Latest news with #McKesson
Globe and Mail
3 days ago
- Business
- Globe and Mail
$787 Billion Digital Healthcare Market Redfined: New Initiatives to Reduce Maternal Deaths and Hospital Nursing Costs from AI Powered Telehealth Company: VSee Health (Nasdaq: VSEE)
$VSEE Major Clients Include NASA, U.S. Department of Health and Human Services, McKesson, DaVita and the Entire Nation of Qatar AI-Powered Telehealth Provider with Modular, No-Code/Low-Code Platform. 1,000+ Clients Including NASA, U.S. Department of Health and Human Services, McKesson, DaVita, and the Entire Nation of Qatar. Enabling Seamless, Scalable and Secure Digital Health Solutions Across Hospitals, Governments and Enterprise Organizations. "Lego-like" Digital Health Building Blocks to Design a Flexible Telehealth System System Feature Seamless Electronic Health Record (EHR) Integration, Advanced Data Visualizations and Other Scalable Capabilities for Future Needs. Launched New AI-Powered Telehealth to Reduce Maternal Deaths in Remote Philippines. Telenursing Robotics Solution Targeting 3-5% Reduction in Hospital Nursing Costs. Strategic Hospital Pilots and Research Partnerships Position Company for Scalable Growth in $787B Digital Health Market. Shareholder Letter Issued on Company Accomplishments, Initiatives and Strong AI Powered Product Pipeline Setting a Path to Record Success in 2025 $444K County Government Contract, Expanding into Public Sector Healthcare. Partnership Agreement with LanguageLine to Boost Telehealth Adoption with Seamless, Scalable Multilingual Care. $560K Contract with Major Oncology Network. Top Kidney Care Provider to Add VSee Workflow to Oracle Cerner EHR. $2M Contract for Neurocritical Care Expansion at Leading Hospital with Autonomous Robotics and Industry-Disrupting Telenursing Model. Multiple Other Awards in 2025 including Multi-Year, $6M First Year, Government Contract to Deliver Rapid Configurable Telehealth. VSee Health (Nasdaq: VSEE) is a rapidly growing leader in AI-powered telehealth, redefining the $787 billion digital healthcare market with its modular, no-code/low-code platform. Trusted by 1,000+ clients, including NASA, the U.S. Department of Health and Human Services, McKesson, DaVita, and the entire nation of Qatar, VSEE accelerates telehealth adoption by enabling seamless, scalable and secure digital health solutions across hospitals, governments, and enterprise organizations. Field-tested with 1.5 million+ HIPAA-compliant video encounters per month, VSEE delivers turnkey solutions in critical care, teleradiology, and autonomous robotics, optimizing healthcare operations while increasing billable patient visits and provider efficiency. With a clear path to significant revenue growth and expanding margins, VSEE is positioned to become the foundational infrastructure of digital healthcare, transforming patient care, hospital workflows, and workforce utilization. VSEE has a strategic partnership with AbundaBox to launch AbundaLife™, a groundbreakinghealth record management innovative solution addresses one of the most pressing challenges in healthcare—fragmented medical records—by consolidating personal health data into one secure, comprehensive profile. AbundaLife, supported by VSEE Health's dynamic technology, empowers individuals to manage their health more effectively, enabling providers to deliver better-coordinated care and improving health outcomes. VSEE also has an agreement wih Ava Robotics, a developer of intelligent robots for the workplace, to develop telepresence solutions for the inpatient intensive care market, including the development of a VSEE -powered Ava robot that allows providers to extend their reach and provide personalized care remotely. Launch of AI-Powered Telehealth to Reduce Maternal Deaths in Remote Philippines On May 16th VSEE announced the launch of Project MAMA (Mom's AI for Maternity Aid), an innovative telehealth initiative to reduce high maternal mortality rates in rural, isolated Philippines communities of Zamboanga Sibugay. Working with maternal care physicians and specialists from Stanford University and Ateneo de Zamboanga University, VSEE technology bridges the gap in prenatal care access, enabling women in underserved areas to receive remote OB-GYN consultations via its comprehensive telehealth platform. The solution features AI chatbots responding in local languages, portable diagnostic devices (e.g. ultrasounds) and electronic health records (EHRs) — all