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Upturn AI SWOT - About
MCK 
McKesson Corporation (MCK)
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Upturn Advisory Summary
03/13/2025: MCK (3-star) is a STRONG-BUY. BUY since 32 days. Profits (6.88%). Updated daily EoD!
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
AI Based Fundamental Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Analysis of Past Performance
Type Stock | Historic Profit 51.06% | Avg. Invested days 54 | Today’s Advisory Strong Buy |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 03/13/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 84.43B USD | Price to earnings Ratio 30.9 | 1Y Target Price 672.51 |
Price to earnings Ratio 30.9 | 1Y Target Price 672.51 | ||
Volume (30-day avg) 906231 | Beta 0.51 | 52 Weeks Range 463.38 - 678.67 | Updated Date 04/1/2025 |
52 Weeks Range 463.38 - 678.67 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 0.42% | Basic EPS (TTM) 21.8 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 0.82% | Operating Margin (TTM) 1.31% |
Management Effectiveness
Return on Assets (TTM) 5.24% | Return on Equity (TTM) - |
Valuation
Trailing PE 30.9 | Forward PE 18.35 | Enterprise Value 93057126247 | Price to Sales(TTM) 0.24 |
Enterprise Value 93057126247 | Price to Sales(TTM) 0.24 | ||
Enterprise Value to Revenue 0.27 | Enterprise Value to EBITDA 18.77 | Shares Outstanding 125326000 | Shares Floating 125090762 |
Shares Outstanding 125326000 | Shares Floating 125090762 | ||
Percent Insiders 0.07 | Percent Institutions 89.79 |
Analyst Ratings
Rating 4.35 | Target Price 650.48 | Buy 3 | Strong Buy 10 |
Buy 3 | Strong Buy 10 | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
McKesson Corporation
Company Overview
History and Background
McKesson Corporation was founded in 1833 as Olcott Drug Company, evolving over time through mergers and acquisitions to become a leading pharmaceutical distributor and healthcare services provider.
Core Business Areas
- U.S. Pharmaceutical: Distributes branded, generic, and over-the-counter pharmaceuticals and other healthcare-related products in the United States.
- Prescription Technology Solutions (RxTS): Provides technology and services to pharmacies, payers, and manufacturers to improve medication adherence, patient outcomes, and pharmacy management.
- Medical-Surgical Solutions: Offers medical-surgical supplies, equipment, and services to healthcare providers in various settings.
- International: Pharmaceutical solutions and medical-surgical solutions in Europe, Canada and other markets.
Leadership and Structure
The company is led by CEO Brian Tyler. The organizational structure includes various business segments reporting to the executive leadership team.
Top Products and Market Share
Key Offerings
- Medical-Surgical Supplies: McKesson distributes medical and surgical supplies to hospitals, surgery centers and other healthcare providers, competing with Medline and Owens & Minor. Market Share estimated at 22%
- Pharmaceutical Distribution: Distributes pharmaceuticals, a core revenue driver. McKesson holds a significant share in the U.S. pharmaceutical distribution market. Competitors include Cardinal Health and AmerisourceBergen. Hard to estimate revenue for this specifically, but it is core. Market Share estimated at 25%.
- RxTS: Prescription Automation and management solutions for pharmacies.
Market Dynamics
Industry Overview
The healthcare industry is experiencing rising costs, increased regulatory scrutiny, and technological advancements. Pharmaceutical distribution is dominated by a few large players.
Positioning
McKesson is a leading player in pharmaceutical distribution and healthcare solutions, leveraging its scale and established relationships.
Total Addressable Market (TAM)
The global pharmaceutical distribution market is estimated to be over $500 billion. McKesson is positioned to capture a significant portion of this TAM through its distribution network and services.
Upturn SWOT Analysis
Strengths
- Large scale and market share
- Established relationships with manufacturers and pharmacies
- Diverse portfolio of healthcare solutions
- Strong distribution network
Weaknesses
- Exposure to regulatory changes and pricing pressures
- Reliance on pharmaceutical manufacturers
- Risk of litigation related to opioid distribution
Opportunities
- Expansion into new markets and services
- Leveraging technology to improve efficiency and patient outcomes
- Growth in specialty pharmaceuticals
- Acquisitions of smaller companies to expand capabilities
Threats
- Increased competition from other distributors and online pharmacies
- Government regulations affecting pricing and reimbursement
- Economic downturn affecting healthcare spending
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- CAH
- ABC
Competitive Landscape
McKesson competes with other large pharmaceutical distributors on price, service, and product availability. It differentiates itself through its scale, technology, and comprehensive suite of healthcare solutions.
Major Acquisitions
CoverMyMeds
- Year: 2017
- Acquisition Price (USD millions): 1100
- Strategic Rationale: Expanded McKesson's technology solutions portfolio and strengthened its position in the pharmacy technology market.
Growth Trajectory and Initiatives
Historical Growth: McKesson has experienced steady growth in revenue and earnings over the past decade, driven by its core pharmaceutical distribution business and strategic acquisitions.
Future Projections: Analysts project continued growth in revenue and earnings, supported by increasing demand for healthcare services and McKesson's investments in technology and innovation.
Recent Initiatives: Recent initiatives include expanding its specialty pharmaceutical services, investing in data analytics, and optimizing its supply chain.
Summary
McKesson Corporation demonstrates a solid market position, driven by its strong pharmaceutical distribution and diverse healthcare solutions. Although facing regulatory and competitive challenges, its expansion strategies and technological investments could propel future growth. However, legal liabilities related to opioid distributions and the impacts of government regulations remain potential risks. The company's consistent dividend payouts and steady growth trajectory reinforce its reliability as a major industry player.
Similar Companies
- CAH
- ABC
- CVS
- WBA
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10K, 10Q)
- Market Research Reports
- Analyst Estimates
- Company Website
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly. Please conduct your own research before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About McKesson Corporation
Exchange NYSE | Headquaters Irving, TX, United States | ||
IPO Launch date 1994-11-15 | CEO & Director Mr. Brian S. Tyler Ph.D. | ||
Sector Healthcare | Industry Medical Distribution | Full time employees 45000 | Website https://www.mckesson.com |
Full time employees 45000 | Website https://www.mckesson.com | ||
McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products. This segment also offers practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices; and consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies. The RxTS segment serves biopharma and life sciences partners, and patients to address medication challenges for patients by working across healthcare; connects patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies to deliver innovative solutions to help people get the medicine needed to live healthier lives; and provides prescription price transparency, benefit insight, dispensing support, third-party logistics, and wholesale distribution support services. The Medical-Surgical Solutions segment offers medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital reference labs, and home health care agencies. The International segment provides distribution and services to wholesale, institutional, and retail customers in Europe and Canada. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.
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