McKesson Corp Stock Research

Market Summary

USD358.25+0.47

Delayedas of 31 Mar 2023, 11:20 am

0.13%

MCK Alerts

Big jump in Earnings (Y/Y)

MCK Stock Price

MCK RSI Chart

MCK Valuation

Market Cap

50.1B

Price/Earnings (Trailing)

15.94

Price/Sales (Trailing)

0.18

EV/EBITDA

10.97

Price/Free Cashflow

11.58

MCK Price/Sales (Trailing)

MCK Profitability

EBT Margin

1.59%

Return on Equity

-150.36%

Return on Assets

5.01%

Free Cashflow Yield

8.63%

MCK Fundamentals

MCK Revenue

Revenue (TTM)

273.9B

Revenue Y/Y

2.73%

Revenue Q/Q

0.47%

MCK Earnings

Earnings (TTM)

3.1B

Earnings Y/Y

15.5K%

Earnings Q/Q

16.52%

Price Action

52 Week Range

298.69401.78

(Low)(High)

Last 7 days

4.7%

Last 30 days

2.3%

Last 90 days

-4.6%

Trailing 12 Months

16.5%

MCK Financial Health

Current Ratio

0.93

Debt/Equity

-2.61

Debt/Cashflow

0.87

MCK Investor Care

Dividend Yield

0.58%

Dividend/Share (TTM)

2.07

Buy Backs (1Y)

7.72%

Diluted EPS (TTM)

21.78

Peers (Alternatives to McKesson)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
UNH	439.0B	324.2B	-0.88%	-8.54%	21.82	1.35	12.71%	16.40%
MCK	50.1B	273.9B	2.28%	16.53%	15.94	0.18	6.57%	122.45%
ABC	32.2B	241.8B	2.43%	3.66%	18.63	0.13	9.36%	7.14%
CAH	19.7B	193.0B	-0.48%	34.08%	-15.45	0.1	12.68%	-329.37%
HSIC	10.6B	12.6B	2.31%	-8.80%	19.63	0.83	1.98%	-14.74%
MID-CAP
LHCG	5.2B	2.3B	3.17%	35.63%	86.23	2.28	2.85%	-58.05%
HQY	4.9B	831.2M	-11.12%	-13.87%	-83.44	5.9	12.11%	-862.52%
AMN	3.4B	5.2B	-9.15%	-22.68%	7.71	0.65	31.60%	35.63%
PDCO	2.6B	6.4B	-0.72%	-15.40%	13.15	0.4	-0.52%	17.01%
SMALL-CAP
ADUS	1.7B	951.1M	-5.34%	13.85%	36.04	1.74	10.02%	1.99%
RDNT	1.3B	1.4B	3.79%	9.33%	123.09	0.92	8.74%	-56.93%
OMI	1.1B	10.0B	-8.02%	-68.46%	48.04	0.11	1.74%	-89.90%
BKD	561.7M	2.8B	-7.12%	-57.75%	-2.36	0.2	2.43%	-140.13%
PETQ	328.2M	934.1M	20.49%	-53.07%	-6.81	0.35	3.77%	-201.92%
SMED	170.0M	-	1.98%	-1.24%	31.24	2.46	-	-

Financials for McKesson

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	0.7%	273,903	272,027	268,446	263,966	257,006
Gross Profit	-2.0%	12,610	12,864	13,121	13,130	13,109
Operating Expenses	-12.2%	8,576	9,773	10,615	11,092	10,694
S&GA Expenses	-12.6%	8,343	9,545	10,264	10,537	10,230
EBITDA	33.0%	4,806	3,613	2,806	2,866	-
EBITDA Margin	32.1%	0.02*	0.01*	0.01*	0.01*	-
Earnings Before Taxes	36.9%	4,345	3,174	2,372	1,928	2,310
EBT Margin	36.0%	0.02*	0.01*	0.01*	0.01*	-
Interest Expenses	15.2%	212	184	174	178	187
Net Income	52.8%	3,141	2,055	1,396	1,114	1,412
Net Income Margin	51.8%	0.01*	0.01*	0.01*	0.00*	-
Free Cahsflow	6.1%	4,321	4,071	4,749	4,046	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	-0.6%	62,690	63,081	62,295	63,298	63,708
Current Assets	-3.9%	44,657	46,448	45,383	46,231	46,498
Cash Equivalents	-4.9%	2,774	2,916	2,233	3,532	2,754
Inventory	3.9%	20,657	19,876	19,505	18,702	19,024
Net PPE	3.3%	2,140	2,071	2,083	2,092	2,064
Goodwill	7.5%	9,934	9,239	9,368	9,451	9,462
Current Liabilities	-0.7%	48,006	48,357	47,201	48,466	47,452
. Short Term Borrowings	Infinity%	617	-	372	-	-
Long Term Debt	13.3%	5,452	4,813	4,976	5,080	-
LT Debt, Non Current	-	5,518	-	-	-	-
Shareholder's Equity	-67.3%	-2,089	-1,249	-1,792	-787	-
Retained Earnings	9.5%	11,582	10,579	9,732	9,030	8,734
Additional Paid-In Capital	-1.0%	7,536	7,609	7,350	7,275	7,411
Accumulated Depreciation	-	1,994	-	-	-	-
Shares Outstanding	-2.2%	140	143	144	152	-
Minority Interest	-29.3%	366	518	532	480	487

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	6.6%	4,721	4,430	5,115	4,434	4,917
Cashflow From Investing	-162.5%	-115	184	49.00	-89.00	-477
Cashflow From Financing	-23.6%	-5,167	-4,180	-5,351	-6,321	-4,849
Dividend Payments	1.8%	287	282	279	277	273
Buy Backs	33.0%	5,030	3,782	3,538	3,516	2,258

Risks for MCK

What is the probability of a big loss on MCK?

