Stock analysis/Share presentation ⬇️
Today we are talking about the company McKesson: $MCK (+0,35 %)
What is and does McKesson anyway: 🤔
McKesson is a company that specializes in providing healthcare solutions and services. The company offers a wide range of products and services, including pharmaceuticals, medical devices, clinical services, and IT solutions for the healthcare industry. McKesson works closely with healthcare providers, manufacturers and other partners to develop innovative solutions that improve the quality of patient care while reducing costs.
How many employees does the company have: 🙋🏽♂️🙋🏻♀️
Currently, McKesson has a total of more than 48,000 employees.
P/E RATIO:
Medpace has a current P/E ratio of just under 16.5, which is not high in my opinion.
Market capitalization: 🏦
Currently, McKesson has a market capitalization of around 52 billion euros.
Dividend yield: 💰
The company pays its shareholders a nice dividend of currently over 0.5%. This payout is made on a quarterly basis. McKesson shareholders receive their dividends in January, April, July and October.
Strengths of the share: 📈
Some of McKesson's strengths include:
- The company operates in a growth market as demand for healthcare services and products increases due to an aging population and rising healthcare costs.
- McKesson is an established company with a strong market position and a broad customer base.
- The company has a history of solid financial performance and has a strong balance sheet.
- McKesson has a strong R&D department that develops innovative products and services to meet the changing needs of the healthcare market.
- The company has a strong global presence and is able to operate in multiple regions of the world.
- McKesson has a well-established logistics infrastructure that enables the company to deliver products quickly and efficiently.
- The company has a strong corporate culture and is committed to sustainability and social responsibility.
Weaknesses of the share: 📉
Some of McKesson's potential weaknesses include:
- The healthcare industry is highly regulated, which can lead to high compliance costs.
- McKesson is dependent on the availability of raw materials and other resources to manufacture and deliver its products. Fluctuations in raw material prices or supply shortages may adversely affect the Company.
- The Company is dependent on demand for healthcare products and services, which may be subject to seasonal fluctuations.
- McKesson competes with other companies in the healthcare industry, which may result in pricing pressure.
- The Company is vulnerable to legal risks and lawsuits related to its products and services.
- McKesson is also subject to political and regulatory risks as healthcare policies and regulations may change.
- The company is also susceptible to cybersecurity risks as it stores and processes sensitive patient data.
- The company is dependent on the availability of qualified employees to maintain its business operations.
Industry of McKesson:
McKesson is active in medical and pharmaceutical wholesale. The demand for medical services and therefore products is not cyclical and shows a growth trend especially in chronic diseases and diseases of aging. This is due to the changing demographics of society, which, while a testament to rising living standards and overall progress, is also experiencing tremendous pressures from the increased need for healthcare. As a result, McKesson is ideally positioned and has already proven its value as the market leader in the USA.
A little more about the business model: ⬇️
McKesson connects drug and medical device manufacturers with patients and physicians.
Therefore, the company can be categorized into divisions:
1. Pharmacy Services & Solutions:
This division encompasses all of the company's activities in the distribution of medications. Across America, the company has 29 distribution centers, which are delivered from there to pharmacies, hospitals and clinics. In the healthcare industry, fast action is usually required. With its complex supply network, the company can deliver the right medicines to appropriate facilities in the shortest possible time.
The portfolio includes branded products, but also generic medications with lower prices.
McKesson negotiates prices with manufacturers on behalf of its customers, ensures optimally stocked inventories and solid warehouse logistics, handles the invoicing of deliveries and carries out quality checks.
In addition to direct cooperation, the company is also active in the consulting business and advises customers through its subcontractor McKesson RxO.
2. medical-surgical:
In addition to the drugs themselves, treatment usually requires medical equipment and general consumables, such as bandages. For any type of treatment, McKesson is adapted and can accommodate a wide variety of customers. This means that equipment for surgery, laboratory equipment, as well as products for longer-term follow-up treatment by doctors' offices are available. 95% of customers receive their orders the very next day, which also speaks for the Group's efficient logistics network.
3. specialty Practice Solutions:
Some treatments require highly specialized approaches. The Group therefore offers specific treatment solutions for patients in oncology, rheumatology, gastroenterology, neurology and ophthalmology. These typically involve the precise planning and coordination of treatments with the individual needs of patients and other services, relieving treating physicians of time-consuming research and enabling more patients to be treated.
4th Pharmacy Systems:
Pharmacies are small logistics centers that store hundreds of different products, whose dispensing must be strictly monitored and not allow for mix-ups or errors. Therefore, McKesson develops IT solutions for companies to record inventory more efficiently. The systems can be customized for each individual pharmacy, and customers can choose from a range of features those they actually need. This is also crucial, as the software can be used both when starting a new business and for optimization in already established operations.
5. Prescription Automation:
Once a doctor identifies a disease or condition, he or she usually prescribes medication for it. This is a complex process, as the choice of active ingredients and manufacturers is usually very large and requires extensive knowledge. In addition, dosages must be adjusted for age, health status and often gender.
McKesson assists in prescribing medications with software developed in-house. This also enables improved cost optimization and compliance with constantly changing government regulations and rules.
These services are also widely offered internationally, particularly in Canada, England and Australia.
Sales are therefore divided into four categories:
1. distribution of pharmaceutical products: 80.4 % of sales
2. distribution of medical and surgical equipment: 4.4 % of sales
3. software and IT solutions: 1.5 % of sales
4. international activities: 13.8 % of sales
What is McKesson's target: 🏁
McKesson is a healthcare company with a mission to improve healthcare and optimize patient outcomes. The company offers a wide range of products and services designed to help improve the efficiency and quality of healthcare. In doing so, McKesson relies on innovative technologies and solutions to transform healthcare and improve the patient experience.
Your opinion 🧐🤔
Now I'd love to hear your thoughts on this stock in the comments.
What do you think of McKesson and did you already know this company?
Do you have this stock in your portfolio?
This is of course no investment advice and only my own opinion. ✌🏽
