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115.7 (1y: +25%)
Market Cap 26.16 B P/E(ttm) 20.80
Enterprise Value 28.34 B P/B 3.80
MCK- NYSE (USA)
McKesson, Inc.
  • Currently 3.5/5
Business Predictability Rank: 3.5-Star
Back Testing Results:
Average gain of all 3.5-Star stocks: 9.3% per year.
% of Stocks that are in still loss if held for 10yrs: 9%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$115.70
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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry		 vs
history
Cash to Debt 0.504
MCK's Cash to Debt is ranked lower than
52% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.95 vs. MCK: 0.504 )
MCK' s 10-Year Cash to Debt Range
Min: 0.15   Max: 2.16
Current: 0.5
0.15
2.16
Equity to Asset 0.203
MCK's Equity to Asset is ranked lower than
67% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.40 vs. MCK: 0.203 )
MCK' s 10-Year Equity to Asset Range
Min: 0.2   Max: 0.34
Current: 0.2
0.2
0.34
Interest Coverage 9.6
MCK's Interest Coverage is ranked lower than
52% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 18.90 vs. MCK: 9.6 )
MCK' s 10-Year Interest Coverage Range
Min: 1   Max: No Debt
Current: 9.6
F-Score: 5
Z-Score: 4.72
M-Score: -2.57
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry		 vs
history
Operating margin (%) 1.90
MCK's Operating margin (%) is ranked lower than
54% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 3.60 vs. MCK: 1.90 )
MCK' s 10-Year Operating margin (%) Range
Min: -0.2   Max: 1.9
Current: 1.9
-0.2
1.9
Net-margin (%) 1.1
MCK's Net-margin (%) is ranked lower than
54% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 2.30 vs. MCK: 1.1 )
MCK' s 10-Year Net-margin (%) Range
Min: -0.2   Max: 2
Current: 1.1
-0.2
2
ROE (%) 18.9
MCK's ROE (%) is ranked higher than
92% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 11.20 vs. MCK: 18.9 )
MCK' s 10-Year ROE (%) Range
Min: -3   Max: 20.5
Current: 18.9
-3
20.5
ROA (%) 3.8
MCK's ROA (%) is ranked higher than
54% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 3.90 vs. MCK: 3.8 )
MCK' s 10-Year ROA (%) Range
Min: -0.8   Max: 7
Current: 3.8
-0.8
7
ROC (Joel Greenblatt) (%) 224.80
MCK's ROC (Joel Greenblatt) (%) is ranked higher than
98% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 26.40 vs. MCK: 224.80 )
MCK' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -6.5   Max: 298.9
Current: 224.8
-6.5
298.9
Revenue Growth (%) 6.5
MCK's Revenue Growth (%) is ranked higher than
75% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.90 vs. MCK: 6.5 )
MCK' s 10-Year Revenue Growth (%) Range
Min: 5.6   Max: 13.1
Current: 6.5
5.6
13.1
EBITDA Growth (%) 7.5
MCK's EBITDA Growth (%) is ranked higher than
75% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.70 vs. MCK: 7.5 )
MCK' s 10-Year EBITDA Growth (%) Range
Min: -48.6   Max: 133.1
Current: 7.5
-48.6
133.1
EPS Growth (%) 4.9
MCK's EPS Growth (%) is ranked higher than
73% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.00 vs. MCK: 4.9 )
MCK' s 10-Year EPS Growth (%) Range
Min: -7.5   Max: 46.6
Current: 4.9
-7.5
46.6
» MCK's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

MCK Guru Trades in Q2 2012

Paul Tudor Jones 286,050 sh (+148.74%)
Larry Robbins 1,858,348 sh (+17.53%)
Scott Black 74,283 sh (+16.05%)
Mario Gabelli 4,100 sh (unchged)
Tom Russo 425 sh (unchged)
Lee Ainslie Sold Out
Daniel Loeb Sold Out
Louis Moore Bacon Sold Out
Vanguard Health Care Fund 9,289,900 sh (-5.11%)
John Buckingham 64,210 sh (-6%)
Joel Greenblatt 29,944 sh (-6.44%)
Steven Cohen 13,400 sh (-26.78%)
Jeremy Grantham 45,463 sh (-36.65%)
Pioneer Investments 55,176 sh (-39.49%)
Ray Dalio 46,818 sh (-73.03%)
» More
Q3 2012

