McKesson Stock Price and Research (NYSE: MCK)
McKesson (NYSE: MCK) is a large cap company that operates within the health care providers and services industry. Its market cap is $30 billion today and the total one-year return is 2.87% for shareholders.
McKesson stock is underperforming the market. It's beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✓ Earnings-per-Share (EPS) Growth: McKesson reported a recent EPS growth rate of 50.17%. That's above the health care providers and services industry average of 21.85%. That's a great sign. McKesson's earnings growth is outpacing competitors.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the health care providers and services industry is 33.17. And McKesson's ratio comes in at 18.45. It's trading at a better value than many of its competitors.
✓ Debt-to-Equity : The debt-to-equity ratio for McKesson stock is 65.59%. That's below the health care providers and services industry average of 67.17%. That's a good sign. McKesson's debt levels are not out of control.
✗ Free Cash Flow per Share Growth : McKesson has decreased its FCF per share over the last year relative to its competitors. That's not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✓ Profit Margins : The profit margin of McKesson comes in at 1.68% today. And generally, the higher, the better. We also like to see this ratio above competitors. McKesson's profit margin is above the health care providers and services average of -2.93%. So that's a positive indicator for investors.
✓ Return on Equity : Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for McKesson is 49.43% and that's above the industry average ROE of 13.13%.
McKesson stock passes five of our six key metrics today. That's why our Investment U Stock Grader gives it a Strong Buy.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.
If you're interested in finding Strong Buy stocks yourself, check out 3 Powerful Technical Indicators for Smarter Investing. We’ll show you how to eliminate emotional bias from your trading process with three powerful technical tools you can start using to boost your trading profits immediately. Click here to learn more.