HMSE:CLS1

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

McKesson Europe AG provides logistics and services to the pharmaceutical and healthcare sectors worldwide.


Snowflake Analysis

Mediocre balance sheet not a dividend payer.


Similar Companies

Share Price & News

How has McKesson Europe's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CLS1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

CLS1

1.3%

DE Healthcare

1.5%

DE Market


1 Year Return

-2.6%

CLS1

-1.2%

DE Healthcare

-1.8%

DE Market

Return vs Industry: CLS1 matched the German Healthcare industry which returned -1.7% over the past year.

Return vs Market: CLS1 underperformed the German Market which returned -0.7% over the past year.


Shareholder returns

CLS1IndustryMarket
7 Day1.2%1.3%1.5%
30 Day1.2%2.3%4.3%
90 Day5.2%26.2%25.1%
1 Year0.5%-2.6%-0.9%-1.2%0.2%-1.8%
3 Year7.2%-2.5%-24.3%-26.7%1.3%-6.9%
5 Yearn/a-8.1%-12.3%15.0%-0.2%

Price Volatility Vs. Market

How volatile is McKesson Europe's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is McKesson Europe undervalued compared to its fair value and its price relative to the market?

2.68x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CLS1 (€26.1) is trading above our estimate of fair value (€16.78)

Significantly Below Fair Value: CLS1 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CLS1 is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.

PE vs Market: CLS1 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CLS1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CLS1 is overvalued based on its PB Ratio (2.7x) compared to the DE Healthcare industry average (1.4x).


Next Steps

Future Growth

How is McKesson Europe forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.0%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as McKesson Europe has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has McKesson Europe performed over the past 5 years?

81.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: CLS1 is currently unprofitable.

Growing Profit Margin: CLS1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if CLS1's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare CLS1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CLS1 is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (9.7%).


Return on Equity

High ROE: CLS1 has a negative Return on Equity (-2.62%), as it is currently unprofitable.


Next Steps

Financial Health

How is McKesson Europe's financial position?


Financial Position Analysis

Short Term Liabilities: CLS1's short term assets (€5.3B) exceed its short term liabilities (€3.7B).

Long Term Liabilities: CLS1's short term assets (€5.3B) exceed its long term liabilities (€1.4B).


Debt to Equity History and Analysis

Debt Level: CLS1's debt to equity ratio (49.5%) is considered high.

Reducing Debt: CLS1's debt to equity ratio has increased from 45.3% to 49.5% over the past 5 years.

Debt Coverage: CLS1's debt is well covered by operating cash flow (35.1%).

Interest Coverage: CLS1 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is McKesson Europe current dividend yield, its reliability and sustainability?

3.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CLS1's dividend (3.18%) is higher than the bottom 25% of dividend payers in the German market (1.28%).

High Dividend: CLS1's dividend (3.18%) is low compared to the top 25% of dividend payers in the German market (3.82%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CLS1 has been paying a dividend for less than 10 years.

Growing Dividend: CLS1 has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: CLS1 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Kevin Kettler

1.67yrs

Tenure

Mr. Kevin Kettler has been Chairman of the Management Board at McKesson Europe AG since November 1, 2018 and its Labour Relations Director since November 2018. 


Leadership Team

NamePositionTenureCompensationOwnership
Alain Vachon
CFO & Member of the Management Board6yrs€219.00kno data
Tilo Köster
Labour Relations Director5.83yrs€277.00kno data
Kevin Kettler
Chairman of the Management Board & Labour Relations Director1.67yrsno datano data
Nicole Herold
Head of Corporate Investor Relationsno datano datano data

5.8yrs

Average Tenure

Experienced Management: CLS1's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
W. M. Rehder
Deputy Chairman of the Supervisory Boardno data€20.30kno data
Ihno Goldenstein
Deputy Chairman of the Supervisory Boardno data€26.40kno data
Jörg Lauenroth-Mago
Employee Representative Member of the Supervisory Board11.08yrs€16.80kno data
Lori Schechter
Member of the Supervisory Board4yrsno datano data
Brian Tyler
Chairman of Supervisory Board1.92yrsno datano data
Susan Naumann
Employee Representative Member of the Supervisory Board12.25yrs€16.80kno data
Pauline Lindwall
Member of the Supervisory Board7.17yrs€16.80kno data
Detlef Bernhardt
Employee representative Member of the Supervisory Board2.92yrsno datano data
Dennis Both
Employee representative Member of the Supervisory Board2.42yrsno datano data
Jack Stephens
Shareholder Representative of the Supervisory Board0.25yrno datano data

3.5yrs

Average Tenure

59yo

Average Age

Experienced Board: CLS1's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

McKesson Europe AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: McKesson Europe AG
  • Ticker: CLS1
  • Exchange: HMSE
  • Founded: 1835
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: €5.304b
  • Shares outstanding: 203.22m
  • Website: https://www.mckesson.eu/mck-en

Number of Employees


Location

  • McKesson Europe AG
  • Stockholmer Platz 1
  • Stuttgart
  • 70137
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAKF.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNo data
CAKF.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJan 1992
0OPBLSE (London Stock Exchange)YesRegistered SharesGBEURJan 1992
CLS1HMSE (Hamburg Stock Exchange)YesRegistered SharesDEEURJan 1992
CAKF.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

McKesson Europe AG provides logistics and services to the pharmaceutical and healthcare sectors worldwide. The company operates through two divisions, Consumer Solutions and Pharmacy Solutions. The Consumer Solutions division operates approximately 2,000 own and 300 managed retail pharmacies and approximately 7,000 participants in its brand partnership schemes. The Pharmacy Solutions division engages in the wholesale of pharmaceutical products. It also provides supplementary services for pharmacists, such as the organization and management of pharmacy cooperation programs in the United Kingdom, Germany, France, Portugal, and Belgium. This division serves its customers through 118 wholesale branches that supplies approximately 100,000 pharmaceutical products to approximately 50,000 pharmacies and hospitals. The company was formerly known as Celesio AG and changed its name to McKesson Europe AG in September 2017. The company was founded in 1835 and is headquartered in Stuttgart, Germany. McKesson Europe AG operates as a subsidiary of McKesson Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/01 19:33
End of Day Share Price2020/07/01 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.