Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. CVS Health's annualized net income for the quarter that ended in Mar. 2026 was CHF9,268 Mil. CVS Health's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF-27,280 Mil. Therefore, CVS Health's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for CVS Health's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:CVS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
XSWX:CVS's Return-on-Tangible-Equity is ranked better than 94.44% of 18
companies
in the Healthcare Plans industry
Industry Median: 14.115
vs XSWX:CVS: Negative Tangible Equity
CVS Health (XSWX:CVS) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
CVS Health Return-on-Tangible-Equity Related Terms
CVS Health Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for CVS Health's Return-on-Tangible-Equity 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-Equity Comparison
For the Healthcare Plans subindustry, CVS Health's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, CVS Health's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where CVS Health's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
CVS Health (XSWX:CVS) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on CVS Health and its competitors. According to the industry distribution chart, CVS Health ranks #1 out of 18 companies in the Healthcare Plans industry, placing it in the top 5.6%.
Is CVS Health's Return-on-Tangible-Equity too high?
CVS Health's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, CVS Health ranks #1 out of 18 companies in the Healthcare Plans industry, which is in the top quartile — a strong position relative to peers. Overall, CVS Health has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does CVS Health's Return-on-Tangible-Equity compare to ELV and CI?
According to the Healthcare Plans industry distribution chart, CVS Health ranks #1 out of 18 companies for Return-on-Tangible-Equity. This places CVS Health in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 14.12. 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-Equity for a Healthcare Plans company?
The median Return-on-Tangible-Equity among Healthcare Plans companies is 14.12, based on 18 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on CVS Health and its competitors. For the Healthcare Plans industry, the median Return-on-Tangible-Equity is 14.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CVS Health's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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-Equity of Negative Tangible Equity%. 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-Equity is Negative Tangible Equity%. CVS Health's overall GF Score™ is 76/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For CVS Health (XSWX:CVS), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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.
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.
76GF Score
Get the complete analysis for XSWX:CVS
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