Morningstar

McKesson Corp MCK

Morningstar Rating
Unlock
Stock XNYS Rating as of
$488.78 −9.70 (1.95%)
View Full Chart
As of Delayed Price Closed

Company Report

View Archive

McKesson: Core Ventures Acquisition Bolsters US Oncology Network and Reinforces Market Leadership

Keonhee Kim

Narrow-moat McKesson announced on Aug. 26 that it has entered into a definitive agreement to acquire a controlling interest in Community Oncology Revitalization Enterprise Ventures. This organization was established by Florida Cancer Specialists & Research Institute, an oncology network with about 100 locations and 250 physicians. McKesson will purchase approximately 70% of Core Ventures for $2.49 billion. We do not anticipate any major legal or antitrust hurdles, given the fragmented nature of the oncology clinic industry. We have not made any meaningful changes to our model, and we maintain our fair value estimate of $490 per share.

Read Full Report

Price vs Fair Value

View History
MCK is trading at a 258% premium.
Price
$488.78
Fair Value
$845.00
Uncertainty
Medium
1-Star Price
$256.40
5-Star Price
$495.00
Economic Moat
Qlmkh
Capital Allocation
Hmztnpzx

Bulls Say, Bears Say

Bulls

McKesson distributes pharmaceutical products to nearly one third of the industry, leading to substantial negotiation leverage with generic drug manufacturers.

Bears

Reimbursement pressures on pharmacy and provider customers have led to an emphasis on cost containment, pressuring McKesson’s profitability.

Show More

News

View All

Trading Information

Previous Close Price
$498.48
Day Range
$487.06–497.71
52-Week Range
$431.35–637.51
Bid/Ask
$487.20 / $490.10
Market Cap
$63.38 Bil
Volume/Avg
1.0 Mil / 994,550

Key Statistics

Price/Earnings (Normalized)
17.44
Price/Sales
0.21
Dividend Yield (Trailing)
0.53%
Dividend Yield (Forward)
0.58%
Total Yield
4.86%

Company Profile

McKesson Corp is one of three leading pharmaceutical wholesalers in the us engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with Cencora and Cardinal Health, the three account for over 90% of the us pharmaceutical wholesale industry. Outside the us market, McKesson engages in pharmaceutical wholesale and distribution in Canada. Additionally, the company supplies medical-surgical products and equipment to healthcare facilities and provides a variety of technology solutions for pharmacies.
Sector
Healthcare
Industry
Medical Distribution
Stock Style Box
Large Value
Total Number of Employees
51,000
Website
https://www.mckesson.com

Competitors

Valuation

View More
Metric
MCK
CAH
COR
Price/Earnings (Normalized)
 17.4414.7516.69
Price/Book Value
 ——47.19
Price/Sales
 0.210.120.16
Price/Cash Flow
 14.3112.0914.13
Price/Earnings
MCK
CAH
COR

Financial Strength

Metric
MCK
CAH
COR
Quick Ratio
 0.460.480.52
Current Ratio
 0.930.980.89
Interest Coverage
 14.0924.559.39
Quick Ratio
MCK
CAH
COR

Profitability

Metric
MCK
CAH
COR
Return on Assets (Normalized)
 5.53%4.13%4.19%
Return on Equity (Normalized)
 ——324.13%
Return on Invested Capital (Normalized)
 64.65%109.00%48.02%
Return on Assets
MCK
CAH
COR

Medical Distribution Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Cencora Inc
COR
NqxwjrdDznxy$43.4 Bil
 Cardinal Health Inc
CAH
BzfgnkbwCdrdfg$26.7 Bil
 Shanghai Pharmaceuticals Holding Co Ltd Class H
SHPMF
—Dsfl$10.0 Bil
 Shanghai Pharmaceuticals Holding Co Ltd ADR repr Class H
SHPMY
—Synkr$10.0 Bil
 Sinopharm Group Co Ltd
SHTDF
—Rjwxl$8.8 Bil
 Sinopharm Group Co Ltd ADR
SHTDY
—Mlbvmwn$8.8 Bil
 Amplifon SpA Az nom Post Frazionamento
AMFPF
—Qzjqhc$6.5 Bil
 Ebos Group Ltd ADR
EBOSY
—Vfggcf$4.5 Bil
 Medipal Holdings Corp ADR
MAHLY
—Vdj$3.7 Bil

Sponsor Center