Mckesson Corp

Health Care
Other Pharmaceuticals
www.mckesson.com

Earnings Score
Safety Score

Market Cap $76.61B
Debt $5.80B
Cash $2.51B
EV $79.90B
FCF $4.35B

Earnings

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Sales & Net Margins

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Earnings	$2.54B
EBIT	$3.48B
ROA	5%
FCF	$4.35B
Equity	-$2.64B
Growth Stability	-1K%
PE	30.21
PEG	1.16
PB	-29
P/FCF	17.63
P/S	0.23
Price/Cash	0.03
Debt/Equity	-2.19
Debt/FCF	1.33
Net Margins	1%
Gross Margins	4%
Op. Margins	1%
Earnings CAGR	4%
Sales Growth YoY	21%
Sales Growth QoQ	18%
Sales CAGR	6%
FCF CAGR	2%
Equity CAGR	-2%
Earnings Stability	0.02
Earnings Growth YoY	-64%
Earnings Growth QoQ	-74%

Earnings CAGR 5Y	26%
Sales CAGR 5Y	8%
FCF CAGR 5Y	1%
Equity CAGR 5Y	-2%
Earnings CAGR 3Y	9%
Sales CAGR 3Y	9%
FCF CAGR 3Y	-6%
Market Cap	$76.61B
Revenue	$330.19B
Dividend Yield	0%
Payout Ratio	13%
Assets	$72.43B
Total Debt	$5.80B
Cash	$2.51B
Shares Outstanding	126.94M
EV	79.9B
Earnings Score	6%
Safety Score	36%
Working Capital	-5.43B
Current Ratio	0.91
Gross Profit	$13.14B
Shares Growth 3y	-6%
Equity Growth QoQ	91%
Equity Growth YoY	80%

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 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 4%

Stability 2%

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Mckesson Corp Discounted Cash Flow

Fully customizable DCF calculator online for Mckesson Corp.

Years

Calculation mode

= $51B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$4.3B	$4.5B	$4.6B	$4.7B	$4.8B	$4.9B	$5B	$5.1B	$5.3B	$5.4B	$5.5B	$55B
DCF		$4B	$3.8B	$3.5B	$3.3B	$3B	$2.8B	$2.6B	$2.5B	$2.3B	$2.1B	$21B
Value	$51B

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	03/2015	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Net Margins	1%	1%	3%	0%	0%	0%	-2%	0%	1%	1%	1%
ROA	-	6%	12%	1%	1%	4%	-8%	3%	7%	6%	5%
ROE	-	25%	45%	1%	0%	17%	-3K%	-62%	-239%	-188%	-

Bad Net Margins (0.67%)

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	03/2015	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Debt over FCF	-	3.07	2.17	2.29	2.28	2.18	2.02	1.71	1.43	1.57	1.33
Debt over Equity	1.39	1.08	0.84	0.9	0.96	1.59	45.09	-3.73	-4.4	-3.55	-2.19
Growth Stability	-	-	-	2%	1%	52%	-1K%	-	-	100%	-1K%

Good Debt/FCF ratio (1.33)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (-2.19)

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	03/2015	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	CAGR 5Y
Revenue YoY growth	-	7%	4%	5%	3%	8%	3%	11%	5%	12%	8%
Earnings YoY growth	-	53%	125%	-99%	-49%	3K%	-604%	-125%	220%	-16%	26%
Equity YoY growth	-	11%	25%	-11%	-18%	-36%	-97%	-1K%	-17%	7%	-2%
FCF YoY growth	-	16%	36%	-9%	-12%	11%	1%	-0%	18%	-21%	1%