McKesson Stock Analysis, Valuation (NYSE:MCK)

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$134.34 $0.24 (0.18%) MCK stock closing price Jul 18, 2018 (Closing)

Investors can watch the Amigobulls McKesson stock analysis video here. This is our analyst opinion covering the buy and sell arguments for MCK stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

McKesson Corporation Stock Rating 3.5/5

Amigobulls MCK stock analysis relies on business fundamentals such as McKesson revenue growth, profits and return on equity measures from the latest quarter 2018 Q4 earnings. We also use relative valuation metrics like PE ratio and price to sales ratio for McKesson valuation analysis. Our McKesson stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy MCK stock?

  • The McKesson stock currently trades at a price to earnings ratio of 10.6, compared to the sector average of 25.2. We rate this as a positive.
  • When compared with the Medical sector average PS ratio of 6.4, the price-to-sales ratio of 0.1 for MCK stock is attractive.
  • McKesson's return on invested capital of 2.4 is good.
  • The LTM ROE of 0.6 for McKesson is attractive.
  • The company has a healthy free cash flow margin of 5.5.

Should you sell MCK stock?

  • With a debt/equity ratio of 0.78, McKesson is highly leveraged in comparison to Medical peers.

Comments on this video and McKesson stock

Amigobulls McKesson stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of MCK stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

McKesson revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about MCK stock.