43.1%

Probability that McKesson stock will be more than 20% underwater in next one year

14.2%

Probability that McKesson stock will be more than 30% underwater in next one year.

Probability that McKesson stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does MCK drawdown profile look like?

Y-axis is the maximum loss one would have experienced if McKesson was unfortunately bought at previous high price.

Drawdowns

Returns for MCK

Cumulative Returns on MCK

13.6%

10-Year Cumulative Returns

13.4%

7-Year Cumulative Returns

21.5%

5-Year Cumulative Returns

38.2%

3-Year Cumulative Returns

What are the long-term rolling returns for MCK?

FIve years rolling returns for McKesson.

Annualized Returns

Which funds bought or sold MCK recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-29	Diametric Capital, LP	new	-	1,148,240	1,148,240	0.55%
2023-03-27	Neo Ivy Capital Management	added	8,273	714,000	722,000	0.49%
2023-03-24	Longbow Finance SA	new	-	15,248,300	15,248,300	2.05%
2023-03-24	Freemont Management S.A.	new	-	5,176,660	5,176,660	0.81%
2023-03-23	MetLife Investment Management, LLC	reduced	-3.1	930,274	14,308,600	0.12%
2023-03-17	American Portfolios Advisors	added	3.44	23,030	316,461	0.01%
2023-03-15	B. Riley Wealth Advisors, Inc.	added	3.67	199,430	1,569,430	0.04%
2023-03-13	Claro Advisors LLC	new	-	744,597	744,597	0.24%
2023-03-10	MATHER GROUP, LLC.	sold off	-100	-239,000	-	-%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	reduced	-6.52	2,667,480	86,692,500	0.10%

Latest Funds Activity

Are funds buying MCK calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own MCK

No. of Funds

MCK Alerts

Big jump in Earnings (Y/Y)

McKesson News

Schedule 13G FIlings of McKesson

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 09, 2023	vanguard group inc	9.08%	12,869,151	SC 13G/A
Feb 03, 2023	blackrock inc.	8.3%	11,784,945	SC 13G/A
Feb 10, 2022	vanguard group inc	10.15%	15,497,451	SC 13G/A
Feb 01, 2022	blackrock inc.	8.6%	13,171,252	SC 13G/A
Feb 16, 2021	capital ventures international	0.5%	865,164	SC 13G/A
Feb 10, 2021	vanguard group inc	10.12%	16,251,909	SC 13G/A
Jan 29, 2021	blackrock inc.	8.7%	13,969,975	SC 13G/A
Oct 13, 2020	vanguard group inc	10.17%	16,496,553	SC 13G/A
Mar 18, 2020	capital ventures international	6.6%	10,631,600	SC 13G
Feb 12, 2020	vanguard group inc	8.72%	15,715,599	SC 13G/A

MCK Fair Value

McKesson fair value in different scenarios

The table shows the Fair Value estimates for McKesson for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	244.99 -31.61%	370.41 3.39%	665.72 85.83%	1080.40 201.58%	1582.38 341.70%
Current Inflation	223.64 -37.57%	333.62 -6.88%	588.96 64.40%	943.94 163.49%	1371.42 282.81%
Very High Inflation	197.42 -44.89%	289.32 -19.24%	498.70 39.20%	785.97 119.39%	1129.46 215.27%

Historical McKesson Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of McKesson

View All Filings

Date Filed	Form Type	Document
Mar 02, 2023	4/A	Insider Trading
Mar 02, 2023	4	Insider Trading
Feb 15, 2023	8-K	Current Report
Feb 14, 2023	FWP	Prospectus Filed
Feb 14, 2023	424B5	Prospectus Filed
Feb 14, 2023	4	Insider Trading
Feb 13, 2023	424B3	Prospectus Filed
Feb 09, 2023	SC 13G/A	Major Ownership Report
Feb 07, 2023	4/A	Insider Trading
Feb 07, 2023	4	Insider Trading

Latest Insider Trading transactions for MCK

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-01	Rutledge Napoleon B JR	acquired	-	-	785	svp, controller & cao
2023-03-01	Rutledge Napoleon B JR	sold (taxes)	-87,585	351	-249	svp, controller & cao
2023-02-06	SALKA SUSAN R	gifted	-	-	-1,000	-
2023-02-03	Avila Nancy	sold	-59,573	370	-161	evp, cio & cto
2023-02-02	TYLER BRIAN S.	sold	-2,818,080	380	-7,416	chief executive officer
2023-02-02	TYLER BRIAN S.	acquired	1,355,420	182	7,416	chief executive officer
2022-12-09	Schechter Lori A.	sold	-949,475	379	-2,500	evp, chief legal officer & gc
2022-11-10	Schechter Lori A.	sold	-977,550	391	-2,500	evp, chief legal officer & gc
2022-11-08	Faber Tracy	sold	-4,202,840	391	-10,733	evp & chief hr officer
2022-11-08	SALKA SUSAN R	gifted	-	-	-1,000	-

