Stock Updates

McKesson Corporation (NYSE: MCK) – Is this large market cap stock undervalued?

McKesson Corporation (NYSE: MCK), is firmly in the large market cap category with market cap of 38137.04. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for McKesson Corporation is 165.51 (with a change from open of -0.21%), this in conjunction with a target price of 207.15. Volume today has so far reached 1040318, with an average volume of about 1465.21. The GAP for this stock, is -0.19%.

The P/E ratio is 16.28, bringing the forward P/E to a value of 11.48. The current EPS for McKesson Corporation, is 10.21, with a EPS growth for this year coming to a value of 30.10%. Performance has been interesting with performance year to date coming to -15.34%.

Looking further into the growth statistics for McKesson Corporation, EPS is looking like it will grow 6.00% in the next year. Looking even further it is projected to be 9.71%. Quarter over quarter is 15.20% for EPS growth and for sales growth quarter over quarter it is 4.60%. Looking at past EPS growth statistics we see that for the past five years it has been 18.00%. Sales growth for the past five years has in fact been 11.20%.

Looking at the ownership, we see that the insider ownership is at 0.29% and institutional ownership is 86.70%. Shares outstanding is 229.52, while shares float is at a value of 225.05. Float short for McKesson Corporation is 1.56% and the short ratio is 2.4.

In terms of debt, long term debt/equity is 0.64, while the total debt/equity comes to 0.88. The ability to meet these debts, means that the current ratio is 1.1, and the quick ratio is 0.6. The most recent gross margin is 5.90% and their operating margin is 1.90%. The profit margin is 1.20%.

McKesson Corporation has seen returns on assets of 3.90%, and on investment, 15.50%. Return on equity is 24.80%. Price/Earnings to growth ratio is 1.68. Price/Sales ratio is at a value of 0.2, with Price/book ratio coming to 4.04 and Price/cash is 8.19, and finally Price/Free cash Flow is 9.18.

The simple moving averages are -12.88% and -6.25% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -19.93% and the 52 week low is 12.15%.

McKesson Corporation has a dividend yield of 0.67%, with a current price of 165.51. The ability to pay this means the payout ratio is 11.50%. This is in an industry, Drugs Wholesale, with equally high dividends from other companies in this sector, which it is Services. McKesson Corporation is based in USA.

Performance in the Drugs Wholesale industry means that McKesson Corporation has seen performance for the past week of -5.64%, with performance for the month coming to -15.00%. Looking at the data for the quarter it is at a value of -6.39%, and for the half year the performance is -18.31%. Volatility for this week is 3.63% and for the month this is 1.98%.

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.

About the author

Tony Dabbs

Leave a Comment