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McKesson: An Undervalued Gem, In A Frothy Market

Apr. 04, 2021 9:21 PM ETMcKesson Corporation (MCK)6 Comments


  • McKesson is a mission-critical player in the healthcare supply chain, and is executing well in the current environment.
  • It should see continued near-term growth from the distribution of COVID vaccines, and could see long-term growth from its Ontada technology.
  • I also highlight the valuation, dividend, balance sheet, and risks worth considering.

Business development to success and growing growth concept. Businessman pointing arrow graph corporate future growth
Photo by marchmeena29/iStock via Getty Images

There are two sides to every coin, and the same holds true for the stock market. While some stocks remain inexplicably expensive, there are other stocks that remain inexplicably cheap. I see McKesson (

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Comments (6)

Mck has to overcome its reputation as a legal drug runner. But still, it has recovered remarkably well from the opioid disaster.
It has 90% debt to capitalization. Seems quite high.
@PreCambrian ?? Net debt of less than $1 billion. Their low "capitalization" / book value is related to their extensive buyback history. It was founded ~180 years ago, so book value is probably less relevant.
Pe of 11, This is an undervalued company wife worked for them in sales in late 90's was on their products board earlier. great company
Nice article. Distribution businesses are great compounders. Few questions. CROCI? Shareholder composition? Insider buying? M&A? Geographic expansion?
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