CVS HealthTSX:CVS -0.72%83 ROA % is 4.64% as of Mar. 2026, which is 46% above its 10-year median of 3.17. GuruFocus rates TSX:CVS with a GF Score™ of 83/100 and a GF Value™ of C$18.54 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 18 Healthcare Plans companies, CVS Health ranks worse than 66.67% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. CVS Health's annualizedNet Income for the quarter that ended in Mar. 2026 was C$16,151 Mil.
CVS Health's average Total Assets over the quarter that ended in Mar. 2026 was C$348,418 Mil. Therefore, CVS Health's annualized ROA % for the quarter that ended in Mar. 2026 was 4.64%.
The historical rank and industry rank for CVS Health's ROA % or its related term are showing as below:
TSX:CVS'
s ROA % Range Over the Past 10 Years
Min: -0.41 Med: 3.17 Max: 6.99
Current: 1.15
During the past 13 years, CVS Health's highest ROA % was 6.99%. The lowest was -0.41%. And the median was 3.17%.
TSX:CVS's ROA % is ranked worse than 66.67% of 18
companies
in the Healthcare Plans industry
Industry Median: 2.035
vs TSX:CVS: 1.15
CVS Health (TSX:CVS) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
CVS Health ROA % Related Terms
CVS Health ROA % Historical Data
* Premium members only.
The historical data trend for CVS Health's ROA % 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.
For the Healthcare Plans subindustry, CVS Health's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, CVS Health's ROA % distribution charts can be found below:
* The bar in red indicates where CVS Health's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
CVS Health (TSX:CVS) has a ROA % of 4.64% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on CVS Health and its competitors. This is 46% above median its historical median of 3.17. According to the industry distribution chart, CVS Health ranks #12 out of 18 companies in the Healthcare Plans industry, placing it in the top 66.7%.
Is CVS Health's ROA % too high?
CVS Health's current ROA % of 4.64% is 46% above median its 10-year median of 3.17. The Healthcare Plans industry median ROA % is 2.04. CVS Health's value of 4.64% is 128% above this industry median. Based on the distribution chart, CVS Health ranks #12 out of 18 companies in the Healthcare Plans industry, which is below the industry midpoint. Overall, CVS Health has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CVS Health's ROA % compare to ELV and CI?
According to the Healthcare Plans industry distribution chart, CVS Health ranks #12 out of 18 companies for ROA %. This places CVS Health in the lower half of its industry. The industry median ROA % is 2.04. CVS Health's value of 4.64% is 128% above this benchmark. While the company's 10-year median is 3.17 vs. the industry median of 2.04, 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 ROA % for a Healthcare Plans company?
The median ROA % among Healthcare Plans companies is 2.04, based on 18 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CVS Health's current ROA % of 4.64% is 128% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on CVS Health and its competitors. For the Healthcare Plans industry, the median ROA % is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CVS Health's current ROA % is 4.64%, which is 46% above median its own 10-year median of 3.17. 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 (TSX:CVS) is currently considered Significantly Overvalued. The stock's GF Value™ is C$18.54, compared to a current price of C$24.90 — trading 34.3% above its estimated fair value. The current ROA % is 4.64%, which is 46% above median its 10-year median of 3.17 and 128% above the Healthcare Plans industry median of 2.04. CVS Health's overall GF Score™ is 83/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For CVS Health (TSX:CVS), the current ROA % is 4.64% 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 (TSX:CVS) Overvalued in 2026?
Based on GuruFocus' analysis, CVS Health stock appears to be overvalued.
The current stock price of C$24.90 is trading 34.3% above its estimated GF Value™ of C$18.54.
GuruFocus considers CVS Health to be Significantly Overvalued.
Key valuation signals for TSX:CVS:
ROA %: 4.64% (46% above median its 10-year median of 3.17)
GF Value™: C$18.54 vs. price of C$24.90 (34.3% above fair value)
Industry Position: 128% above the Healthcare Plans median (#12 of 18)
No single metric tells the full story. See the TSX: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.
83GF Score
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