Mckesson Corp (MCK)

Health Care · Health Care Distributors · US stock · S&P 500 component

$1,012.34 ▼ -3.16 (0.31%)

At close 22 Oct 2026 · USD · Volume 629,244

Compare with COR

Interactive chart Research report Forecast ranges Pro workspace SEC filings Historical data

Fair valueFair

$957 −5.5% to fair value

$478fair band $814–$1,160$1,435

Day's range

$1,006.07 – $1,025.62

52-week range

$723.68 – $1,030.27

Red flags⚠ Negative equity⚠ Negative equity⚠ Negative equity⚠ Negative equity⚠ Negative equity

About Mckesson Corp

McKesson is a health care distribution company. It buys medicines and medical supplies from manufacturers and delivers them to pharmacies, hospitals, clinics and physician offices, and it also provides pharmacy technology, oncology services and related support. Revenue comes from the sale of pharmaceuticals and supplies, which carries a low percentage margin on very large volumes, with additional earnings from services and technology products.

Sales reached $411.0 billion in the last twelve months, having grown 13.4% a year over the past three years. Operating profit equals 1.6% of revenue. Return on invested capital is 1640%. Net debt is 0.7 times of EBITDA. It pays a dividend, and the yield is 0.3%. Overall, the X-Ray Score is 57 out of 100.

Price chart

Interactive chart Historical data & CSV

52-wk range $723.68 – $1,030.27Volume 629,244Daily, split-adjusted

Vitals

Market cap$120.7B

52-week range$723.68 – $1,030.27

Volume (last day)629,244

P/E (TTM)27.1

EBIT / EV yield5.2%

Free-cash-flow yield5.3%

Dividend yield0.3%

Revenue (TTM)$411.0B

Net income (TTM)$4.6B

Operating margin1.6%

Return on capital1,640.1%

Debt incl. leases$9.7B

Cash & securities$5.2B

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$957middle half of models $904 – $1,111

Fair −5.5% to fair value

Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.

Peak-cycle earnings: the current operating margin is more than 1.5x its 7-year average, so multiples applied to today's profit may overstate value; model uncertainty is set to High

Price $1,012

Undervalued < $814Fair $814 – $1,160Overvalued > $1,160

P/E multiple

$998

P/S multiple

$859

EV/EBITDA multiple

$1,002

EV/EBIT multiple

$1,037

EV/revenue multiple

$904

10-year DCF, EBITDA exit

$1,143

5-year DCF, EBITDA exit

$1,149

10-year DCF, revenue exit

$1,120

5-year DCF, revenue exit

$1,111

10-year DCF, growth exit

$909

5-year DCF, growth exit

$879

Dividend discount, stable · not used

$282

Dividend discount, multi-stage

$422

Earnings power value

$910

Growth the price implies

9.0%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.

What this means

Weak business, fairly priced

The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better 50 The price is not above fair value $957 fair value Debt looks manageable 0.7× EBITDA Revenue has been growing 13.4% a year Profits are backed by cash There are no red flags 5 raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Health Care peers. Open a lens to see the numbers behind it.

Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data

Valuation Fair

57/100

Priced about in line with its sector.

See the numbers →

EBIT / EV yield5.2%

Free-cash-flow yield5.3%

Fair value vs price0.9×

Growth Strong

73/100

Growing faster than most of its sector.

See the numbers →

Revenue growth (3y)13.4%

EPS growth (3y)15.3%

Growth consistency100%

Profitability Fair

54/100

Returns on capital are typical for its sector.

See the numbers →

Return on invested capital1,640.1%

Operating margin1.6%

Gross profitability16.9%

Financial health Weak

45/100

Balance sheet is more stretched than most peers.

See the numbers →

Piotroski F-Score6 / 9

Net debt / EBITDA0.7×

Interest cover23.6×

Dividends Fair

55/100

Dividend is typical for its sector.

See the numbers →

Dividend yield0.3%

Dividends vs free cash flow6%

Dividend growth9.3%

Quarterly results: last 6 quarters

+18.9%

Mar '25

+23.4%

Jun '25

+10.1%

Sep '25

+11.4%

Dec '25

+6.0%

Mar '26

+7.7%

Jun '26

Revenue against the same quarter a year earlier. Latest quarter revenue $105.4B, diluted EPS $5.15.

Compare with peers

CAH Cardinal Health Inc53 COR Cencora, Inc.52 HSIC Henry Schein Inc42

Other Health Care Distributors companies by X-Ray Score.

SWOT analysis: Mckesson Corp

Strengthsinside the company

Return on invested capital is 1,640.1%, against a median of 18.6% for industry peers.
Revenue has grown 13.4% a year over three years (median 7.4% for industry peers).
Earnings per share have compounded at 15.3% a year over three years.
Free cash flow equals 5.3% of the market value, which funds dividends, buybacks or debt paydown.

Weaknessesinside the company

Operating margin of 1.6% is thin against 1.0% for industry peers.
Altman Z-score of 0.7 is in the zone linked with financial distress in past studies.

Opportunitiesvaluation and setting

Price momentum is strong on the weekly and monthly signals (trends can reverse).

Threatsvaluation and setting

Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
Our checks raised: Negative equity; Negative equity.

Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.

Compare MCK with peers and sector

Medians of 3 Health Care Distributors peers and of 59 Health Care stocks in our universe. Largest peers (X-Ray Score): COR 52, CAH 53, HSIC 42.

Metric	MCK	Peers	Sector
X-Ray Score (out of 100)	57	52	49
Valuation	57	57	52
Growth	73	62	47
Profitability	54	46	49
Financial health	45	40	48
Dividends	55	–	50

Sector leaders: highest X-Ray Score in Health Care

MCK ranks #20 of 60 in Health Care and #1 of 4 in Health Care Distributors by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.

Company	X-Ray Score
#1 INCY Incyte Corp	80
#2 DXCM Dexcom Inc	78
#3 PODD Insulet Corp	72
#4 RMD Resmed Inc	70
#5 ZTS Zoetis Inc.	69
…
#20 MCK Mckesson Corp (this stock)	57

Metric	MCK	Peers	Sector
P/E ratio	26.3x	25.0x	28.4x
PEG ratio	1.72	–	2.37
Price / book	–	–	3.7x
Price / sales	0.3x	0.2x	3.8x
EV / EBITDA	18.4x	18.3x	17.5x
Price / free cash flow	18.8x	16.2x	22.4x
Dividend yield	0.3%	–	1.1%
Gap to our fair value	−5.5%	−2.2%	−1.0%

Metric	MCK	Peers	Sector
Price change, 1 month	+13.6%	+7.6%	+7.6%
Price change, 3 months	+24.5%	+12.8%	+13.3%
Price change, 6 months	+22.3%	+10.3%	+22.1%
Price change, 1 year	+27.7%	+35.4%	+20.7%

Metric	MCK	Peers	Sector
Market value	$120.7B	$60.6B	$49.2B
Revenue (last 12 months)	$411.0B	$244.7B	$14.3B
EBITDA (last 12 months)	$6.8B	$3.4B	$2.7B
Net income (last 12 months)	$4.6B	$1.7B	$1.4B
Free cash flow (last 12 months)	$6.4B	$4.1B	$2.1B

Metric	MCK	Peers	Sector
Revenue growth, last year	+12.4%	+9.3%	+7.1%
Revenue growth, 3 years a year	+13.4%	+7.4%	+5.5%
EPS growth, 3 years a year	+15.3%	−0.3%	+4.5%
Free cash flow growth, 3 years a year	+6.2%	+13.3%	+4.2%
Dividend growth	+9.3%	–	+4.1%

Metric	MCK	Peers	Sector
Gross margin	3.6%	4.0%	65.0%
EBITDA margin	1.7%	1.4%	21.2%
Operating margin	1.6%	1.0%	16.9%
Net margin	1.1%	0.8%	12.3%
Return on invested capital	1,640.1%	18.6%	11.8%
Return on equity	–	–	13.7%

Metric	MCK	Peers	Sector
Net debt / EBITDA	0.7x	2.2x	2.0x
Interest cover	23.6x	8.0x	9.3x
Current ratio	0.9x	0.9x	1.5x
Piotroski F-score (0 to 9)	6	6	6

Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.

Factor ratings for MCK

Each factor is rated by where MCK stands among the 60 Health Care stocks in our universe.

Rating against the sector

Goodthe top third of these stocks

Averagethe middle third of these stocks

Badthe bottom third of these stocks

"Beats" is the share of those stocks it is ahead of.

Against its own history

The last columns set today's figure against the company's own median of its last five financial years:

▲ Betterbetter than its usual level

▼ Worseworse than its usual level

≈ In linewithin its usual range

For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.

In total: 8 Good · 7 Average · 6 Bad of 21 Growth: 3 · 0 · 0 Profitability: 1 · 0 · 3 Financial strength: 1 · 2 · 1 Valuation: 1 · 3 · 0 Cash flow: 0 · 2 · 2 Efficiency: 2 · 0 · 0

