Is McKesson Stock a Good Investment?

McKesson Investment Advice

MCK

To provide specific investment advice or recommendations on McKesson stock, we recommend investors consider the following general factors when evaluating McKesson. This will help you to make an informed decision on whether to include McKesson in one of your diversified portfolios:

Examine McKesson's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research McKesson's leadership team and their track record. Good management can help McKesson navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Health Care Providers & Services space and any emerging trends that could impact McKesson's business and its evolving consumer preferences.
Compare McKesson's performance and market position to its competitors. Analyze how McKesson is positioned in terms of product offerings, innovation, and market share.
Check if McKesson pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about McKesson's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in McKesson stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if McKesson is a good investment.

Sell

Buy

Strong Sell

Macroaxis provides trade recommendations on McKesson to complement and cross-verify current analyst consensus on McKesson. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure McKesson is not overpriced, please verify all McKesson fundamentals, including its price to sales, debt to equity, number of employees, as well as the relationship between the net income and short ratio . Given that McKesson has a price to sales of 0.24 X, we recommend you to check McKesson market performance and probability of bankruptcy to ensure the company can sustain itself for the next few years given your last-minute risk tolerance and investing horizon.

Market Performance	OK	Details
Volatility	Very steady	Details
Hype Condition	Under hyped	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Very Low	Details
Economic Sensitivity	Follows the market closely	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine McKesson Stock

Researching McKesson's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 89.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.28. McKesson recorded earning per share (EPS) of 19.32. The entity last dividend was issued on the 2nd of December 2024. The firm had 2:1 split on the 5th of January 1998.

To determine if McKesson is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding McKesson's research are outlined below:

	McKesson has 7.39 B in debt with debt to equity (D/E) ratio of 6.61, demonstrating that the company may be unable to create cash to meet all of its financial commitments. McKesson has a current ratio of 0.94, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for McKesson to invest in growth at high rates of return.
	Over 89.0% of McKesson shares are owned by institutional investors
	On 1st of October 2024 McKesson paid $ 0.71 per share dividend to its current shareholders
	Latest headline from news.google.com: McKesson Co. Shares Bought by Commerce Bank - MarketBeat

McKesson Quarterly Liabilities And Stockholders Equity

72.43 Billion

McKesson uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in McKesson. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to McKesson's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	7th of February 2024 Upcoming Quarterly Report	View
	13th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	13th of May 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of March 2023 Last Financial Announcement	View

Earnings surprises can significantly impact McKesson's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises McKesson's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2004-10-21	2004-09-30	0.24	0.29	0.05	20
1999-10-25	1999-09-30	0.32	0.27	-0.05	15
1999-08-10	1999-06-30	0.36	0.31	-0.05	13
2006-10-31	2006-09-30	0.58	0.66	0.08	13
2004-04-29	2004-03-31	0.65	0.73	0.08	12
2000-04-26	2000-03-31	0.3	0.22	-0.08	26
2004-01-22	2003-12-31	0.5	0.41	-0.09	18
2000-01-25	1999-12-31	0.3	0.21	-0.09	30

Know McKesson's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as McKesson is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading McKesson backward and forwards among themselves. McKesson's institutional investor refers to the entity that pools money to purchase McKesson's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Bank Of America Corp	2024-06-30	1.7 M
T. Rowe Price Associates, Inc.	2024-06-30	1.7 M
Northern Trust Corp	2024-09-30	1.4 M
Legal & General Group Plc	2024-06-30	1.3 M
Arrowstreet Capital Limited Partnership	2024-06-30	1.2 M
Manufacturers Life Insurance Co	2024-09-30	1.2 M
Boston Partners Global Investors, Inc	2024-06-30	1.1 M
Wcm Investment Management	2024-09-30	1.1 M
Amvescap Plc.	2024-06-30	1.1 M
Vanguard Group Inc	2024-09-30	12 M
Blackrock Inc	2024-06-30	11.5 M

Note, although McKesson's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

McKesson's market capitalization trends

The company currently falls under 'Large-Cap' category with a total capitalization of 78.85 B.

Market Cap

67.53 Billion

McKesson's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.05	0.04
Return On Capital Employed	0.26	0.27
Return On Assets	0.04	0.03
Return On Equity	(1.52)	(1.45)

The company has Net Profit Margin of 0.01 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.01 %, which entails that for every 100 dollars of revenue, it generated $0.01 of operating income.

Determining McKesson's profitability involves analyzing its financial statements and using various financial metrics to determine if McKesson is a good buy. For example, gross profit margin measures McKesson's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of McKesson's profitability and make more informed investment decisions.

Evaluate McKesson's management efficiency

McKesson has Return on Asset of 0.0392 % which means that on every $100 spent on assets, it made $0.0392 of profit. This is way below average. McKesson's management efficiency ratios could be used to measure how well McKesson manages its routine affairs as well as how well it operates its assets and liabilities. Return On Capital Employed is expected to rise to 0.27 this year, although the value of Return On Tangible Assets will most likely fall to 0.04. At this time, McKesson's Total Current Liabilities is quite stable compared to the past year. Non Current Liabilities Total is expected to rise to about 17.5 B this year, although the value of Liabilities And Stockholders Equity will most likely fall to about 36.5 B.