operational within four days of deployment. The pilot program represents a VSEE broader vision of bringing accessible healthcare to underserved populations worldwide through adaptable, AI-enhanced telehealth solutions. Advanced Telenursing Robotics Solution Targeting 3-5% Reduction in Hospital Nursing Costs On April 16th VSEE announced completing development of its Telenursing Robotics solution—an AI-driven platform designed to automate routine nursing tasks and reduce labor costs. With nursing expenses representing approximately 60% of hospital operating budgets, this innovation directly targets one of the most pressing cost challenges in healthcare. Initial modeling suggests hospitals deploying the VSEE solution could reduce nursing-related expenses by 3–5%, while also enhancing patient throughput and experience. VSee Health Highlights AI-Powered Telehealth On April 2nd VSEE released an update highlighting how the Company is at the forefront, pioneering AI-driven telehealth solutions that are revolutionizing patient care. An AI-Powered, Modular Approach to Telehealth VSEE offers a modular, no-code/low-code telehealth platform that allows healthcare organizations to build customized solutions tailored to their specific needs. Dubbed as "Lego-like" digital health building blocks, this flexible system enables seamless Electronic Health Record (EHR) integration, advanced data visualizations, and scalable capabilities that prepare healthcare institutions for the future. Expanding Partnerships and Strategic Growth The VSEE growing client portfolio and strategic partnerships further cement its leadership in the digital health space: Government Expansion: A $444K county government contract to provide a white-label telehealth and data analytics platform for mental and behavioral health services, signaling VSEE expansion into public sector healthcare. Major Oncology Network: A $560K contract to implement a secure telehealth platform, showcasing VSEE ability to scale within specialty healthcare. Oracle Cerner EHR Integration: A partnership with a top kidney care provider to integrate VSEE workflow into Oracle Cerner EHR, boosting telehealth call completion rates by 88%. Robotic Innovations: A $2 million contract with a leading hospital for neurocritical care expansion, leveraging autonomous robotics and an industry-disrupting telenursing model. Government Multi-Year Contract: A multi-year contract valued at $6 million in its first year, allowing VSEE to deliver rapid-configurable telehealth solutions for a national healthcare program. Strategic Collaborations for Enhanced Telehealth Adoption Beyond direct contracts, VSEE is accelerating telehealth adoption through groundbreaking partnerships: AbundaBox Collaboration: Launching AbundaLife, a health record management platform that consolidates fragmented medical records into a secure, comprehensive profile. Ava Robotics Partnership: Developing telepresence robots for inpatient intensive care, enabling remote providers to offer real-time, personalized care. LanguageLine Solutions Integration: Facilitating one-touch interpreter access in over 240 languages, ensuring seamless multilingual healthcare services. Field-Tested, Scalable, and Secure Digital Health Infrastructure With over 1.5 million HIPAA-compliant video encounters per month, VSEE delivers turnkey telehealth solutions in critical care, teleradiology, and autonomous robotics. VSEE technology enhances hospital operations by increasing billable patient visits and optimizing provider efficiency. This ability to streamline operations while ensuring high-quality patient care positions VSEE as a foundational infrastructure provider in digital healthcare. Outlook Following Nasdaq Listing Since listing on Nasdaq in mid-2024, VSEE has expanded its market presence while navigating short-seller activity, a common occurrence among companies following SPAC mergers. The company reports a growing portfolio of contracts and continues to develop its AI-driven product offerings, with further updates expected in 2025. For more information on $VSEE visit: Disclosure listed on the CorporateAds website Media Contact Company Name: Vsee Health, Inc. Contact Person: Anne Chang Email: Send Email Phone: 626-513-1824 Address: One Gateway Center Suite 507 300 Washington St. City: Newton State: Massachusetts Country: United States Website:
Yahoo
22-05-2025
- Business
- Yahoo
Is McKesson (MCK) a Buy as Wall Street Analysts Look Optimistic?
