McKesson Corporation


SKU: MCK-1 Category:


McKesson Corporation delivered a mixed set of results for the last quarter with revenues below expectations but it did manage an earnings beat. Revenues in the Prescription Technology Solutions sector were $1.1 billion, up 9% yearly, due to higher prescription volumes, quicker growth in the company’s third-party logistics business, and higher technology service revenues. In the last quarter, McKesson also made significant progress in developing its oncology and biopharma ecosystems. McKesson recently announced that The U.S. Oncology Network, the country’s biggest oncology practice management organization, has added two new practices, Epic Care in California and Nexus Health in New Mexico, to its geographic footprint. In addition to oncology, McKesson’s biopharma services platform continues to be a top priority for expansion. The company then acquired CoverMyMeds, a long-time partner of McKesson. This acquisition is anticipated to enlarge the company’s network by connecting it to over 750,000 providers. The inclusion of CoverMyMeds’ automation technology also removes some of the friction from workflow providers, boosting total patient access. We give McKesson Corporation a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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