CVS Health

We view the 2023 acquisitions of Oak Street Health and Signify Health as strategically logical but financially expensive. The 5.7 billion dollar impairment in 2025, the closure of 16 Oak Street centers, and a slower expansion cadence are tacit acknowledgments that returns will be lower and longer dated than underwritten.

Repurchases were well‑timed in early 2024 at depressed prices, but the cumulative effect of large M&A, subsequent write‑downs, and elevated leverage weighs heavily on our score. The announced deconsolidation of Omnicare via Chapter 11 simplifies the portfolio.

Capital deployment should prioritize debt, core PBM and specialty capabilities, and measured insurance growth rather than footprint expansion.