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter? Let's take a look at what these Wall Street heavyweights have to say about McKesson (MCK) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. McKesson currently has an average brokerage recommendation (ABR) of 1.47, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 17 brokerage firms. An ABR of 1.47 approximates between Strong Buy and Buy. Of the 17 recommendations that derive the current ABR, 13 are Strong Buy, representing 76.5% of all recommendations. Check price target & stock forecast for McKesson here>>>The ABR suggests buying McKesson, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. In terms of earnings estimate revisions for McKesson, the Zacks Consensus Estimate for the current year has increased 2% over the past month to $37.10. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for McKesson. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for McKesson may serve as a useful guide for investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report McKesson Corporation (MCK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-05-2025
- Business
- Yahoo
Jim Cramer Notes McKesson (MCK) Reported 'Very Strong Set of Numbers'
We recently published a list of . In this article, we are going to take a look at where McKesson Corporation (NYSE:MCK) stands against other stocks that Jim Cramer discussed recently. On Wednesday's episode of Mad Money, Jim Cramer reviewed the recent developments affecting drug distribution companies and laid out why he is turning cautious on the group. He pointed out that stocks of major drug distributors have retreated from their all-time highs. 'Most of the time, that's because of vague, amorphous concerns that some type of regulatory crackdown will force them out of business or, at the very least, make them a lot less profitable.' READ ALSO Jim Cramer Put These 8 Stocks Under a Microscope Recently and Jim Cramer Commented on These 6 Natural Gas Players Cramer referenced the executive order signed by the President last week aimed at lowering drug prices, which triggered a sell-off across the drug distribution sector. He explained that the order would effectively require pharmaceutical companies to offer the U.S. government drug prices that match the lowest rates charged in other advanced economies. Cramer said the market's fear is straightforward: if drugmakers are forced to cut prices for their government customers, then drug distributors could see their margins shrink. 'The bottom line: No matter how well the drug distributors have been doing, I do not want to stick my neck out for an industry that now seems to be hated by both the Democrats and the Republicans. It seems like the only thing they agree on, doesn't it? There are so many potential winners in this market, I say, why take the risk?' For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 14. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey's database of over 1,000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A successful pharmacist in front of shelves of drugs in a community-based oncology pharmacy. Number of Hedge Fund Holders: 78 McKesson Corporation (NYSE:MCK) was mentioned during the episode, and here's what Mad Money's host had to say: 'These stocks, namely Cardinal Health, Cencora, and McKesson, are seemingly perpetual residents on the new high list. Over the long haul, they're some of the best performers out there, and they've done great this year, as is pretty much always the case. And yet, doesn't it always feel like the drug distributors are just one bad day away from falling apart… The last quarter from the major drug distributors came from McKesson, and that was last Thursday night, which delivered yet another very strong set of numbers… Like the others. McKesson had a top-line miss, in this case, actually a pretty sizable one, but still delivered a significant earnings beat, and gave a higher-than-expected full-year earnings forecast in a vacuum. McKesson (NYSE:MCK) provides healthcare services by distributing medications, medical products, and handling logistics. The company also supplies technology tools, advisory services, and support for healthcare providers, biopharma companies, and patients. Overall, MCK ranks 6th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of MCK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MCK but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at .
