0.24%
6.09%
20.78%
-2.01%
20.95%
135.51%
323.95%

Company Description

McKesson Corporation provides healthcare services in the United States and internationally.It operates through four segments: U.S. Pharmaceutical, International, Medical-Surgical Solutions, and Prescription Technology Solutions (RxTS).The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and other healthcare-related products.


This segment also provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices; and consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies.The International segment offers distribution and services to wholesale, institutional, and retail customers in 13 European countries and Canada.The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers.


The RxTS segment serves biopharma and life sciences partners and patients to address medication challenges for patients throughout their journeys; connects pharmacies, providers, payers, and biopharma companies to deliver innovative access and adherence solutions; and provides third-party logistics and wholesale distribution support solutions.McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.

Market Data

Last Price 604.6
Change Percentage 0.24%
Open 605.98
Previous Close 603.18
Market Cap ( Millions) 76748
Volume 473344
Year High 637.51
Year Low 464.42
M A 50 594.06
M A 200 561.78

Financial Ratios

FCF Yield 6.12%
Dividend Yield 0.44%
ROE -115.33%
Debt / Equity -239.28%
Net Debt / EBIDTA 97.66%
Price To Book -25.79
Price Earnings Ratio 30.68
Price To FCF 16.34
Price To sales 0.23
EV / EBITDA 16.89

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> United States Pharmaceutical

Expected Growth : 9 %

What the company do ?

The United States Pharmaceutical segment of McKesson Corporation distributes branded, generic, and specialty pharmaceuticals, as well as other healthcare-related products to pharmacies, hospitals, and other healthcare providers.

Why we expect these perspectives ?

McKesson Corporation's 9% growth in the United States Pharmaceutical segment is driven by increasing demand for specialty drugs, expansion of its oncology and biosimilar offerings, and strategic acquisitions. Additionally, the company's investments in technology and data analytics have improved operational efficiency, enabling it to capitalize on the growing need for healthcare services.

Segment nΒ°2 -> International

Expected Growth : 11 %

What the company do ?

McKesson International is a global healthcare company that provides medical supplies, pharmaceuticals, and healthcare technology solutions to healthcare providers and patients worldwide.

Why we expect these perspectives ?

McKesson's International segment growth of 11% is driven by increasing demand for healthcare services in emerging markets, strategic acquisitions, and expansion of its distribution network. Additionally, the company's focus on providing value-added services, such as pharmaceutical sourcing and logistics, has contributed to its growth in this segment.

Segment nΒ°3 -> Medical-Surgical Solutions

Expected Growth : 8 %

What the company do ?

Medical-Surgical Solutions from McKesson Corporation provides medical supplies, equipment, and pharmaceuticals to healthcare providers, helping them deliver high-quality patient care.

Why we expect these perspectives ?

McKesson's Medical-Surgical Solutions segment growth is driven by increasing demand for healthcare services, an aging population, and a shift towards value-based care. Additionally, the company's strategic acquisitions, investments in digital solutions, and expansion into new markets have contributed to its 8% growth.

Segment nΒ°4 -> Prescription Technology Solutions

Expected Growth : 12 %

What the company do ?

Prescription Technology Solutions from McKesson Corporation provides healthcare technology solutions for pharmacies, hospitals, and healthcare systems to manage patient care and medication therapy.

Why we expect these perspectives ?

McKesson's Prescription Technology Solutions segment growth is driven by increasing adoption of digital healthcare solutions, rising demand for prescription automation, and expansion into new markets. Additionally, the company's strategic partnerships, innovative product offerings, and investments in artificial intelligence and machine learning are contributing to its 12% growth.

Mckesson Corporation Products

Product Range What is it ?
Pharmaceutical Distribution McKesson's pharmaceutical distribution business provides prescription and over-the-counter medications, as well as vaccines and biopharmaceuticals, to pharmacies, hospitals, and clinics.
Medical-Surgical Distribution McKesson's medical-surgical distribution business provides medical supplies, equipment, and services to healthcare providers, including hospitals, surgery centers, and physician offices.
Technology and Analytics McKesson's technology and analytics business provides healthcare technology solutions, including electronic health records, revenue cycle management, and analytics, to healthcare providers.
Oncology and Specialty Care McKesson's oncology and specialty care business provides specialty pharmaceuticals, medical supplies, and services to oncologists, hematologists, and other specialty physicians.
Retail Pharmacy Solutions McKesson's retail pharmacy solutions business provides technology, services, and support to independent pharmacies, helping them to operate efficiently and effectively.

McKesson Corporation's Porter Forces

McKesson Corporation operates in the healthcare industry, where there are limited substitutes for its pharmaceutical distribution and medical-surgical distribution services. However, the company faces some threat from online pharmacies and other alternative distribution channels.

McKesson Corporation's customers, including hospitals, clinics, and pharmacies, have limited bargaining power due to the company's strong market position and diversified customer base.

McKesson Corporation's suppliers, including pharmaceutical manufacturers, have some bargaining power due to the company's dependence on them for products. However, the company's large scale and diversified supplier base mitigate this risk.

The threat of new entrants in the pharmaceutical distribution and medical-surgical distribution industries is low due to the high barriers to entry, including regulatory hurdles and the need for significant capital investment.

The pharmaceutical distribution and medical-surgical distribution industries are highly competitive, with several large players competing for market share. McKesson Corporation faces intense rivalry from companies such as AmerisourceBergen and Cardinal Health.

Capital Structure

Value
Debt Weight 152.01%
Debt Cost 4.09%
Equity Weight -52.01%
Equity Cost 6.19%
WACC 2.99%
Leverage -292.29%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
COR Cencora, Inc. sources and distributes pharmaceutical products. Its U.S. Healthcare Solutions segment distributes pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and …
CAH Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, …
REGN Regeneron Pharmaceuticals, Inc. discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide. The company's products include EYLEA injection to treat wet age-related macular degeneration and diabetic macular …
ABBV AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals in the worldwide. The company offers HUMIRA, a therapy administered as an injection for autoimmune and intestinal BehΓ§et's diseases; SKYRIZI to treat …
JNJ Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the healthcare field worldwide. The company's Consumer Health segment offers baby care products under …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
604.6$
Current Price
604.6$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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