MCK
Mckesson Corporation
Healthcare
06/20/2023
Presented
| Date | 06/13/2023 |
| Price | $397.00 |
| Market Cap | $53.83B |
| Ent Value | $52.12B |
| P/E Ratio | 15.85x |
| Book Value | N/A |
| Div Yield | 0.54% |
| Shares O/S | 135.60M |
| Ave Daily Vol | 953,350 |
| Short Int | 1.33% |
Current
| Price | $513.67 |
| Market Cap | $66.61B |
| McKesson Corp. engages in the provision of supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology. It operates through the following segments: U.S. Pharmaceutical, International, Medical-Surgical Solutions, and Prescription Technology Solutions (RxTS). The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products, provides practice management, technology, clinical support, and business solutions to community-based oncology, and other specialty practices, and sells financial, operational, and clinical solutions to pharmacies and provides consulting, outsourcing, technological, and other services. The International segment provides distribution and services to wholesale, institutional, and retail customers in European countries and Canada. 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 RxTS segment brings together CoverMyMeds, RelayHealth, RxCrossroads, and McKesson Prescription Automation, including Multi-Client Central Fill as a Service, to serve biopharma and life sciences partners and patients. The company was founded by John McKesson and Charles Olcott in 1833 and is headquartered in Irving, TX. |
Publicly traded companies mentioned herein: Amazon (AMZN), McKesson Corp (MCK)
Highlights
The speaker is long shares of McKesson Corp (MCK) on the back of the company's evolution from a drug distribution and pharma services company to a diversified healthcare services company. Only about 45% of their revenue now comes from core US pharma distribution, with the remainder coming from fast-growing areas like oncology clinics, prescription technology solutions, and specialty and med-surg distribution. The investor emphasizes the high quality and sustainability of McKesson's business, which has consistently generated mid-teen earnings growth and over 25% returns on domestic capital. Adding to this, the industry structure is attractive, with the three largest players collectively holding over 90% market share.
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