McKesson Europe AG, known by the ticker symbol CAKFY, is a mid cap medical distribution firm in the Healthcare Sector. This is my first report on CAKFY for my Viital stock portfolio or any of my previous six portfolios.

McKesson Europe AG is a medical care company that provides logistics and services to the pharmaceutical and healthcare sectors. 

Image Source: Pixabay

The company operates two distinct segments: First, Pharmaceutical Distribution and, second,  Retail Pharmacy, formerly “Pharmacy Solutions” and “Consumer Solutions,” respectively. 

The Pharmaceutical Distribution business sells wholesale pharmaceutical products and generates the majority of the company’s revenue. 

The Retail Pharmacy segment operates its own pharmacies in addition to franchise pharmacies that provide prescriptions and over-the-counter pharmaceutical products. 

Geographically, the company’s revenue derives predominantly from the United Kingdom, France, Germany, and other countries.

The company was formerly known as Celesio AG and changed its name to McKesson Europe AG in September 2017. 

The company was founded in 1835 and is headquartered in Stuttgart, Germany. McKesson Europe AG operates as a subsidiary of McKesson Corporation.

Three key data points gauge dividend equities or funds like McKesson Europe AG (CAKFY):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

CAKFY Price

McKesson Europe's price per share was $5.40 as of yesterday's market close. One year ago its price was $5.32. So, CAKFY's share price stayed flat in the past year.

If McKesson Europe's stock trades in the range of $2 to $8.00 this next year, its recent $5.32 price will likely rise by $0.26 by October 15, 2022. My estimate is based on the trajectory traced by the past ten years of price data.  No brokerage analysts track the stock. And it is thinly traded. 

CAKFY Dividends

McKesson Europe's most recent annual dividend of  $0.20 was paid out on December 10, 2020, to shareholders. That annual payout of $0.20 yields 3.66% based on yesterday's $5.40 closing price. McKesson Europe AG has paid regular annual dividends since August 2015. That's 5 years.

CAKFY Returns

Adding the $0.20 annual McKesson Europe forward-looking dividend to my $0.26 price upside estimate shows an $0.46 potential gross gain, per share, to be reduced by any costs to trade CAKFY shares.  

At yesterday's $5.40 price per share, a little under $1000 would buy 185 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.05 per share.

Subtract that maybe $0.05  brokerage cost from my estimated $0.46 gross gain per share results in a net gain of $0.41 X 185 shares = $75.85 for a 7.59% net gain on a $999.00 investment.

So it is that McKesson Europe AG (CAKFY) shows a possible 9.59% net gain including a 3.67% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in McKesson Europe AG (CAKFY) could generate $36.60 in cash dividends alone. And a single share bought at yesterday's closing price was $5.40! Thus, CAKFY's share price is over 6.5 times less than the dividend income from $1K invested. So, according to my dogcatcher ideal, now is the time to pick up CAKFY shares. The dividend from $1k invested is over 6.5 times greater than the single share price. Consider yourself alerted. It's a sign! But beware of CAKFY's thin trading action.

All of the estimates above are speculation based on the past history of McKesson Europe AG (CAKFY). Only time and money invested in this stock will determine its market value.