McKesson
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McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. The last earnings update was 81 days ago. More info.
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MCK Share Price and Events
7 Day Returns
1 Year Returns
MCK Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| McKesson (MCK) | -4% | -5.1% | -10.6% | -24.2% | -36.5% | -32.8% |
| US Healthcare | -3% | -7.7% | -11.8% | -5.1% | 10.9% | 60.2% |
| US Market | -0.8% | 2.7% | 7.5% | 7% | 37.9% | 47% |
1 Year Return vs Industry and Market
- MCK underperformed the Healthcare industry which returned -5.1% over the past year.
- MCK underperformed the Market in United States of America which returned 7% over the past year.
MCK Value
Is McKesson undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
McKesson
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for McKesson.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 16 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.6% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Healthcare Unlevered Beta | Simply Wall St/ S&P Global | 0.71 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.712 (1 + (1- 21%) (45.65%)) |
0.979 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.98 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.979 * 5.96%) |
8.56% |
Discounted Cash Flow Calculation for NYSE:MCK using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for McKesson is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.56%) |
|
|---|---|---|---|
| 2019 | 3,065.84 | Analyst x5 | 2,823.98 |
| 2020 | 2,911.08 | Analyst x5 | 2,469.89 |
| 2021 | 2,759.17 | Analyst x3 | 2,156.32 |
| 2022 | 2,872.00 | Analyst x1 | 2,067.43 |
| 2023 | 2,895.00 | Analyst x1 | 1,919.58 |
| 2024 | 2,923.29 | Est @ 0.98% | 1,785.42 |
| 2025 | 2,967.23 | Est @ 1.5% | 1,669.29 |
| 2026 | 3,022.75 | Est @ 1.87% | 1,566.37 |
| 2027 | 3,087.10 | Est @ 2.13% | 1,473.52 |
| 2028 | 3,158.39 | Est @ 2.31% | 1,388.61 |
| Present value of next 10 years cash flows | $19,320.41 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $3,158.39 × (1 + 2.73%) ÷ (8.56% – 2.73%) |
$55,609.34 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $55,609.34 ÷ (1 + 8.56%)10 |
$24,449.13 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $19,320.41 + $24,449.13 |
$43,769.54 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $43,769.54 / 191.83 |
$228.17 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $228.17 |
| Current discount | Discount to share price of
$112.47
= -1 x ($112.47 - $228.17) / $228.17 |
50.7% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- McKesson's share price is below the future cash flow value, and at a moderate discount (> 20%).
- McKesson's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for McKesson's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
McKesson's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $-1.60 |
| NYSE:MCK Share Price ** | NYSE (2019-04-22) in USD | $112.47 |
| United States of America Healthcare Industry PE Ratio | Median Figure of 53 Publicly-Listed Healthcare Companies | 20.9x |
| United States of America Market PE Ratio | Median Figure of 3,080 Publicly-Listed Companies | 18.21x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of McKesson.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:MCK Share Price ÷ EPS (both in USD) = 112.47 ÷ -1.60 |
-70.43x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- McKesson is loss making, we can't compare its value to the US Healthcare industry average.
- McKesson is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does
McKesson's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | -70.43x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts |
22%per year |
| United States of America Healthcare Industry PEG Ratio | Median Figure of 40 Publicly-Listed Healthcare Companies | 1.48x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to calculate PEG ratio for McKesson, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
McKesson's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $47.88 |
| NYSE:MCK Share Price * | NYSE (2019-04-22) in USD | $112.47 |
| United States of America Healthcare Industry PB Ratio | Median Figure of 92 Publicly-Listed Healthcare Companies | 2.33x |
| United States of America Market PB Ratio | Median Figure of 5,186 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:MCK Share Price ÷ Book Value per Share (both in USD) = 112.47 ÷ 47.88 |
2.35x |
* Primary Listing of McKesson.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- McKesson is overvalued based on assets compared to the US Healthcare industry average.
Value checks
We assess McKesson's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check) McKesson has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
MCK Future Performance
How is McKesson expected to perform in the next 1 to 3 years based on estimates from 16 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- McKesson's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- McKesson's earnings growth is expected to exceed the United States of America market average.
