McKesson Corporation

McKesson Corporation operates four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The company distributes pharmaceutical drugs and other healthcare products. RxTS connects patients, pharmacies, and providers to deliver medication solutions. Medical-Surgical Solutions offers supply distribution and logistics services to healthcare providers. The International segment provides distribution and services to customers in Europe and Canada.

Overview

Sector

Medical Distribution

Target Price

740.7 USD

Current Price

725.8 USD

Potential

Strengths

The company has low debt. Net Debt to EBITDA Ratio is -0.01 and it is lower than the sector mean.
The company has high returns. ROIC (100.00%) is higher than the sector mean (33.87%).
EV/EBIT (19.61) is lower than the sector mean.
Price to free cash flow (17.36) is lower than the sector mean.

Weaknesses

Price to book ratio (100.00) is significantly higher than the sector mean (35.33).
EBITDA Margin (1.56%) appears relatively low.

Key Financial Data

Indicator	Value
PER	27.5
EV/EBITDA	16.2
Price/Free Cash Flow'	17.4
ROIC	100.0%
Net Debt/EBITDA	-0.0