(MCK) McKesson - Ratings and Ratios
Pharmaceuticals, Medical Supplies, Technology Solutions, Logistics Services
MCK EPS (Earnings per Share)
MCK Revenue
Description: MCK McKesson
McKesson Corporation is a healthcare services provider operating in the US and internationally, with a diversified business model across four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The companys broad range of services includes pharmaceutical distribution, practice management, technology solutions, and logistics support to various healthcare providers.
Key performance indicators (KPIs) that can be used to evaluate McKessons performance include revenue growth, gross margin, operating cash flow, and return on equity (ROE). Notably, the companys ROE is currently negative, indicating potential issues with profitability. Other relevant KPIs might include metrics such as inventory turnover, accounts receivable days, and debt-to-equity ratio, which can provide insights into the companys operational efficiency and financial leverage.
McKessons business segments offer a range of services that cater to different aspects of the healthcare industry, from pharmaceutical distribution to technology solutions and logistics support. The companys RxTS segment, for instance, provides innovative solutions to address patient access and affordability challenges, while its Medical-Surgical Solutions segment offers a broad range of medical supplies and logistics services to healthcare providers.
To further analyze McKessons performance, it would be useful to examine its revenue breakdown by segment, as well as its customer concentration and competitive positioning within the healthcare industry. Additionally, monitoring the companys progress in addressing its negative ROE and evaluating its valuation multiples, such as the price-to-earnings (P/E) ratio, can provide valuable insights into its financial health and investment potential.
MCK Stock Overview
| Market Cap in USD | 89,532m |
| Sub-Industry | Health Care Distributors |
| IPO / Inception | 1994-11-15 |
MCK Stock Ratings
| Growth Rating | 94.7% |
| Fundamental | 74.3% |
| Dividend Rating | 60.7% |
| Return 12m vs S&P 500 | 16.2% |
| Analyst Rating | 4.29 of 5 |
MCK Dividends
| Dividend Yield 12m | 0.43% |
| Yield on Cost 5y | 2.02% |
| Annual Growth 5y | 9.89% |
| Payout Consistency | 95.2% |
| Payout Ratio | 8.8% |
MCK Growth Ratios
| Growth Correlation 3m | -72.9% |
| Growth Correlation 12m | 86.8% |
| Growth Correlation 5y | 98.9% |
| CAGR 5y | 28.07% |
| CAGR/Max DD 3y | 1.17 |
| CAGR/Mean DD 3y | 9.12 |
| Sharpe Ratio 12m | 1.69 |
| Alpha | 32.41 |
| Beta | 0.274 |
| Volatility | 23.88% |
| Current Volume | 522.4k |
| Average Volume 20d | 698.7k |
| Stop Loss | 690 (-3%) |
| Signal | -0.30 |
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (3.16b TTM) > 0 and > 6% of Revenue (6% = 22.66b TTM) |
| FCFTA 0.07 (>2.0%) and ΔFCFTA 2.52pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -1.99% (prev -1.33%; Δ -0.66pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.08 (>3.0%) and CFO 6.55b > Net Income 3.16b (YES >=105%, WARN >=100%) |
| Net Debt (7.25b) to EBITDA (5.19b) ratio: 1.40 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.88 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (125.5m) change vs 12m ago -3.98% (target <= -2.0% for YES) |
| Gross Margin 3.33% (prev 3.94%; Δ -0.61pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 493.6% (prev 437.8%; Δ 55.88pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 19.10 (EBITDA TTM 5.19b / Interest Expense TTM 239.0m) >= 6 (WARN >= 3) |
Altman Z'' 0.77
| (A) -0.09 = (Total Current Assets 56.80b - Total Current Liabilities 64.33b) / Total Assets 81.31b |
| (B) 0.23 = Retained Earnings (Balance) 18.62b / Total Assets 81.31b |
| (C) 0.06 = EBIT TTM 4.57b / Avg Total Assets 76.49b |
| (D) 0.22 = Book Value of Equity 17.72b / Total Liabilities 82.17b |
| Total Rating: 0.77 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 74.28
| 1. Piotroski 6.50pt = 1.50 |
| 2. FCF Yield 6.05% = 3.03 |
| 3. FCF Margin 1.52% = 0.38 |
| 4. Debt/Equity data missing |
| 5. Debt/Ebitda 1.56 = 0.85 |
| 6. ROIC - WACC 79.07% = 12.50 |
| 7. RoE data missing |
| 8. Rev. Trend 93.59% = 4.68 |
| 9. Rev. CAGR 12.85% = 1.61 |
| 10. EPS Trend -5.43% = -0.14 |
| 11. EPS CAGR -1.02% = -0.13 |
What is the price of MCK shares?