- McKesson's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:MCK Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts | 22% |
| NYSE:MCK Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts | 4.7% |
| United States of America Healthcare Industry Earnings Growth Rate | Market Cap Weighted Average | 13.2% |
| United States of America Healthcare Industry Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.5% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 16 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-03-31 | 272,898 | 4,000 | 2,155 | 1 |
| 2022-03-31 | 251,411 | 3,931 | 2,092 | 2 |
| 2021-03-31 | 231,190 | 3,724 | 2,050 | 10 |
| 2020-03-31 | 222,710 | 3,682 | 1,960 | 16 |
| 2019-03-31 | 214,932 | 3,756 | 1,316 | 16 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 213,518 | 3,165 | -319 |
| 2018-09-30 | 210,927 | 3,324 | 113 |
| 2018-06-30 | 209,913 | 2,543 | -384 |
| 2018-03-31 | 208,357 | 4,345 | 62 |
| 2017-12-31 | 205,442 | 2,756 | 4,805 |
| 2017-09-30 | 201,955 | 3,155 | 4,539 |
| 2017-06-30 | 199,851 | 3,626 | 4,846 |
| 2017-03-31 | 198,533 | 4,744 | 5,194 |
| 2016-12-31 | 196,498 | 6,415 | 2,051 |
| 2016-09-30 | 194,267 | 5,349 | 2,044 |
| 2016-06-30 | 193,071 | 5,077 | 2,359 |
| 2016-03-31 | 190,884 | 3,672 | 2,290 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 16 Analyst Estimates (S&P Global) | See Below |
All data from McKesson Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-03-31 | 14.39 | 14.39 | 14.39 | 1.00 |
| 2022-03-31 | 13.00 | 13.00 | 13.00 | 1.00 |
| 2021-03-31 | 12.08 | 13.06 | 10.44 | 4.00 |
| 2020-03-31 | 10.76 | 11.97 | 9.04 | 4.00 |
| 2019-03-31 | 6.81 | 7.09 | 6.56 | 4.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | -1.60 |
| 2018-09-30 | 0.56 |
| 2018-06-30 | -1.87 |
| 2018-03-31 | 0.30 |
| 2017-12-31 | 22.91 |
| 2017-09-30 | 21.31 |
| 2017-06-30 | 22.28 |
| 2017-03-31 | 23.50 |
| 2016-12-31 | 9.13 |
| 2016-09-30 | 9.00 |
| 2016-06-30 | 10.34 |
| 2016-03-31 | 9.96 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess McKesson's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
McKesson has a total score of 4/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
MCK Past Performance
How has McKesson performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- McKesson does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
- Unable to compare McKesson's 1-year earnings growth to the 5-year average as it is not currently profitable.
- Unable to compare McKesson's 1-year growth to the US Healthcare industry average as it is not currently profitable.
Earnings and Revenue History
All data from McKesson Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 213,518.00 | -319.00 | 8,362.00 | 125.00 |
| 2018-09-30 | 210,927.00 | 113.00 | 8,152.00 | 125.00 |
| 2018-06-30 | 209,913.00 | -384.00 | 8,300.00 | 125.00 |
| 2018-03-31 | 208,357.00 | 62.00 | 8,138.00 | 125.00 |
| 2017-12-31 | 205,442.00 | 4,805.00 | 7,464.00 | 341.00 |
| 2017-09-30 | 201,955.00 | 4,539.00 | 7,503.00 | 341.00 |
| 2017-06-30 | 199,851.00 | 4,846.00 | 7,317.00 | 341.00 |
| 2017-03-31 | 198,533.00 | 5,194.00 | 7,460.00 | 341.00 |
| 2016-12-31 | 196,498.00 | 2,051.00 | 7,149.00 | 392.00 |
| 2016-09-30 | 194,267.00 | 2,044.00 | 7,264.00 | 392.00 |
| 2016-06-30 | 193,071.00 | 2,359.00 | 7,283.00 | 392.00 |
| 2016-03-31 | 190,884.00 | 2,290.00 | 7,379.00 | 392.00 |