MCK Guru Trades in Q3 2012

Jim Simons 830,700 sh (New)
Bruce Kovner 50,000 sh (New)
Steven Cohen 507,387 sh (+3686.47%)
Ray Dalio 107,818 sh (+130.29%)
Larry Robbins 3,500,027 sh (+88.34%)
Jeremy Grantham 47,100 sh (+3.6%)
Scott Black 74,475 sh (+0.26%)
Mario Gabelli 4,100 sh (unchged)
Tom Russo 425 sh (unchged)
Vanguard Health Care Fund 9,189,900 sh (-1.08%)
John Buckingham 61,824 sh (-3.72%)
Joel Greenblatt 20,003 sh (-33.2%)
Pioneer Investments 33,924 sh (-38.52%)
Paul Tudor Jones 4,400 sh (-98.46%)
» More
Q4 2012

MCK Guru Trades in Q4 2012

Scott Black 79,358 sh (+6.56%)
Jeremy Grantham 275,008 sh (unchged)
Tom Russo 425 sh (unchged)
Vanguard Health Care Fund 8,539,900 sh (unchged)
Mario Gabelli 4,100 sh (unchged)
Paul Tudor Jones Sold Out
Jim Simons Sold Out
Bruce Kovner Sold Out
John Buckingham 59,977 sh (-2.99%)
Pioneer Investments 31,770 sh (-6.35%)
Vanguard Health Care Fund 8,539,900 sh (-7.07%)
Joel Greenblatt 15,549 sh (-22.27%)
Larry Robbins 2,354,059 sh (-32.74%)
Ray Dalio 51,149 sh (-52.56%)
Steven Cohen 9,142 sh (-98.2%)
» More
Q1 2013

MCK Guru Trades in Q1 2013

Paul Tudor Jones 1,900 sh (New)
Steven Cohen 155,715 sh (+1603.29%)
Larry Robbins 3,711,037 sh (+57.64%)
Jeremy Grantham 408,708 sh (+48.62%)
Pioneer Investments 32,480 sh (+2.23%)
Scott Black 79,682 sh (+0.41%)
Vanguard Health Care Fund 8,539,900 sh (unchged)
Mario Gabelli 4,100 sh (unchged)
Joel Greenblatt Sold Out
John Buckingham 59,041 sh (-1.56%)
Tom Russo 125 sh (-70.59%)
Ray Dalio 10,327 sh (-79.81%)
» More
» Details

Insider Trades

Latest Guru Trades with MCK

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-03-31 Sold Out 0.09%$96.96 - $111.23 $ 114.629%0
Ray Dalio 2013-03-31 Reduce -79.81%0.04%$96.96 - $111.23 $ 114.629%10327
Ray Dalio 2012-12-31 Reduce -52.56%0.06%$86.39 - $99.62 $ 114.6223%51149
Joel Greenblatt 2012-12-31 Reduce -22.27%0.03%$86.39 - $99.62 $ 114.6223%15549
Joel Greenblatt 2012-09-30 Reduce -33.2%0.07%$85.48 - $96.67 $ 114.6227%20003
Ray Dalio 2012-09-30 Add 130.29%0.07%$85.48 - $96.67 $ 114.6227%107818
Lee Ainslie 2012-06-30 Sold Out 3.1%$86.54 - $93.97 $ 114.6228%0
Daniel Loeb 2012-06-30 Sold Out 1.2%$86.54 - $93.97 $ 114.6228%0
Ray Dalio 2012-06-30 Reduce -73.03%0.18%$86.54 - $93.97 $ 114.6228%46818
Scott Black 2012-06-30 Add 16.05%0.15%$86.54 - $93.97 $ 114.6228%74283
Premium More recent guru trades are included for Premium Members only!!
» Financial Charts

Peter Lynch Chart

Top Ranked Articles about McKesson, Inc.