Forbes
15-05-2025
- Business
- Forbes
McKesson To Spin-Off Its Medical-Surgical Solutions Business
(AP Photo/Paul Sakuma, File) Deal OverviewOn May 8, 2025, McKesson Corporation (NYSE: MCK, $682.28, Market Capitalization: $85.4 billion), a diversified healthcare services company, announced its intention to separate its Medical-Surgical Solutions segment into an independent company (NewCo) (for more information, visit McKesson is committed to exploring all opportunities to execute a separation in a manner that maximizes shareholder value and anticipates providing more information as appropriate on the form and timing as the process progresses. On May 1, 2025, the Board of Directors of McKesson Corporation declared a regular dividend of 71 cents per share of common stock. The dividend will be payable on July 1, 2025, to stockholders of record on June 2, 2025. McKesson Price Performance Spin-Off Details and Top 5 Shareholders Deal Rationale McKesson's strategic focus on disciplined portfolio management involves continuous evaluation of its business segments to ensure alignment with its growth priorities and optimize capital allocation. This strategic approach has previously led to transformative actions such as the divestiture of Change Healthcare in 2020 and the divestiture of its European and Canadian retail businesses, which have unlocked considerable value for shareholders. Moreover, Change Healthcare was fully acquired by UnitedHealth in 2022. As a continuation of this strategy, McKesson has announced its intent to separate the Medical-Surgical segment into an independent company. McKesson believes a separation of the Medical-Surgical Solutions business will further enhance the strategic opportunity and operational focus of both companies and unlock value for McKesson shareholders. A separation would result in two well-capitalized, world-class companies, well-positioned to pursue their respective strategic growth priorities. The separation advances McKesson and NewCo's ability to create value for customers, partners, patients, and shareholders with increased investment and dedicated capital allocation. Post-spin-off, McKesson will continue to focus on its capital deployment priorities on opportunities that best align with its long-term enterprise strategies. McKesson will advance its portfolio to focus investment on higher growth, higher margin opportunities in Oncology and Biopharma Solutions, unlocking substantial value for stakeholders. In order to strengthen its core operations, McKesson acquired Rx Savings Solutions in late 2022 to enhance biopharma and payer connectivity with patients and formed SCRI Oncology with HCA Healthcare to expand access to cancer clinical trials. McKesson holds a 51% controlling interest in SCRI, reported under its U.S. Pharmaceutical segment. Additionally, the company announced plans to acquire a controlling stake in Core Ventures, a business services organization established by Florida Cancer Specialists, with the deal expected to close on June 2, 2025. Moreover, the Medical-Surgical Solutions segment, which represents only 3.2% of the total company's revenue, has seen sluggish growth since 2020 due to a shift in demand, lower volumes, supply chain disruption and also due to post-pandemic normalization. Post-separation, the new Medical-Surgical Solutions company (NewCo) would be a differentiated medical surgical supply and solutions company with a compelling leadership position, attractive margins, and potential for growth acceleration across all the alternate sites of care markets. With FY25 revenue of around $11.4 billion, the spin off is designed to sharpen McKesson's focus on pharmaceutical and specialty services, especially in high-growth areas like oncology, while allowing both entities to pursue tailored growth strategies. McKesson Corporation, founded in 1833, is headquartered in Irving, Texas. With a legacy spanning over 190 years, McKesson plays a critical role in delivering pharmaceuticals, medical supplies, and health IT solutions across North America and selected international markets. Under the leadership of CEO Brian S. Tyler, the company trades on the NYSE under the ticker symbol MCK. The company operates through three key business segments: U.S. Pharmaceutical, Prescription Technology Solutions, Medical-Surgical Solutions, and International. Key Data U.S. Pharmaceutical Segment (91.3% of FY25 sales) U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter (OTC) pharmaceutical drugs, and other healthcare-related products in the United States (U.S.). This segment also provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices. In addition, the segment sells financial, operational, and clinical solutions to pharmacies (retail, hospital, and alternate sites) and provides consulting, outsourcing, technological, and other services. Prescription Technology Solutions Segment (1.5% of FY25 sales) Prescription