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McKesson Corp MCK

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Stock XNYS Rating as of
$523.56 −2.39 (0.45%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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McKesson Enjoys Robust Sales of GLP-1s and Specialty Drugs, but at the Cost of Margin Loss

Keonhee Kim

McKesson is one of three leading domestic wholesalers of branded, generic, and specialty pharmaceutical products. With over $240 billion in sales from its U.S. pharmaceutical segment in fiscal 2023, the company supplies roughly one third of the domestic drug distribution market. Its two close competitors are Cencora and Cardinal Health. Together, the three operate as a pharmaceutical wholesale and distribution oligopoly, supplying over 90% of the U.S. market.

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Price vs Fair Value

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MCK is trading at a 28% premium.
Price
$525.92
Fair Value
$874.00
Uncertainty
Medium
1-Star Price
$852.90
5-Star Price
$145.00
Economic Moat
Ssrkr
Capital Allocation
Qhtynqj

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.

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Trading Information

Previous Close Price
$525.95
Day Range
$523.56–527.52
52-Week Range
$352.65–542.58
Bid/Ask
$523.54 / $523.99
Market Cap
$68.84 Bil
Volume/Avg
47,198 / 693,246

Key Statistics

Price/Earnings (Normalized)
18.58
Price/Sales
0.24
Dividend Yield (Trailing)
0.45%
Dividend Yield (Forward)
0.47%
Total Yield
3.91%

Company Profile

McKesson Corp is one of three leading pharmaceutical wholesalers in the U.S. 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 U.S. pharmaceutical wholesale industry. Outside the U.S. 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 Core
Total Number of Employees
51,000
Website
https://www.mckesson.com

Competitors

Valuation

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Metric
MCK
CAH
COR
Price/Earnings (Normalized)
 18.5815.6718.97
Price/Book Value
 ——52.13
Price/Sales
 0.240.130.18
Price/Cash Flow
 15.2211.1714.88
Price/Earnings
MCK
CAH
COR

Financial Strength

Metric
MCK
CAH
COR
Quick Ratio
 0.480.430.48
Current Ratio
 0.920.980.88
Interest Coverage
 14.7218.379.41
Quick Ratio
MCK
CAH
COR

Profitability

Metric
MCK
CAH
COR
Return on Assets (Normalized)
 6.00%3.89%4.19%
Return on Equity (Normalized)
 ——574.41%
Return on Invested Capital (Normalized)
 66.76%89.85%48.08%
Return on Assets
MCK
CAH
COR
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Medical Distribution Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
COR
Cencora IncXhwmxnmvTxwktjc$47.5 Bil
CAH
Cardinal Health IncTzvkhfwrLdksjpb$26.1 Bil
SHPMF
Shanghai Pharmaceuticals Holding Co Ltd Class H—Kckhk$8.0 Bil
SHPMY
Shanghai Pharmaceuticals Holding Co Ltd ADR repr Class H—Bmzpspz$8.0 Bil
SHTDY
Sinopharm Group Co Ltd ADR—Kgzvg$7.9 Bil
SHTDF
Sinopharm Group Co Ltd—Wwfplr$7.8 Bil
AMFPF
Amplifon SpA Az nom Post Frazionamento—Pkgrsj$7.4 Bil
MAHLY
Medipal Holdings Corp ADR—Mqs$3.2 Bil
MEPDF
Medipal Holdings Corp—Yhxs$3.2 Bil

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