MCK - Embedded Expectations Analysis - 2020 06 11
McKesson Corporation (MCK:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.3x Uniform P/E. Even at these levels, the market has bullish expectations for the firm, and management is confident about growth, their cost structure, and profitabilitySpecifically, management generated an excitement marker when saying they assume health care demand will return. In addition, they are confident their approach to addressing the pandemic underscores their value system, that their success rationalizing costs and streamlining back-office functions is reflected in their positive European segment results, and that their organizational structure and execution translated into profit growth for their Canadian business. Furthermore, they are confident they will deliver adjusted operating income and adjusted earnings per diluted share growth in H2 2021, and that they will continue to improve their EBIT in the pharmacy segment throughout the year
McKesson provides pharmaceuticals and medical supplies and services to its customers. The company's segments include: U.S. Pharmaceutical and Specialty Solutions, which provides distribution and logistics services for branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs and other healthcare-related products to customers; European Pharmaceutical Solutions, which provides distribution and services to wholesale, institutional and retail customers in European countries where it owns, partners or franchises with retail pharmacies; and Medical-Surgical Solutions, which delivers medical-supply distribution, logistics, biomedical and other services to healthcare providers.
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