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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 0.39
MCK's Cash to Debt is ranked lower than
53% of the 49 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.63 vs. MCK: 0.39 )
MCK' s 10-Year Cash to Debt Range
Min: 0.05   Max: No Debt
Current: 0.39

Equity to Asset 0.17
MCK's Equity to Asset is ranked lower than
56% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.38 vs. MCK: 0.17 )
MCK' s 10-Year Equity to Asset Range
Min: 0.17   Max: 0.35
Current: 0.17

0.17
0.35
Interest Coverage 7.81
MCK's Interest Coverage is ranked higher than
56% of the 36 Companies
in the Global Medical Distribution industry.

( Industry Median: 9.68 vs. MCK: 7.81 )
MCK' s 10-Year Interest Coverage Range
Min: 0.94   Max: 12.77
Current: 7.81

0.94
12.77
F-Score: 6
Z-Score: 3.96
M-Score: -2.20
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 (%) 1.72
MCK's Operating margin (%) is ranked higher than
51% of the 47 Companies
in the Global Medical Distribution industry.

( Industry Median: 2.78 vs. MCK: 1.72 )
MCK' s 10-Year Operating margin (%) Range
Min: -0.27   Max: 2.54
Current: 1.72

-0.27
2.54
Net-margin (%) 0.92
MCK's Net-margin (%) is ranked lower than
53% of the 47 Companies
in the Global Medical Distribution industry.

( Industry Median: 1.78 vs. MCK: 0.92 )
MCK' s 10-Year Net-margin (%) Range
Min: -0.2   Max: 1.97
Current: 0.92

-0.2
1.97
ROE (%) 14.82
MCK's ROE (%) is ranked higher than
85% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 9.25 vs. MCK: 14.82 )
MCK' s 10-Year ROE (%) Range
Min: -2.98   Max: 20.54
Current: 14.82

-2.98
20.54
ROA (%) 2.44
MCK's ROA (%) is ranked higher than
54% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 3.39 vs. MCK: 2.44 )
MCK' s 10-Year ROA (%) Range
Min: -0.84   Max: 6.98
Current: 2.44

-0.84
6.98
ROC (Joel Greenblatt) (%) 82.45
MCK's ROC (Joel Greenblatt) (%) is ranked higher than
92% of the 48 Companies
in the Global Medical Distribution industry.

( Industry Median: 34.71 vs. MCK: 82.45 )
MCK' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -9.02   Max: 206.04
Current: 82.45

-9.02
206.04
Revenue Growth (%) 11.50
MCK's Revenue Growth (%) is ranked higher than
77% of the 43 Companies
in the Global Medical Distribution industry.

( Industry Median: 9.50 vs. MCK: 11.50 )
MCK' s 10-Year Revenue Growth (%) Range
Min: -7.8   Max: 26.9
Current: 11.5

-7.8
26.9
EBITDA Growth (%) 20.60
MCK's EBITDA Growth (%) is ranked higher than
71% of the 42 Companies
in the Global Medical Distribution industry.

( Industry Median: 6.60 vs. MCK: 20.60 )
MCK' s 10-Year EBITDA Growth (%) Range
Min: -52.7   Max: 171.6
Current: 20.6

-52.7
171.6
EPS Growth (%) 10.80
MCK's EPS Growth (%) is ranked higher than
69% of the 39 Companies
in the Global Medical Distribution industry.

( Industry Median: 5.60 vs. MCK: 10.80 )
MCK' s 10-Year EPS Growth (%) Range
Min: -46.7   Max: 87.1
Current: 10.8

-46.7
87.1
» MCK's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2013

MCK Guru Trades in Q3 2013

Joel Greenblatt 39,414 sh (+130.72%)
Paul Tudor Jones 200,000 sh (+57.6%)
Jim Simons 562,000 sh (+36.11%)
Larry Robbins 4,612,936 sh (+8.19%)
Leon Cooperman 691,382 sh (+2.86%)
Mario Gabelli 4,100 sh (unchged)
Vanguard Health Care Fund 8,439,000 sh (-1.18%)
John Buckingham 55,960 sh (-3.62%)
Scott Black 82,844 sh (-3.93%)
Jeremy Grantham 300,035 sh (-4.28%)
Ray Dalio 43,327 sh (-5.04%)
Steven Cohen 285,604 sh (-6.44%)
Pioneer Investments 15,447 sh (-11.7%)
» More
Q4 2013