Technology Solutions (RxTS) connects patients, pharmacies, providers, health plans, pharmacy benefit managers, and biopharma companies to improve medication access across the healthcare system. Integrated with most EHRs, 50,000+ pharmacies, 950,000 providers, and supporting 650+ biopharma brands, RxTS offers end-to-end solutions from prescription to therapy. Its services include affordability support, price transparency, benefit insights, dispensing support, logistics, and distribution. In the past year, RxTS saved patients over $10 billion, prevented 12 million abandoned prescriptions, and enabled medication access over 100 million times, reinforcing its vital healthcare role. Medical-Surgical Solutions (to be spun-off) (3.2% of FY25 sales) The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centres, nursing homes, hospital reference labs, and home health care agencies. The segment offers more than 245,000 national brand medical-surgical products as well as McKesson's line of high-quality products through a network of distribution centres in the U.S. With FY25 revenue of around $11.4 billion, the spin-off is designed to sharpen McKesson's focus on pharmaceutical and specialty services, especially in high-growth areas like oncology, while allowing both entities to pursue tailored growth strategies. International segment (4.0% of FY25 sales) McKesson's International segment includes operations in Canada and Norway. McKesson Canada is one of the country's largest pharmaceutical wholesale and retail distributors, serving pharmacies, hospitals, long-term care centres, and clinics through a national distribution network. Beyond logistics, it offers automation and technology solutions to retail and hospital clients. McKesson Canada also delivers specialty health services and biopharma support, including personalized patient programs and a national network of specialty pharmacies. It operates INVIVA, Canada's first and largest accredited private infusion clinic network, and owns PDCI, the country's leading market access consultancy. These services help biopharma manufacturers introduce new products to market while enhancing patient care and access across Canada's healthcare system. Revenue 4Q25 For 4Q25, the company recorded revenues of $90.8 billion, up by 18.9% YoY compared to $76.4 billion in 4Q24, primarily driven by growth in the U.S. Pharmaceutical segment, due to increased prescription volumes from retail national customers and growth in the distribution of specialty products, including higher volumes in oncology. Operating Income for the quarter was $1.6 billion, up by 30.8% YoY with a margin of 1.8%, up by 20 bps. Adjusted operating income was $1.5 billion, up by 23.5% YoY with a margin of 1.7%, flat as compared to the prior year. The growth in operating income benefited from growth across all operating segments, including strong oncology and other specialty provider volumes, the onboarding of a new strategic customer in 2Q, and increased demand for access solutions in the Prescription Technology Solutions segment. Net income for the period was $1.31 billion, up by 57.3% YoY, while adjusted net income was $1.27 billion, up by 56.7% YoY. Similarly, Diluted EPS on a reported basis was $10.01 per share, up by 66.3%, while adjusted diluted EPS was $10.12 per share, up by 63.8% YoY. The growth in Net income and EPS was driven by a lower effective tax rate and strong operational growth across the business. FY25 For FY25, the company recorded revenues of $359.1 billion, up by 16.2% YoY compared to $309.0 billion in FY24, driven by broad-based operational strength across the business, including the onboarding of a new strategic customer in the U.S. Pharmaceutical segment. Operating Income for the year was $4.4 billion, up by 13.1% YoY with a margin of 1.2%, down 10 bps compared to the prior year. On the other hand, the adjusted operating income was $5.6 billion, up by 14.6% YoY with a margin of 1.6%, which was flat compared to the prior year. The growth in operating income was led by a double-digit growth in the U.S. Pharmaceutical and Prescription Technology Solutions segments and Canadian business within International. Excluding the impact of net gains related to McKesson Ventures, operating profit increased 12% YoY compared to the prior year, well above MCK's long-range target. Net income for the period was $3.3 billion, up by 9.8% YoY, while adjusted net income was $4.2 billion, up by 15.1% YoY. Similarly, diluted EPS on a reported basis was $25.72 per share, up by 14.9%, while adjusted diluted EPS was $33.05 per share, up by 20.4% YoY. Growth in Net income and EPS was driven by strong operational growth across the business and a lower share count. FY26 Outlook: McKesson has issued fiscal FY26 guidance for Adjusted Earnings per Diluted Share in the range of $36.75 to $37.55, reflecting an expected growth of 11% to 14% year-over year. Excluding