McKesson Corporation [NYSE: MCK] stock went down by -2.84% or -4.71 points down from its previous closing price of $165.56. The stock reached $160.85 during the last trading session. During the course of the last 5 trading session in the week, MCK share price went up during 2 out of 5 days, that way losing -4.04% in the period of the last 7 days.

MCK had two major price movements with the latest trading session as the price jumped to a high of $167.37, at one point touching $160.19. The latest high is set lower that the high price recorded in the period of the last 52 weeks, set at $167.37. The 52-week high currently stands at $172.18 distance from the present share price, noting recovery 23.56% after the recent low of $110.52.

McKesson Corporation [NYSE:MCK]: Analyst Rating and Earnings

Its stock price has been found in the range of 110.52 to 172.18. This is compared to its latest closing price of $165.56.

Keep your eyes peeled for the next scheduled financial results to be made public for this company, which are scheduled to be released on 05/13/2020.

Fundamental Analysis of McKesson Corporation [MCK]

Now let’s turn to look at profitability: with a current Operating Margin for McKesson Corporation [MCK] sitting at +1.44 and its Gross Margin at +5.02, this company’s Net Margin is now -0.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 16.79, and its Return on Invested Capital has reached 2.10%. Its Return on Equity is 0.37, and its Return on Assets is 0.05. These metrics suggest that this McKesson Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, McKesson Corporation [MCK] has generated a Total Debt to Total Equity ratio of 93.83. Similarly, its Total Debt to Total Capital is 48.41, while its Total Debt to Total Assets stands at 12.73. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 11.66, and its Long-Term Debt to Total Capital is 89.76.

What about valuation? This company’s Enterprise Value to EBITDA is 8.02 and its Total Debt to EBITDA Value is 1.89. The Enterprise Value to Sales for this firm is now 0.14, and its Total Debt to Enterprise Value stands at 0.26. McKesson Corporation [MCK] has a Price to Book Ratio of 2.75, a Price to Cash Flow Ratio of 5.71.

Shifting the focus to workforce efficiency, McKesson Corporation [MCK] earns $2,678,988 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 11.92 and its Total Asset Turnover is 3.57. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.58 and its Current Ratio is 1.02. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.

McKesson Corporation [MCK] has 176.74M shares outstanding, amounting to a total market cap of $28.43B. Its stock price has been found in the range of 110.52 to 172.18. At its current price, it has moved down by -6.58% from its 52-week high, and it has moved up 45.54% from its 52-week low.

This stock’s Beta value is currently 1.22, which indicates that it is 2.58% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 53.69. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is McKesson Corporation [MCK] a Reliable Buy?

McKesson Corporation [MCK] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.