Over the past week, the price has changed by +2.07%, over one month by +5.71%, over three months by -1.02% and over the past year by +37.46%.
Is McKesson a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MCK is around 839.05 USD . This means that MCK is currently undervalued and has a potential upside of +17.94% (Margin of Safety).
Is MCK a buy, sell or hold?
- Strong Buy: 10
- Buy: 3
- Hold: 3
- Sell: 1
- Strong Sell: 0
What are the forecasts/targets for the MCK price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 788.6 | 10.8% |
| Analysts Target Price | 788.6 | 10.8% |
| ValueRay Target Price | 918.4 | 29.1% |
Last update: 2025-09-13 05:03
MCK Fundamental Data Overview
CCE Cash And Equivalents = 2.68b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 28.8151
P/E Forward = 19.1571
P/S = 0.2371
P/B = 5.0435
P/EG = 1.1548
Beta = 0.511
Revenue TTM = 377.60b USD
EBIT TTM = 4.57b USD
EBITDA TTM = 5.19b USD
Long Term Debt = 6.53b USD (from longTermDebt, last quarter)
Short Term Debt = 1.55b USD (from shortTermDebt, last quarter)
Debt = 8.07b USD (Calculated: Short Term 1.55b + Long Term 6.53b)
Net Debt = 7.25b USD (from netDebt column, last quarter)
Enterprise Value = 94.92b USD (89.53b + Debt 8.07b - CCE 2.68b)
Interest Coverage Ratio = 19.10 (Ebit TTM 4.57b / Interest Expense TTM 239.0m)
FCF Yield = 6.05% (FCF TTM 5.74b / Enterprise Value 94.92b)
FCF Margin = 1.52% (FCF TTM 5.74b / Revenue TTM 377.60b)
Net Margin = 0.84% (Net Income TTM 3.16b / Revenue TTM 377.60b)
Gross Margin = 3.33% ((Revenue TTM 377.60b - Cost of Revenue TTM 365.03b) / Revenue TTM)
Tobins Q-Ratio = 5.36 (Enterprise Value 94.92b / Book Value Of Equity 17.72b)
Interest Expense / Debt = 0.61% (Interest Expense 49.0m / Debt 8.07b)
Taxrate = 20.14% (878.0m / 4.36b)
NOPAT = 3.65b (EBIT 4.57b * (1 - 20.14%))
Current Ratio = 0.88 (Total Current Assets 56.80b / Total Current Liabilities 64.33b)
Debt / EBITDA = 1.56 (Net Debt 7.25b / EBITDA 5.19b)
Debt / FCF = 1.41 (Debt 8.07b / FCF TTM 5.74b)
Total Stockholder Equity = -2.54b (last 4 quarters mean)
RoA = 3.89% (Net Income 3.16b, Total Assets 81.31b )
RoE = unknown (Net Income TTM 3.16b / Total Stockholder Equity -2.54b)
RoCE = 114.3% (Ebit 4.57b / (Equity -2.54b + L.T.Debt 6.53b))
RoIC = 85.55% (NOPAT 3.65b / Invested Capital 4.26b)
WACC = 6.48% (E(89.53b)/V(97.61b) * Re(7.02%)) + (D(8.07b)/V(97.61b) * Rd(0.61%) * (1-Tc(0.20)))
Shares Correlation 3-Years: -100.00 | Cagr: -1.25%
Discount Rate = 7.02% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 77.94% ; FCFE base≈4.75b ; Y1≈4.64b ; Y5≈4.70b
Fair Price DCF = 671.3 (DCF Value 83.50b / Shares Outstanding 124.4m; 5y FCF grow -3.32% → 3.0% )
Revenue Correlation: 93.59 | Revenue CAGR: 12.85%
Rev Growth-of-Growth: 6.12
EPS Correlation: -5.43 | EPS CAGR: -1.02%
EPS Growth-of-Growth: 30.97
Additional Sources for MCK Stock
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