McKesson
Market Cap
US$29.6b
Last Updated
2021/01/20 23:30 UTC
Data Sources
Company Financials +
Executive Summary
McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Good value average dividend payer.
Similar Companies
Share Price & News
How has McKesson's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MCK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MCK's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.4%
MCK
-1.6%
US Healthcare
0.3%
US Market
1 Year Return
18.2%
MCK
14.0%
US Healthcare
21.1%
US Market
Return vs Industry: MCK exceeded the US Healthcare industry which returned 14% over the past year.
Return vs Market: MCK underperformed the US Market which returned 21.1% over the past year.
Shareholder returns
| MCK | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.4% | -1.6% | 0.3% |
| 30 Day | 7.4% | 5.7% | 3.3% |
| 90 Day | 19.4% | 14.0% | 14.2% |
| 1 Year | 19.5%18.2% | 15.4%14.0% | 23.8%21.1% |
| 3 Year | 9.0%5.5% | 31.6%26.2% | 45.0%35.4% |
| 5 Year | 15.8%10.3% | 93.3%79.4% | 127.7%102.3% |
Long-Term Price Volatility Vs. Market
How volatile is McKesson's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
A Closer Look At McKesson Corporation's (NYSE:MCK) Impressive ROE3 weeks ago | Simply Wall St
Does McKesson Corporation (NYSE:MCK) Have A Place In Your Dividend Portfolio?1 month ago | Simply Wall St
Is There Now An Opportunity In McKesson Corporation (NYSE:MCK)?Valuation
Is McKesson undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MCK ($184.16) is trading below our estimate of fair value ($443.85)
Significantly Below Fair Value: MCK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MCK is good value based on its PE Ratio (14x) compared to the US Healthcare industry average (29.8x).
PE vs Market: MCK is good value based on its PE Ratio (14x) compared to the US market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: MCK is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: MCK is overvalued based on its PB Ratio (5x) compared to the US Healthcare industry average (3.5x).
Next Steps
Future Growth
How is McKesson forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
4.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCK's forecast earnings growth (4.2% per year) is above the savings rate (2%).
Earnings vs Market: MCK's earnings (4.2% per year) are forecast to grow slower than the US market (21.5% per year).
High Growth Earnings: MCK's earnings are forecast to grow, but not significantly.
Revenue vs Market: MCK's revenue (4.6% per year) is forecast to grow slower than the US market (10.4% per year).
High Growth Revenue: MCK's revenue (4.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MCK's Return on Equity is forecast to be high in 3 years time (36.3%)
Next Steps
Past Performance
How has McKesson performed over the past 5 years?
-32.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCK has high quality earnings.
Growing Profit Margin: MCK became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: MCK's earnings have declined by 32.5% per year over the past 5 years.
Accelerating Growth: MCK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: MCK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (21.4%).
Return on Equity
High ROE: Whilst MCK's Return on Equity (33.19%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is McKesson's financial position?
Financial Position Analysis
Short Term Liabilities: MCK's short term assets ($42.3B) do not cover its short term liabilities ($42.7B).
Long Term Liabilities: MCK's short term assets ($42.3B) exceed its long term liabilities ($11.5B).
Debt to Equity History and Analysis
Debt Level: MCK's debt to equity ratio (101.1%) is considered high.
Reducing Debt: MCK's debt to equity ratio has increased from 91.1% to 101.1% over the past 5 years.
Debt Coverage: MCK's debt is well covered by operating cash flow (60.4%).
Interest Coverage: MCK's interest payments on its debt are well covered by EBIT (15.4x coverage).
Balance Sheet
Next Steps
Dividend
What is McKesson current dividend yield, its reliability and sustainability?
0.91%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCK's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: MCK's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (3.87%).
Stability and Growth of Payments
Stable Dividend: MCK's dividends per share have been stable in the past 10 years.
Growing Dividend: MCK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (12.6%), MCK's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MCK's dividends in 3 years are forecast to be thoroughly covered by earnings (8.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Brian Tyler (53 yo)
1.75yrs
Tenure
US$15,435,470
Compensation
Mr. Brian S. Tyler, Ph.D., has been Chief Executive Officer and Director at McKesson Corporation since April 1, 2019 and also served as its President and Chief Operating Officer since August 02, 2018 until...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD15.44M) is above average for companies of similar size in the US market ($USD10.54M).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.75yrs | US$15.44m | 0.012% $ 3.5m | |
| Executive VP & CFO | 3yrs | US$5.30m | 0.0039% $ 1.2m | |
| Executive VP | 6.58yrs | US$5.31m | 0.012% $ 3.5m | |
| Executive VP & Chief Human Resources Officer | 1.25yrs | US$2.56m | 0.0013% $ 387.4k | |
| Senior VP | 2.5yrs | no data | 0.0013% $ 375.5k | |
| Executive VP | 1yr | no data | no data | |
| Senior Vice President of Investor Relations | no data | no data | no data | |
| Senior Vice President of Corporate Public Affairs | 5.58yrs | no data | no data | |
| President of The US Pharmaceutical & Specialty Solutions Business | 1.75yrs | no data | no data | |
| Senior Vice President of Taxes | no data | no data | no data | |
| Executive VP & Chief Strategy and Business Development Officer | 0.58yr | no data | no data | |
| Chief Impact Officer | 0.17yr | no data | no data |
1.8yrs
Average Tenure
52yo
Average Age
Experienced Management: MCK's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.75yrs | US$15.44m | 0.012% $ 3.5m | |
| Independent Director | 6.25yrs | US$305.55k | 0.00081% $ 239.5k | |
| Independent Director | 1.25yrs | US$190.55k | no data | |
| Independent Director | 22yrs | US$302.05k | 0% $ 0 | |
| Independent Director | 18.83yrs | US$308.55k | no data | |
| Independent Chairman of the Board | 1.75yrs | US$565.34k | no data | |
| Independent Director | 2.33yrs | US$318.55k | no data | |
| Independent Director | 6.25yrs | US$303.55k | 0.0013% $ 369.6k | |
| Independent Director | 6.75yrs | US$324.55k | 0% $ 0 | |
| Independent Director | 2.75yrs | US$306.55k | no data | |
| Independent Director | 0.25yr | no data | no data | |
| Independent Director | 1.5yrs | US$277.95k | no data |
2.5yrs
Average Tenure
62yo
Average Age
Experienced Board: MCK's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MCK insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
McKesson Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: McKesson Corporation
- Ticker: MCK
- Exchange: NYSE
- Founded: 1833
- Industry: Health Care Distributors
- Sector: Healthcare
- Market Cap: US$29.570b
- Shares outstanding: 160.56m
- Website: https://www.mckesson.com
Number of Employees
Location
- McKesson Corporation
- 6555 State Highway 161
- Irving
- Texas
- 75039
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MCK | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Nov 1994 |
| MCK | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 1994 |
| MCK * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Nov 1994 |
| 0JZU | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Nov 1994 |
| M1CK34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions, Inter...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/20 23:30 |
| End of Day Share Price | 2021/01/20 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.