CVSCAUTIOUS

CVS Return on Equity (ROE) Analysis

6.2%

Updated 105h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so a 6.2% ROE means CVS earns $0.062 for every $1 of invested equity.

Sector Performance

25th percentile

CVS

6.2%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

3.8%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so a 6.2% ROE means CVS earns $0.062 for every $1 of invested equity.

This sits well below the sector median of 13.3%, placing the company in the 24th percentile among its peers, indicating weaker profitability than most competitors. The trend data for this metric is N/A, with both the year-over-year change and quarter-over-quarter change reported as N/A, so no recent direction can be inferred. The combination of a low ROE and an unavailable trend suggests current returns are subpar, but the lack of historical context leaves open whether this is a temporary dip or a sustained weakness. For an investor, this level of return signals below-average efficiency in using equity, which heightens risk relative to the broader sector. This metric directly supports the overall CAUTIOUS verdict, as CVS’s ROE is clearly inferior to its peers and offers no evidence of improvement.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CVS?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are CVS's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.