MCK
McKesson Corporation
$744.85
▼ 0.8%Updated Jun 22, 7:15 PM ET
▲ Up 3.0% over the last 12 months
Market Cap
$87.88B
P/E
18.95x
Forward P/E (est.)
13.54x
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)
2.3%
Rating Score
59/100
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 $744.85, below its 50-day average ($792.59) and 200-day average ($823.90). Price below both averages is a downtrend — momentum is against buyers for now.
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 60 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 $17.41 (~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 $729.19 (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 1.0× 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.
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 $87.88B.
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.
4Y CAGR
11.2%
Revenue moved from $263.97B in 2022 to $403.43B in 2026, a 11.2% 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.
P/E
18.95x
P/S
0.23x
P/B
4.1x
EV / EBITDA
14.92x
MCK trades at 19.0x trailing earnings (about 13.5x on estimated forward earnings), 0.2x sales, and 4.1x book value. Reverse-engineering today's price implies the market expects roughly 2.3% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. 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 (59 S&P 500 companies), MCK ranks #20 of 59 by our overall rating. It trades at a discount versus the sector on earnings (19x P/E vs. 25.4x median) with a higher return on equity (39.4% vs. 14.9%) and faster revenue growth (12.4% vs. 7.9%).
P/E vs sector
19x
median 25.4x
ROE vs sector
39.4%
median 14.9%
Growth vs sector
12.4%
median 7.9%
Sector rank
#20
of 59 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 59 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)
$1,951.88 – $3,371.43
vs. $744.85 today · expected CAGR 21% – 35%
| 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 | $112.77 | $126.30 | $141.46 | $158.43 | $177.44 |
| Share price (low) | $1,240.46 | $1,389.31 | $1,556.03 | $1,742.75 | $1,951.88 |
| Share price (high) | $2,142.60 | $2,399.72 | $2,687.68 | $3,010.20 | $3,371.43 |
| CAGR (low–high) | 67% / 188% | 37% / 79% | 28% / 53% | 24% / 42% | 21% / 35% |
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 19.0x earnings, which our model scores Favorable (59/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
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.