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.
33.89%
1.64
23.17%
S&P 500
14.9%
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
92.15%
ROCE (avg)
377.27%
ROE (avg)
72.81%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
57
Industry P/E
Price to Book Value
-177.67
EV to EBIT
45.46
EV to EBITDA
40.14
EV to Capital Employed
94.06
EV to Sales
0.59
PEG Ratio
2.12
Dividend Yield
18.54%
ROCE (Latest)
206.90%
ROE (Latest)
Negative BV
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 10,482 MM
DIVIDEND PER SHARE(HY)
Highest at USD 14.73
INTEREST COVERAGE RATIO(Q)
Highest at 2,901.59
CASH AND EQV(HY)
Highest at USD 7,162 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -429.2 %
INVENTORY TURNOVER RATIO(HY)
Highest at 15.13 times
DEBTORS TURNOVER RATIO(HY)
Highest at 14.73 times
NET SALES(Q)
Highest at USD 106,158 MM
OPERATING PROFIT(Q)
Highest at USD 1,828 MM
OPERATING PROFIT MARGIN(Q)
Highest at 1.72 %
PRE-TAX PROFIT(Q)
Highest at USD 1,651 MM
NET PROFIT(Q)
Highest at USD 1,202.1 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for McKesson Corp.
Interest Coverage Ratio
Highest at 2,901.59
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 14.73 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 10,482 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 106,158 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 1,828 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 1.72 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 1,651 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 1,202.1 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Cash and Eqv
Highest at USD 7,162 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -429.2 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 15.13 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 14.73 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
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