McKesson
Market Cap
US$31.8b
Last Updated
2021/04/17 22:12 UTC
Data Sources
Company Financials +
Executive Summary
McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with mediocre balance sheet.
Similar Companies
Share Price & News
How has McKesson's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MCK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MCK's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
1.2%
MCK
2.7%
US Healthcare
1.3%
US Market
1 Year Return
36.4%
MCK
47.1%
US Healthcare
53.9%
US Market
Return vs Industry: MCK underperformed the US Healthcare industry which returned 47.1% over the past year.
Return vs Market: MCK underperformed the US Market which returned 53.9% over the past year.
Shareholder returns
| MCK | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.2% | 2.7% | 1.3% |
| 30 Day | 2.8% | 3.8% | 5.3% |
| 90 Day | 4.8% | 7.4% | 8.9% |
| 1 Year | 37.8%36.4% | 48.6%47.1% | 56.6%53.9% |
| 3 Year | 36.6%32.1% | 12.6%10.2% | 64.4%53.6% |
| 5 Year | 13.8%8.4% | 19.2%15.2% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is McKesson's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is McKesson (NYSE:MCK) A Risky Investment?1 month ago | Simply Wall St
Should McKesson (NYSE:MCK) Be Disappointed With Their 34% Profit?1 month ago | Simply Wall St
Why It Might Not Make Sense To Buy McKesson Corporation (NYSE:MCK) For Its Upcoming DividendValuation
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 ($193.18) is trading below our estimate of fair value ($314.63)
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 US 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 has negative assets, so we can't compare its PB Ratio to the US Healthcare industry average.
Future Growth
How is McKesson forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
54.7%
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 (2%).
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 (4.1% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: MCK's revenue (4.1% 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 very high in 3 years time (57.3%).
Past Performance
How has McKesson performed over the past 5 years?
-45.0%
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 45% 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 (23.6%).
Return on Equity
High ROE: MCK has a negative Return on Equity (-392.12%), as it is currently unprofitable.
Financial Health
How is McKesson's financial position?
Financial Position Analysis
Short Term Liabilities: MCK's short term assets ($42.4B) exceed its short term liabilities ($41.9B).
Long Term Liabilities: MCK's short term assets ($42.4B) exceed its long term liabilities ($18.9B).
Debt to Equity History and Analysis
Debt Level: MCK's debt to equity ratio (720.3%) is considered high.
Reducing Debt: MCK's debt to equity ratio has increased from 84.2% to 720.3% over the past 5 years.
Debt Coverage: MCK's debt is well covered by operating cash flow (79.7%).
Interest Coverage: MCK is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Dividend
What is McKesson current dividend yield, its reliability and sustainability?
0.87%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCK's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: MCK's dividend (0.87%) is low compared to the top 25% of dividend payers in the US market (3.46%).
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 (8.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Brian Tyler (53 yo)
2yrs
Tenure
US$15,435,470
Compensation
Mr. Brian S. Tyler, Ph.D., has been a Director at Republic Services, Inc. since April 1, 2021. Mr. Tyler has been Chief Executive Officer and Director at McKesson Corporation since April 1, 2019 and also s...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD15.44M) is above average for companies of similar size in the US market ($USD11.14M).
Compensation vs Earnings: Brian's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: MCK's management team is considered experienced (2 years average tenure).
Board Members
Experienced Board: MCK's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
McKesson Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: McKesson Corporation
- Ticker: MCK
- Exchange: NYSE
- Founded: 1833
- Industry: Health Care Distributors
- Sector: Healthcare
- Market Cap: US$31.755b
- Shares outstanding: 159.17m
- Website: https://www.mckesson.com
Number of Employees
Location
- McKesson Corporation
- 6555 State Highway 161
- Irving
- Texas
- 75039
- United States
Listings
Biography
McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions, Inter...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/17 22:12 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.