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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 1509.18, and so far today it has a volume of 1163800. Performance year to date since the 11/15/1994 is -15.74%.

To help you determine whether McKesson Corporation is undervalued the following values will help you decide. P/E is 16.2 and forward P/E is 11.48. PEG perhaps more useful shows that McKesson Corporation has a value for PEG of 1.67. P/S ratio is 0.19 and the P/B ratio is 4.02. The P/Cash and P/Free cash flow is 7.99 and 8.96 respectively.

At the current price McKesson Corporation is trading at, 165.38 (-0.82% today), McKesson Corporation has a dividend yield of 0.68%, and this is covered by a payout ratio of 11.50%. Earnings per share (EPS) is 10.21, and this is looking to grow in the next year to 5.64% after growing 30.10% this past year. EPS growth quarter over quarter is 15.20%, and 4.60% for sales growth quarter over quarter.

The number of shares outstanding is 225, and the number of shares float is 224.75. The senior management bring insider ownership to 0.29%, and institutional ownership is at 86.80%. The float short is 1.88%, with the short ratio at a value of 2.8. Management has seen a return on assets of 3.90%, and also a return on investment of 15.50%.

The ability for McKesson Corporation, to deal with debt, means it current ratio is 1.1, and quick ratio is 0.6. Long term debt/equity is 0.64 and total debt/equity is 0.88. In terms of margins, McKesson Corporation has a gross margin of 5.90%, with its operating margin at 1.90%, and McKesson Corporation has a profit margin of 1.20%.

The 52 week high is -17.81%, with 12.07% being its 52 week low. The 20 day simple moving average is -10.10% and the 200 day simple moving average is -5.72%.

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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