Mckesson Stock Performance

MCK
 Stock
  

USD 383.34  2.59  0.68%   

Mckesson Corp has a performance score of 4 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 0.4963, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Mckesson's beta means in this case. As returns on the market increase, Mckesson Corp returns are expected to increase less than the market. However, during the bear market, the loss on holding Mckesson Corp will be expected to be smaller as well. Although it is important to respect Mckesson Corp price patterns, it is better to be realistic regarding the information on the equity's historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Mckesson Corp technical indicators, you can presently evaluate if the expected return of 0.1% will be sustainable into the future. Mckesson Corp right now secures a risk of 1.61%. Please verify Mckesson Corp sortino ratio, skewness, price action indicator, as well as the relationship between the potential upside and rate of daily change to decide if Mckesson Corp will be following its current price movements.
  
Mckesson Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Mckesson Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal fundamental indicators, Mckesson Corp may actually be approaching a critical reversion point that can send shares even higher in December 2022. ...more

Structure and Payout Changes

Forward Annual Dividend Yield
0.0057
Payout Ratio
0.0846
Last Split Factor
2:1
Forward Annual Dividend Rate
2.16
Dividend Date
2023-01-03
Ex Dividend Date
2022-11-30

Mckesson Price Channel

Quick Ratio0.47
Fifty Two Week Low215.27
Target High Price423.00
Fifty Two Week High401.78
Payout Ratio19.96%
Trailing Annual Dividend Yield0.44%
Target Low Price320.00

Mckesson Corp Relative Risk vs. Return Landscape

If you would invest  36,248  in Mckesson Corp on August 28, 2022 and sell it today you would earn a total of  2,086  from holding Mckesson Corp or generate 5.75% return on investment over 90 days. Mckesson Corp is generating 0.1002% of daily returns assuming volatility of 1.6057% on return distribution over 90 days investment horizon. In other words, 13% of stocks are less volatile than Mckesson, and above 99% of all equities are expected to generate higher returns over the next 90 days.
  Daily Expected Return (%)  
       Risk (%)  
Considering the 90-day investment horizon Mckesson Corp is expected to generate 1.15 times less return on investment than the market. In addition to that, the company is 1.17 times more volatile than its market benchmark. It trades about 0.06 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.08 per unit of volatility.

Mckesson Corp Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Mckesson Corp's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Mckesson Corp, and traders can use it to determine the average amount a Mckesson Corp's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0624

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Estimated Market Risk
 1.61
  actual daily
 
 13 %
of total potential
 
1313
Expected Return
 0.1
  actual daily
 
 1 %
of total potential
 
11
Risk-Adjusted Return
 0.06
  actual daily
 
 4 %
of total potential
 
44
Based on monthly moving average Mckesson Corp is performing at about 4% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Mckesson Corp by adding it to a well-diversified portfolio.

About Mckesson Corp Performance

To evaluate Mckesson Corp Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Mckesson Corp generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Mckesson Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Mckesson Corp market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Mckesson's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Effect of Exchange Rate Changes on Cash55 M59.3 M
Return on Investment 37.97  40.97 
Return on Average Assets 1.74  2.32 
Return on Average Equity(205.87) (211.29) 
Return on Invested Capital 0.18  0.17 
Return on Sales 0.007  0.008105 

Things to note about Mckesson Corp

Checking the ongoing alerts about Mckesson Corp for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Mckesson Corp help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Mckesson Corp Alerts

Equity Alerts and Improvement Suggestions

Mckesson Corp is unlikely to experience financial distress in the next 2 years
The company has 7.43 B in debt with debt to equity (D/E) ratio of 6.61, demonstrating that the company may be unable to create cash to meet all of its financial commitments. Mckesson Corp has a current ratio of 0.94, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Mckesson Corp until it has trouble settling it off, either with new capital or with free cash flow. So, Mckesson Corp's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Mckesson Corp sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Mckesson to invest in growth at high rates of return. When we think about Mckesson Corp's use of debt, we should always consider it together with cash and equity.
Over 89.0% of Mckesson Corp shares are owned by institutional investors
On 3rd of October 2022 Mckesson Corp paid $ 0.54 per share dividend to its current shareholders
Latest headline from news.google.com: Heres Why You Should Add McKesson Stock Right Now - Nasdaq
Additionally, see Correlation Analysis. Note that the Mckesson Corp information on this page should be used as a complementary analysis to other Mckesson Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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Is Mckesson Corp's industry 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 Corp. If investors know Mckesson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mckesson Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
2.75
Market Capitalization
54 B
Quarterly Revenue Growth YOY
0.054
Return On Assets
0.0323
The market value of Mckesson Corp is measured differently than its book value, which is the value of Mckesson that is recorded on the company's balance sheet. Investors also form their own opinion of Mckesson Corp's value that differs from its market value or its book value, called intrinsic value, which is Mckesson Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mckesson Corp's market value can be influenced by many factors that don't directly affect Mckesson Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Mckesson Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Mckesson Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mckesson Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.