CVS Health Corporation (CVS) exhibits 45.0% gross margins and 2.6% return on invested capital within Consumer Staples (Retail-Drug Stores and Proprietary Stores), balanced against a 25.7x enterprise multiple and 6.5% implied options volatility.
Sustained 45.0% gross profitability converts into 1.2% operating margin and 2.6% ROIC, outpacing sector cost of capital.
ROIC: 2.6% // GM: 45.0%YoY revenue trajectory of +7.8% paired with 6.76% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +7.8% // FCF YLD: 6.76%Altman Z-Score of 2.31 and Piotroski F-Score of 7/9 indicate low near-term refinancing stress.
ALTMAN Z: 2.31 // F-SCORE: 7/9Trading at 65.3x trailing P/E (60.7x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 65.3x // EV/EBITDA: 25.7xOptions market prices a ±6.5% implied move with a 0.87 put/call ratio around $89.00 max pain.
IMPL MOVE: ±6.5% // P/C: 0.87Elevated industry capital intensity and customer concentration in Retail-Drug Stores and Proprietary Stores require continuous execution to defend 0.4% net margins.
NET MARGIN: 0.4% // D/E: 0.99x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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