MCK Guru Trades in Q4 2013

Andreas Halvorsen 1,261,574 sh (New)
Pioneer Investments 203,529 sh (+1217.6%)
Ray Dalio 56,630 sh (+30.7%)
Jeremy Grantham 341,518 sh (+13.83%)
Leon Cooperman 693,482 sh (+0.3%)
Mario Gabelli Sold Out
John Buckingham Sold Out
Vanguard Health Care Fund 7,449,500 sh (-11.73%)
Scott Black 68,116 sh (-17.78%)
Larry Robbins 3,050,925 sh (-33.86%)
Joel Greenblatt 21,358 sh (-45.81%)
Steven Cohen 97,098 sh (-66%)
Paul Tudor Jones 28,513 sh (-85.74%)
Jim Simons 45,400 sh (-91.92%)
» More
Q1 2014

MCK Guru Trades in Q1 2014

Mario Gabelli 11,520 sh (New)
John Burbank 1,302 sh (New)
Joel Greenblatt 44,157 sh (+106.75%)
Pioneer Investments 402,758 sh (+97.89%)
Leon Cooperman 710,982 sh (+2.52%)
Jim Simons Sold Out
Andreas Halvorsen Sold Out
Vanguard Health Care Fund 7,343,200 sh (-1.43%)
Scott Black 63,383 sh (-6.95%)
Larry Robbins 2,408,550 sh (-21.06%)
Ray Dalio 31,030 sh (-45.21%)
Steven Cohen 12,995 sh (-86.62%)
Paul Tudor Jones 1,300 sh (-95.44%)
Jeremy Grantham 9,600 sh (-97.19%)
» More
Q2 2014

MCK Guru Trades in Q2 2014

Lee Ainslie 1,719,923 sh (New)
Jim Simons 461,900 sh (New)
Paul Tudor Jones 79,317 sh (+6001.31%)
Mario Gabelli 14,560 sh (+26.39%)
Larry Robbins 2,837,666 sh (+17.82%)
Pioneer Investments 465,693 sh (+15.63%)
Steven Cohen 301,500 sh (unchged)
Larry Robbins 250,000 sh (unchged)
John Burbank Sold Out
Jeremy Grantham 9,200 sh (-4.17%)
Leon Cooperman 669,775 sh (-5.8%)
Vanguard Health Care Fund 6,584,000 sh (-10.34%)
Scott Black 44,542 sh (-29.73%)
Joel Greenblatt 20,104 sh (-54.47%)
Ray Dalio 4,030 sh (-87.01%)
» More
» Details

Insider Trades

Latest Guru Trades with MCK

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Lee Ainslie 2014-06-30 New Buy4.6%$164.68 - $191.63 $ 195.0310%1719923
Vanguard Health Care Fund 2014-06-30 Reduce -10.34%0.37%$164.68 - $191.63 $ 195.0310%6584000
Scott Black 2014-06-30 Reduce -29.73%0.36%$164.68 - $191.63 $ 195.0310%44542
Joel Greenblatt 2014-06-30 Reduce -54.47%0.07%$164.68 - $191.63 $ 195.0310%20104
Ray Dalio 2014-06-30 Reduce -87.01%0.04%$164.68 - $191.63 $ 195.0310%4030
John Burbank 2014-06-30 Sold Out 0.01%$164.68 - $191.63 $ 195.0310%0
Mario Gabelli 2014-06-30 Add 26.39%$164.68 - $191.63 $ 195.0310%14560
Joel Greenblatt 2014-03-31 Add 106.75%0.06%$160.16 - $185.35 $ 195.0312%44157
Ray Dalio 2014-03-31 Reduce -45.21%0.03%$160.16 - $185.35 $ 195.0312%31030
Mario Gabelli 2014-03-31 New Buy0.01%$160.16 - $185.35 $ 195.0312%11520
John Burbank 2014-03-31 New Buy0.01%$160.16 - $185.35 $ 195.0312%1302
Vanguard Health Care Fund 2013-12-31 Reduce -11.73%0.43%$129.57 - $165.89 $ 195.0327%7449500
Scott Black 2013-12-31 Reduce -17.78%0.21%$129.57 - $165.89 $ 195.0327%68116
Joel Greenblatt 2013-12-31 Reduce -45.81%0.07%$129.57 - $165.89 $ 195.0327%21358
Ray Dalio 2013-12-31 Add 30.7%0.02%$129.57 - $165.89 $ 195.0327%56630
Mario Gabelli 2013-12-31 Sold Out $129.57 - $165.89 $ 195.0327%0
Joel Greenblatt 2013-09-30 Add 130.72%0.09%$114.28 - $132.01 $ 195.0359%39414
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Top Ranked Articles about McKesson Corp

