GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK
McKesson Corp (NYSE:MCK)
[1]
Fairly Valued[5]$ 218.66
Medical Distribution
Market Cap: $ 33,385 Mil
McKesson Corp provides medicines, pharmaceutical supplies, information and care management products and services across the healthcare industry. It operates with two segments namely McKesson Distribution Solutions and McKesson Technology Solutions.
Valuation Rank
Score: 8 /10CurrentIndustry MedianHistorical Median
PE RatioLoss15.9719.55
Forward P/E10.1214.35N/A
PB RatioN/A1.333.55
PS Ratio0.140.570.17
P/FCF8.4317.1810.5
Shiller P/E51.7916.8627.87
PEG RatioN/A1.331.18
Valuation Analysis
% of Price
NCAV-121.77-56
Tangible Book-81.4-37
Price218.66
Median PS Value276.42126
Dividend & Ownership
Dividend Yield(ttm) %0.81
Dividend Yield(forward) %0.86
PayoutN/A
Dividend Growth(5y) %10.3
Yield on Cost(5y) %1.32
Continuous Div. since2000
Insider Ownership %0.2
Institution Ownership %67.8
Financial Strength
Score: 5 /10CurrentIndustry MedianHistorical Median
Cash-to-Debt0.270.580.39
Equity-to-Asset-0.010.410.25
Interest Coverage17.0010.6610.33
Piotroski F-Score556
Profitability Rank
Score: 7 /10CurrentIndustry MedianHistorical Median
Operating Margin %1.363.911.75
Net Margin %-1.922.300.87
ROE %-560.008.6117.04
ROA %-7.632.892.86
ROC (Joel Greenblatt) %-115.8817.90141.73
Growth (Per Share)
10 Yr5 Yr1 Yr
Revenue Growth (%)13.112.515.7
EBITDA Growth (%)N/AN/A-215.3
Oprt. Income Growth (%)8.94.531.6
EPS w/o NRI Growth (%)N/AN/A-328.9
Free Cash Flow Growth (%)1210.718.3
Book Value Growth (%)N/AN/A-110.2
Quarterly
Sep20Dec20Mar21Jun21Sep21
Revenue6080862599591426267466576
Net Income577-6226666486267
EPS3.54-39.034.153.071.71
Revenue (YoY) %5.545.791.0412.569.49
Net Income (YoY) %-179.04-3447.31-34.779.46-53.73
EPS (YoY) %-188.72-3889.32-29.0612.87-51.69
Warning Signs
SEVEREGross Margin %: Declined
SEVEREOperating Margin %: Declined
MEDIUMDividend Yield %: Close to 3-year low
Good Signs
GOODAltman Z-Score: Strong
Insider Trades
InsiderPositionDateTradesCur. Shares
Faber TracyEVP & Chief HR 11/22/21-84260
Tyler Brian S.CEO11/10/21-1228818638
Schechter Lori A.EVP, Chief Lega11/10/21-1024919178
Schechter Lori A.EVP, Chief Lega11/03/21-5441219178
Tyler Brian S.CEO11/02/21-621418638
Vitalone Britt J.EVP & CFO11/02/21-1095656
Emerson KevinSVP, Controller11/02/21-90
Vitalone Britt J.EVP & CFO10/25/21-80221751
Vitalone Britt J.EVP & CFO09/13/21-220858325
Schechter Lori A.EVP, Chief Lega08/03/21-1441919178
As of 12-06-2021
* All financial numbers are in millions except for per share data, ratios and percentage change.
Gain % SP500 %
1W-1.12-1.21
1M-2.27-2.43
3M6.230.40
6M13.288.98
YTD26.7522.46
1Y23.0425.39
3Y20.7219.60
5Y9.5417.70
10Y11.1315.98
242.75
86.7
69.35
10M
4.9M
2011201220132014201520162017201820192020CurrentPerformance
88.59111.23185.35230.26242.75198.44176.72158.13170.96196.53229.13Highest Stock Price
69.3585.48104.18164.68150.03124.11135108.23112.47125.49169.09Lowest Stock Price
2062624507407885247835381312832845622241219123081633385Market Cap
251239233235233223209197.3181.6160.6155.8Shares Outstanding-Diluted
15.719.3132.6436.0816.216.52440.22688.5927.33At LossAt LossPE Ratio
3.023.474.796.563.962.822.92.754.3----PB Ratio
0.180.210.30.30.190.170.140.110.110.130.14PS Ratio
8.149.7215.2814.18.814.5923.0314.8411.89-8.69-9.18EV-to-EBITDA
2012201320142015201620172018201920202021TTMPer Share Data
487.34511.28589.67761.89819.25890.28996.921086.261272.311483.361588.64Revenue per Share
5.595.595.416.279.722.730.320.174.95-28.26-30.1Earnings per Share
10.178.7211.6610.9212.8518.7518.0117.6321.324.2925.93Free Cash Flow per Share
0.80.80.920.961.081.121.31.511.621.671.73Dividends per Share
0.21-7.07-27.17-22.66-17.26-14.96-25.85-26.07-45.83-78.43-81.4Tangible Book per Share
81.4386.9103.13139.35154.63169.45182.36199.57232.45263.94276.42Median PS Value
5.08--------------------Graham Number
2012201320142015201620172018201920202021TTMIncome Statement
122321122196137392179045190884198533208357214319231051238228250991Revenue
6402688183521141111416112711118411754120231214812832Gross Profit
5.25.66.16.465.75.45.55.25.15.1Gross Margin %
41294543584582937771778882638437918288499416Total Operating Expense
22732338250731183645348329213317284132993416Operating Income
1.91.91.81.71.91.81.41.61.21.41.4Operating Margin %
1403133812631476225850706734900-4539-4807Net Income
1.21.10.90.81.22.6000.4-1.9-1.9Net Margin %
2144219024713031360371995228741393-4817-5129EBIT
263727713206404844888109147318232315-3930-4268EBITDA
2019.316.217.926.750.70.60.413.7-179-560ROE %
4.43.92.92.84.18.60.10.11.5-7.2-7.6ROA %
2012201320142015201620172018201920202021Sep21Balance Sheet
31492456419353414048278326722981401562782151Cash & Equivalents
99779975137801591417980182151771118246199501918120140Total Receivables
3309334786517595387056523609696038159672612476501563601Total Assets
9083521665166416171240112933014061132387Short-Term Debt & CLO
30724521892981806497730567517265799582737551Long-Term Debt & CLO
2626227716414414578547515496965032451385559386484063688Total Liabilities
6831707085228001892411095980480945092-21-571Total Stockholders Equity
683170701031880859008112731005782875309175-87Total Equity
2012201320142015201620172018201920202021TTMCashflow Statement
29502483313631123672474443454036437445424753Cash Flow from Operations
-1502-2209-5046-677-1557-3269-2993-1381-579-415-294Cash Flow from Investing
-1874-1214-130-450-1612-2311-1709-1639-1954-770-1794Repurchase of Stock
-302553724-402-1725393-1060-16-298-540-1857Net Issuance of Debt
-1905-9563619-968-3453-2069-3084-2227-2734-1693-5186Cash Flow from Financing
-463-69317371148-1293-738-158230910422373-707Net Change in Cash
-398-400-419-545-677-562-580-557-506-641-655Capital Expenditure
25522083271725672995418237653479386839014098Free Cash Flow
Competitor
TickerCompanyFinancial
Strength
Profitability
Rank
Market Cap
($M)
PE RatioPS RatioNet
Margin %
ROA %ROE %
NYSE:MCKMcKesson Corp5733,385At Loss0.14-1.92-7.63-560.00
NYSE:ABCAmerisourceBergen Corp5624,30215.800.110.723.080.00
NYSE:CAHCardinal Health Inc6713,25012.150.080.682.6167.83
XKRX:091990Celltrion Healthcare Co Ltd7610,76972.667.7810.564.498.53
NAS:HSICHenry Schein Inc679,86816.140.835.127.8518.78
GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK

Financial Strength[2] (Quarterly data, as of Sep. 2021) : Fair (5/10)

0
1
2
3
4
5
6
7
8
9

Cash-to-Debt : 0.27

Cash-to-Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. A high ratio indicates that a company is better able to pay back its debt, and is thus able to take on more debt if necessary.


Equity-to-Asset : -0.01

Equity-to-Asset ratio is calculated as total stockholders equity divided by its total assets. Equity-to-Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity-to-Asset ratio (more leveraged) may have higher ROE % because of the leverage.


Debt-to-Equity : -13.90

A high Debt-to-Equity ratio generally means that a company has been aggressive in financing its growth with debt.


Piotroski F-Score : 5

The Piotroski F-Score is used to determine the strength of a firm's financial position, with 9 being the best and 0 being the worst.

0
1
2
3
4
5
6
7
8
9


WACC : 4.82% vs ROIC : 14.10%

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business.


Dividend Yield : 0.87%

Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position.

GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK

Profitability[3] (Annual data, as of Mar. 2021) : Good (7/10)

0
1
2
3
4
5
6
7
8
9

Revenue : $66,576 Mil vs Net Income : $267 Mil

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Net Income is a company's total profit. Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.


Cash & Equivalents : $2,151 Mil vs Long-Term Debt* : $7,551 Mil

Cash & equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash. Long-Term Debt* consists of loans and obligations lasting over one year.


Operating Margin % : 1.03%

Operating margin % measures how much profit a company makes on a dollar of sales. Operating Margin % is calculated as Operating Income divided by Revenue.


EPS without NRI : $1.71

Earnings Per Share without Non-Recurring Items is the amount of earnings without non-recurring items per outstanding share of the company's stock. In calculating earnings per share without non-recurring items, the dividends of preferred stocks and Non Operating Income need to subtracted from the total net income first.


Dividends per Share : $0.47

Dividends per Share is the amount of dividends that the shareholders of a company receive on a per-share basis. It is calculated using the total dividends paid out to shareholders over one fiscal year and the number of shares outstanding.


Free Cash Flow per Share : $10.73

Free Cash flow per Share is the amount of Free cash flow per outstanding share of the company's stock.

GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK

Valuation (Quarterly data, as of Sep. 2021)

These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing over time.


Valuation Chart (Current stock price : $218.66)


PE Ratio without NRI : At Loss

The price-to-earnings ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than regular PE Ratio.


PB Ratio : 0.00

The price-to-book ratio measures the valuation of the stock relative to the underlying asset of the company.


PS Ratio : 0.13

The price-to-sales ratio is a valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.


Price-to-Free-Cash-Flow : 7.69

Price-to-free-cash-flow is very similar to the valuation metric of price-to-operating-cash-flow but is considered a more exact measure, owing to the fact that it uses free cash flow, which subtracts capital expenditures from a company's total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.


EV-to-EBIT : -7.16

Enterprise value of a company divided by its trailing 12 months earnings before interest and taxes (EBIT).

GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK

Valuation Bands

In these charts the 10-year valuation bands of the price-to-earnings ratio (PE Ratio), price-to-book ratio (PB Ratio), price-to-sales ratio (PS Ratio) and price-to-operating-cash-flow ratio (POCF) are drawn together with the historical stock prices. For example, the upper line of the PE band is where the stock price would have been if it were always traded at the maximum PE ratio of the past 10 years. The lower line of the PE band is where the stock price would have been if it were always traded at the lowest PE ratio of the past 10 years. It is always better if the stock price is close to the lower line, which indicates a lower valuation.


Historical Price and PE Band


Historical Price and PS Band


Historical Price and PB Band


Historical Price and Price-to-Operating-Cash-Flow (POCF) Band

GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK

Warning Signs

GuruFocus conducted a thorough checkup using a checklist of 32 items that cover the areas of financial strength, profitability, growth, and valuation of each company. The purpose of Warning Signs is to warn you that the company may have red flags in certain areas, helping to avoid overlooking them. These warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest.


Severe Warning Signs

Gross Margin % : Declined

McKesson Corp gross margin has been in long term decline. The average rate of decline per year is -2.9%.

Operating Margin % : Declined

McKesson Corp operating margin has been in 5-year decline. The average rate of decline per year is -7.1%.

Good Signs

Altman Z-Score : Strong

Altman Z-score of 4.18 is strong.

Beneish M-Score : Unlikely manipulator

Beneish M-Score -2.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

Medium Warning Signs

Dividend Yield % : Close to 3-year low

McKesson Corp stock dividend yield is close to 3-year low.

Price : Close to 10-year high

McKesson Corp stock Price is close to 10-year high

PS Ratio : Close to 3-year high

McKesson Corp stock PS Ratio (=0.14) is close to 3-year high of 0.14

Insider Sell : Insider Selling

There were 9 insider selling transactions and no insider buying over the past 3 months. 122,800 shares were sold.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK

Competitive Comparison


5 Year Price Change Comparison


Financial Strength

CompanyFinancial StrengthCash-to-DebtEquity-to-AssetDebt-to-EquityInterest CoveragePiotroski F-ScoreAltman Z-ScoreBeneish M-ScoreWACC %ROIC %
XKRX:091990Celltrion Healthcare Co Ltd7/101.480.530.1538.8435.78-2.008.358.81
NYSE:CAHCardinal Health Inc6/100.440.034.0610.1974.34-2.395.5010.09
NAS:HSICHenry Schein Inc6/100.110.410.3226.7773.98-2.386.1811.35
NYSE:ABCAmerisourceBergen Corp5/100.380.0029.9315.5854.11-2.243.3613.60
NYSE:MCKMcKesson Corp5/100.27-0.01-13.9017.0054.18-2.654.8214.10
NYSE:OMIOwens & Minor Inc5/100.040.251.268.1574.16-2.221.2115.33
NAS:PDCOPatterson Companies Inc5/100.190.360.735.8554.210.009.146.04
OTCPK:FZMDFuse Medical Inc4/101.00-0.17-0.560.0041.99-3.120.86-10.82
NYSE:PBHPrestige Consumer Healthcare Inc4/100.030.401.124.4671.81-2.374.747.35
OTCPK:SNYRSynergy CHC Corp0/100.000.000.000.0000.000.000.000.00