| 2015-12-31 | 189,131.00 | 2,237.00 | 7,573.00 | 392.00 |
| 2015-09-30 | 187,716.00 | 2,090.00 | 7,342.00 | 392.00 |
| 2015-06-30 | 183,115.00 | 1,950.00 | 7,781.00 | 392.00 |
| 2015-03-31 | 179,045.00 | 1,775.00 | 7,901.00 | 392.00 |
| 2014-12-31 | 171,952.00 | 1,780.00 | 7,323.00 | 457.00 |
| 2014-09-30 | 159,804.00 | 1,462.00 | 6,932.00 | 457.00 |
| 2014-06-30 | 148,629.00 | 1,402.00 | 6,143.00 | 457.00 |
| 2014-03-31 | 137,392.00 | 1,419.00 | 5,388.00 | 457.00 |
| 2013-12-31 | 130,076.00 | 1,278.00 | 4,675.00 | 433.00 |
| 2013-09-30 | 126,839.00 | 1,420.00 | 4,554.00 | 433.00 |
| 2013-06-30 | 123,609.00 | 1,396.00 | 4,298.00 | 433.00 |
| 2013-03-31 | 122,196.00 | 1,363.00 | 4,110.00 | 433.00 |
| 2012-12-31 | 123,252.00 | 1,605.00 | 3,993.00 | 440.00 |
| 2012-09-30 | 122,992.00 | 1,599.00 | 3,838.00 | 440.00 |
| 2012-06-30 | 123,453.00 | 1,496.00 | 3,850.00 | 440.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- It is difficult to establish if McKesson has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
- It is difficult to establish if McKesson has efficiently used its assets last year compared to the US Healthcare industry average (Return on Assets) as it is loss-making.
- It is difficult to establish if McKesson improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
Past performance checks
We assess McKesson's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
McKesson has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
MCK Health
How is McKesson's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up McKesson's finances.
The net worth of a company is the difference between its assets and liabilities.
- McKesson is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- McKesson's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 3.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from McKesson Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 10,793.00 | 9,849.00 | 1,849.00 |
| 2018-09-30 | 10,949.00 | 9,215.00 | 2,118.00 |
| 2018-06-30 | 11,069.00 | 9,877.00 | 2,199.00 |
| 2018-03-31 | 11,516.00 | 8,109.00 | 2,672.00 |
| 2017-12-31 | 13,407.00 | 8,957.00 | 2,619.00 |
| 2017-09-30 | 12,785.00 | 8,453.00 | 2,563.00 |
| 2017-06-30 | 12,903.00 | 7,978.00 | 2,339.00 |
| 2017-03-31 | 12,600.00 | 8,545.00 | 2,783.00 |
| 2016-12-31 | 9,163.00 | 9,123.00 | 2,434.00 |
| 2016-09-30 | 10,964.00 | 8,107.00 | 5,464.00 |
| 2016-06-30 | 10,831.00 | 8,110.00 | 4,659.00 |
| 2016-03-31 | 10,414.00 | 8,122.00 | 4,048.00 |
| 2015-12-31 | 10,338.00 | 8,718.00 | 3,406.00 |
| 2015-09-30 | 10,283.00 | 9,388.00 | 5,359.00 |
| 2015-06-30 | 10,369.00 | 9,796.00 | 5,635.00 |
| 2015-03-31 | 9,471.00 | 9,844.00 | 5,341.00 |
| 2014-12-31 | 10,617.00 | 10,394.00 | 4,587.00 |
| 2014-09-30 | 10,526.00 | 10,572.00 | 3,804.00 |
| 2014-06-30 | 10,765.00 | 10,673.00 | 4,105.00 |
| 2014-03-31 | 10,318.00 | 10,595.00 | 4,193.00 |
| 2013-12-31 | 8,027.00 | 4,874.00 | 2,431.00 |
| 2013-09-30 | 7,989.00 | 4,874.00 | 2,960.00 |
| 2013-06-30 | 7,408.00 | 4,874.00 | 2,905.00 |
| 2013-03-31 | 7,070.00 | 4,873.00 | 2,456.00 |
| 2012-12-31 | 7,649.00 | 4,479.00 | 2,726.00 |
| 2012-09-30 | 7,715.00 | 3,581.00 | 2,831.00 |
| 2012-06-30 | 7,203.00 | 3,580.00 | 2,013.00 |
- McKesson's level of debt (91.3%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (61.3% vs 91.3% today).
