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Is McKesson Corporation(NYSE: MCK), a large market cap stock a smart buy?

With a market cap of has a large market cap size. McKesson Corporation (NYSE: MCK) has been on the stock market since its IPO date on the 11/15/1994. McKesson Corporation is in the Drugs Wholesale industry and Services sector. Average volume for McKesson Corporation, is 1623.87, and so far today it has a volume of 1448600. Performance year to date since the 11/15/1994 is -1.59%.

To help you determine whether McKesson Corporation is undervalued the following values will help you decide. P/E is 19.68 and forward P/E is 13.26. PEG perhaps more useful shows that McKesson Corporation has a value for PEG of 2.02. P/S ratio is 0.23 and the P/B ratio is 4.92. The P/Cash and P/Free cash flow is 10.85 and 15.96 respectively.

At the current price McKesson Corporation is trading at, 193.45 (0.34% today), McKesson Corporation has a dividend yield of 0.58%, and this is covered by a payout ratio of 11.00%. Earnings per share (EPS) is 9.83, and this is looking to grow in the next year to 7.14% after growing 30.10% this past year. EPS growth quarter over quarter is 15.70%, and 8.00% for sales growth quarter over quarter.

The number of shares outstanding is 227, and the number of shares float is 225.03. The senior management bring insider ownership to 0.29%, and institutional ownership is at 86.90%. The float short is 1.12%, with the short ratio at a value of 1.56. Management has seen a return on assets of 4.00%, and also a return on investment of 15.40%.

The ability for McKesson Corporation, to deal with debt, means it current ratio is 1.1, and quick ratio is 0.7. Long term debt/equity is 0.73 and total debt/equity is 0.91. In terms of margins, McKesson Corporation has a gross margin of 6.00%, with its operating margin at 1.90%, and McKesson Corporation has a profit margin of 1.20%.

The 52 week high is -17.82%, with 30.89% being its 52 week low. The 20 day simple moving average is 7.91% and the 200 day simple moving average is 10.02%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


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Stephen Butters

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