Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
cKesson (MCK): GLP-1 Tailwinds and Margin Compression—What’s the Impact, Outlook, and its 5 Key Catalysts Driving Future Growth ?
McKesson’s Q2 FY25 results demonstrate disciplined execution and a strong growth trajectory, with revenue increasing 21% YoY to $93.7 billion, exceeding expectations by $4.72 billion. Adjusted EPS grew 13% YoY, while GAAP EPS missed estimates due to higher non-recurring expenses. McKesson’s U.S. Pharmaceutical segment led growth, driven by strong specialty drug volumes, including a 47% YoY increase in GLP-1 sales. The company’s focus on oncology, including its Core Ventures acquisition, strengthens its position in the high-growth oncology market, while biopharma services, especially GLP-1 commercialization, are positioned to drive long-term earnings power. Despite near-term headwinds in the Medical-Surgical segment and variability in RxTS revenue, McKesson’s broader portfolio remains resilient. Investments in AI, automation, and cloud services are expected to generate significant cost savings by FY28, enhancing margins. The $2.49 billion Core Ventures acquisition accelerates McKesson’s oncology network expansion, and the company’s disciplined capital allocation supports shareholder returns. While McKesson’s outlook for FY25 remains strong, with 15-17% revenue growth and 18-20% adjusted EPS growth, can the company sustain its growth momentum amid episodic revenue variability and margin compression from lower-margin GLP-1 products, or will these pressures limit its near-term profitability?
