ScoreWhy is McKesson Corp. ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
2
Risky - Negative Book Value
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 41.42%, its profits have fallen by -1.3% ; the PEG ratio of the company is 16.2
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to McKesson Corp. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is McKesson Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
McKesson Corp.
2.98%
1.64
23.17%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.86%
EBIT Growth (5y)
7.74%
EBIT to Interest (avg)
16.14
Debt to EBITDA (avg)
0.25
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
77.18
Tax Ratio
20.14%
Dividend Payout Ratio
10.69%
Pledged Shares
0
Institutional Holding
93.02%
ROCE (avg)
377.27%
ROE (avg)
72.81%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
52
Industry P/E
Price to Book Value
-162.02
EV to EBIT
41.52
EV to EBITDA
36.66
EV to Capital Employed
85.91
EV to Sales
0.54
PEG Ratio
1.93
Dividend Yield
20.33%
ROCE (Latest)
206.90%
ROE (Latest)
Negative BV
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Bullish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend27What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 6,155 MM
DIVIDEND PER SHARE(HY)
Highest at USD 15.05
INTEREST COVERAGE RATIO(Q)
Highest at 4,006.56
OPERATING PROFIT(Q)
Highest at USD 2,444 MM
PRE-TAX PROFIT(Q)
Highest at USD 2,223 MM
NET PROFIT(Q)
Highest at USD 1,767.55 MM
RAW MATERIAL COST(Y)
Fallen by -35.14% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 16.51 times
OPERATING PROFIT MARGIN(Q)
Highest at 2.54 %
EPS(Q)
Highest at USD 13.71
-1What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 5.98%
Here's what is working for McKesson Corp.
Operating Cash Flow
Highest at USD 6,155 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 4,006.56
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at USD 2,444 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 2,223 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 2,223 MM has Grown at 144.02%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 1,767.55 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Profit
At USD 1,767.55 MM has Grown at 139.08%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Dividend per share
Highest at USD 15.05 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Profit Margin
Highest at 2.54 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
EPS
Highest at USD 13.71
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 16.51 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -35.14% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 196 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for McKesson Corp.
Dividend Payout Ratio
Lowest at 5.98%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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