Profitability

CompanyProfitability RankOperating
Margin %
Net Margin %ROE %ROA %Price-to-Free-Cash-FlowROC (Joel Greenblatt) %3-Year Revenue Growth %3-Year EBITDA Growth %3-Year EPS w/o NRI Growth %
NYSE:CAHCardinal Health Inc7/101.070.6867.832.6112.4847.238.406.7036.90
NAS:HSICHenry Schein Inc7/106.875.1218.787.8514.0338.877.90-0.5015.00
NYSE:MCKMcKesson Corp7/101.36-1.92-560.00-7.638.43-115.8814.200.000.00
NYSE:PBHPrestige Consumer Healthcare Inc7/1030.7517.5613.125.1113.06133.62-1.4010.70-20.00
NYSE:ABCAmerisourceBergen Corp6/101.330.720.003.0810.96137.3810.4018.30-0.60
XKRX:091990Celltrion Healthcare Co Ltd6/1013.9710.568.534.490.0012.7322.2013.5016.30
NYSE:OMIOwens & Minor Inc6/104.572.3831.266.7036.9627.72-4.9022.105.00
NAS:PDCOPatterson Companies Inc6/102.122.6417.926.000.0025.851.40-2.00-9.30
OTCPK:FZMDFuse Medical Inc2/10-4.80-4.870.00-5.92529.78-20.62-39.200.000.00
OTCPK:SNYRSynergy CHC Corp0/100.000.000.000.000.000.000.000.000.00

Valuation

CompanyPE RatioPB RatioPS RatioPrice-to-Intrinsic-Value-Projected-FCFPrice-to-Intrinsic-Value-DCF (Earnings Based)Price-to-Median-PS-ValuePrice-to-Peter-Lynch-Fair-ValuePrice-to-Graham-NumberEarnings Yield (Joel Greenblatt) %Forward Rate of Return (Yacktman) %
OTCPK:FZMDFuse Medical IncAt Loss0.001.745.300.000.000.000.00-2.470.00
NYSE:MCKMcKesson CorpAt Loss0.000.140.790.000.790.000.00-13.09-12.86
OTCPK:SNYRSynergy CHC CorpAt Loss0.000.000.000.000.000.000.000.000.00
NYSE:CAHCardinal Health Inc12.159.590.080.680.000.560.000.009.3010.45
NYSE:OMIOwens & Minor Inc12.863.450.311.800.001.430.002.458.47-0.45
NYSE:ABCAmerisourceBergen Corp15.80108.820.111.160.000.870.000.008.4523.86
NAS:HSICHenry Schein Inc16.142.860.831.220.000.900.0014.707.726.96
NYSE:PBHPrestige Consumer Healthcare Inc16.311.982.860.981.111.170.000.006.7111.41
NAS:PDCOPatterson Companies Inc17.082.900.450.000.000.550.001.976.84-8.79
XKRX:091990Celltrion Healthcare Co Ltd72.666.287.780.000.000.000.004.531.650.00
GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK

Peter Lynch Chart[4]

GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK

Per Share Data



Per Share Data

Mar06
Mar07
Mar08
Mar09
Mar10
Mar11
Mar12
Mar13
Mar14
Mar15
Mar16
Mar17
Mar18
Mar19
Mar20
Mar21
TTM Fiscal Period
275
305
341
382
398
426
487
511
590
762
819
890
997
1086
1272
1483
1589
Revenue per Share
4.39
5.11
6.21
5.91
8.06
8.95
10.51
11.59
13.76
17.23
19.26
36.36
7.05
9.24
12.75
-24.47
-26.58
EBITDA per Share
3.56
4.14
4.96
4.33
7.51
7.06
8.54
9.16
10.61
12.9
15.46
32.28
2.5
4.43
7.67
-29.99
-32.02
EBIT per Share
2.38
2.99
3.32
2.95
4.62
4.57
5.59
5.59
5.41
6.27
9.7
22.73
0.32
0.17
4.95
-28.26
-30.1
Earnings per Share (Diluted)
2.36
3.17
3.32
2.95
4.62
4.29
5.49
5.69
6.08
7.54
9.84
23.28
0.3
0.17
4.99
-28.26
-30.08
EPS without NRI
8.61
3.97
5.26
2.3
5.86
7.17
9.5
9.41
9.51
7.77
11.63
36.08
6.43
6.23
9.37
19.78
17.96
Owner Earnings per Share (TTM)
7.63
4.04
1.72
3.44
7.1
7.41
10.17
8.72
11.66
10.92
12.85
18.75
18.01
17.63
21.3
24.29
25.93
Free Cash Flow per Share
8.67
5.05
2.92
4.84
8.48
8.89
11.75
10.39
13.46
13.24
15.76
21.27
20.79
20.46
24.09
28.28
30.07
Operating Cash Flow per Share
7.04
6.58
4.91
7.77
13.77
14.33
13.4
10.82
18.15
23.02
17.99
13.19
13.23
15.69
24.78
39.73
14.09
Cash per Share
0.24
0.24
0.24
0.48
0.48
0.72
0.8
0.8
0.92
0.96
1.08
1.12
1.3
1.51
1.62
1.67
1.73
Dividends per Share
19.43
21.11
22.08
22.82
27.79
28.65
29.07
31.15
36.89
34.49
39.66
52.58
48.54
42.6
31.43
-0.13
-3.74
Book Value per Share
13.66
8.48
6.91
6.57
11.73
4.95
0.21
-7.07
-27.17
-22.66
-17.26
-14.96
-25.85
-26.07
-45.83
-78.43
-81.4
Tangible Book per Share
3.26
6.59
6.48
9.24
8.47
15.89
16.94
21.47
45.86
42.43
36.06
40.5
39.01
39.97
58.03
59.53
51.99
Total Debt per Share
52.13
58.54
52.37
35.04
65.72
79.05
87.77
108
177
226
157
148
141
117
135
195
219
Month End Stock Price

Ratios

Mar06
Mar07
Mar08
Mar09
Mar10
Mar11
Mar12
Mar13
Mar14
Mar15
Mar16
Mar17
Mar18
Mar19
Mar20
Mar21
TTM Fiscal Period
13.43
14.99
15.98
13.37
18.4
16.3
19.97
19.25
16.2
17.87
26.68
50.65
0.64
0.38
13.65
-179
-560
ROE %
5.01
5.41
6.74
8.68
7.8
5.91
6.61
5.55
3.38
2.72
6.74
17.96
0.22
0.14
3.17
--
-- ROE % Adjusted to Book Value
3.78
4.07
4.08
3.3
4.73
4.07
4.39
3.94
2.92
2.79
4.09
8.63
0.11
0.06
1.49
-7.19
-7.63
ROA %
19.01
27.36
44.64
44.5
50.91
54.3
216
Neg. E
Neg. E
Neg. E
Neg. E
Neg. E
Neg. E
Neg. E
Neg. E
--
-- Return-on-Tangible-Equity
4.12
4.63
4.88
3.99
5.65
4.93
5.48
5.1
4
3.81
5.36
11.21
0.15
0.07
1.89
-8.95
-9.48
Return-on-Tangible-Asset
50.58
92.23
190
145
249
202
211
185
141
143
167
315
21.95
34.88
40.98
-108
-116
ROC (Joel Greenblatt) %
15.58
15.52
16.36
12.77
19.69
15.91
18.19
17.64
13.89
14.26
17.23
30.76
2.13
3.82
6.85
-24.37
-26.65
ROCE %
8.42
10.61
11.08
10.27
14.52
13.41
13.66
11.73
8.51
9.57
12.39
11.54
14.28
6.02
13.11
13.58
14.1
ROIC %
8.09
7.81
7.91
6.41
8.71
7.87
7.07
5.44
7.59
5.86
6.4
8.3
9.67
8.46
3.56
4.98
4.82
WACC %
--
--
--
6.69
7.78
7.05
6.29
5.42
3.88
3.66
3.93
3.7
3.45
3.41
2.93
2.31
2.19
Effective Interest Rate on Debt %
4.34
4.66
4.93
5.04
5.22
5.33
5.23
5.63
6.08
6.37
5.98
5.68
5.37
5.48
5.2
5.1
5.11
Gross Margin %
1.29
1.36
1.45
1.12
1.83
1.81
1.86
1.91
1.82
1.74
1.91
1.75
1.4
1.55
1.23
1.38
1.36
Operating Margin %
0.86
0.98
0.97
0.77
1.16
1.07
1.15
1.09
0.92
0.82
1.18
2.55
0.03
0.02
0.39
-1.91
-1.92
Net Margin %
2.77
1.33
0.5
0.9
1.78
1.74
2.09
1.7
1.98
1.43
1.57
2.11
1.81
1.62
1.67
1.64
1.63
FCF Margin %
0.17
0.31
0.29
0.41
0.31
0.56
0.58
0.69
1.24
1.23
0.91
0.77
0.8
0.94
1.85
-448
-13.9
Debt-to-Equity
0.28
0.26
0.25
0.25
0.27
0.23
0.21
0.2
0.17
0.15
0.16
0.18
0.16
0.14
0.08
--
-0.01
Equity-to-Asset
0.05
0.08
0.07
0.1
0.08
0.13
0.12
0.14
0.21
0.18
0.14
0.14
0.13
0.13
0.15
0.15
0.13
Debt-to-Asset
0.72
0.74
0.75
0.76
0.73
0.77
0.79
0.8
0.8
0.85
0.84
0.82
0.83
0.86
0.91
1
1
Liabilities-to-Assets
19.01
19.29
20.64
21.57
21.24
20.21
20.01
20.27
19.3
21.61
20.68
19.19
18.43
19.58
19.89
19.24
20.37
Gross-Profit-to-Asset %
4.38
4.14
4.19
4.28
4.07
3.8
3.82
3.6
3.18
3.39
3.46
3.38
3.43
3.57
3.82
3.77
3.99
Asset Turnover
0.1
0.08
0.07
0.16
0.1
0.17
0.15
0.14
0.15
0.13
0.11
0.05
4.33
8.88
0.33
--
-- Dividend Payout Ratio
25.11
23.28
21.25
21.32
24.36
24.81
24.68
25.76
27.7
25.77
26.42
26.77
25.36
24.94
25.39
26.28
27.81
Days Sales Outstanding
41.21
43.09
43.23
43.37
--
--
50.74
51
52.66
50.4
54.66
58.09
58.5
59.49
59.2
61.49
57.95
Days Payable
32.07
31.46
32.37
31.59
31.83
32.1
30.38
32.3
32.98
29.7
30.13
29.83
29.24
29.75
27.87
29.04
29.5
Days Inventory
15.97
11.65
10.39
9.54
56.19
56.91
4.32
7.06
8.02
5.07
1.89
-1.49
-3.9
-4.8
-5.94
-6.17
-0.64
Cash Conversion Cycle
11.38
11.6
11.27
11.55
11.47
11.37
12.01
11.3
11.07
12.29
12.11
12.23
12.48
12.27
13.1
12.57
12.37
Inventory Turnover
0.96
0.95
0.95
0.95
0.95
0.95
0.95
0.94
0.94
0.94
0.94
0.94
0.95
0.95
0.95
0.95
0.95
COGS-to-Revenue
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.09
0.08
0.08
0.08
0.08
0.08
0.07
0.08
0.08
Inventory-to-Revenue
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Capex-to-Revenue
* All financial numbers are in millions except for per share data, ratios and percentage change. When Return-on-Tangible-Equity displays Neg. E, it means the the tangible equity is negative.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK

Financial Satement



Income Statement

Mar06
Mar07
Mar08
Mar09
Mar10
Mar11
Mar12
Mar13
Mar14
Mar15
Mar16
Mar17
Mar18
Mar19
Mar20
Mar21
TTM Fiscal Period
86983
92977
101703
106632
108702
112084
122321
122196
137392
179045
190884
198533
208357
214319
231051
238228
250991
Revenue
83206
88645
96694
101254
103026
106114
115919
115315
129040
167634
179468
187262
197173
202565
219028
226080
238159
Cost of Goods Sold
3777
4332
5009
5378
5676
5970
6402
6881
8352
11411
11416
11271
11184
11754
12023
12148
12832
Gross Profit
4.34
4.66
4.93
5.04
5.22
5.33
5.23
5.63
6.08
6.37
5.98
5.68
5.37
5.48
5.2
5.1
5.11
Gross Margin %
2383
2790
3189
3325
3312
3529
3727
4110
5388
7901
7379
7447
8138
8437
9182
8849
7125
Selling, General, & Admin. Expense
223
284
347
364
376
407
402
433
457
392
392
341
125
71
96
--
-- Research & Development
45
-6
-5
493
--
--
--
--
--
--
--
--
--
-71
-96
--
2291
Other Operating Expense
2651
3068
3531
4182
3688
3936
4129
4543
5845
8293
7771
7788
8263
8437
9182
8849
9416
Total Operating Expense
1126
1264
1478
1196
1988
2034
2273
2338
2507
3118
3645
3483
2921
3317
2841
3299
3416
Operating Income
1.29
1.36
1.45
1.12
1.83
1.81
1.86
1.91
1.82
1.74
1.91
1.75
1.4
1.55
1.23
1.38
1.36
Operating Margin %
--
--
--
--
--
18
19
22
16
20
18
29
48
39
49
12
--   Interest Income
--
--
--
-144
-187
-222
-251
-240
-300
-374
-353
-308
-283
-264
-249
-217
-201
  Interest Expense
--
--
--
-144
-187
-204
-232
-218
-284
-354
-335
-279
-235
-225
-200
-205
-189
Net Interest Income
45
33
-21
12
63
-195
-148
-170
-52
-107
-60
3687
-2447
-2482
-1497
-8128
-8557
Other Income (Expense)
1171
1297
1457
1064
1864
1635
1893
1950
2171
2657
3250
6891
239
610
1144
-5034
-5330
Pre-Tax Income
-426
-329
-468
-241
-601
-505
-514
-587
-757
-815
-908
-1614
53
-356
-18
695
715
Tax Provision
36.38
25.37
32.12
22.65
32.24
30.89
27.15
30.1
34.87
30.67
27.94
23.42
-22.18
58.36
1.57
13.81
13.41
Tax Rate %
745
968
989
823
1263
1130
1379
1363
1414
1842
2342
5277
292
254
1126
-4339
-4615
Net Income (Continuing Operations)
6
-55
1
--
--
72
24
-25
-156
-299
-32
-124
5
1
-6
-1
-3
Net Income (Discontinued Operations)
--
--
--
--
--
--
--
--
5
-67
-52
-83
-230
-221
-220
-199
-189
  Other Income (Minority Interest)
751
913
990
823
1263
1202
1403
1338
1263
1476
2258
5070
67
34
900
-4539
-4807
Net Income
0.86
0.98
0.97
0.77
1.16
1.07
1.15
1.09
0.92
0.82
1.18
2.55
0.03
0.02
0.39
-1.91
-1.92
Net Margin %
2.46
3.06
3.4
2.99
4.7
4.65
5.7
5.71
5.51
6.37
9.82
22.95
0.32
0.17
4.98
-28.26
-30
EPS (Basic)
2.38
2.99
3.32
2.95
4.62
4.57
5.59
5.59
5.41
6.27
9.7
22.73
0.32
0.17
4.95
-28.26
-30.1
EPS (Diluted)
316
305
298
279
273
263
251
239
233
235
233
223
209
197
182
161
156
Shares Outstanding (Diluted Average)
1126
1264
1478
1208
2051
1857
2144
2190
2471
3031
3603
7199
522
874
1393
-4817
-5129
EBIT
262
295
371
441
148
496
493
581
735
1017
885
910
951
949
922
887
861
Depreciation, Depletion and Amortization
1388
1559
1849
1649
2199
2353
2637
2771
3206
4048
4488
8109
1473
1823
2315
-3930
-4268
EBITDA

Cashflow Statement

Mar06
Mar07
Mar08
Mar09
Mar10
Mar11
Mar12
Mar13
Mar14
Mar15
Mar16
Mar17
Mar18
Mar19
Mar20
Mar21
TTM Fiscal Period
751
913
990
823
1263
1130
1403
1338
1258
1543
2310
5153
297
255
1120
-4340
-4618
Net Income From Continuing Operations
262
295
371
441
148
496
493
581
735
1017
885
910
951
949
922
887
861
Depreciation, Depletion and Amortization
-519
-209
-288
-708
-133
-673
-768
318
-868
-2821
-1957
-762
1175
-967
-2494
1145
-2147
  Change In Receivables
601
-928
-676
370
-782
367
-882
-60
-1182
-2144
-1251
320
-458
-368
-376
-2276
-2044
  Change In Inventory
1104
872
762
-236
1428
533
2037
-125
2412
4718
3302
2070
271
1976
3952
1267
4003
  Change In Payables And Accrued Expense
326
325
434
-55
27
288
265
-70
205
-213
-198
-312
671
-95
-393
8050
8298
  Change In Other Working Capital
1512
60
232
-629
540
515
652
63
567
-460
-104
1316
1659
546
689
8186
8110
Change In Working Capital
403
167
198
320
277
128
175
615
17
171
64
882
-868
189
-342
-908
-891
Deferred Tax
--
--
--
99
114
137
154
167
160
174
123
115
69
--
--
--
-- Stock Based Compensation
--
--
--
63
--
72
--
191
80
241
8
290
2217
2079
139
242
265
Asset Impairment Charge
-6
55
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- Cash from Discontinued Operating Activities
-184
49
-922
234
-26
-140
73
-472
319
426
386
-3922
20
18
1846
475
1026
Cash Flow from Others
2738
1539
869
1351
2316
2338
2950
2483
3136
3112
3672
4744
4345
4036
4374
4542
4753
Cash Flow from Operations
-326
-306
-356
-195
-199
-233
-221
-241
-278
-376
-488
-404
-405
-426
-362
-451
-463
Purchase Of Property, Plant, Equipment
--
--
--
-358
-18
-292
-1051
-1873
-4634
-170
-40
-4212
-2893
-905
-133
-35
-31
Purchase Of Business
--
--
--
63
1
109
--
--
97
15
210
1432
500
101
37
400
570
Sale Of Business
63
179
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- Sale Of Investment
--
--
--
--
--
-155
-177
-159
-141
-169
-189
-158
-175
-131
-144
-190
-192
Net Intangibles Purchase And Sale
-961
-43
961
--
--
--
--
--
--
--
--
--
--
--
--
--
-- Cash From Discontinued Investing Activities
-589
-1938
-610
-237
-93
-53
-53
64
-90
23
-1050
73
-20
-20
23
-139
-178
Cash From Other Investing Activities
-1813
-2108
-5
-727
-309
-624
-1502
-2209
-5046
-677
-1557
-3269
-2993
-1381
-579
-415
-294
Cash Flow from Investing
568
399
354
97
212
367
167
166
177
152
123
120
132
75
113
92
164
Issuance of Stock
-958
-1003
-1698
-502
-323
-2050
-1874
-1214
-130
-450
-1612
-2311
-1709
-1639
-1954
-770
-1794
Repurchase of Stock
--
966
--
4329
5
2689
400
4023
10204
3103
1561
10118
22064
38364
21437
6823
5038
  Issuance of Debt
-24
--
-162
-3634
-224
-2730
-430
-3768
-6480
-3505
-3286
-9725
-23124
-38380
-21735
-7363
-6895
  Payments of Debt
-24
966
-162
695
-219
-41
-30
255
3724
-402
-1725
393
-1060
-16
-298
-540
-1857
Net Issuance of Debt
-73
-72
-70
-116
-131
-171
-195
-194
-214
-227
-244
-253
-262
-292
-294
-276
-270
Cash Flow for Dividends
-96
89
106
4
40
54
27
31
62
-41
5
-18
-185
-355
-301
-199
-1429
Other Financing
-583
379
-1470
178
-421
-1841
-1905
-956
3619
-968
-3453
-2069
-3084
-2227
-2734
-1693
-5186
Cash Flow from Financing
-3
5
14
-55
36
8
-6
-11
28
-319
45
-144
150
-119
-19
-61
20
Effect of Exchange Rate Changes
339
-185
-592
747
1622
-119
-463
-693
1737
1148
-1293
-738
-1582
309
1042
2373
-707
Net Change in Cash
-326
-306
-356
-392
-378
-388
-398
-400
-419
-545
-677
-562
-580
-557
-506
-641
-655
Capital Expenditure
2412
1233
513
959
1938
1950
2552
2083
2717
2567
2995
4182
3765
3479
3868
3901
4098
Free Cash Flow
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK

Financial Satement


Balance Sheet

Mar06
Mar07
Mar08
Mar09
Mar10
Mar11
Mar12
Mar13
Mar14
Mar15
Mar16
Mar17
Mar18
Mar19
Mar20
Mar21
TTM Fiscal Period
2139
1954
1362
2109
3731
3612
3149
2456
4193
5341
4048
2783
2672
2981
4015
6278
2151
  Cash And Cash Equivalents
2139
1954
1362
2109
3731
3612
3149
2456
4193
5341
4048
2783
2672
2981
4015
6278
2151
Cash, Cash Equivalents, Marketable Securities
6247
5613
6229
--
7256
7982
8562
8683
12169
13117
14519
14602
14349
14941
17201
17106
20140
  Accounts Receivable
--
953
984
7774
819
1205
1415
1292
1611
2797
3461
3613
3362
3305
2749
2075
--   Other Current Receivables
6247
6566
7213
7774
8075
9187
9977
9975
13780
15914
17980
18215
17711
18246
19950
19181
20140
Total Receivables
7127
8153
9000
8527
9441
9225
10073
10335
12986
14296
15335
15278
16310
16709
16734
19246
19342
  Inventories, Other
7127
8153
9000
8527
9441
9225
10073
10335
12986
14296
15335
15278
16310
16709
16734
19246
19342
Total Inventories
1484
1183
211
261
257
333
404
404
1877
1119
1072
672
443
529
1523
677
3947
Other Current Assets
16997
17856
17786
18671
21504
22357
23603
23170
32836
36670
38435
36948
37136
38465
42222
45382
45580
Total Current Assets
--
--
--
--
--
--
--
--
--
--
--
4063
3728
3513
--
--
-- Investments And Advances
--
43
50
50
50
70
68
129
221
207
228
166
187
172
151
156
--   Land And Improvements
--
1463
1652
1673
1808
1973
2107
2400
3155
3237
3556
3637
3746
4154
1604
1745
--   Buildings And Improvements
--
--
--
--
--
--
--
--
--
--
--
--
--
--
2308
2512
--   Machinery, Furniture, Equipment
--
--
--
--
--
--
--
--
--
--
--
--
--
--
131
382
--   Construction In Progress
1523
--
--
--
--
--
--
--
--
--
--
--
--
--
1886
2100
3990
  Other Gross PPE
1523
1506
1702
1723
1858
2043
2175
2529
3376
3444
3784
3803
3933
4326
6080
6895
3990
Gross Property, Plant and Equipment
-860
-822
-927
-927
-1007
-1052
-1132
-1208
-1180
-1399
-1506
-1511
-1469
-1778
-1829
-2214
--   Accumulated Depreciation
663
684
775
796
851
991
1043
1321
2196
2045
2278
2292
2464
2548
4251
4681
3990
Property, Plant and Equipment
1753
3754
4205
4410
4353
5972
6782
8675
14798
13258
12807
14251
15026
13047
12516
12371
11858
Intangible Assets
1637
2975
3345
3528
3568
4364
5032
6405
9927
9817
9786
10586
10924
9358
9360
9493
9473
  Goodwill
1548
1649
1837
1390
1481
1566
1665
1620
1929
1897
3003
3415
2027
2099
2258
2581
2173
Other Long Term Assets
3964
6087
6817
6596
6685
8529
9490
11616
18923
17200
18088
24021
23245
21207
19025
19633
18021
Total Long-Term Assets
20961
23943
24603
25267
28189
30886
33093
34786
51759
53870
56523
60969
60381
59672
61247
65015
63601
Total Assets
10055
10873
12032
--
--
--
16114
16108
21128
25166
28585
31022
32177
33853
37195
38975
38922
  Accounts Payable
--
--
--
11739
13255
14090
--
--
--
--
--
--
--
--
--
--
--   Other Current Payables
--
2109
2104
2503
1559
1861
2149
1912
3998
3769
3948
3004
3379
3443
3340
3987
4429
  Current Accrued Expense
10055
12982
14136
14242
14814
15951
18263
18020
25126
28935
32533
34026
35556
37296
40535
42962
43351
Accounts Payable & Accrued Expense
26
155
2
219
3
417
908
352
1665
1664
1617
1240
1129
330
1052
742
39
  Short-Term Debt
--
--
--
--
--
--
--
--
--
--
--
--
--
--
354
390
348
  Short-Term Capital Lease Obligation
26
155
2
219
3
417
908
352
1665
1664
1617
1240
1129
330
1406
1132
387
Short-Term Debt & Capital Lease Obligation
827
1027
1210
1145
1218
1321
1423
1359
1236
1078
919
346
--
--
--
--
--   Current Deferred Revenue
--
--
--
--
977
1037
1092
1626
1588
1820
--
--
--
--
--
--
--   Current Deferred Taxes Liabilities
827
1027
1210
1145
2195
2358
2515
2985
2824
2898
919
346
--
--
--
--
-- DeferredTaxAndRevenue
2582
962
--
--
--
--
--
--
--
--
--
--
--
--
683
9
2337
Other Current Liabilities
13490
15126
15348
15606
17012
18726
21686
21357
29615
33497
35069
35612
36685
37626
42624
44103
46075
Total Current Liabilities
965
1803
1795
2290
2293
3587
3072
4521
8929
8180
6497
7305
6751
7265
6335
6406
5946
  Long-Term Debt
--
--
--
--
--
--
--
--
--
--
--
--
--
--
1660
1867
1605
  Long-Term Capital Lease Obligation
965
1803
1795
2290
2293
3587
3072
4521
8929
8180
6497
7305
6751
7265
7995
8273
7551
Long-Term Debt & Capital Lease Obligation
0.17
0.31
0.29
0.41
0.31
0.56
0.58
0.69
1.24
1.23
0.91
0.77
0.8
0.94
1.85
-448
-13.9
Debt-to-Equity
--
--
--
--
--
--
--
--
--
859
2734
3678
2804
2998
2255
1411
1352
NonCurrent Deferred Liabilities
599
741
1339
1178
1352
1353
1504
1838
2897
3249
3215
3101
4084
3496
3064
11053
8710
Other Long-Term Liabilities
1564
2544
3134
3468
3645
4940
4576
6359
11826
12288
12446
14084
13639
13759
13314
20737
17613
Total Long-Term Liabilities
15054
17670
18482
19074
20657
23666
26262
27716
41441
45785
47515
49696
50324
51385
55938
64840
63688
Total Liabilities
3
3
4
4
4
4
4
4
4
4
3
3
3
3
2
2
2
Common Stock
3871
4712
5586
6103
7236
8250
9451
10402
11453
12705
8360
13189
12986
12409
13022
8202
8812
Retained Earnings
-45
-2
139
-179
6
87
5
-65
-3
-1713
-1561
-2141
-1717
-1849
-1703
-1480
-1665
Accumulated other comprehensive income (loss)
3238
3722
4252
4417
4744
5349
5571
6078
6552
6968
5845
6028
6188
6435
6663
6925
7311
Additional Paid-In Capital
-1160
-2162
-3860
-4144
-4458
-6470
-8204
-9363
-9507
-9956
-3721
-5982
-7655
-8902
-12892
-13670
-15031
Treasury Stock
--
--
--
-8
--
--
4
14
23
-7
-2
-2
-1
-2
--
--
-- Other Stockholders Equity
5907
6273
6121
6193
7532
7220
6831
7070
8522
8001
8924
11095
9804
8094
5092
-21
-571
Total Stockholders Equity
--
--
--
--
--
--
--
--
1796
84
84
178
253
193
217
196
484
Minority Interest
5907
6273
6121
6193
7532
7220
6831
7070
10318
8085
9008
11273
10057
8287
5309
175
-87
Total Equity
0.28
0.26
0.25
0.25
0.27
0.23
0.21
0.2
0.17
0.15
0.16
0.18
0.16
0.14
0.08
--
-0.01
Equity-to-Asset
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK

Valuation Ratios



Valuation Ratios

Mar06
Mar07
Mar08
Mar09
Mar10
Mar11
Mar12
Mar13
Mar14
Mar15
Mar16
Mar17
Mar18
Mar19
Mar20
Mar21
TTM Fiscal Period
21.9
19.58
15.77
11.88
14.23
17.3
15.7
19.31
32.64
36.08
16.21
6.52
440
689
27.33
At Loss
At Loss PE Ratio
22.09
18.47
15.77
11.88
14.23
18.43
15.99
18.97
29.04
30
15.98
6.37
470
689
27.11
At Loss
At Loss PE Ratio without NRI
6.05
14.75
9.95
15.21
11.22
11.03
9.24
11.48
18.56
29.1
13.52
4.11
21.9
18.78
14.43
9.86
12.18
Price-to-Owner-Earnings
2.68
2.77
2.37
1.54
2.36
2.76
3.02
3.47
4.79
6.56
3.96
2.82
2.9
2.75
4.3
--
-- PB Ratio
3.82
6.91
7.58
5.33
5.6
15.96
420
--
--
--
--
--
--
--
--
--
-- Price-to-Tangible-Book
6.83
14.48
30.43
10.19
9.26
10.66
8.63
12.39
15.14
20.71
12.23
7.91
7.82
6.64
6.35
8.03
8.43
Price-to-Free-Cash-Flow
6.02
11.6
17.96
7.24
7.75
8.89
7.47
10.39
13.12
17.08
9.98
6.97
6.78
5.72
5.62
6.9
7.27
Price-to-Operating-Cash-Flow
0.19
0.19
0.15
0.09
0.17
0.19
0.18
0.21
0.3
0.3
0.19
0.17
0.14
0.11
0.11
0.13
0.14
PS Ratio
--
--
--
--
0.13
1.2
1.06
1.22
1.82
1.97
0.93
0.35
30.65
--
--
--
-- PEG Ratio
0.17
0.19
0.15
0.09
0.15
0.18
0.18
0.22
0.36
0.32
0.21
0.19
0.16
0.13
0.12
0.14
0.16
EV-to-Revenue
10.59
11.16
8.09
6.01
7.45
8.63
8.14
9.72
15.28
14.1
8.81
4.59
23.03
14.84
11.89
-8.69
-9.18
EV-to-EBITDA
13.05
13.77
10.12
8.2
7.98
10.94
10.01
12.29
19.82
18.83
10.97
5.17
64.97
30.95
19.75
-7.09
-7.64
EV-to-EBIT
7.66
7.26
9.88
12.2
12.53
9.14
9.99
8.14
5.05
5.31
9.12
19.34
1.54
3.23
5.06
-14.1
-13.09
Earnings Yield (Joel Greenblatt) %
9.2
-14.48
-20.71
0.77
27.77
22.05
22.14
22.59
21.01
19.48
24.2
27.06
26.29
3.88
-11.27
--
-12.86
Forward Rate of Return (Yacktman) %
31.96
31.23
28.17
16.88
29.06
28.17
26.92
29.73
44.67
48.73
29.31
19.84
19.33
16.52
18.9
50.23
51.79
Shiller PE Ratio
0.46
0.41
0.46
1.37
0.73
0.91
0.91
0.74
0.52
0.42
0.69
0.76
0.92
1.29
1.2
0.86
0.81
Dividend Yield %

