Skip to Content

McKesson Corp MCK

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

McKesson's Q4 EPS in Line With Our Estimate; No Significant Change to Our $198 FVE

Karen Andersen, CFA Sector Strategist

Analyst Note

| Karen Andersen, CFA |

Narrow-moat McKesson reported fiscal fourth-quarter results that closely aligned with our expectations. In the core distribution business, sequential performance echoed that of competitors Cardinal Health and AmerisourceBergen, in that revenue declined due to reduced generic sales but was offset by improved margins due to higher specialty volume. Adjusted EPS for the full year matched our estimate; although the firm's fiscal 2022 EPS guidance of $18.85-$19.45 (which assumes a return to pre-COVID-19 levels by early calendar 2022) is ahead of our estimates, we also expect to slightly raise our long-term tax rate assumptions, and therefore we don't expect any significant changes to our $198 fair value estimate.

Read Full Analysis

Company Profile

Business Description

McKesson Corp is the largest leading third-party logistics providers. The company is engaged in wholesale pharmaceutical and medical products sourcing, distribution and dispensing, contract manufacturing, and related IT services to acute care hospitals and health systems, independent and chain retail pharmacies in North America, Europe, and Canada. Through acquisition and joint ventures McKesson also runs the fourth- largest pharmacy chain and provides technology and consulting services to manufacturers, pharmacies, physician offices, surgery centers, long-term care facilities, and home healthcare businesses.

Contact
6555 State Highway 161
Irving, TX, 75039
T +1 972 446-4800
Sector Healthcare
Industry Medical Distribution
Most Recent Earnings Mar 31, 2021
Fiscal Year End Mar 31, 2022
Stock Type Classic Growth
Employees 76,000

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.