CVS Health Corp. (NYSE:CVS)

Price to Earnings (P/E) Ratio

The P/E ratio demonstrates significant variability over the analyzed periods. Initially, it increased steadily from 14.44 to a peak of 17.39 by the end of 2021. During 2022, the ratio showed notable volatility, reaching a high point of 40.34 in the third quarter before declining towards the end of the year. In 2023, the P/E ratio experienced fluctuations with a sharp decrease in the third quarter to a low of 10.28, followed by minor increases through the end of the year and into 2024. The early quarters of 2024 saw relatively low values around 9.66 to 9.88, followed by a gradual increase reaching 17.28 by the first quarter of 2025. Overall, the P/E ratio suggests periods of increased investor optimism interspersed with corrections and a moderate upward trend into 2025.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio follows a pattern somewhat aligned with the P/E ratio but with less volatility. The ratio climbed from 7.61 in the first quarter of 2021 to 10.43 by the end of the same year. In 2022, the ratio peaked sharply at 20.01 during the third quarter, then steadily declined towards the year-end. For 2023, a significant drop occurred in the third quarter to 6.32, followed by a slight recovery and stabilization through the year end and early 2024. Subsequently, it exhibited a gradual upward trend, peaking at 9.36 by the third quarter of 2024, with a slight decline towards the first quarter of 2025. This pattern indicates temporary periods of high valuation relative to operating profits, followed by corrections and moderate recovery.

Price to Sales (P/S) Ratio

The P/S ratio has generally trended downward over the observed periods. Starting from 0.40 in early 2021, the ratio stayed relatively stable through the first half of 2022. A noticeable decline began in the third quarter of 2022, reaching around 0.20 by the third quarter of 2024. Slight increases occurred afterward, climbing modestly to 0.23 by early 2025, but overall values remained significantly lower than the earlier period. This trend reflects a declining market valuation relative to sales, which may suggest either growing revenues or a market reassessment of sales value.

Price to Book Value (P/BV) Ratio

The P/BV ratio showed an initial increase from 1.51 to 1.83 during 2021, indicating rising market valuation relative to book value. This was followed by fluctuations in 2022, with values declining to approximately 1.61 at year-end. In 2023, the ratio decreased further to near or below 1.20, reaching a low of 0.95 in mid-2024, signaling potential undervaluation relative to book equity during that period. Toward the end of 2024 and into early 2025, the ratio gradually increased to about 1.14, suggesting a recovery in valuation relative to book value. This pattern indicates periods of both premium and discount valuations against book assets, with recent quarters showing improvement.

Share Price Trend

The share price showed an upward trajectory from March 2021 through December 2021, reaching a peak near $105. However, starting in early 2022, the price began to decline with some volatility, dropping notably to around $56 by March 2024. Following this low point, a moderate recovery is observed through to the first quarter of 2025, ending at approximately $69. This pattern suggests significant market volatility and possible external or company-specific factors influencing investor sentiment.

Earnings per Share (EPS) Trend

EPS exhibited relative stability during 2021 and the first half of 2022, with values generally above 5.5 US$. A sharp decline is observed in the third quarter of 2022 with EPS falling to 2.4 US$ and remaining variable thereafter. There is evidence of partial recovery in some quarters, notably in late 2023, but EPS did not regain the consistent higher levels seen in early periods. This highlights potential challenges impacting profitability or earnings quality during this timeframe.

Price to Earnings (P/E) Ratio Pattern

The P/E ratio started relatively moderate in 2021, fluctuating between 14 and 17. A marked increase occurred in mid-2022, peaking above 40, reflecting either an overvaluation relative to earnings or an earnings drop impacting the denominator. The ratio then decreased sharply in late 2023 to levels below 12, aligning with EPS recovery trends. From 2024 onwards, the P/E ratio stabilizes in the range of 9 to 17, indicating a possible normalization of market valuation relative to earnings.

Overall Financial Insights

The financial data reveals a period of strong performance through 2021, followed by a pronounced weakening in earnings and share price starting mid-2022. The elevated P/E ratios during the earnings trough suggest market confusion or adjustment lag. By 2024, both earnings and valuation metrics appear to stabilize, suggesting that the company may be moving through a recovery phase. Investors might interpret these trends as indicative of underlying operational or market challenges that had to be absorbed before stabilizing growth and valuation.

The company’s share price exhibited significant fluctuations over the analyzed periods. Initially, it showed an upward trend, peaking around the end of 2021, followed by a notable decline throughout 2023. A modest recovery is observed towards the first quarter of 2025, although levels remain below the early 2021 values.

Operating profit per share (OPPS) demonstrated relative stability in the early quarters, maintaining values close to or slightly above 10 US dollars through the end of 2021. However, from mid-2022 onward, OPPS experienced marked volatility, with some quarters displaying pronounced declines, notably in the third quarter of 2022 and mid-2023. Despite these fluctuations, there was a revival in profitability starting in late 2023, although OPPS did not fully return to initial levels, ending lower in early 2025.