Mario Gabelli Buys PSSI - In Medical Takeover Trend
March 6, 2013
Mario Gabelli - Mario Gabelli Buys PSSI - In Medical Takeover Trend
On Feb. 20, 2013, billionaire investor from the Bronx, GAMCO Investors’ Chairman and Chief Executive Officer Mario Gabelli added PSS World Medical Inc. (PSSI) shares for 252.2%, with current shares at 1,236,326. Current price for PSSI is $11.51, with a 62% decline from average. PSS World Medical Inc. distributes medical supplies and equipment to physicians and healthcare providers in an effort to improve caregivers’ financial performance. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 20.70
MCK's P/E(ttm) is ranked higher than
54% of the 41 Companies
in the Global Medical Distribution industry.

( Industry Median: 19.90 vs. MCK: 20.70 )
MCK' s 10-Year P/E(ttm) Range
Min: 6.27   Max: 1992.5
Current: 20.7
6.27
1992.5
P/B 3.80
MCK's P/B is ranked lower than
70% of the 44 Companies
in the Global Medical Distribution industry.

( Industry Median: 2.25 vs. MCK: 3.80 )
MCK' s 10-Year P/B Range
Min: 1.27   Max: 3.92
Current: 3.8
1.27
3.92
P/S 0.20
MCK's P/S is ranked higher than
78% of the 45 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.48 vs. MCK: 0.20 )
MCK' s 10-Year P/S Range
Min: 0.03   Max: 0.27
Current: 0.2
0.03
0.27
PFCF 13.00
MCK's PFCF is ranked higher than
58% of the 38 Companies
in the Global Medical Distribution industry.

( Industry Median: 14.53 vs. MCK: 13.00 )
MCK' s 10-Year PFCF Range
Min: 4.61   Max: 63.35
Current: 13
4.61
63.35
EV-to-EBIT 12.2
MCK's EV-to-EBIT is ranked higher than
54% of the 41 Companies
in the Global Medical Distribution industry.

( Industry Median: 11.30 vs. MCK: 12.2 )
MCK' s 10-Year EV-to-EBIT Range
Min: 6.1   Max: 109.8
Current: 12.2
6.1
109.8
PEG 1.2
MCK's PEG is ranked higher than
74% of the 23 Companies
in the Global Medical Distribution industry.

( Industry Median: 1.62 vs. MCK: 1.2 )
MCK' s 10-Year PEG Range
Min: 0.12   Max: 17.36
Current: 1.2
0.12
17.36
Shiller P/E 24.7
MCK's Shiller P/E is ranked lower than
100% of the Companies
in the Global Medical Distribution industry.

( Industry Median: vs. MCK: 24.7 )
MCK' s 10-Year Shiller P/E Range
Min: 6.32   Max: 42.09
Current: 24.7
6.32
42.09

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 0.70
MCK's Dividend Yield is ranked lower than
69% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 1.45 vs. MCK: 0.70 )
MCK' s 10-Year Dividend Yield Range
Min: 0.35   Max: 1.49
Current: 0.7
0.35
1.49
Dividend Payout 0.1431
MCK's Dividend Payout is ranked higher than
94% of the 33 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.30 vs. MCK: 0.1431 )
MCK' s 10-Year Dividend Payout Range
Min: 0.07   Max: 1.49
Current: 0.14
0.07
1.49
Dividend growth (3y) 13.6
MCK's Dividend growth (3y) is ranked higher than
90% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.00 vs. MCK: 13.6 )
MCK' s 10-Year Dividend growth (3y) Range
Min: -13.8   Max: 31.6
Current: 13.6
-13.8
31.6
Yield on cost (5-Year) 1.51
MCK's Yield on cost (5-Year) is ranked higher than
60% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 1.51 vs. MCK: 1.51 )
MCK' s 10-Year Yield on cost (5-Year) Range
Min: 0.75   Max: 3.21
Current: 1.51
0.75
3.21
Share Buyback Rate 3.3
MCK's Share Buyback Rate is ranked higher than
94% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.00 vs. MCK: 3.3 )
MCK' s 10-Year Share Buyback Rate Range
Min: 3.3   Max: -1.5
Current: 3.3

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 2.1
MCK's Price/Net Current Asset Value is ranked higher than
81% of the 43 Companies
in the Global Medical Distribution industry.

( Industry Median: 3.50 vs. MCK: 2.1 )
MCK' s 10-Year Price/Net Current Asset Value Range
Min: 1   Max: 2.1
Current: 2.1
1
2.1
Price/DCF (Projected) 0.9
MCK's Price/DCF (Projected) is ranked higher than
83% of the 24 Companies
in the Global Medical Distribution industry.

