(MCK) McKesson - Overview
Sector: Healthcare | Industry: Medical Distribution | Exchange: NYSE (USA) | Market Cap: 92.086m USD | Total Return: 5.4% in 12m
Avg Turnover: 947M
EPS Trend: 93.5%
Qual. Beats: 0
Rev. Trend: 99.5%
Qual. Beats: -1
Warnings
Altman Z'' 0.92 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
McKesson Corporation (NYSE: MCK) is a diversified healthcare services leader specializing in pharmaceutical distribution and health information technology. Founded in 1833, the company operates through four primary segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. Its core business model functions as a critical link in the healthcare supply chain, managing the logistics and wholesale distribution of branded, generic, and specialty drugs to retail pharmacies and clinical providers.
The company operates within the Health Care Distributors sub-industry, a sector characterized by high-volume, low-margin operations that benefit from significant economies of scale. Beyond physical distribution, McKesson provides practice management and clinical support to specialty providers, particularly in oncology, and offers technology solutions that integrate pharmacy benefit managers with biopharma partners to streamline medication access.
Investors looking for deeper insights into these operational segments may find further value in the data available at ValueRay.
The Medical-Surgical Solutions segment extends the companys reach into non-acute settings, supplying physician offices and long-term care facilities with essential medical supplies and biomedical maintenance. Internationally, McKesson maintains a presence through wholesale and retail pharmacy networks, providing manufacturers with logistics and information technology infrastructure across global markets.
- Specialty pharmaceutical and oncology distribution growth drives high-margin revenue expansion
- Biosimilar adoption rates influence generic drug portfolio profitability and market share
- Prescription Technology Solutions segment growth accelerates high-value software and services revenue
- Opioid litigation settlement payments affect long-term cash flow and capital allocation
- Government reimbursement policy changes impact medical-surgical and pharmaceutical distribution margins
| Net Income: 4.76b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 0.26 > 1.0 |
| NWC/Revenue: -2.43% < 20% (prev -1.73%; Δ -0.70% < -1%) |
| CFO/TA 0.07 > 3% & CFO 6.16b > Net Income 4.76b |
| Net Debt (6.73b) to EBITDA (7.20b): 0.93 < 3 |
| Current Ratio: 0.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (122.7m) vs 12m ago -2.54% < -2% |
| Gross Margin: 3.61% > 18% (prev 0.03%; Δ 357.2% > 0.5%) |
| Asset Turnover: 512.4% > 50% (prev 477.8%; Δ 34.57% > 0%) |
| Interest Coverage Ratio: 26.20 > 6 (EBITDA TTM 7.20b / Interest Expense TTM 247.0m) |
| A: -0.12 (Total Current Assets 57.2b - Total Current Liabilities 67.0b) / Total Assets 82.3b |
| B: 0.27 (Retained Earnings 22.3b / Total Assets 82.3b) |
| C: 0.08 (EBIT TTM 6.47b / Avg Total Assets 78.7b) |
| D: 0.25 (Book Value of Equity 20.8b / Total Liabilities 83.2b) |
| Altman-Z'' = 0.92 = BB |
| DSRI: 0.97 (Receivables 28.0b/25.6b, Revenue 403b/359b) |
| GMI: 0.95 (GM 3.61% / 3.41%) |
| AQI: 1.20 (AQ_t 0.25 / AQ_t-1 0.21) |
| SGI: 1.12 (Revenue 403b / 359b) |
| TATA: -0.02 (NI 4.76b - CFO 6.16b) / TA 82.3b) |
| Beneish M = -2.91 (Cap -4..+1) = A |
As of May 28, 2026, the stock is trading at USD 756.47 with a total of 1,140,697 shares traded.
Over the past week, the price has changed by -0.71%,
over one month by -8.67%,
over three months by -23.32% and
over the past year by +5.42%.
McKesson has received a consensus analysts rating of 4.29. Therefore, it is recommended to buy MCK.
- StrongBuy: 10
- Buy: 3
- Hold: 3
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 949.7 | 25.5% |
P/E Trailing = 19.9604
P/E Forward = 17.301
P/S = 0.2283
P/B = 5.0435
P/EG = 1.4976
Revenue TTM = 403b USD
EBIT TTM = 6.47b USD
EBITDA TTM = 7.20b USD
Long Term Debt = 5.26b USD (from longTermDebt, last quarter)
Short Term Debt = 1.55b USD (from shortTermDebt, last quarter)
Debt = 10.7b USD (from shortLongTermDebtTotal, last quarter) + Leases 2.09b
Net Debt = 6.73b USD (calculated: Debt 10.7b - CCE 3.98b)
Enterprise Value = 98.8b USD (92.1b + Debt 10.7b - CCE 3.98b)
Interest Coverage Ratio = 26.20 (Ebit TTM 6.47b / Interest Expense TTM 247.0m)
EV/FCF = 16.65x (Enterprise Value 98.8b / FCF TTM 5.94b)
FCF Yield = 6.01% (FCF TTM 5.94b / Enterprise Value 98.8b)
FCF Margin = 1.47% (FCF TTM 5.94b / Revenue TTM 403b)
Net Margin = 1.18% (Net Income TTM 4.76b / Revenue TTM 403b)
Gross Margin = 3.61% ((Revenue TTM 403b - Cost of Revenue TTM 389b) / Revenue TTM)
Gross Margin QoQ = 4.20% (prev 3.47%)
Tobins Q-Ratio = 1.20 (Enterprise Value 98.8b / Total Assets 82.3b)
Interest Expense / Debt = 2.31% (Interest Expense 247.0m / Debt 10.7b)
Taxrate = 12.71% (270.0m / 2.12b)
NOPAT = 5.65b (EBIT 6.47b * (1 - 12.71%))
Current Ratio = 0.85 (Total Current Assets 57.2b / Total Current Liabilities 67.0b)
Debt / Equity = -4.93 (negative equity) (Debt 10.7b / totalStockholderEquity, last quarter -2.17b)
Debt / EBITDA = 0.93 (Net Debt 6.73b / EBITDA 7.20b)
Debt / FCF = 1.13 (Net Debt 6.73b / FCF TTM 5.94b)
Total Stockholder Equity = -928.0m (last 4 quarters mean from totalStockholderEquity)
RoA = 6.05% (Net Income 4.76b / Total Assets 82.3b)
RoE = -513.1% (negative equity) (Net Income TTM 4.76b / Total Stockholder Equity -928.0m)
RoCE = 149.4% (EBIT 6.47b / Capital Employed (Equity -928.0m + L.T.Debt 5.26b))
RoIC = 33.98% (NOPAT 5.65b / Invested Capital 16.6b)
WACC = 4.79% (E(92.1b)/V(103b) * Re(5.11%) + D(10.7b)/V(103b) * Rd(2.31%) * (1-Tc(0.13)))
Discount Rate = 5.11% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -3.62%
[DCF] Terminal Value 77.75% ; FCFF base≈5.65b ; Y1≈6.40b ; Y5≈9.13b
[DCF] Fair Price = 1.09k (EV 138b - Net Debt 6.73b = Equity 131b / Shares 120.2m; r=8.35% [WACC [floored]]; 5y FCF grow 13.59% → 2.50% )
EPS Correlation: 93.51 | EPS CAGR: 14.87% | SUE: 0.82 | # QB: 0
Revenue Correlation: 99.45 | Revenue CAGR: 14.81% | SUE: -1.90 | # QB: -1
EPS current Quarter (2026-06-30): EPS=9.58 | Chg30d=+0.30% | Revisions=+11% | Analysts=14
EPS next Quarter (2026-09-30): EPS=10.79 | Chg30d=-0.58% | Revisions=+11% | Analysts=14
EPS current Year (2027-03-31): EPS=44.26 | Chg30d=+0.29% | Revisions=+14% | GrowthEPS=+13.2% | GrowthRev=+7.0%
EPS next Year (2028-03-31): EPS=50.32 | Chg30d=+0.87% | Revisions=+43% | GrowthEPS=+13.7% | GrowthRev=+7.5%
[Analyst] Revisions Ratio: +43%