net gains from McKesson Ventures' equity investments in FY25, the projected growth is expected to increase 13% to 16%. While the company does not forecast GAAP earnings per share, it has reaffirmed its long-term Adjusted EPS growth target of 12% to 14% and updated the long-term Adjusted Segment Operating Profit growth target for its U.S. Pharmaceutical segment from 5%–7% to a revised range of 6%–8%. Long-Term Growth Targets McKesson continues to strengthen its portfolio of differentiated assets and capabilities, advancing health outcomes for all. As a result of continued, consistent, strong execution against its strategic initiatives, McKesson is updating and reaffirming the following long-term growth targets: • Reaffirming long-term Adjusted Earnings per Diluted Share growth target of 12% to 14%. • Updating U.S. Pharmaceutical long-term Adjusted Segment Operating Profit growth target to 6% to 8% from the previous range of 5% to 7%. • Reaffirming Prescription Technology Solutions long-term Adjusted Segment Operating Profit growth target of 11% to 12%. Company DescriptionMcKesson Corporation (Parent) McKesson Corporation is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information solutions. The company is engaged in the distribution of pharmaceuticals and medical products, as well as providing technology enabled services that support the clinical and financial outcomes of healthcare providers and payers. McKesson operates through several business segments, including U.S. Pharmaceutical, Prescription Technology Solutions, Medical-Surgical Solutions, and International. Its extensive distribution network and logistics capabilities serve a wide array of customers, including hospitals, pharmacies, physicians' offices, long-term care facilities, and home health agencies. McKesson's U.S. Pharmaceutical segment distributes branded, generic, and over-the-counter drugs to retail pharmacies and institutional healthcare providers. Its international segment serves healthcare markets in Canada and Europe. The company leverages advanced analytics, automation, and digital capabilities to streamline operations and enhance healthcare delivery outcomes across geographies. McKesson has operations in more than a dozen countries and employs over 45,000 people worldwide. The company continues to invest in innovative solutions and partnerships to improve patient access, support value-based care models, and reduce the total cost of care. For FY25, McKesson reported Consolidated revenues of $359.1 billion, highlighting its scale and impact in the global healthcare ecosystem. Medical-Surgical Solutions (Spin-Off) The Medical-Surgical Solutions division handles the distribution of medical-surgical supplies, logistics, and related services to various healthcare providers, such as clinics, surgical centres, elder care facilities, hospital labs, and home healthcare agencies. It delivers over 245,000 branded medical-surgical products, along with McKesson's proprietary high-quality items, through a network of U.S.-based distribution centres. On May 8, 2025, McKesson announced plans to separate this segment into a standalone company, temporarily referred to as 'NewCo.' The business generated $11.4 billion in revenue during FY25. Organization Structure
Yahoo
14-05-2025
- Business
- Yahoo
3 Reasons Growth Investors Will Love McKesson (MCK)
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks. McKesson (MCK) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). Here are three of the most important factors that make the stock of this prescription drug distributor a great growth pick right now. Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for McKesson is 16%, investors should actually focus on the projected growth. The company's EPS is expected to grow 12% this year, crushing the industry average, which calls for EPS growth of 7.5%. Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales. Right now, McKesson has an S/TA ratio of 4.95, which means that the company gets $4.95 in sales for each dollar in assets. Comparing this to the industry average of 0.76, it can be said that the company is more efficient. In addition to efficiency in generating sales, sales growth plays an important role. And McKesson looks attractive from a sales growth perspective as well. The company's sales are expected to grow 12% this year versus the industry average of 2.1%. Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. There have been upward revisions in current-year earnings estimates for McKesson. The Zacks Consensus Estimate for the current year has surged 2% over the past month. McKesson has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination indicates that McKesson is a potential outperformer and a solid choice for growth investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report McKesson Corporation (MCK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
