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Mckesson Corp

MCK

Wholesale-Drugs, Proprietaries & Druggists' Sundries

Mkt Cap

$67.22B

PE

22.42

Debt

$5.891B

Cash

$1.983B

EV

$71.13B

FCF

$2.956B

Market Cap

$67.22B

P/E Ratio

22.42

Debt

$5.891B

Cash

$1.983B

EV

$71.13B

FCF

$2.956B
Charts data: {"Earnings":[{"time":"2014-03-30","value":1258000000},{"time":"2015-03-30","value":1476000000},{"time":"2016-03-30","value":2258000000},{"time":"2017-03-30","value":5070000000},{"time":"2018-03-30","value":67000000},{"time":"2019-03-30","value":34000000},{"time":"2020-03-30","value":900000000},{"time":"2021-03-30","value":-4539000000},{"time":"2022-03-30","value":1114000000},{"time":"2023-03-30","value":3560000000}],"Sales":[{"time":"2014-03-30","value":137609000000},{"time":"2015-03-30","value":179045000000},{"time":"2016-03-30","value":190884000000},{"time":"2017-03-30","value":198533000000},{"time":"2018-03-30","value":208357000000},{"time":"2019-03-30","value":214319000000},{"time":"2020-03-30","value":231051000000},{"time":"2021-03-30","value":238228000000},{"time":"2022-03-30","value":263966000000},{"time":"2023-03-30","value":276711000000}],"Net Margins":[{"time":"2014-03-30","value":0.009141843920092436},{"time":"2015-03-30","value":0.008243737607863944},{"time":"2016-03-30","value":0.011829173739024748},{"time":"2017-03-30","value":0.025537316214432865},{"time":"2018-03-30","value":0.00032156347038976373},{"time":"2019-03-30","value":0.00015864202427222972},{"time":"2020-03-30","value":0.003895243907189322},{"time":"2021-03-30","value":-0.019053175949090787},{"time":"2022-03-30","value":0.0042202404855170746},{"time":"2023-03-30","value":0.01286540831408943}],"Assets":[{"time":"2014-03-30","value":51759000000},{"time":"2015-03-30","value":53870000000},{"time":"2016-03-30","value":56563000000},{"time":"2017-03-30","value":60969000000},{"time":"2018-03-30","value":60381000000},{"time":"2019-03-30","value":59672000000},{"time":"2020-03-30","value":61247000000},{"time":"2021-03-30","value":65015000000},{"time":"2022-03-30","value":63298000000},{"time":"2023-03-30","value":62320000000}],"Stockholders Equity":[{"time":"2014-03-30","value":10318000000},{"time":"2015-03-30","value":8085000000},{"time":"2016-03-30","value":9008000000},{"time":"2017-03-30","value":11273000000},{"time":"2018-03-30","value":10057000000},{"time":"2019-03-30","value":8287000000},{"time":"2020-03-30","value":5309000000},{"time":"2021-03-30","value":175000000},{"time":"2022-03-30","value":-1792000000},{"time":"2023-03-30","value":-1490000000}],"ROE":[{"time":"2014-03-30","value":0.12192285326613685},{"time":"2015-03-30","value":0.18256029684601113},{"time":"2016-03-30","value":0.2506660746003552},{"time":"2017-03-30","value":0.4497471835358822},{"time":"2018-03-30","value":0.0066620264492393355},{"time":"2019-03-30","value":0.004102811632677688},{"time":"2020-03-30","value":0.1695234507440196},{"time":"2021-03-30","value":-25.937142857142856},{"time":"2022-03-30","value":-0.6216517857142857},{"time":"2023-03-30","value":-2.389261744966443}],"ROA":[{"time":"2014-03-30","value":0.045731177186576245},{"time":"2015-03-30","value":0.05509560051976982},{"time":"2016-03-30","value":0.06267347912946626},{"time":"2017-03-30","value":0.11660023946595811},{"time":"2018-03-30","value":0.012619863864460675},{"time":"2019-03-30","value":0.01484783483040622},{"time":"2020-03-30","value":0.04063872516204875},{"time":"2021-03-30","value":-0.07742828578020457},{"time":"2022-03-30","value":0.03219690985497172},{"time":"2023-03-30","value":0.07429396662387676}]}

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products. This segment also provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices; and consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies. The RxTS segment serves biopharma and life sciences partners and patients to address medication challenges for patients by working across healthcare; connects patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies to deliver innovative solutions to help people get the medicine needed to live healthier lives; and provides prescription price transparency, benefit insight, dispensing support, third-party logistics, and wholesale distribution support services. The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital reference labs, and home health care agencies. The International segment offers distribution and services to wholesale, institutional, and retail customers in Europe and Canada. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$2.956B$3.047B$3.141B$3.238B$3.338B$3.441B$3.547B$3.657B$3.77B$3.886B$4.006B$40.06B
DCF$2.65B$2.375B$2.129B$1.909B$1.711B$1.534B$1.375B$1.232B$1.105B$990.2M$9.902B
Value$26.91B

In the chart Earnings are multiplied by this value.

Earnings Growth 3.5%
Earnings Stability -23%


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.

Years03-201503-201603-201703-201803-201903-202003-202103-202203-2023TTM
Net Margin0.82%1.2%2.6%0.032%0.016%0.39%-1.9%0.42%1.3%0.99%
ROA5.5%6.3%12%1.3%1.5%4.1%-7.7%3.2%7.4%5.5%
ROE18%25%45%0.67%0.41%17%-2.6K%-62%-240%-180%

What is the average Net Margin?

The average Net Margin over the past 5 years is +0.04%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.15%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +1.62%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.69%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -479.46%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -114.18%.


Safety & Stabiliy

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.

Years03-201503-201603-201703-201803-201903-202003-202103-202203-2023TTM
Debt FCF4.113.072.172.292.282.182.021.711.431.99
Debt Equity1.391.080.840.900.961.5945.09-3.73-4.40-3.50
MIN
Graham Stability--100%2.3%1.4%52%-1.4K%---1.4K%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.99.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.18.

What is the Graham’s Stability?

Graham’s Stability measure stands at -13.60.


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.

Years03-201603-201803-202003-2022Trend
Revenue5.4%5.8%6.2%4.8%-1.5%
Net Income6.7%120%58%220%120%
Stockholders Equity-----13%
FCF5.4%3.2%6%18%-0.17%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +5.84%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.46%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +121.35%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +116.43%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -12.95%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +3.15%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -0.17%.