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NYSE:MCK
This summary was created by AI, based on 11 opinions in the last 12 months.
McKesson Corp (MCK-N) is recognized as the largest player in an oligopoly of pharmaceutical distributors in the U.S., commanding a remarkable 90% market share among the top three companies. The company has demonstrated a strong track record, with a total return of 17.5% per annum over the past decade, driven by a robust dividend growth rate of 15% annually and consistent buybacks of 6% per year. Despite operating on thin margins, McKesson efficiently manages costs and capitalizes on the essential nature of medicine distribution. The recent trend of shifting investments towards growthier sectors has slightly impacted the healthcare industry, but experts remain optimistic about McKesson's stability, growth potential, and the upcoming spin-off of its medical/surgical unit, which is anticipated to unlock hidden value.
Management team seems to be exceptionally strong. Bought a number of companies over the last couple of years and just completed a big acquisition in Germany which makes them a big, significant, generics distributor in Europe which will be accretive to earnings. Looking out a couple of years, he could see $11-$12 in earnings. Very, very good at execution. Yield of 0.54%.