Loading...

McKesson

NYSE:MCK
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MCK
NYSE
$22B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. The last earnings update was 81 days ago. More info.


Add to Portfolio Compare Print
MCK Share Price and Events
7 Day Returns
-4%
NYSE:MCK
-3%
US Healthcare
-0.8%
US Market
1 Year Returns
-24.2%
NYSE:MCK
-5.1%
US Healthcare
7%
US Market
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.
Price Volatility
MCK
Industry
5yr Volatility vs Market
Related Companies

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for McKesson.

NYSE:MCK Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:MCK
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.

NYSE:MCK DCF 1st Stage: Next 10 year cash flow forecast
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
NYSE:MCK DCF 2nd Stage: Terminal Value
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
NYSE:MCK Total Equity Value
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
NYSE:MCK Discount to Share Price
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
Amount off the current price McKesson is available for.
Intrinsic value
>50%
Share price is $112.47 vs Future cash flow value of $228.17
Current Discount Checks
For McKesson to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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?
Raw Data
NYSE:MCK PE (Price to Earnings) Ratio Data Sources
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.

NYSE:MCK PE (Price to Earnings) Ratio Calculation
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?
Raw Data
NYSE:MCK PEG (Price to Earnings to Growth) Ratio Data Sources
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?
Raw Data
NYSE:MCK PB (Price to Book) Ratio Data Sources
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
NYSE:MCK PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess McKesson's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. 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!
Annual Growth Rate
22%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is McKesson expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:MCK Future Growth Rates Data Sources
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
Raw Data
NYSE:MCK Analysts Growth Expectations Data Sources
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 numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MCK Future Estimates Data
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
NYSE:MCK Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • McKesson's earnings are expected to grow significantly at over 20% yearly.
  • McKesson's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MCK 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.

NYSE:MCK Future Estimates Data
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
NYSE:MCK Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • McKesson is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess McKesson's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare McKesson's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
McKesson's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from McKesson Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MCK Past Revenue, Cash Flow and Net Income Data
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.
X
Past performance checks
We assess McKesson's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of McKesson's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from McKesson Company Filings, last reported 3 months ago.

NYSE:MCK Past Debt and Equity Data
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.
X
Financial health checks
We assess McKesson's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. McKesson has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
1.39%
Current annual income from McKesson dividends. Estimated to be 1.45% next year.
If you bought $2,000 of McKesson shares you are expected to receive $28 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NYSE:MCK Annualized Past and Future Dividends
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.

NYSE:MCK Future Dividends Estimate Data
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
NYSE:MCK Past Annualized Dividends Data
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.
Current Payout to shareholders
What portion of McKesson's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (10x coverage).
X
Income/ dividend checks
We assess McKesson's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian Tyler
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:

3.8
Average Tenure
52
Average Age
  • The tenure for the McKesson management team is about average.
Management Team

Britt Vitalone

TITLE
CFO & Executive VP
COMPENSATION
$2M
AGE
49
TENURE
1.3 yrs

Lori Schechter

TITLE
Chief Compliance Officer
COMPENSATION
$4M
AGE
56
TENURE
4.8 yrs

Jorge Figueredo

TITLE
Executive VP & Chief Human Resources Officer
COMPENSATION
$4M
AGE
57
TENURE
10.9 yrs

Bansi Nagji

TITLE
Executive VP and Chief Strategy & Business Development Officer
COMPENSATION
$3M
AGE
53
TENURE
4.2 yrs

Brian Tyler

TITLE
President
COMPENSATION
$5M
AGE
51

Sundeep Reddy

TITLE
Senior VP
AGE
44
TENURE
0.8 yrs

Kathy McElligott

TITLE
Chief Technology Officer
AGE
62
TENURE
3.8 yrs

Craig Mercer

TITLE
Senior Vice President of Investor Relations
AGE
47
TENURE
2.8 yrs

Pete Slone

TITLE
Senior Vice President of Corporate Public Affairs
TENURE
3.8 yrs

Kirk Kaminsky

TITLE
President of The US Pharmaceutical & Specialty Solutions Business
Board of Directors Tenure

Average tenure and age of the McKesson board of directors in years:

4.5
Average Tenure
60
Average Age
  • The tenure for the McKesson board of directors is about average.
Board of Directors

Ed Mueller

TITLE
Independent Chairman of the Board
COMPENSATION
$352K
AGE
71

Brian Tyler

TITLE
President
COMPENSATION
$5M
AGE
51

Marie Knowles

TITLE
Independent Director
COMPENSATION
$312K
AGE
72
TENURE
17.1 yrs

N. Coles

TITLE
Independent Director
COMPENSATION
$329K
AGE
58
TENURE
5 yrs

Don Knauss

TITLE
Independent Director
COMPENSATION
$326K
AGE
67
TENURE
4.5 yrs

Nowakowski Salka

TITLE
Independent Director
COMPENSATION
$367K
AGE
53
TENURE
4.5 yrs

Brad Lerman

TITLE
Independent Director
AGE
60
TENURE
1 yrs

Chris Jacobs

TITLE
Independent Director
COMPENSATION
$290K
AGE
67
TENURE
20.3 yrs

Dominic Caruso

TITLE
Independent Director
AGE
60
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess McKesson's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Did 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 -

What 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 -

Is 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 -

How 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 -

Does 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 -

Should 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 -

What 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 -

Is 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 -

Is 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 -

MCK 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
Staff numbers
68,000
McKesson employees.
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.