McKesson Stock Analysis, Valuation (NYSE:MCK)

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$130.79 $1.55 (1.2%) MCK stock closing price Oct 12, 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 3.3/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for MCK stock analysis. We compare McKesson valuation with its sector peers to gauge relative attractiveness of MCK stock. McKesson stock rating is our opinion about the business fundamentals of the company.

Should you buy MCK stock?

  • The McKesson stock currently trades at a price to earnings ratio of 10, compared to the sector average of 24.2. We rate this as a positive.
  • When compared with the Medical sector average PS ratio of 6.3, 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

Investors can use Amigobulls McKesson stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

While doing a study of the company financials, McKesson revenue growth and profit or net income are two main metrics which help in identifying whether MCK stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of McKesson stock.