- Debt is well covered by operating cash flow (32.1%, greater than 20% of total debt).
- McKesson is making a loss, therefore interest payments are not well covered by earnings.
Financial health checks
We assess McKesson's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) McKesson has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
MCK Dividends
What is McKesson's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
McKesson
shares you are expected to receive
$28
in your first year as a dividend.
Dividend Amount
- McKesson's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
- McKesson's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 16 Analyst Estimates (S&P Global) | See Below |
| United States of America Healthcare Industry Average Dividend Yield | Market Cap Weighted Average of 21 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2008 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-03-31 | ||
| 2022-03-31 | ||
| 2021-03-31 | 1.69 | 5.00 |
| 2020-03-31 | 1.61 | 9.00 |
| 2019-03-31 | 1.47 | 9.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-31 | 1.560 | 1.285 |
| 2018-07-26 | 1.560 | 1.245 |
| 2018-04-25 | 1.360 | 0.950 |
| 2018-02-05 | 1.360 | 0.921 |
| 2017-10-26 | 1.360 | 0.889 |
| 2017-07-27 | 1.360 | 0.897 |
| 2017-05-24 | 1.120 | 0.682 |
| 2017-01-25 | 1.120 | 0.774 |
| 2016-10-27 | 1.120 | 0.786 |
| 2016-07-26 | 1.120 | 0.634 |
| 2016-05-25 | 1.120 | 0.599 |
| 2016-01-27 | 1.120 | 0.687 |
| 2015-10-30 | 1.120 | 0.608 |
| 2015-07-29 | 1.120 | 0.565 |
| 2015-05-27 | 0.960 | 0.414 |
| 2015-01-28 | 0.960 | 0.423 |
| 2014-10-21 | 0.960 | 0.461 |
| 2014-07-30 | 0.960 | 0.496 |
| 2014-05-28 | 0.960 | 0.510 |
| 2014-01-29 | 0.960 | 0.549 |
| 2013-10-25 | 0.960 | 0.591 |
| 2013-07-25 | 0.960 | 0.748 |
| 2013-05-22 | 0.800 | 0.694 |
| 2013-01-30 | 0.800 | 0.743 |
| 2012-10-26 | 0.800 | 0.823 |
| 2012-07-25 | 0.800 | 0.904 |
| 2012-05-23 | 0.800 | 0.876 |
| 2012-01-25 | 0.800 | 0.930 |
| 2011-10-28 | 0.800 | 1.010 |
| 2011-07-27 | 0.800 | 1.057 |
| 2011-05-03 | 0.800 | 0.957 |
| 2011-01-26 | 0.720 | 0.911 |
| 2010-10-29 | 0.720 | 1.047 |
| 2010-07-28 | 0.720 | 1.172 |
| 2010-05-26 | 0.720 | 1.056 |
| 2010-01-20 | 0.480 | 0.757 |
| 2009-10-30 | 0.480 | 0.768 |
| 2009-07-22 | 0.480 | 0.854 |
| 2009-05-27 | 0.480 | 1.112 |
| 2009-04-23 | 0.480 | 1.237 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Income/ dividend checks
We assess McKesson's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can McKesson afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) McKesson has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
MCK Management
CEO
| COMPENSATION | $4,664,793 |
| AGE | 51 |
| TENURE AS CEO | 0 years |
CEO Bio
Mr. Brian S. Tyler, Ph.D., has been President and Chief Operating Officer at McKesson Corp. since August 02, 2018. Mr. Tyler serves as Chief Executive Officer and Director since April 1, 2019 at McKesson Corporation. He served as the President of North American Pharmaceutical Distribution and Services at McKesson Corporation since February 17, 2015. Mr. Tyler served as Chairman of the Management Board, Chief Executive Officer and Human Resources and Labour Relations Director of McKesson Europe AG until 2018. He was CEO, McKesson Canada, President, McKesson Prescription Technology Solutions (MRxTS), President, Transformation Initiatives and Chairman, Management Board, McKesson Europe. He served as Executive Vice President of Corporate Strategy & Business Development at McKesson Corporation until February 17, 2015. Mr. Tyler served as an Executive Vice President of Corporate Strategy and Business Development at McKesson Corporation since August 23, 2012. Mr. Tyler served as President of McKesson Pharmaceutical for US at McKesson Medical-Surgical, Inc., since January 2011 until August 23, 2012. He served as the President at McKesson Medical-Surgical, Inc. and McKesson Corporation from April 1, 2006 to December 2010. He has been the Chairman of Supervisory Board at McKesson Europe AG since 2018. Mr. Tyler joined McKesson Health Systems in 1997 in business development. He served in various senior management roles at McKesson, including Vice President for Business Development and Vice President. From 2000 to 2003, he served as Senior Vice President for Business Development and Strategy of McKesson Supply Solutions. A 13-year McKesson veteran, Mr. Tyler has extensive experience across the full range of it's distribution businesses. He started his career as the vice president of strategic business services and then became the senior vice president of business development and sales strategy for the health systems group within McKesson U.S. Pharmaceutical. Mr. Tyler later served as senior vice president of strategy and business development for all of McKesson Distribution Solutions, with responsibility for strategic planning, joint ventures, alliances and other business development activities for McKesson's pharmaceutical distribution, medical-surgical, health solutions and retail automation groups. Following his role in strategy and business development, Mr. Tyler ran McKesson Specialty Care Solutions, with responsibility for specialty distribution, pharmacy, marketing services, logistics and Prospective Health, Inc. Mr. Tyler served as the President of McKesson Specialty Pharmaceutical since 2003. He served as a Senior Associate for Integral, Inc. Mr. Tyler served as a Director of Patterson Companies, Inc. from December 2009 to December 10, 2012. He served as a Director at VistaCare, LLC from December 6, 2006 to 2008. He was an Industry Consultant. Mr. Tyler earned his Ph.D. and Master of Arts degrees from the University of Chicago, Department of Economics in June 1994, where he studied under a grant from the National Sciences Foundation. His specializations included industrial organization, labor economics, public finance and project evaluation. Mr. Tyler earned his Bachelor of Arts degree in Economics with high honors from the University of California Santa Cruz in June 1989.
CEO Compensation
- Insufficient data for Brian to compare compensation growth.
- Insufficient data for Brian to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the McKesson management team in years:
- The tenure for the McKesson management team is about average.
Management Team
Britt Vitalone
CFO & Executive VP
$2M
49
1.3 yrs
Lori Schechter
Chief Compliance Officer
$4M
56
4.8 yrs
Jorge Figueredo
Executive VP & Chief Human Resources Officer
$4M
57
10.9 yrs
Bansi Nagji
Executive VP and Chief Strategy & Business Development Officer
$3M
53
4.2 yrs
Brian Tyler
President
$5M
51
Sundeep Reddy
Senior VP
44
0.8 yrs
Kathy McElligott
Chief Technology Officer
62
3.8 yrs
Craig Mercer
Senior Vice President of Investor Relations
47
2.8 yrs
Pete Slone
Senior Vice President of Corporate Public Affairs
3.8 yrs
Kirk Kaminsky
President of The US Pharmaceutical & Specialty Solutions Business
Board of Directors Tenure
Average tenure and age of the McKesson board of directors in years:
- The tenure for the McKesson board of directors is about average.
Board of Directors
Ed Mueller
Independent Chairman of the Board
$352K
71
Brian Tyler
President
$5M
51
Marie Knowles
Independent Director
$312K
72
17.1 yrs
N. Coles
Independent Director
$329K
58
5 yrs
Don Knauss
Independent Director
$326K
67
4.5 yrs
Nowakowski Salka
Independent Director
$367K
53
4.5 yrs
Brad Lerman
Independent Director
60
1 yrs
Chris Jacobs
Independent Director
$290K
67
20.3 yrs
Dominic Caruso
Independent Director
60
0.6 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess McKesson's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) McKesson has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
MCK News
Simply Wall St News
Is McKesson Corporation's (NYSE:MCK) Balance Sheet A Threat To Its Future?
There are a number of reasons that attract investors towards large-cap companies such as McKesson Corporation (NYSE:MCK), with a market cap of US$22b. … This article will examine McKesson’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis
Simply Wall St - – Full articleDid Changing Sentiment Drive McKesson's (NYSE:MCK) Share Price Down By 35%?
