Mckesson Corp

Health Care
Other Pharmaceuticals
www.mckesson.com

Earnings Score
Safety Score

Market Cap $89.66B
Debt $8.01B
Cash $1.28B
EV $96.39B
FCF $1.67B

Earnings

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Sales & Net Margins

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Earnings	$2.83B
EBIT	$4.06B
ROA	6%
FCF	$1.67B
Equity	-$2.70B
Growth Stability	-1K%
PE	31.73
PEG	1.23
PB	-33.16
P/FCF	53.63
P/S	0.26
Price/Cash	0.01
Debt/Equity	-2.96
Debt/FCF	4.79
Net Margins	1%
Gross Margins	4%
Op. Margins	1%
Earnings CAGR	6%
Sales Growth YoY	18%
Sales Growth QoQ	2%
Sales CAGR	7%
FCF CAGR	-0%
Equity CAGR	-2%
Earnings Stability	0.03
Earnings Growth YoY	49%
Earnings Growth QoQ	265%

Earnings CAGR 5Y	26%
Sales CAGR 5Y	8%
FCF CAGR 5Y	-5%
Equity CAGR 5Y	-1%
Earnings CAGR 3Y	10%
Sales CAGR 3Y	10%
FCF CAGR 3Y	-17%
Market Cap	$89.66B
Revenue	$344.58B
Dividend Yield	0%
Payout Ratio	12%
Assets	$71.08B
Total Debt	$8.01B
Cash	$1.28B
Shares Outstanding	126M
EV	96.39B
Earnings Score	6%
Safety Score	28%
Working Capital	-6.82B
Current Ratio	0.88
Gross Profit	$13.27B
Shares Growth 3y	-6%
Equity Growth QoQ	2%
Equity Growth YoY	61%

Assets & ROA

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Stockholders Equity & ROE

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McKesson is a leading wholesaler of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with AmerisourceBergen and Cardinal Health, the three account for well over 90% of the U.S. pharmaceutical wholesale industry. McKesson is currently divesting from its pharmaceutical wholesale and distribution in Europe and Canada in order to redeploy capital to strategic growth areas in the U.S. (oncology network and ecosystem, and biopharma services). Additionally, the company supplies medical-surgical products and equipment to healthcare facilities and provides a variety of technology solutions for pharmacies.

SEC Filings

Direct access to Mckesson Corp (MCK) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31

Sector Comparison

How does Mckesson Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Mckesson Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 6%

Stability 3%

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Mckesson Corp Discounted Cash Flow

Fully customizable DCF calculator online for Mckesson Corp.

Years

Calculation mode

= $16B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.7B	$1.7B	$1.7B	$1.7B	$1.7B	$1.6B	$1.6B	$1.6B	$1.6B	$1.6B	$1.6B	$16B
DCF		$1.5B	$1.4B	$1.2B	$1.1B	$1B	$927M	$840M	$761M	$690M	$626M	$6.3B
Value	$16B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Net Margins	1%	3%	0%	0%	0%	-2%	0%	1%	1%	1%
ROA	-	12%	1%	1%	4%	-8%	3%	7%	6%	6%
ROE	-	45%	1%	0%	17%	-3K%	-62%	-239%	-188%	-

Bad Net Margins (0.76%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Debt over FCF	-	2.17	2.29	2.28	2.18	2.02	1.71	1.43	1.57	4.79
Debt over Equity	1.08	0.84	0.9	0.96	1.59	45.09	-3.73	-4.4	-3.55	-2.96
Growth Stability	-	-	-	1%	52%	-1K%	-	-	100%	-1K%

Bad Debt/FCF ratio (4.79)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (-2.96)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-1K%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	CAGR 5Y
Revenue YoY growth	-	4%	5%	3%	8%	3%	11%	5%	12%	8%
Earnings YoY growth	-	125%	-99%	-49%	3K%	-604%	-125%	220%	-16%	26%
Equity YoY growth	-	25%	-11%	-18%	-36%	-97%	-1K%	-17%	7%	-1%
FCF YoY growth	-	36%	-9%	-12%	11%	1%	-0%	18%	-21%	-5%