Factor	MCK	Rating	Sector median	Own 5-year median	Against own history
Growth
Revenue growth, 3 years a year	+13.4%	Good beats 86%	+5.5%	–	–
Revenue growth, last year	+12.4%	Good beats 83%	+7.1%	+11.7%	≈ In line
EPS growth, 3 years a year	+15.3%	Good beats 69%	+5.0%	–	–
Profitability
Gross margin	3.6%	Bad beats 1%	65.0%	4.2%	≈ In line
Operating margin	1.6%	Bad beats 13%	16.4%	1.3%	≈ In line
Net margin	1.1%	Bad beats 15%	11.1%	1.0%	≈ In line
Return on invested capital	1,640.1%	Good beats 99%	12.2%	–	–
Financial strength
Net debt / EBITDA	0.7x	Good beats 81%	2.0x	0.2x	▼ Worse
Interest cover	23.6x	Average beats 65%	9.4x	16.7x	▲ Better
Current ratio	0.89	Bad beats 13%	1.52	0.92	≈ In line
Piotroski F-score	6 / 9	Average beats 43%	6 / 9	–	–
Valuation
P/E ratio	26.3x	Average beats 63%	28.2x	24.0x	≈ In line
Price / sales	0.3x	Good beats 93%	3.7x	0.2x	≈ In line
EV / EBITDA	18.4x	Average beats 43%	17.6x	17.4x	≈ In line
Free cash flow yield	5.3%	Average beats 61%	4.4%	6.4%	▼ Worse
Cash flow
Free cash flow margin	1.6%	Bad beats 8%	16.3%	1.5%	≈ In line
Cash from operations / net income	1.49	Average beats 42%	1.61	1.45	≈ In line
Free cash flow growth, 3 years a year	+6.2%	Average beats 58%	+4.3%	–	–
Accruals (lower is better)	−2.6%	Bad beats 28%	−3.9%	–	–
Efficiency
Inventory turnover	15.1x	Good beats 90%	2.9x	14.0x	≈ In line
Days sales outstanding	27 days	Good beats 92%	62 days	26 days	≈ In line

These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.

Fundamentals checklist

● 6 Good · ● 5 Average · ● 5 Bad

Cash quality

Earnings backed by cashBad

Free-cash-flow yieldAverage

Risk models

Altman Z''Bad

Piotroski F-ScoreAverage

Growth

EPS growth (3y)Good

Free-cash-flow growth (3y)Average

Revenue growth (3y)Good

Growth consistencyGood

Balance sheet

Current ratioBad

Net debt / EBITDAGood

Interest coverAverage

Valuation

Fair value vs priceAverage

EBIT / EV yieldGood

Profitability

Return on invested capitalGood

Operating marginBad

Gross profitabilityBad

Each check is graded against the company's sector, not a fixed number. Checklist score 52/100.

Financials

	FY22	FY23	FY24	FY25	FY26
Revenue	$264.0B	$276.7B	$309.0B	$359.1B	$403.4B
Operating income	$2.0B	$4.4B	$3.9B	$4.4B	$6.2B
Net income	$1.1B	$3.6B	$3.0B	$3.3B	$4.8B
Operating cash flow	$4.4B	$5.2B	$4.3B	$6.1B	$6.2B
Operating margin	0.8%	1.6%	1.3%	1.2%	1.5%
Free cash flow	$4.0B	$4.8B	$3.9B	$5.5B	$5.7B
Diluted EPS	$7.23	$25.03	$22.39	$25.72	$38.38

Fiscal years, from SEC filings.

Technical summary

Daily

Bullish

12 bullish · 0 neutral · 4 bearish

Weekly

Strongly bullish

11 bullish · 0 neutral · 1 bearish

Monthly

Strongly bullish

7 bullish · 1 neutral · 0 bearish

Moving averages (daily)

SMA 10	990.5	Bullish
EMA 10	990.0	Bullish
SMA 20	941.3	Bullish
EMA 20	959.5	Bullish
SMA 50	907.0	Bullish
EMA 50	915.4	Bullish
SMA 100	857.1	Bullish
EMA 100	882.1	Bullish
SMA 200	856.5	Bullish
EMA 200	849.4	Bullish

Oscillators (daily)

RSI (14)	71.32	Bearish
MACD (12, 26)	35.43	Bullish
Momentum (12)	9.84	Bullish
Stochastic %K (14)	86.16	Bearish
Williams %R (14)	-13.84	Bearish
CCI (20)	102.6	Bearish

Pivot points (classic, last session)

984.2

995.1

1,003.7

Pivot

1,014.7

1,023.3

1,034.2

1,042.8

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.

Dividends

Paid, last 12 months

3.40 USD

Yield on today's price

0.34%

Frequency

Quarterly

Next ex-dividend date

Not announced

Ex-dividend date	Amount per share
1 Sep 2026	0.9400
1 Jun 2026	0.8200
2 Mar 2026	0.8200
1 Dec 2025	0.8200
2 Sep 2025	0.8200
2 Jun 2025	0.7100
3 Mar 2025	0.7100
2 Dec 2024	0.7100
30 Aug 2024	0.7100
3 Jun 2024	0.6200
29 Feb 2024	0.6200
30 Nov 2023	0.6200

Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.

ETFs that hold MCK

ETF	Share of the fund
PPH VanEck Pharmaceutical	4.12%
IYK iShares US Consumer Staples	3.91%
QGRO American Century U.S. Quality Growth	2.22%
MFSV MFS Active Value	2.10%
OMFL Oppenheimer Russell 1000 Dynamic Multi...	1.81%
COWZ Pacer US Cash Cows 100	1.79%
XLV Health Care Select Sector SPDR	1.58%
RWL Invesco S&P 500 Revenue	1.55%

The eight funds with the largest weight in MCK among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.