HMSE:CLS1

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.8%

CLS1

1.9%

DE Healthcare

2.4%

DE Market


1 Year Return

0%

CLS1

-30.5%

DE Healthcare

2.3%

DE Market


Shareholder returns

CLS1IndustryMarket
7 Day0.8%1.9%2.4%
30 Day0.8%-5.6%-0.2%
90 Day-2.2%-11.2%0.6%
1 Year3.2%0%-29.2%-30.5%5.5%2.3%
3 Yearn/a-28.6%-31.2%18.9%8.6%
5 Yearn/a17.5%10.9%44.8%25.1%

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

No news available

Valuation

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

2.71x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: CLS1 (€26.4) is trading above our estimate of fair value (€17.38)

Significantly Undervalued: 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

Low 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 (1.5x).


Next Steps

Future Growth

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

10.5%

Forecasted Healthcare industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CLS1's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if CLS1's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if CLS1's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if CLS1's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has McKesson Europe performed over the past 5 years?

-30.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CLS1 is unprofitable, and losses have increased over the past 5 years at a rate of -30.8% per year.

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 (19.5%).


Return on Equity

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


Return on Assets

ROA vs Industry: CLS1 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CLS1 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is McKesson Europe's financial position?


Financial Position Analysis

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

Long Term Liabilities: CLS1's short term assets (5.3B) exceeds 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

Information is not available.

Information is not available.


Next Steps

Dividend

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

3.14%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.4%markettop25%3.9%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CLS1's dividend (3.14%) is higher than the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: CLS1's dividend (3.14%) is low compared to the top 25% of dividend payers in the German market (3.86%).

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 2 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

What is the CEO of McKesson Europe's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Kevin Kettler 0

0.9yrs

Tenure

0

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. 


Management Age and Tenure

5.1yrs

Average Tenure

Experienced Management: CLS1's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

59yo

Average Age

Experienced Board: CLS1's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Nicole Herold

    Head of Corporate Investor Relations

    • Tenure: 0yrs
  • Alain Vachon (56yo)

    CFO & Member of the Management Board

    • Tenure: 5.3yrs
    • Compensation: €219.00k
  • Tilo Köster (58yo)

    Labour Relations Director

    • Tenure: 5.1yrs
    • Compensation: €277.00k
  • Kevin Kettler

    Chairman of the Management Board & Labour Relations Director

    • Tenure: 0.9yrs

Board Members

  • W. M. Rehder (66yo)

    Deputy Chairman of the Supervisory Board

    • Tenure: 0yrs
    • Compensation: €20.30k
  • Ihno Goldenstein (46yo)

    Deputy Chairman of the Supervisory Board

    • Tenure: 0yrs
    • Compensation: €26.40k
  • Jörg Lauenroth-Mago (63yo)

    Member of the Supervisory Board

    • Tenure: 10.3yrs
    • Compensation: €16.80k
  • Ulrich Neumeister (62yo)

    Employee representative Member of the Supervisory Board

    • Tenure: 16.5yrs
    • Compensation: €18.80k
  • Lori Schechter (57yo)

    Member of the Supervisory Board

    • Tenure: 3.3yrs
  • Brian Tyler (52yo)

    Chairman of Supervisory Board

    • Tenure: 1.2yrs
  • Susan Naumann (59yo)

    Employee representative Member of the Supervisory Board

    • Tenure: 11.5yrs
    • Compensation: €16.80k
  • Kathy McElligott (63yo)

    Member of the Supervisory Board

    • Tenure: 1.8yrs
  • Pauline Lindwall (58yo)

    Member of the Supervisory Board

    • Tenure: 6.4yrs
    • Compensation: €16.80k
  • Detlef Bernhardt

    Employee representative Member of the Supervisory Board

    • Tenure: 2.2yrs

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: €5.365b
  • 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 Consume ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 19:38
End of Day Share Price2019/10/11 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.