	Last Reported	Projected for Next Year
Book Value Per Share	(12.00)	(11.40)
Tangible Book Value Per Share	(103.91)	(98.72)
Enterprise Value Over EBITDA	15.91	28.19
Price Book Value Ratio	(36.26)	(38.07)
Enterprise Value Multiple	15.91	28.19
Price Fair Value	(36.26)	(38.07)
Enterprise Value	66.8 B	70.2 B

McKesson showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.

Dividend Yield

0.0046

Forward Dividend Yield

0.0046

Forward Dividend Rate

2.84

Beta

0.436

Basic technical analysis of McKesson Stock

As of the 22nd of November, McKesson secures the mean deviation of 1.27, and Risk Adjusted Performance of 0.0777. Concerning fundamental indicators, the technical analysis model lets you check available technical drivers of McKesson, as well as the relationship between them.

McKesson's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific McKesson insiders, such as employees or executives, is commonly permitted as long as it does not rely on McKesson's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases McKesson insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Britt Vitalone over two months ago Disposition of 6 shares by Britt Vitalone of McKesson at 560.73 subject to Rule 16b-3
		Napoleon Rutledge over three months ago Disposition of 183 shares by Napoleon Rutledge of McKesson at 525.88 subject to Rule 16b-3
		Brian Tyler over three months ago Disposition of 4578 shares by Brian Tyler of McKesson subject to Rule 16b-3
		LeAnn Smith over six months ago Disposition of 142 shares by LeAnn Smith of McKesson subject to Rule 16b-3
		Susan Salka over six months ago Disposition of tradable shares by Susan Salka of McKesson at 554.61 subject to Rule 16b-3
		Brian Tyler over six months ago Disposition of 3473 shares by Brian Tyler of McKesson at 159.0 subject to Rule 16b-3
		Wilsonthompson Kathleen over a year ago Acquisition by Wilsonthompson Kathleen of 483 shares of McKesson subject to Rule 16b-3
		Britt Vitalone over a year ago Sale by Britt Vitalone of 13330 shares of McKesson

McKesson's Outstanding Corporate Bonds

McKesson issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. McKesson uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most McKesson bonds can be classified according to their maturity, which is the date when McKesson has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	US581557AM75 Corp Bond US581557AM75	View
	MCKESSON P NEW Corp Bond US581557BJ38	View
	MCKESSON P NEW Corp Bond US581557BN40	View
	US581557BQ70 Corp Bond US581557BQ70	View
	MCK 13 15 AUG 26 Corp Bond US581557BR53	View

View All McKesson Corporate Bonds

Understand McKesson's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing McKesson's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0777
	Market Risk Adjusted Performance	0.2833
	Mean Deviation	1.27
	Semi Deviation	2.04
	Downside Deviation	2.3
	Coefficient Of Variation	1060.97
	Standard Deviation	2.3
	Variance	5.27
	Information Ratio	0.0527
	Jensen Alpha	0.1419
	Total Risk Alpha	(0.05)
	Sortino Ratio	0.0525
	Treynor Ratio	0.2733
	Maximum Drawdown	12.91
	Value At Risk	(2.06)
	Potential Upside	2.36
	Downside Variance	5.3
	Semi Variance	4.15
	Expected Short fall	(1.37)
	Skewness	0.169
	Kurtosis	11.34

	Risk Adjusted Performance	0.0777
	Market Risk Adjusted Performance	0.2833
	Mean Deviation	1.27
	Semi Deviation	2.04
	Downside Deviation	2.3
	Coefficient Of Variation	1060.97
	Standard Deviation	2.3
	Variance	5.27
	Information Ratio	0.0527
	Jensen Alpha	0.1419
	Total Risk Alpha	(0.05)
	Sortino Ratio	0.0525
	Treynor Ratio	0.2733
	Maximum Drawdown	12.91
	Value At Risk	(2.06)
	Potential Upside	2.36
	Downside Variance	5.3
	Semi Variance	4.15
	Expected Short fall	(1.37)
	Skewness	0.169
	Kurtosis	11.34

Consider McKesson's intraday indicators

McKesson intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of McKesson stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	10104.44
	Rate Of Daily Change	1.0
	Day Median Price	623.36
	Day Typical Price	624.99
	Price Action Indicator	4.91
	Relative Strength Index	83.56

McKesson Corporate Filings

10Q	7th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify
8K	6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
	6th of September 2024 Other Reports	View Verify
	5th of September 2024 Other Reports	View Verify

McKesson time-series forecasting models is one of many McKesson's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary McKesson's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

McKesson Stock media impact

Far too much social signal, news, headlines, and media speculation about McKesson that are available to investors today. That information is available publicly through McKesson media outlets and privately through word of mouth or via McKesson internal channels. However, regardless of the origin, that massive amount of McKesson data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of McKesson news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of McKesson relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to McKesson's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive McKesson alpha.

McKesson Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards McKesson can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

McKesson Historical Investor Sentiment

Investor biases related to McKesson's public news can be used to forecast risks associated with an investment in McKesson. The trend in average sentiment can be used to explain how an investor holding McKesson can time the market purely based on public headlines and social activities around McKesson. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

McKesson's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for McKesson and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average McKesson news discussions. The higher the estimate score, the more favorable the investor's outlook on McKesson.

McKesson Corporate Directors

Bradley Lerman	Independent Director	Profile
Kenneth Washington	Independent Director	Profile
M Jacobs	Independent Director	Profile
Marie Knowles	Independent Director	Profile

When determining whether McKesson is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if McKesson Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Mckesson Stock. Highlighted below are key reports to facilitate an investment decision about Mckesson Stock: