18 Healthcare Plans companies, CVS Health ranks worse than 55.56% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. CVS Health's annualizedNet Income for the quarter that ended in Mar. 2026 was CHF9,268 Mil. CVS Health's average total tangible assets for the quarter that ended in Mar. 2026 was CHF112,866 Mil. Therefore, CVS Health's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 8.21%.
The historical rank and industry rank for CVS Health's Return-on-Tangible-Asset or its related term are showing as below:
XSWX:CVS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -0.96 Med: 6.39 Max: 15.44
Current: 2.07
During the past 13 years, CVS Health's highest Return-on-Tangible-Asset was 15.44%. The lowest was -0.96%. And the median was 6.39%.
XSWX:CVS's Return-on-Tangible-Asset is ranked worse than 55.56% of 18
companies
in the Healthcare Plans industry
Industry Median: 2.415
vs XSWX:CVS: 2.07
CVS Health (XSWX:CVS) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
CVS Health Return-on-Tangible-Asset Related Terms
CVS Health Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for CVS Health's Return-on-Tangible-Asset 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.
XSWX:CVS vs ELV, CI, HUM: Return-on-Tangible-Asset Comparison
For the Healthcare Plans subindustry, CVS Health's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, CVS Health's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where CVS Health's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 8.21% mean?
CVS Health (XSWX:CVS) has a Return-on-Tangible-Asset of 8.21% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on CVS Health and its competitors. This is 28% above median its historical median of 6.39. According to the industry distribution chart, CVS Health ranks #10 out of 18 companies in the Healthcare Plans industry, placing it in the top 55.6%.
Is CVS Health's Return-on-Tangible-Asset too high?
CVS Health's current Return-on-Tangible-Asset of 8.21% is 28% above median its 10-year median of 6.39. The Healthcare Plans industry median Return-on-Tangible-Asset is 2.42. CVS Health's value of 8.21% is 240% above this industry median. Based on the distribution chart, CVS Health ranks #10 out of 18 companies in the Healthcare Plans industry, which is below the industry midpoint. Overall, CVS Health has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does CVS Health's Return-on-Tangible-Asset compare to ELV and CI?
According to the Healthcare Plans industry distribution chart, CVS Health ranks #10 out of 18 companies for Return-on-Tangible-Asset. This places CVS Health in the lower half of its industry. The industry median Return-on-Tangible-Asset is 2.42. CVS Health's value of 8.21% is 240% above this benchmark. While the company's 10-year median is 6.39 vs. the industry median of 2.42, CVS Health has consistently been above 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 Return-on-Tangible-Asset for a Healthcare Plans company?
The median Return-on-Tangible-Asset among Healthcare Plans companies is 2.42, based on 18 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CVS Health's current Return-on-Tangible-Asset of 8.21% is 240% above 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on CVS Health and its competitors. For the Healthcare Plans industry, the median Return-on-Tangible-Asset is 2.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CVS Health's current Return-on-Tangible-Asset is 8.21%, which is 28% above median its own 10-year median of 6.39. 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?
CVS Health (XSWX:CVS) has a current Return-on-Tangible-Asset of 8.21%. The stock's GF Value™ is CHF63.19, compared to a current price of CHF83.03 — trading 31.4% above its estimated fair value. The current Return-on-Tangible-Asset is 8.21%, which is 28% above median its 10-year median of 6.39 and 240% above the Healthcare Plans industry median of 2.42. CVS Health's overall GF Score™ is 77/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For CVS Health (XSWX:CVS), the current Return-on-Tangible-Asset is 8.21% 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 (XSWX:CVS) Overvalued in 2026?
Based on GuruFocus' analysis, CVS Health stock appears to be overvalued.
The current stock price of CHF83.03 is trading 31.4% above its estimated GF Value™ of CHF63.19.
Key valuation signals for XSWX:CVS:
Return-on-Tangible-Asset: 8.21% (28% above median its 10-year median of 6.39)
GF Value™: CHF63.19 vs. price of CHF83.03 (31.4% above fair value)
Industry Position: 240% above the Healthcare Plans median (#10 of 18)
No single metric tells the full story. See the XSWX: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.
77GF Score
Get the complete analysis for XSWX:CVS
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