McKesson
Market Cap
US$24.4b
Last Updated
2020/03/31 00:33 UTC
Data Sources
Company Financials +
Executive Summary
McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential second-rate 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
9.3%
MCK
14.3%
US Healthcare
7.2%
US Market
1 Year Return
20.2%
MCK
1.9%
US Healthcare
-10.4%
US Market
Return vs Industry: MCK exceeded the US Healthcare industry which returned 1.9% over the past year.
Return vs Market: MCK exceeded the US Market which returned -10.4% over the past year.
Shareholder returns
| MCK | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.3% | 14.3% | 7.2% |
| 30 Day | -1.3% | -4.7% | -12.6% |
| 90 Day | -0.2% | -15.0% | -19.4% |
| 1 Year | 21.7%20.2% | 3.3%1.9% | -8.5%-10.4% |
| 3 Year | -2.3%-5.3% | 23.8%18.2% | 15.8%8.3% |
| 5 Year | -35.0%-37.8% | 28.2%19.5% | 35.8%21.0% |
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 month ago | Simply Wall St
Here's Why We're Wary Of Buying McKesson Corporation's (NYSE:MCK) For Its Upcoming Dividend1 month ago | Simply Wall St
Three Things You Should Check Before Buying McKesson Corporation (NYSE:MCK) For Its Dividend2 months ago | Simply Wall St
Is McKesson (NYSE:MCK) Using Too Much Debt?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 ($138.02) is trading below our estimate of fair value ($350.78)
Significantly Below Fair Value: MCK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MCK is unprofitable, so we can't compare its PE Ratio to the Healthcare industry average.
PE vs Market: MCK is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate MCK's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: MCK is overvalued based on its PB Ratio (4x) compared to the US Healthcare industry average (2.3x).
Next Steps
Future Growth
How is McKesson forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
36.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: MCK is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: MCK's is expected to become profitable in the next 3 years.
Revenue vs Market: MCK's revenue (4% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: MCK's revenue (4% 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 (29.2%)
Next Steps
Past Performance
How has McKesson performed over the past 5 years?
-29.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCK is currently unprofitable.
Growing Profit Margin: MCK is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: MCK is unprofitable, and losses have increased over the past 5 years at a rate of -29.8% per year.
Accelerating Growth: Unable to compare MCK's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: MCK is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (14%).
Return on Equity
High ROE: MCK has a negative Return on Equity (-8.87%), as it is currently unprofitable.
Next Steps
Financial Health
How is McKesson's financial position?
Financial Position Analysis
Short Term Liabilities: MCK's short term assets ($39.4B) do not cover its short term liabilities ($40.1B).
Long Term Liabilities: MCK's short term assets ($39.4B) exceed its long term liabilities ($13.0B).
Debt to Equity History and Analysis
Debt Level: MCK's debt to equity ratio (125.2%) is considered high.
Reducing Debt: MCK's debt to equity ratio has increased from 98% to 125.2% over the past 5 years.
Balance Sheet
Inventory Level: MCK has a high level of physical assets or inventory.
Debt Coverage by Assets: MCK's debt is covered by short term assets (assets are 4x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: MCK has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: MCK has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is McKesson's current dividend yield, its reliability and sustainability?
1.19%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCK's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: MCK's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (5.4%).
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: MCK is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: MCK's dividends in 3 years are forecast to be thoroughly covered by earnings (8.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.7yrs
Average management tenure
CEO
Brian Tyler (52yo)
0.83
Tenure
US$13,054,754
Compensation
Mr. Brian S. Tyler, Ph.D., serves as Chief Executive Officer and Director at McKesson Corporation since April 1, 2019 and also served as its President and Chief Operating Officer since August 02, 2018 unti ...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD13.05M) is about average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Brian's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.83yr | US$13.05m | 0.0070% $1.7m | |
| CFO & Executive VP | 2.17yrs | US$9.21m | 0.00089% $217.5k | |
| Executive VP | 5.67yrs | US$9.42m | 0.0074% $1.8m | |
| Executive VP and Chief Strategy & Business Development Officer | 5yrs | US$8.64m | 0.0027% $662.3k | |
| Senior VP | 1.67yrs | no data | 0.00070% $171.1k | |
| Executive VP | 0.17yr | no data | no data | |
| Senior Vice President of Investor Relations | no data | no data | no data | |
| Senior Vice President of Corporate Public Affairs | 4.67yrs | no data | no data | |
| Executive VP & Chief Human Resources Officer | 0.42yr | no data | 0.00016% $39.1k | |
| President of The US Pharmaceutical & Specialty Solutions Business | 0.83yr | no data | no data |
1.7yrs
Average Tenure
52yo
Average Age
Experienced Management: MCK's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.83yr | US$13.05m | 0.0070% $1.7m | |
| Independent Director | 5.42yrs | US$299.52k | 0.00073% $178.4k | |
| Independent Director | 21.17yrs | US$294.52k | no data | |
| Independent Director | 18yrs | US$312.52k | no data | |
| Independent Chairman of the Board | 0.83yr | US$344.59k | no data | |
| Independent Director | 1.42yrs | US$214.07k | no data | |
| Independent Director | 5.42yrs | US$314.25k | 0.0011% $276.2k | |
| Independent Director | 5.83yrs | US$326.93k | 0.00073% $178.4k | |
| Independent Director | 1.83yrs | US$333.93k | no data | |
| Independent Director | 0.67yr | no data | no data |
3.6yrs
Average Tenure
61.5yo
Average Age
Experienced Board: MCK's board of directors are considered experienced (3.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
McKesson 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$24.441b
- Shares outstanding: 177.08m
- 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 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, as well as solutions for life sciences companies. It also provides financial, operational, and clinical solutions to pharmacies; and consulting, outsourcing, and other services. In addition, the company provides distribution and services to wholesale, institutional, and retail customers and serves patients and consumers in 13 European countries through its own pharmacies and participating pharmacies; and medical-surgical supply distribution, logistics, and other services to healthcare providers. Further, it provides automation solutions to its retail and hospital customers; health information exchange solutions that streamline clinical and administrative communication; and innovative technologies that support retail pharmacies and manufacturers. The company has a strategic collaboration with Aetion, Inc. to advance cancer research with real-world data. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 00:33 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.