MCK:NYE-McKesson Corporation

EQUITY | Medical Distribution | New York Stock Exchange

Last Closing

USD 133.13

Change

0.00 (0.00)%

Market Cap

USD 31.54B

Volume

1.06M

Analyst Target

USD 140.77
Analyst Rating

Verdict

ducovest Verdict

Verdict

About

McKesson Corporation distributes pharmaceuticals, medical supplies and healthcare information technology that make healthcare safer while reducing costs. Its segments include McKesson Distribution Solutions and McKesson Technology Solutions.

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2019-06-16 )

Largest Industry Peers for Medical Distribution

Symbol Name Price(Change) Market Cap
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CAH Cardinal Health Inc

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OMI Owens & Minor Inc

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NVG Nuveen AMT Free Municipal Cred..

+0.09 (+0.75%)

USD 3.29M

ETFs Containing MCK

CFCV 4.34 % 0.00 %

N/A

N/A
RTH VanEck Retail ETF 4.18 % 0.35 %

+1.88 (+1.25%)

USD 0.19B
SHRY First Trust Bloomberg Sha.. 3.08 % 0.00 %

+0.47 (+1.25%)

USD 0.03B
WHCS:SW iShares MSCI World Health.. 2.95 % 0.00 %

N/A

USD 1.01B
ONEV SPDR® Russell 1000 Low V.. 1.13 % 0.20 %

+1.69 (+1.25%)

USD 0.65B
DEUS Xtrackers Russell US Mult.. 1.02 % 0.18 %

+0.60 (+1.25%)

USD 0.15B
ONEO SPDR® Russell 1000 Momen.. 0.64 % 0.20 %

+1.38 (+1.25%)

USD 0.15B
DEF 0.00 % 0.59 %

N/A

N/A
EZY 0.00 % 0.38 %

N/A

N/A
FLAG 0.00 % 1.52 %

N/A

N/A
FXG First Trust Consumer Stap.. 0.00 % 0.64 %

+0.67 (+1.25%)

USD 0.43B
IYK iShares US Consumer Stapl.. 0.00 % 0.42 %

+0.65 (+1.25%)

USD 1.32B
CLRG 0.00 % 0.25 %

N/A

N/A
BVNSC 0.00 % 0.00 %

N/A

N/A
RWL Invesco S&P 500 Revenue E.. 0.00 % 0.39 %

+1.12 (+1.25%)

USD 2.53B
SPYB 0.00 % 0.35 %

N/A

N/A
SYV 0.00 % 0.60 %

N/A

N/A
XHS SPDR® S&P Health Care Se.. 0.00 % 0.35 %

+1.38 (+1.25%)

USD 0.09B
BLOV:CA Brompton North American L.. 0.00 % 0.00 %

N/A

CAD 9.02M

Market Performance

  Market Performance vs. Industry/Classification (Medical Distribution) Market Performance vs. Exchange (New York Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 20.51% 100% F 81% B-
Dividend Return 0.71% 50% F 27% F
Total Return 21.22% 100% F 80% B-
Trailing 12 Months  
Capital Gain -11.25% 80% B- 31% F
Dividend Return 1.04% 25% F 16% F
Total Return -10.21% 80% B- 28% F
Trailing 5 Years  
Capital Gain -27.07% 60% D- 25% F
Dividend Return 3.35% 25% F 11% F
Total Return -23.72% 40% F 21% F
Average Annual (5 Year Horizon)  
Capital Gain -11.07% 40% F 9% A-
Dividend Return -10.36% 40% F 7% C-
Total Return 0.71% 25% F 15% F
Risk Return Profile  
Volatility (Standard Deviation) 12.77% 100% F 56% F
Risk Adjusted Return -81.10% 20% F 3% F
Market Capitalization 31.54B 100% F 93% A

Key Financial Ratios

  Ratio vs. Industry/Classification (Medical Distribution) Ratio vs. Market (New York Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 16.90 80% 96%
Price/Book Ratio 2.74 40% 27%
Price / Cash Flow Ratio 2.09 40% 56%
Price/Free Cash Flow Ratio 10.41 40% 50%
Management Effectiveness  
Return on Equity -3.35% 40% 18%
Return on Invested Capital 18.20% 80% 80%
Return on Assets -0.52% 40% 21%
Debt to Equity Ratio 97.00% 100% 40%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.