Valuation and Quality

Mar06
Mar07
Mar08
Mar09
Mar10
Mar11
Mar12
Mar13
Mar14
Mar15
Mar16
Mar17
Mar18
Mar19
Mar20
Mar21
TTM Fiscal Period
15848
17398
14521
9510
17810
19921
20626
24507
40788
52478
35381
31283
28456
22241
21912
30816
33385
Market Cap
14700
17402
14956
9910
16375
20313
21457
26924
48985
57065
39531
37223
33917
27048
27515
34139
39172
Enterprise Value
52.13
58.54
52.37
35.04
65.72
79.05
87.77
108
177
226
157
148
141
117
135
195
219
Month End Stock Price
-42.48
-52.88
-61.74
-62.51
-62.46
-79.58
-98.35
-111
-169
-175
-194
-223
-237
-256
-322
-372
-406
Net Cash per Share
6.39
0.63
-2.51
-1.48
3.13
-5.19
-11.31
-20.03
-45.03
-39.65
-40.73
-61.26
-66.54
-69.02
-86.01
-124
-122
Net Current Asset Value
-15.35
-25
-28.67
-46.8
-24.96
-37.52
-49.6
-59.82
-101
-101
-111
-135
-144
-153
-191
-230
-244
Net-Net Working Capital
46.06
58.5
61.05
65.07
80.38
107
118
128
161
172
190
241
234
256
269
294
275
Intrinsic Value: Projected FCF
49.5
54.91
61.47
64.78
67.41
71.48
81.43
86.9
103
139
155
169
182
200
232
264
276
Median PS Value
--
--
--
--
116
65.84
82.46
88.59
94.31
115
169
438
2.91
--
--
--
-- Peter Lynch Fair Value
26.94
24.59
22.72
20.88
34.92
21.86
5.08
--
--
--
--
--
--
--
--
--
-- Graham Number
29.15
28.9
31.36
32.35
52.19
55.65
63.01
66.66
63.98
87.66
108
124
135
-9.48
-11.81
6.4
-6.68
Earnings Power Value (EPV)
5.44
5.07
5.24
5.16
5.16
4.85
4.85
4.73
3.79
4.6
4.31
4.35
4.13
4.21
4.37
3.91
4.18
Altman Z-Score
6
6
5
7
8
5
6
5
7
5
8
4
5
7
6
5
5
Piotroski F-Score
-2.83
-2.58
-2.37
-3.51
-2.53
-2.56
-2.59
-2.58
-2.31
-2.64
-2.41
-2.58
-2.45
-2.46
-2.37
--
-2.65
Beneish M-Score
0.25
0.3
0.27
0.27
0.24
0.27
0.25
0.29
0.48
0.24
0.24
0.3
0.25
0.21
0.18
0.05
0.09
Scaled Net Operating Assets
-0.83
6.19
0.51
0.79
-2.64
-1.66
-0.14
3.06
6.13
-1.78
0.25
5.9
-2.13
-4.39
-4.73
-13.33
-14.57
Sloan Ratio %
1.26
1.18
1.16
1.2
1.26
1.19
1.09
1.08
1.11
1.09
1.1
1.04
1.01
1.02
0.99
1.03
0.99
Current Ratio
0.73
0.64
0.57
0.65
0.71
0.7
0.62
0.6
0.67
0.67
0.66
0.61
0.57
0.58
0.6
0.59
0.57
Quick Ratio
0.16
0.13
0.09
0.14
0.22
0.19
0.15
0.11
0.14
0.16
0.12
0.08
0.07
0.08
0.09
0.14
0.05
Cash Ratio
N/A
N/A
N/A
8.31
10.63
9.16
9.06
9.74
8.36
8.34
10.33
11.31
10.32
12.56
11.41
15.2
17
Interest Coverage
54.77
58.95
67.92
58.85
66.72
80.64
88.59
111
185
230
243
198
177
158
171
197
229
Highest Stock Price
35.08
45
51.66
28.6
33.87
58.05
69.35
85.48
104
165
150
124
135
108
112
125
169
Lowest Stock Price
-1.36
2.24
6.7
2.11
0.15
7.01
6.75
3.4
-1.76
-0.43
3.02
6.22
4.27
5.94
14.74
2.47
4.91
Shares Buyback Ratio %
2.46
3.47
9.26
4.26
0.62
8.45
8.28
4.28
-0.12
0.57
4.21
7
5.54
7.03
8.4
2.2
4.88
Buyback Yield %
2.32
10.75
11.95
11.99
4.18
7.03
14.35
4.91
15.33
29.21
7.53
8.67
11.98
8.96
17.13
16.59
15.66
YoY Rev. per Sh. Growth
549
25.63
11.04
-11.14
56.61
-1.08
22.32
--
-3.22
15.9
54.7
134
-98.59
-46.88
2812
-671
-329
YoY EPS Growth
4336
16.37
21.4
-4.75
36.29
11.07
17.42
10.36
18.68
25.19
11.82
88.78
-80.62
31.1
37.97
-292
-215
YoY EBITDA Growth
--
--
--
--
107
15.42
15.02
15.57
15.93
15.2
17.18
18.36
15.32
-10.74
-24.98
--
-- 5-Year EBITDA Growth Rate
306
298
291
275
269
258
246
235
229
232
230
221
208
196
181
161
154
Shares Outstanding (Basic Average)
304
297
277
271
271
252
235
227
231
232
225
211
202
190
162
158
153
Shares Outstanding (EOP)
0.64
0.61
0.89
0.67
0.88
0.74
0.82
0.63
0.89
0.73
0.95
1.25
1.49
1.56
0.74
0.71
0.69
Beta
05/16/06
05/09/07
05/07/08
05/05/09
05/04/10
05/05/11
05/02/12
05/07/13
05/14/14
05/12/15
05/05/16
05/22/17
05/24/18
05/15/19
05/22/20
05/12/21
  Filing Date
05/09/07
05/07/08
05/07/08
05/04/10
05/05/11
05/07/13
05/14/14
05/12/15
05/05/16
05/22/17
05/24/18
05/15/19
05/22/20
05/12/21
05/12/21
05/12/21
  Restated Filing Date
05/04/09
05/03/10
05/03/11
04/30/12
05/07/13
05/12/14
05/12/15
05/04/16
05/18/17
05/24/18
05/08/19
05/20/20
05/06/21
  Earnings Release Date
--
--
9500
9200
8700
8150
7700
7300
6900
6488
6204
5974
5619
5333
5034
--
-- Number of Shareholders
26400
31800
32900
32500
32500
36400
37700
43500
71400
70400
68000
78000
78000
80000
80000
76000
76000
Number of Employees
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Dec 06, 2021
McKesson Corp (NYSE:MCK)
www.gurufocus.com/stock/NYSE:MCK

Explanation

1. Predictability Rank

GuruFocus Predictability Rank is a proprietary ranking of the consistency of a business. We rank the predictability of companies based on the consistency of their revenue per share and EBITDA (earnings before interest, tax, depreciation and amortization) per share over the past 10 fiscal years. Our study found that there is a strong correlation between the stock performance and the predictability of a business. Over the long term, companies with higher predictability also have better stock performance.

The rank is from 1-star to 5-star, with 5-star as the best.

2. Financial Strength

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). The higher, the better.
  2. Debt to revenue ratio. The lower, the better.
  3. Altman Z-Score.

The rank is from 1 to 10, with 10 as the highest.

A Financial Strength rank of 8 or above indicates good financial strength; between 4-7 indicates fair financial strength; 3 or below means poor financial strength.

3. Profitability Rank

GuruFocus Profitability Rank indicates how profitable a company is and how likely it is that the company's business will stay that way. It is based on these factors:

  1. Operating Margin %.
  2. Piotroski F-Score.
  3. Trend of the Operating Margin percentage (five-year average). A company with an uptrend in profit margin will have a higher rank.
  4. Consistency of the profitability.
  5. Predictability Rank.

The rank is from 1 to 10, with 10 as the highest.

A Profitability Rank of 8 or above indicates good profitability; between 4-7 indicates fair profitability; 3 or below means poor profitability.

4. Peter Lynch Chart

In Peter Lynch's excellent book, "One Up on Wall Street," he used many charts to illustrate the valuation of stocks. “A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies – such as Shoney’s, The Limited, or Marriott – when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you’d do pretty well.”

The original Peter Lynch Chart does have limitations due to the right side price scale is pre-set at 15 times the earnings scale on the left side. When the stock price and earnings line coincide, the price-to-earnings ratio is always 15 times. Instead of using the fixed PE Ratio of 15, our approach is using 15-year historical median PE without NRI Ratio for each stock.

The Peter Lynch Chart with earnings line at median PE without NRI ratio works well for the companies with steady growth and earnings trends, or the stalwarts, as coined by Lynch. These companies tend to be found in sectors such as consumer staples, healthcare, and utilities, where the consumption of the product or service is relatively independent of economic conditions. It does not work well with the sectors that are cyclical: industrials, chemicals, durable goods, and so forth.

5. GF Value

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

  1. Possible Value Trap, Think Twice
  2. Significantly Overvalued
  3. Modestly Overvalued
  4. Fairly Valued
  5. Modestly Undervalued
  6. Significantly Undervalued
There is only a sufficient margin of safety when the stock is undervalued.

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