Weekly Insider Sells Highlight: HCA, MCK, P, ROP
According to GuruFocus Insider Data, the largest insider sells during the past week were: HCA Holdings Inc., McKesson Corp, Pandora Media Inc. and Roper Industries Inc. Read more...
Scott Black’s Barron’s Roundtable Stock Picks Report Card
Every year Barron’s gets its Roundtable team together and they discuss stock picks and the status of the economy in general.  Guru Scott Black (Trades, Portfolio) is a member of Barron’s Roundtable team, and the following stocks are his stock picks for 2013 and how they ended up doing for the year.  Read more...
King of Consistency - Larry Robbins’ High Conviction Stocks in Review
To ring in the New Year, here’s inspiration from hedge fund hotshot Larry Robbins who once said: “Consistency of effort often makes the difference between who wins and who loses …We know that the key is to realize that on January 1st, when the sheet reads zero point zero, we have to remember that it’s not about what you did before, but about that persistence and continuity of work effort.” Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 36.60
MCK's P/E(ttm) is ranked higher than
53% of the 55 Companies
in the Global Medical Distribution industry.

( Industry Median: 26.90 vs. MCK: 36.60 )
MCK' s 10-Year P/E(ttm) Range
Min: 8.15   Max: 36.65
Current: 36.6

8.15
36.65
P/B 5.03
MCK's P/B is ranked lower than
65% of the 55 Companies
in the Global Medical Distribution industry.

( Industry Median: 2.40 vs. MCK: 5.03 )
MCK' s 10-Year P/B Range
Min: 1.29   Max: 5.14
Current: 5.03

1.29
5.14
P/S 0.31
MCK's P/S is ranked higher than
80% of the 55 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.66 vs. MCK: 0.31 )
MCK' s 10-Year P/S Range
Min: 0.08   Max: 0.32
Current: 0.31

0.08
0.32
PFCF 20.95
MCK's PFCF is ranked higher than
84% of the 55 Companies
in the Global Medical Distribution industry.

( Industry Median: 80.67 vs. MCK: 20.95 )
MCK' s 10-Year PFCF Range
Min: 4.69   Max: 52.46
Current: 20.95

4.69
52.46
EV-to-EBIT 22.23
MCK's EV-to-EBIT is ranked higher than
62% of the 55 Companies
in the Global Medical Distribution industry.

( Industry Median: 20.68 vs. MCK: 22.23 )
MCK' s 10-Year EV-to-EBIT Range
Min: 6.1   Max: 22.5
Current: 22.23

6.1
22.5
PEG 2.22
MCK's PEG is ranked higher than
76% of the 55 Companies
in the Global Medical Distribution industry.

( Industry Median: 5.53 vs. MCK: 2.22 )
MCK' s 10-Year PEG Range
Min: 0.16   Max: 4.79
Current: 2.22

0.16
4.79
Shiller P/E 37.31
MCK's Shiller P/E is ranked higher than
60% of the 55 Companies
in the Global Medical Distribution industry.

( Industry Median: 37.62 vs. MCK: 37.31 )
MCK' s 10-Year Shiller P/E Range
Min: 12.51   Max: 42.43
Current: 37.31

12.51
42.43
Current Ratio 1.16
MCK's Current Ratio is ranked lower than
59% of the 34 Companies
in the Global Medical Distribution industry.

