MCK

McKesson Corporation

Fundamental data last updated:May 12, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Healthcare

industry

Medical - Distribution

Exchange

NYSE

County of HQ

United States

Next Earnings Date

08/05/2026

Business Summary

McKesson's business model revolves around the distribution of pharmaceuticals and medical supplies, a critical component of the healthcare supply chain. By leveraging its vast network, the company ensures timely delivery and availability of essential products, creating a dependency among healthcare providers. Its competitive moat is fortified by scale and logistical expertise, making it difficult for new entrants to replicate. This entrenched position allows McKesson to generate consistent cash flow and maintain customer loyalty.

 


Analyze MCK on TradingView

VALUATION

P/E

18.76

Market Cap ($M USD)

$89.61B

Forward P/E

9.30

PEG

0.09

PRICE TO SALES

0.22

PRICE TO BOOK

-41.12

EV / EBITDA

13.12

5-Year Average P/E

Free Cash Flow Yield

6.75%

DCF Value

$1307.47

Graham Number

N/A

Price to FCF

14.82

EV to FCF

15.59

Earnings Yield

5.33%

FCF Yield

6.75%

DIVIDEND

Yield

0.43%

Annual Payout

$3.17

Payout Ratio

8.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$39.00

Next Year EPS Growth Estimate

$78.63

Next Year Revenue Growth Estimate

$59.59T

Return on Equity (ROE)

-265.44%

FREE CASH FLOW

Operating Margin

1.60%

Debt-to-Equity

-3.97

Piotroski F-Score

6

Altman Z-Score

6.05

Return on Invested Capital (ROIC)

42.17%

Current Ratio

0.85

Quick Ratio

0.49

Net Debt to EBITDA

0.65

Interest Coverage

51.63

Gross Profit margin

3.61%

FCF PER SHARE

$49.52

REVENUE PER SHARE

$3304.10

Analyze MCK on TradingView

Gainseekers Quantitative Analysis

Summary

The market seems to be significantly undervaluing McKesson Corporation. With a DCF value towering over the snapshot price, there’s a clear disconnect between intrinsic value and market perception. The Forward P/E ratio suggests a bargain for future earnings, while the Altman Z-score of 6.05 indicates robust financial health. Despite a negative Price/Book ratio, the company’s earnings yield and strong ROIC of 42.17% highlight its efficient capital use and potential for growth. This stock appears to be a hidden gem in the healthcare sector.

AI Exposure / Tech Reliance

In the rapidly evolving landscape of AI and technology, McKesson's position in the medical distribution industry offers a unique resilience. The sector's reliance on logistics and supply chain efficiency aligns well with AI advancements, potentially enhancing operational efficiencies. However, the company's core business remains rooted in traditional distribution, which may limit its tech-driven growth potential.

The Bull Case

For the value-driven investor, McKesson presents a compelling opportunity. The impressive ROIC of 42.17% underscores its ability to generate returns well above its cost of capital, reflecting strong management execution. A Piotroski F-Score of 6 indicates solid financial health, while a modest FCF yield suggests the company is generating ample cash relative to its market cap. Despite a slim operating margin, McKesson's capital efficiency and pricing power make it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Yet, not all is rosy for McKesson. The Price/Sales ratio of 0.22 might seem appealing, but the negative Price/Book ratio raises red flags about asset valuation. The company's operating margin of just 1.60% is razor-thin, suggesting limited room for error in cost management. Additionally, trading significantly below its 50-Day SMA indicates potential technical weakness, which could deter momentum investors. These structural risks cannot be ignored.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$994.86

Institutional Ownership %

1-Year Beta

0.36

Insider Buying % (6 Mo)

Distance to 52-Week High

36.56%

Distance to 52-Week Low

12.93%

EARNINGS SURPRISE %

1.12%

50-DAY SMA

$874.60

200-DAY SMA

$814.20

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.