At this point some shareholders may be questioning their investment in McKesson Corporation (NYSE:MCK), since the last five years saw the share price fall 35%. … In the last half decade McKesson saw its share price fall as its EPS declined below zero. … Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change.
Simply Wall St - – Full articleWhat Kind Of Shareholders Own McKesson Corporation (NYSE:MCK)?
Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We'd expect to see both institutions and retail investors owning a portion of the company. … institutions are noticeable on the share registry.
Simply Wall St - – Full articleIs McKesson Corporation (NYSE:MCK) Investing Your Capital Efficiently?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Simply Wall St - – Full articleHow Many Insiders Sold McKesson Corporation (NYSE:MCK) Shares?
We often see insiders buying up shares in companies that perform well over the long term. … So we'll take a look at whether insiders have been buying or selling shares in McKesson Corporation (NYSE:MCK). … In the last twelve months, the biggest single sale by an insider was when Erin Lampert sold US$211k worth of shares at a price of US$149 per share.
Simply Wall St - – Full articleDoes McKesson Corporation's (NYSE:MCK) Debt Level Pose A Problem?
the health of the financials determines whether the company continues to succeed. … Today we will look at McKesson’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis
Simply Wall St - – Full articleShould You Be Worried About McKesson Corporation's (NYSE:MCK) 3.1% Return On Equity?
McKesson has a ROE of 3.1%, based on the last twelve months. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.031. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhat Kind Of Investor Owns Most Of McKesson Corporation (NYSE:MCK)?
Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We also tend to see lower insider ownership in companies that were previously publicly owned. … We'd expect to see both institutions and retail investors owning a portion of the company.
Simply Wall St - – Full articleIs McKesson Corporation (NYSE:MCK) Overpaying Its CEO?
This analysis aims first to contrast CEO compensation with other large companies. … How Does John Hammergren's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that McKesson Corporation has a market cap of US$24.8b, and is paying total annual CEO compensation of US$18m.
Simply Wall St - – Full articleIs It Time To Consider Buying McKesson Corporation (NYSE:MCK)?
received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $136.84 at one point, and dropping to the lows of $123.14. … A question to answer is whether McKesson's current trading price of $126.73 reflective of the actual value of the? … Let’s take a look at McKesson’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleMCK Company Info
Description
McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. It operates in three segments: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs, as well as other healthcare-related products; and offers practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices. It also provides specialty pharmaceutical solutions for pharmaceutical manufacturers; and medical-surgical supply distribution, logistics, and other services to healthcare providers. In addition, the company operates retail pharmacy chains in Europe and Canada, as well as supports independent pharmacy networks within North America and Europe; and supplies integrated pharmacy management systems, automated dispensing systems, and related services to retail, outpatient, central fill, specialty, and mail order pharmacies. Further, it provides software and analytics, network solutions, and technology-enabled services. The company serves retail national accounts, including national and regional chains, food and drug combinations, mail order pharmacies, and mass merchandisers; independent retail pharmacies; and institutional healthcare providers, such as hospitals, health systems, integrated delivery networks, and long-term care providers, as well as pharmaceutical manufacturers. McKesson Corporation was founded in 1833 and is headquartered in San Francisco, California.
Details
| Name: | McKesson Corporation |
| MCK | |
| Exchange: | NYSE |
| Founded: | 1833 |
| $21,574,588,341 | |
| 191,825,272 | |
| Website: | http://www.mckesson.com |
| Address: |
McKesson Corporation One Post Street, San Francisco, California, 94104, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | MCK | Common Stock | New York Stock Exchange | US | USD | 10. Nov 1994 | |
| DB | MCK | Common Stock | Deutsche Boerse AG | DE | EUR | 10. Nov 1994 | |
| LSE | 0JZU | Common Stock | London Stock Exchange | GB | USD | 10. Nov 1994 | |
| BMV | MCK * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 10. Nov 1994 |
Number of employees
Current staff
Industry
| Health Care Distributors | |
| Healthcare |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/22 23:41 |
| End of day share price update: | 2019/04/22 00:00 |
| Last estimates confirmation: | 2019/04/18 |
| Last earnings filing: | 2019/01/31 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/03/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