( Industry Median: 1.43 vs. MCK: 1.16 )
MCK' s 10-Year Current Ratio Range
Min: 1.08   Max: 1.71
Current: 1.16

1.08
1.71
Quick Ratio 0.68
MCK's Quick Ratio is ranked lower than
62% of the 34 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.93 vs. MCK: 0.68 )
MCK' s 10-Year Quick Ratio Range
Min: 0.52   Max: 0.94
Current: 0.68

0.52
0.94

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.50
MCK's Dividend Yield is ranked lower than
89% of the 45 Companies
in the Global Medical Distribution industry.

( Industry Median: 1.65 vs. MCK: 0.50 )
MCK' s 10-Year Dividend Yield Range
Min: 0.35   Max: 1.42
Current: 0.5

0.35
1.42
Dividend Payout 0.17
MCK's Dividend Payout is ranked higher than
91% of the 55 Companies
in the Global Medical Distribution industry.

( Industry Median: 0.81 vs. MCK: 0.17 )
MCK' s 10-Year Dividend Payout Range
Min: 0.04   Max: 6
Current: 0.17

0.04
6
Dividend growth (3y) 8.50
MCK's Dividend growth (3y) is ranked higher than
57% of the 23 Companies
in the Global Medical Distribution industry.

( Industry Median: 10.70 vs. MCK: 8.50 )
MCK' s 10-Year Dividend growth (3y) Range
Min: -21.7   Max: 44.2
Current: 8.5

-21.7
44.2
Yield on cost (5-Year) 1.01
MCK's Yield on cost (5-Year) is ranked lower than
82% of the 45 Companies
in the Global Medical Distribution industry.

( Industry Median: 2.06 vs. MCK: 1.01 )
MCK' s 10-Year Yield on cost (5-Year) Range
Min: 0.71   Max: 2.87
Current: 1.01

0.71
2.87
Share Buyback Rate 4.00
MCK's Share Buyback Rate is ranked higher than
92% of the 37 Companies
in the Global Medical Distribution industry.

( Industry Median: -0.20 vs. MCK: 4.00 )
MCK' s 10-Year Share Buyback Rate Range
Min: 4.3   Max: -43.5
Current: 4

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.24
MCK's Price/DCF (Projected) is ranked higher than
80% of the 55 Companies
in the Global Medical Distribution industry.

( Industry Median: 1.39 vs. MCK: 1.24 )
MCK' s 10-Year Price/DCF (Projected) Range
Min: 0.55   Max: 56.24
Current: 1.24

0.55
56.24
Price/Median PS Value 1.80
MCK's Price/Median PS Value is ranked lower than
56% of the 55 Companies
in the Global Medical Distribution industry.

( Industry Median: 1.31 vs. MCK: 1.80 )
MCK' s 10-Year Price/Median PS Value Range
Min: 0.01   Max: 4.46
Current: 1.8

0.01
4.46
Price/Peter Lynch Fair Value 2.10
MCK's Price/Peter Lynch Fair Value is ranked higher than
78% of the 55 Companies
in the Global Medical Distribution industry.

( Industry Median: 9999.00 vs. MCK: 2.10 )
MCK' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.34   Max: 82.15
Current: 2.1

0.34
82.15
Earnings Yield (Greenblatt) 4.50
MCK's Earnings Yield (Greenblatt) is ranked higher than
53% of the 47 Companies
in the Global Medical Distribution industry.

( Industry Median: 5.80 vs. MCK: 4.50 )
MCK' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.4   Max: 16.5
Current: 4.5

4.4
16.5
Forward Rate of Return (Yacktman) 19.23
MCK's Forward Rate of Return (Yacktman) is ranked higher than
76% of the 42 Companies
in the Global Medical Distribution industry.

( Industry Median: 13.61 vs. MCK: 19.23 )
MCK' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -1268.2   Max: 101
Current: 19.23

-1268.2
101

Business Description

Industry: Medical Distribution » Medical Distribution
Compare:ABC, CAH, SHTDF, HSIC, PDCO » details
Traded in other countries:MCK.Germany
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.
» More Articles for MCK

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