MCK
McKesson Corporation
$881.97
▲ 1.2%Updated Aug 7, 11:30 AM ET
MCK at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 59/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 3.0% over the last 12 months
Market Cap
$92.06B
P/E
22.27x
Forward P/E (est.)
15.91x
ROE
39.4%
Revenue Growth
12.4%
EPS Growth
48.9%
Profit Margin
1.2%
FCF Yield
4.0%
Debt / Equity
1.45x
ROIC
113.0%
Interest Coverage
24.65x
Current Ratio
0.85x
Dividend Yield
0.4%
Implied Growth (rev. DCF)
2.6%
Rating Score
59/100
McKesson Corporation (MCK) is a large-cap company in the Health Care Distributors industry, part of the Health Care sector of the S&P 500, with a market value around $92.06B.
In its latest reported year it generated about $403.43B in revenue and $4.76B in net profit.
Our model rates MCK Favorable (59/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
3.8% average over the last 3 years
±0.7 pts around 4.8% across 10 years
grew in 9 of the last 9 year-over-year periods
positive in 10 of 10 years
113.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what MCK's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. MCK trades near $881.97, above its 50-day average ($772.09) and 200-day average ($826.93). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 50 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. MCK's is $20.62 (~2.3% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month MCK found buyers near $744.45 (support) and sellers near $800.36 (resistance); its 52-week range is $637.00–$999.00. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
11.2%
Revenue moved from $198.53B in 2017 to $403.43B in 2026, a 8.2% compound annual growth rate. The most recent year grew a steady 12.4% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
3.6%
Operating Margin
1.5%
Net Margin
1.2%
ROE
39.4%
McKesson Corporation keeps about 1.2% of each sales dollar as net profit, with a 3.6% gross margin and 1.5% operating margin. Return on equity is 39.4% and return on invested capital about 113.0%. Thin margins leave less cushion if costs rise.
Total Debt
$6.53B
Net Debt
$2.55B
Net Debt / EBITDA
0.41x
Debt / Equity
1.45x
Leverage: debt-to-equity is 1.5x, and operating profit covers interest about 24.6x, with a current ratio of 0.8x. That is a moderate, manageable debt load for most businesses. It carries roughly $6.53B of total debt against $3.98B of cash.
Operating CF
$6.16B
Free Cash Flow
$5.72B
FCF Margin
1.4%
In the latest year McKesson Corporation produced about $6.16B of operating cash flow and $5.72B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.0% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
0.4%
Per share (latest FY)
$3.17
Total paid (latest FY)
$381.00M
History on record
10 years
dividend uses 7% of free cash flow
8% of net income paid out
total dividends increased 5 years in a row
payout was cut at least once in the last 10 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
22.27x
P/S
0.23x
P/B
4.82x
EV / EBITDA
—
MCK trades at 22.3x trailing earnings (about 15.9x on estimated forward earnings), 0.2x sales, and 4.8x book value. Reverse-engineering today's price implies the market expects roughly 2.6% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$1,302.68
Current price
$881.97
Starting FCF (latest 10-K)
$5.72B
Growth, years 1–5
12.4%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where MCK sits versus its Health Care sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 83 Health Care companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How MCK stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.
In the Health Care sector (324 S&P 500 companies), MCK ranks #30 of 324 by our overall rating. It trades at a discount versus the sector on earnings (22.3x P/E vs. 27.3x median) with a higher return on equity (39.4% vs. 14.1%) and faster revenue growth (12.4% vs. 7.6%).
P/E vs sector
22.3x
median 27.3x
ROE vs sector
39.4%
median 14.1%
Growth vs sector
12.4%
median 7.6%
Sector rank
#30
of 324 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 324 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $881.97 today · expected CAGR 25% – 39%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $451.84B | $506.06B | $566.79B | $634.80B | $710.98B |
| Net income | $13.56B | $15.18B | $17.00B | $19.04B | $21.33B |
| EPS | $129.87 | $145.45 | $162.91 | $182.45 | $204.35 |
| Share price (low) | $1,688.27 | $1,890.86 | $2,117.77 | $2,371.90 | $2,656.53 |
| Share price (high) | $2,857.07 | $3,199.92 | $3,583.91 | $4,013.98 | $4,495.66 |
| CAGR (low–high) | 91% / 224% | 46% / 90% | 34% / 60% | 28% / 46% | 25% / 39% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for MCK:
- Revenue is growing 12.4% a year, a sign of real demand.
- Strong return on equity (39.4%) shows capital is put to work well.
- Our model's overall read is Favorable (59/100).
The case against MCK:
- Thin net margins (1.2%) leave little room for error.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 1.5x magnifies the impact of higher rates or weaker earnings.
Margin risk — thin profitability (1.2%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: McKesson Corporation is a large-cap health care business still growing nicely, with modest profitability, and a heavier debt load to watch. It trades at 22.3x earnings, which our model scores Favorable (59/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 23 Wall Street analysts covering MCK recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
MCK's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
MCK — frequently asked questions
Is MCK a good stock to buy?
We don't give buy or sell advice. Our model rates McKesson Corporation Favorable (59/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is MCK's rating on The Stocks School?
McKesson Corporation currently scores 59/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does MCK's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from McKesson Corporation's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for MCK calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this MCK analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell MCK. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.