The price-to-operating profit ratio (P/OP) showed an inverse relationship to OPPS and share price movements, reflecting valuation changes relative to operating earnings. Initially, P/OP ratios were moderate, increasing significantly in 2022 when operating profit per share declined but share prices had not decreased proportionately. This resulted in ratios peaking above 20, indicating possibly stretched valuations at that time. Subsequently, P/OP declined substantially towards late 2023, aligning with the improved operating profit and reduced share price valuations. In 2024 and early 2025, P/OP ratios stabilized in a mid-range band but demonstrated an upward tendency, signaling cautious investor sentiment or declining operational profitability relative to share price.

Overall, the data reveals periods of operational challenge coinciding with share price volatility. The company's ability to restore operating profitability towards late 2023 was accompanied by a favorable recalibration of price-to-operating profit multiples, albeit amidst a lower share price environment compared to earlier periods. The trends suggest sensitivity in market valuation to shifts in operational performance, with recent quarters reflecting a phase of partial recovery but persistent uncertainty.

Share Price Trends

Early growth through 2021, decline in 2023, partial recovery by Q1 2025 but below initial highs.

Operating Profit per Share Trends

Stable and strong early on, sharp fluctuations and decline mid-period, partial rebound late 2023 onwards.

Price-to-Operating Profit Ratio Dynamics

Increased sharply during periods of declining profits and relatively stable share price, later decreased reflecting earnings recovery, with moderate increase in recent quarters.

Overall Insights

Operational performance volatility heavily influenced share price valuations, with recent quarters showing improvement but not full restoration of prior profitability levels.

Share Price

The share price demonstrated an overall volatile trend over the observed periods. Starting around $81 in early 2021, it rose steadily to peak at approximately $105 by the end of 2021. During 2022, the share price decreased gradually, moving from about $100 at the beginning of the year to below $90 by year-end. The decline continued into 2023, with lows near $56 in the first half of 2024. Subsequently, a moderate recovery occurred, bringing the share price back up to around $69 by the first quarter of 2025. This pattern suggests significant fluctuations, with a notable downtrend lasting from early 2022 through mid-2024 before partial rebound.

Sales Per Share

Sales per share exhibited a consistent upward trajectory throughout the entire timeframe. Beginning at approximately $205 per share in the first quarter of 2021, sales steadily increased each quarter without any indication of decline or plateauing, reaching nearly $298 by the first quarter of 2025. This steady growth reflects continual improvement in revenue generation on a per-share basis over the five-year span.

Price-to-Sales (P/S) Ratio

The P/S ratio showed a declining trend across the examined periods. Initial values started around 0.40 in early 2021, with minor fluctuations through 2021 and early 2022 before a more pronounced decline set in. By 2023, the ratio fell significantly to approximately 0.26 and continued to decrease, hitting near 0.20 in mid-2024. A slight increase was observed toward early 2025, with the ratio rising back to about 0.23. The decreasing P/S ratio suggests that the share price growth did not keep pace with sales per share growth, indicating the stock became relatively cheaper in terms of sales valuation over time.

Overall Insights

The financial analysis reveals steady growth in sales per share paired with a volatile and ultimately declining share price trend over the examined period, producing a falling P/S ratio. This implies that while the company's operational performance improved consistently, market valuation relative to sales weakened for a sustained period before a modest recovery. Investors might interpret this as a period of market skepticism or broader market conditions affecting valuation despite improving underlying business performance. The recent uptick in share price and P/S ratio in 2024 and 2025 may indicate restoring confidence or anticipation of future positive developments.

Share Price Trend

The share price experienced an upward trajectory from March 2021, peaking around December 2021 at approximately 104.79 US dollars. Following this peak, a gradual decline was observed throughout 2022, reaching lows near 56.31 US dollars by March 2024. Subsequently, the share price showed signs of recovery during 2024 and early 2025, increasing to roughly 69.45 US dollars by March 2025. Overall, the share price displayed notable volatility with an initial rise, a significant correction, and then partial recovery.

Book Value per Share (BVPS) Pattern

BVPS demonstrated relative stability over the examined period. Starting at 53.81 US dollars in March 2021, it showed minor fluctuations but an overall gradual increase, closing at 60.81 US dollars by March 2025. This steady upward trend indicates consistent growth in net asset value per share without drastic changes.

Price-to-Book Value (P/BV) Ratio Dynamics

The P/BV ratio began at approximately 1.51 in March 2021 and increased to its highest level of 1.83 by December 2021, coinciding with the peak in share price. Thereafter, the ratio declined significantly during 2023, reaching a low near 0.95 in mid-2024, a level indicating that the market price was close to or below book value per share. In late 2024 and early 2025 the ratio experienced a moderate rebound, moving back above 1.0 to 1.14 by March 2025. The fluctuation in P/BV reflects market valuation changes relative to underlying net assets.

Overall Insights

The data reveals a period of market optimism and premium valuations through 2021, followed by a phase of price correction and consolidation in 2022 and 2023. While net asset value per share increased steadily, the share price's volatility resulted in corresponding fluctuations in valuation multiples. The recovery in share price and P/BV ratio in late 2024 and early 2025 suggests a restoration of investor confidence or improved market conditions.