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If You Invested $1000 in McKesson a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in McKesson (MCK - Free Report) ten years ago? It may not have been easy to hold on to MCK for all that time, but if you did, how much would your investment be worth today?
McKesson's Business In-Depth
With that in mind, let's take a look at McKesson's main business drivers.
San Francisco, CA-based McKesson Corporation is a health care services and information technology company. McKesson operates through two segments:
The Distribution Solutions segment distributes branded and generic pharmaceutical drugs along with other healthcare-related products on a global basis worldwide. The segment also provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices. In addition, the segment provides specialty pharmaceutical solutions for pharmaceutical manufacturers including offering multiple distribution channels and study access to oncology physicians. The segment also provides medical-surgical supply distribution, equipment, logistics and other services to healthcare providers within the U.S.
The Technology Solutions segment provides enterprise-wide clinical, patient care, financial, supply chain, and strategic management software solutions.
In the fourth quarter of fiscal 2022, per segment realignment, McKesson reported revenues through four segments: U.S. Pharmaceutical and Specialty Solutions, Internation, Medical-Surgical Solutions and Prescription Technology Solutions.
Notably, McKesson’s role in the COVID-19 response was reflected in the collaboration with the U.S. government's COVID-19 vaccine distribution effort, wherein McKesson was selected as the centralized distributor of refrigerated and frozen COVID-19 vaccines and the ancillary kits used to administer those vaccines.
FY23 at a Glance
Revenues in fiscal 2023 grossed $276.71 billion, up 5% from the year-ago period. U.S. Pharmaceutical and Specialty Solutions (87% of net revenues), International (7.4%), Medical-Surgical Solutions (4%) and Prescription Technology Solutions (1.6%).
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in McKesson ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2014 would be worth $2,900.55, or a gain of 190.05%, as of January 16, 2024, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 158.81% and the price of gold went up 60.15% over the same time frame.
Looking ahead, analysts are expecting more upside for MCK.
In the past year, McKesson has outperformed its industry. McKesson exited the fiscal first quarter on a strong note, beating estimates on both counts. Strong fiscal second-quarter show by the pharmaceutical segment is encouraging. A strong earnings outlook for fiscal 2024 instills optimism. Strong adjusted operating profit growth across key segments is encouraging. A strong position in the Distribution market continues to favor the stock. Declining demand for COVID-19-related products and loss of sales due to divesture of European businesses continue to hurt Medical-Surgical Solutions and International segments. Yet, both gross and operating margin contractions are woes. Price fluctuation of generic pharmaceuticals and stiff competition in the MedTech space remain headwinds.
The stock is up 8.44% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023. The consensus estimate has moved up as well.
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If You Invested $1000 in McKesson a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in McKesson (MCK - Free Report) ten years ago? It may not have been easy to hold on to MCK for all that time, but if you did, how much would your investment be worth today?
McKesson's Business In-Depth
With that in mind, let's take a look at McKesson's main business drivers.
San Francisco, CA-based McKesson Corporation is a health care services and information technology company. McKesson operates through two segments:
The Distribution Solutions segment distributes branded and generic pharmaceutical drugs along with other healthcare-related products on a global basis worldwide. The segment also provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices. In addition, the segment provides specialty pharmaceutical solutions for pharmaceutical manufacturers including offering multiple distribution channels and study access to oncology physicians. The segment also provides medical-surgical supply distribution, equipment, logistics and other services to healthcare providers within the U.S.
The Technology Solutions segment provides enterprise-wide clinical, patient care, financial, supply chain, and strategic management software solutions.
In the fourth quarter of fiscal 2022, per segment realignment, McKesson reported revenues through four segments: U.S. Pharmaceutical and Specialty Solutions, Internation, Medical-Surgical Solutions and Prescription Technology Solutions.
Notably, McKesson’s role in the COVID-19 response was reflected in the collaboration with the U.S. government's COVID-19 vaccine distribution effort, wherein McKesson was selected as the centralized distributor of refrigerated and frozen COVID-19 vaccines and the ancillary kits used to administer those vaccines.
FY23 at a Glance
Revenues in fiscal 2023 grossed $276.71 billion, up 5% from the year-ago period. U.S. Pharmaceutical and Specialty Solutions (87% of net revenues), International (7.4%), Medical-Surgical Solutions (4%) and Prescription Technology Solutions (1.6%).
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in McKesson ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2014 would be worth $2,900.55, or a gain of 190.05%, as of January 16, 2024, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 158.81% and the price of gold went up 60.15% over the same time frame.
Looking ahead, analysts are expecting more upside for MCK.
In the past year, McKesson has outperformed its industry. McKesson exited the fiscal first quarter on a strong note, beating estimates on both counts. Strong fiscal second-quarter show by the pharmaceutical segment is encouraging. A strong earnings outlook for fiscal 2024 instills optimism. Strong adjusted operating profit growth across key segments is encouraging. A strong position in the Distribution market continues to favor the stock. Declining demand for COVID-19-related products and loss of sales due to divesture of European businesses continue to hurt Medical-Surgical Solutions and International segments. Yet, both gross and operating margin contractions are woes. Price fluctuation of generic pharmaceuticals and stiff competition in the MedTech space remain headwinds.
The stock is up 8.44% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023. The consensus estimate has moved up as well.