McKesson
Market Cap
US$27.2b
Last Updated
2019/10/22 23:40 UTC
Data Sources
Company Financials +
Executive Summary
McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally.
Snowflake
Fundamentals
Excellent balance sheet average dividend payer.
Similar Companies
Share Price & News
How has McKesson's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
6.3%
MCK
3.9%
US Healthcare
0.07%
US Market
1 Year Return
15.4%
MCK
-6.7%
US Healthcare
8.9%
US Market
Return vs Industry: MCK exceeded the US Healthcare industry which returned -6.7% over the past year.
Return vs Market: MCK exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| MCK | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.3% | 3.9% | 0.07% |
| 30 Day | 0.07% | 3.5% | -0.3% |
| 90 Day | 4.7% | -0.05% | -1.6% |
| 1 Year | 16.8%15.4% | -5.1%-6.7% | 11.3%8.9% |
| 3 Year | -4.5%-7.3% | 37.0%30.6% | 46.3%36.8% |
| 5 Year | -23.9%-27.0% | 61.3%50.4% | 62.1%44.3% |
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 day ago | Simply Wall St
Those Who Purchased McKesson (NYSE:MCK) Shares Five Years Ago Have A 27% Loss To Show For It2 weeks ago | Simply Wall St
Would McKesson Corporation (NYSE:MCK) Be Valuable To Income Investors?4 weeks ago | Simply Wall St
An Intrinsic Calculation For McKesson Corporation (NYSE:MCK) Suggests It's 39% UndervaluedValuation
Is McKesson undervalued compared to its fair value and its price relative to the market?
38.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MCK ($146.92) is trading below our estimate of fair value ($239.42)
Significantly Below Fair Value: MCK is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MCK is poor value based on its PE Ratio (47.1x) compared to the Healthcare industry average (21x).
PE vs Market: MCK is poor value based on its PE Ratio (47.1x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: MCK is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: MCK is overvalued based on its PB Ratio (3.5x) compared to the US Healthcare industry average (2.5x).
Next Steps
Future Growth
How is McKesson forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
11.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCK's forecast earnings growth (11.8% per year) is above the savings rate (2.7%).
Earnings vs Market: MCK's earnings (11.8% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: MCK's earnings are forecast to grow, but not significantly.
Revenue vs Market: MCK's revenue (3.9% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: MCK's revenue (3.9% 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 (26.9%)
Next Steps
Past Performance
How has McKesson performed over the past 5 years?
-12.4%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: MCK's earnings have declined by -12.4% per year over the past 5 years.
Accelerating Growth: MCK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: MCK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (5.6%).
Return on Equity
High ROE: MCK's Return on Equity (8.6%) is considered low.
Return on Assets
ROA vs Industry: MCK's Return on Assets is below or equal to the Healthcare industry average last year.
Return on Capital Employed
ROCE Improving: MCK's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is McKesson's financial position?
Financial Position Analysis
Short Term Liabilities: MCK's short term assets ($38.4B) exceeds its short term liabilities ($38.0B)
Long Term Liabilities: MCK's short term assets (38.4B) exceeds its long term liabilities (14.3B)
Debt to Equity History and Analysis
Debt Level: MCK's debt to equity ratio (81%) is considered high
Reducing Debt: MCK's debt to equity ratio has reduced from 99.2% to 81% over the past 5 years.
Debt Coverage: MCK's debt is well covered by operating cash flow (65.8%).
Interest Coverage: MCK's interest payments on its debt are well covered by EBIT (14.9x coverage).
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 5.011470x debt).
Next Steps
Dividend
What is McKesson's current dividend yield, its reliability and sustainability?
1.12%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: MCK's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: MCK's dividend (1.12%) is low compared to the top 25% of dividend payers in the US market (3.68%).
Stable Dividend: MCK's dividends per share have been stable in the past 10 years.
Growing Dividend: MCK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (50%), MCK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MCK's dividends in 3 years are forecast to be thoroughly covered by earnings (9.7% payout ratio).
Next Steps
Management
What is the CEO of McKesson's salary, the management and board of directors tenure and is there insider trading?
3.0yrs
Average management tenure
CEO
Brian Tyler (52yo)
0.5yrs
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. He ...
CEO Compensation Analysis
Compensation vs. Market: Brian has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.0yrs
Average Tenure
53yo
Average Age
Experienced Management: MCK's management team is considered experienced (3 years average tenure).
Board Age and Tenure
3.3yrs
Average Tenure
61.5yo
Average Age
Experienced Board: MCK's board of directors are considered experienced (3.3 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Management Team
Lori Schechter (57yo)
Executive VP
- Tenure: 5.3yrs
- Compensation: US$9.42m
Kirk Kaminsky
President of The US Pharmaceutical & Specialty Solutions Business
- Tenure: 0.5yrs
Brian Tyler (52yo)
CEO & Director
- Tenure: 0.5yrs
- Compensation: US$13.05m
Bansi Nagji (54yo)
Executive VP and Chief Strategy & Business Development Officer
- Tenure: 4.7yrs
- Compensation: US$8.64m
Kathy McElligott (63yo)
Chief Technology Officer
- Tenure: 4.3yrs
Pete Slone
Senior Vice President of Corporate Public Affairs
- Tenure: 4.3yrs
Britt Vitalone (50yo)
CFO & Executive VP
- Tenure: 1.8yrs
- Compensation: US$9.21m
Sundeep Reddy (45yo)
Senior VP
- Tenure: 1.3yrs
Tracy Faber
Executive VP & Chief Human Resources Officer
- Tenure: 0yrs
Holly Weiss
Senior Vice President of Investor Relations
- Tenure: 0yrs
Board Members
Don Knauss (68yo)
Independent Director
- Tenure: 5yrs
- Compensation: US$299.52k
Chris Jacobs (68yo)
Independent Director
- Tenure: 20.8yrs
- Compensation: US$294.52k
Marie Knowles (73yo)
Independent Director
- Tenure: 17.6yrs
- Compensation: US$312.52k
Ed Mueller (72yo)
Independent Chairman of the Board
- Tenure: 0.5yrs
- Compensation: US$344.59k
Dominic Caruso (61yo)
Independent Director
- Tenure: 1.1yrs
- Compensation: US$214.07k
Nowakowski Salka (54yo)
Independent Director
- Tenure: 5yrs
- Compensation: US$314.25k
Tony Coles (59yo)
Independent Director
- Tenure: 5.5yrs
- Compensation: US$326.93k
Brian Tyler (52yo)
CEO & Director
- Tenure: 0.5yrs
- Compensation: US$13.05m
Brad Lerman (62yo)
Independent Director
- Tenure: 1.5yrs
- Compensation: US$333.93k
Ken Washington (59yo)
Independent Director
- Tenure: 0.3yrs
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$27.166b
- Shares outstanding: 184.90m
- 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 |
Biography
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 Pharmaceuti ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/22 23:40 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/06/30 |
| 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.