( Industry Median: 1.00 vs. MCK: 0.9 )
MCK' s 10-Year Price/DCF (Projected) Range
Min: 0.6   Max: 1.6
Current: 0.9
0.6
1.6
Price/Median PS Value 1.3
MCK's Price/Median PS Value is ranked lower than
64% of the 42 Companies
in the Global Medical Distribution industry.

( Industry Median: 1.10 vs. MCK: 1.3 )
MCK' s 10-Year Price/Median PS Value Range
Min: 0.2   Max: 1.3
Current: 1.3
0.2
1.3
Price/Peter Lynch Fair Value 1.3
MCK's Price/Peter Lynch Fair Value is ranked higher than
62% of the 13 Companies
in the Global Medical Distribution industry.

( Industry Median: 1.30 vs. MCK: 1.3 )
MCK' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.5   Max: 1.5
Current: 1.3
0.5
1.5
Earnings Yield (Greenblatt) 8.20
MCK's Earnings Yield (Greenblatt) is ranked higher than
60% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 8.20 vs. MCK: 8.20 )
MCK' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.9   Max: 16.5
Current: 8.2
0.9
16.5
Forward Rate of Return (Yacktman) 19.65
MCK's Forward Rate of Return (Yacktman) is ranked higher than
87% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.00 vs. MCK: 19.65 )
MCK' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -23.4   Max: 136.9
Current: 19.65
-23.4
136.9

Business Description

McKesson Corporation is a Delaware Corporation. The Company delivers medicines, pharmaceutical supplies, information and care management products and services designed to reduce costs and improve quality across the healthcare industry. It operates in two segments: The McKesson Distribution Solutions segment and The McKesson Technology Solutions segment. The McKesson Distribution Solutions segment distributes ethical and proprietary drugs, medical-surgical supplies and equipment, and health and beauty care products throughout North America. This segment also provides specialty pharmaceutical solutions for biotech and pharmaceutical manufacturers, sells pharmacy software and provides consulting, outsourcing and other services. The McKesson Technology Solutions segment delivers enterprise-wide clinical, patient care, financial, supply chain, and strategic management software solutions, pharmacy automation for hospitals, as well as connectivity, outsourcing and other services. The Company's Payor group of businesses, which includes its InterQual, clinical auditing and compliance and medical management software businesses and its care management programs, are also included in this segment. The segment's customers include hospitals, physicians, homecare providers, retail pharmacies and payors from North America, the United Kingdom, other European countries and Asia Pacific. In every area of healthcare distribution operations, its Distribution Solutions segment faces strong competition, both in price and service, from national, regional and local full-line, short-line and specialty wholesalers, service merchandisers, self-warehousing chains, manufacturers engaged in direct distribution and large payor organizations. The healthcare industry is highly regulated. The Company is subject to various local, state, federal, foreign and transnational laws and regulations, which include the operating and security standards of the Drug Enforcement Administration (the DEA), the FDA, various state boards of pharmacy, state health departments, the HHS, CMS and other comparable agencies.
Company Website
SEC Reports
Industry: Medical Distribution
Compare:ABC, CAH, SHTDF, HSIC, PDCO
Traded in other countries:MCK.Germany
» More Articles for MCK

Headlines

Articles On GuruFocus.com
Mario Gabelli Buys PSSI - In Medical Takeover Trend Mar 06 2013 
McKesson Corp: Fundamental Stock Research Analysis Feb 28 2013 
Weekly CEO Sells Highlight: Geospace Technologies, Time Warner, Liberty Property Trust and McKesson Feb 18 2013 
Jeremy Grantham’s Top New Buys – Mostly Foreign Feb 14 2013 
Robbins’ HMA Stake Just Keeps Getting Bigger Jan 11 2013 
Cardinal Health Inc. (CAH) Dividend Stock Analysis Dec 07 2012 
Community Health Systems: Glenview’s Larry Robbins Declares 8.39% Ownership Nov 26 2012 
McKesson Corp - Stock Research Analysis Sep 13 2012 
Weekly CFO Sells Highlight: ONNN, CVC, RATE, LPI, MCK Aug 20 2012 
Owens & Minor Inc. (OMI) Dividend Stock Analysis Aug 03 2012 

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