McKesson Current Valuation vs. Net Income
| MCK Stock | USD 957.80 135.80 16.52% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.0624 | 0.04 |
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For McKesson profitability analysis, we use financial ratios and fundamental drivers that measure the ability of McKesson to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well McKesson utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between McKesson's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of McKesson over time as well as its relative position and ranking within its peers.
McKesson's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
McKesson Revenue Breakdown by Earning Segment
By analyzing McKesson's earnings estimates, investors can diagnose different trends across McKesson's analyst sentiment over time as well as compare current estimates against different timeframes.
Is Health Care Providers & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of McKesson. Expected growth trajectory for McKesson significantly influences the price investors are willing to assign. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive McKesson assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth 3.77 | Dividend Share 2.95 | Earnings Share 30.91 | Revenue Per Share | Quarterly Revenue Growth 0.101 |
Understanding McKesson requires distinguishing between market price and book value, where the latter reflects McKesson's accounting equity. The concept of intrinsic value - what McKesson's is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Market sentiment, economic cycles, and investor behavior can push McKesson's price substantially above or below its fundamental value.
Understanding that McKesson's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether McKesson represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. In contrast, McKesson's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.
McKesson Net Income vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining McKesson's current stock value. Our valuation model uses many indicators to compare McKesson value to that of its competitors to determine the firm's financial worth. McKesson is rated below average in current valuation category among its peers. It is regarded fifth in net income category among its peers making up about 0.03 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for McKesson is roughly 31.68 . At this time, McKesson's Net Income is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value McKesson by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.McKesson Current Valuation vs. Competition
McKesson is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is now estimated at about 1.39 Trillion. McKesson holds roughly 110.27 Billion in current valuation claiming about 8% of equities under Health Care industry.
McKesson Net Income vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
McKesson |
| = | 110.27 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
McKesson |
| = | 3.48 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
McKesson Net Income Comparison
McKesson is currently under evaluation in net income category among its peers.
McKesson Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in McKesson, profitability is also one of the essential criteria for including it into their portfolios because, without profit, McKesson will eventually generate negative long term returns. The profitability progress is the general direction of McKesson's change in net profit over the period of time. It can combine multiple indicators of McKesson, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -838.8 M | -880.7 M | |
| Operating Income | 5 B | 5.3 B | |
| Income Before Tax | 5 B | 5.3 B | |
| Total Other Income Expense Net | -11.7 M | -12.3 M | |
| Net Income | 4 B | 4.2 B | |
| Income Tax Expense | 1 B | 1.1 B | |
| Net Income Applicable To Common Shares | 3.8 B | 4 B | |
| Net Income From Continuing Ops | 4 B | 4.2 B | |
| Non Operating Income Net Other | 571.5 M | 600.1 M | |
| Interest Income | 198.9 M | 141.2 M | |
| Net Interest Income | -105.8 M | -111.1 M | |
| Change To Netincome | 161 M | 152.9 M | |
| Net Income Per Share | 23.28 | 24.44 | |
| Income Quality | 1.57 | 1.49 | |
| Net Income Per E B T | 0.68 | 0.35 |
McKesson Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on McKesson. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of McKesson position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the McKesson's important profitability drivers and their relationship over time.
McKesson Earnings per Share Projection vs Actual
Use McKesson in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if McKesson position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in McKesson will appreciate offsetting losses from the drop in the long position's value.McKesson Pair Trading
McKesson Pair Trading Analysis
The ability to find closely correlated positions to McKesson could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace McKesson when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back McKesson - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling McKesson to buy it.
The correlation of McKesson is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as McKesson moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if McKesson moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for McKesson can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your McKesson position
In addition to having McKesson in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Correlation Analysis. For more information on how to buy McKesson Stock please use our How to buy in McKesson Stock guide.You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
To fully project McKesson's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of McKesson at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include McKesson's income statement, its balance sheet, and the statement of cash flows.