Why 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
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is McKesson Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
McKesson Corp.
40.48%
1.64
23.17%
S&P 500
12.83%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
10.33%
EBIT Growth (5y)
6.51%
EBIT to Interest (avg)
16.14
Debt to EBITDA (avg)
0.25
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
77.54
Tax Ratio
20.14%
Dividend Payout Ratio
10.69%
Pledged Shares
0
Institutional Holding
91.74%
ROCE (avg)
377.27%
ROE (avg)
72.81%
Valuation Key Factors 
Factor
Value
P/E Ratio
56
Industry P/E
Price to Book Value
-84.94
EV to EBIT
42.61
EV to EBITDA
36.93
EV to Capital Employed
-77.14
EV to Sales
0.49
PEG Ratio
16.19
Dividend Yield
21.75%
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
Negative BV
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
No Trend
Bullish
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 6,547 MM
DIVIDEND PER SHARE(HY)
Highest at USD 14.55
DEBT-EQUITY RATIO
(HY)
Lowest at -368.58 %
DEBTORS TURNOVER RATIO(HY)
Highest at 14.55 times
NET SALES(Q)
Highest at USD 97,827 MM
-1What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 20.15% (YoY
Here's what is working for McKesson Corp.
Dividend per share
Highest at USD 14.55 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 6,547 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 97,827 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Debt-Equity Ratio
Lowest at -368.58 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 14.55 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for McKesson Corp.
Raw Material Cost
Grown by 20.15% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






