About McKesson Corporation
McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products; delivers products to retail pharmacies, hospitals, long-term care centers, clinics, and institutions; and provides logistics and distribution services for manufacturers. It also provides consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies; gene therapy with InspiroGene, practice consulting, and vaccine distribution services; and technology solutions, as well as research, insights, technologies, and services to improve cancer and specialty care. In addition, the company helps in solving medication access, affordability, and adherence challenges for patients by working across healthcare to connect patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies. Further, it offers technology services, which includes electronic prior authorization, prescription price transparency, benefit insight, dispensing support services, patient enrollment, third-party logistics, and wholesale distribution support; medical-surgical supplies, laboratory equipment, pharmaceutical distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, and hospital reference labs, nursing homes, hospice and home health care agencies, government facilities ,and online marketplaces and retailers. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.
McKesson Corporation (MCK) is a Healthcare company in the Medical Distribution industry with a market capitalisation of $102.8B. The stock trades at 23.64x trailing earnings and yields 0.43%.
- Sector
- Healthcare
- Industry
- Medical Distribution
- Market cap
- $102.8B
- P/E ratio
- 23.64
- Forward P/E
- 17.47
- EPS (TTM)
- $37.29
- Revenue (TTM)
- $411B
- Free cash flow
- $6.8B
- Profit margin
- 1.1%
- Dividend yield
- 0.43%
- Beta
- 0.31
- Shares outstanding
- 116.6M
Financial health: Weak4.5/10
4 strengths, 5 concerns. Weakest points: current ratio, return on equity, gross margin and 2 more.
- Debt to equity: -3.00 (Strong, benchmark < 0.5) — Debt of -3.00x equity is conservative against the 0.5x benchmark. It has been broadly flat over the last 4 years.
- Net debt vs cash flow: 0.4y (Strong, benchmark < 4 years) — Net debt of $2.6B is 0.4x annual free cash flow — under a year of cash flow to repay.
- Current ratio: 0.85 (Concern, benchmark > 1.5) — Short-term assets cover only 0.85x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has been broadly flat over the last 4 years.
- Return on equity: -219.2% (Concern, benchmark > 15%) — Earns -219.2% on shareholder equity, well short of the > 15% mark.
- Gross margin: 3.6% (Concern, benchmark > 40%) — Keeps 3.6% of revenue after the direct cost of sales, well short of the > 40% mark.
- Net margin: 1.1% (Concern, benchmark > 10%) — Turns 1.1% of revenue into profit, well short of the > 10% mark.
- Free cash flow: $5.7B (Strong, benchmark positive) — Generated $5.7B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 7.7% (Watch, benchmark > 10%) — Revenue changed 7.7% year on year, short of the > 10% mark.
- Earnings growth: -17.6% (Concern, benchmark > 10%) — Earnings changed -17.6% year on year, well short of the > 10% mark.
- PEG ratio: 1.66 (Watch, benchmark < 1) — At 1.66, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 8.8% (Strong, benchmark < 60%) — Pays out 8.8% of earnings as dividends, leaving room to keep paying.