About McKesson

Brian S. Tyler

www.mckesson.com

65535

McKesson Corporation provides healthcare supply chain management, retail pharmacy, community oncology and specialty care, and healthcare information solutions in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, International, Medical-Surgical Solutions, and Prescription Technology Solutions (RxTS). 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 International segment offers distribution and services to wholesale, institutional, and retail customers in 13 European countries and Canada. The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers. The RxTS segment offers CoverMyMeds solution to help patients get the medications; RelayHealth, a workflow solution; RxCrossroads solution for therapies and interventions to biopharma manufacturers; and McKesson Prescription Automation, a customized pharmacy automation technology; and Multi-Client Central Fill as a Service, a pharmacy. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.

MCK Income Statement

2022-12-31

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
Revenues	$ 70,490	$ 68,614	$ 207,801	$ 197,864
Cost of sales	(67,316)	(65,186)	(198,509)	(188,052)
Gross profit	3,174	3,428	9,292	9,812
Selling, distribution, general, and administrative expenses	(1,903)	(3,105)	(5,812)	(8,006)
Claims and litigation charges, net	1	(7)	5	(193)
Restructuring, impairment, and related charges, net	(31)	(18)	(84)	(208)
Total operating expenses	(1,933)	(3,130)	(5,891)	(8,407)
Operating income	1,241	298	3,401	1,405
Other income, net	276	20	466	202
Loss on debt extinguishment	0	0	0	(191)
Interest expense	(69)	(41)	(169)	(135)
Income from continuing operations before income taxes	1,448	277	3,698	1,281
Income tax expense	(329)	(238)	(799)	(396)
Income from continuing operations	1,119	39	2,899	885
Income (loss) from discontinued operations, net of tax	1	0	(3)	(3)
Net income	1,120	39	2,896	882
Net income attributable to noncontrolling interests	(41)	(46)	(123)	(136)
Net income (loss) attributable to McKesson Corporation	$ 1,079	$ (7)	$ 2,773	$ 746
Diluted
Continuing operations (in usd per share)	$ 7.65	$ (0.04)	$ 19.32	$ 4.81
Discontinued operations (in usd per share)	0.01	0	(0.02)	(0.02)
Total (in dollars per share)	7.66	(0.04)	19.30	4.79
Basic
Continuing operations (in usd per share)	7.70	(0.04)	19.48	4.87
Discontinued operations (in usd per share)	0.01	0	(0.02)	(0.02)
Total (in dollars per share)	$ 7.71	$ (0.04)	$ 19.46	$ 4.85
Weighted-average common shares outstanding
Diluted (in usd per share)	141.0	151.6	143.7	155.8
Basic (in shares)	139.9	151.6	142.5	154.0

MCK Balance Sheet

2022-12-31

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2022	Mar. 31, 2022
Current assets
Cash and cash equivalents	$ 2,774	$ 3,532
Receivables, net	20,537	18,583
Inventories, net	20,657	18,702
Assets held for sale	14	4,516
Prepaid expenses and other	675	898
Total current assets	44,657	46,231
Property, plant, and equipment, net	2,140	2,092
Operating lease right-of-use assets	1,653	1,548
Goodwill	9,934	9,451
Intangible assets, net	2,273	2,059
Other non-current assets	2,033	1,917
Total assets	62,690	63,298
Current liabilities
Drafts and accounts payable	42,238	38,086
Short-term borrowings	617	0
Current portion of long-term debt	404	799
Current portion of operating lease liabilities	292	297
Liabilities held for sale	2	4,741
Other accrued liabilities	4,453	4,543
Total current liabilities	48,006	48,466
Long-term debt	5,452	5,080
Long-term deferred tax liabilities	1,465	1,418
Long-term operating lease liabilities	1,410	1,366
Long-term litigation liabilities	6,642	7,220
Other non-current liabilities	1,804	1,540
McKesson Corporation stockholders’ deficit
Preferred stock, $0.01 par value, 100 shares authorized, no shares issued or outstanding	0	0
Common stock, $0.01 par value, 800 shares authorized, 277 and 275 shares issued at December 31, 2022 and March 31, 2022, respectively	3	2
Additional paid-in capital	7,536	7,275
Retained earnings	11,582	9,030
Accumulated other comprehensive loss	(899)	(1,534)
Treasury shares, at cost, 140 and 130 shares at December 31, 2022 and March 31, 2022, respectively	(20,677)	(17,045)
Total McKesson Corporation stockholders’ deficit	(2,455)	(2,272)
Noncontrolling interests	366	480
Total deficit	(2,089)	(1,792)
Total liabilities and deficit	$ 62,690	$ 63,298