Company name McKesson Corporation
Stock ticker MCK
Live stock price [stckqut]MCK[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $208.72
Target stock price (averages with growth) $188.44
Target stock price (averages with no growth) $100.39
Target stock price (manual assumptions) $202.97

The following company description is from Google Finance: http://www.google.com/finance?q=mck
McKesson Corporation (McKesson) is engaged in delivering pharmaceuticals, medical supplies and healthcare information technology. The Company operates through two segments: McKesson Distribution Solutions and Technology Solutions. The McKesson Distribution Solutions segment distributes drugs and equipment, and health and beauty care products across North America and internationally. The Distribution Solutions segment provides pharmaceutical solutions for biotech and pharmaceutical manufacturers, and practice management, technology, clinical support and business solutions to oncology and other specialty practices operating in the community setting. The Technology Solutions segment delivers clinical, patient care, financial, supply chain and strategic management software solutions, as well as connectivity, outsourcing and other services. Its McKesson Health Solutions portfolio includes ClarityQx, which is a payment technology.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in McKesson Corporation as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of McKesson Corporation calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $195.78
  • Growth: 0.11
  • Current EPS (TTM): $10.21
  • P/E: 19
  • Future EPS Calc: $17.2
  • Future Stock Price Calc: $326.88
  • Target stock price: $202.96

[/s2If]
I hope that this makes you a Confident Investor.

Company name Las Vegas Sands Corp.
Stock ticker LVS
Live stock price [stckqut]LVS[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Poor
EPS growth Poor
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $81.02
Target stock price (averages with growth) $63.47
Target stock price (averages with no growth) $28.79
Target stock price (manual assumptions) $40.27

The following company description is from Google Finance: http://www.google.com/finance?q=lvs
Las Vegas Sands Corp. is a developer of destination properties (integrated resorts) that offers accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities. The Company owns and operates integrated resorts in Asia and the United States. The Company’s principal operating and developmental activities occur in three geographic areas: Macao, Singapore and the United States. In Macao, the Company’s segments are The Venetian Macao, Sands Cotai Central, Four Seasons Macao, Sands Macao and Other Asia (comprises the Company’s ferry operations and various other operations). In Singapore, the Company’s segment is Marina Bay Sands. In the United States, the Company’s segments are The Venetian Las Vegas, which includes the Sands Expo Center and The Palazzo, and Sands Bethlehem. It also offers players club loyalty programs at its properties, which provide access to rewards, privileges and members-only events.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in Las Vegas Sands Corp. I am removing Las Vegas Sands from my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Las Vegas Sands Corp. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $52.49
  • Growth: 0.04
  • Current EPS (TTM): $2.05
  • P/E: 26
  • Future EPS Calc: $2.49
  • Future Stock Price Calc: $64.84
  • Target stock price: $40.26

[/s2If]
I hope that this makes you a Confident Investor.