(MCK) McKesson - Ratings and Ratios
Pharmaceuticals, Medical-Surgical, Technology, Distribution
MCK EPS (Earnings per Share)
MCK Revenue
| Risk via 10d forecast | |
|---|---|
| Volatility | 21.6% |
| Value at Risk 5%th | 34.9% |
| Relative Tail Risk | -6.07% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.28 |
| Alpha | 31.64 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.281 |
| Beta | 0.112 |
| Beta Downside | -0.123 |
| Drawdowns 3y | |
|---|---|
| Max DD | 23.91% |
| Mean DD | 4.22% |
| Median DD | 2.76% |
Description: MCK McKesson September 26, 2025
McKesson Corp. (NYSE:MCK) operates four core segments: U.S. Pharmaceutical, which distributes a full spectrum of branded, generic, specialty, biosimilar and OTC drugs while offering practice-management and clinical-support services; Prescription Technology Solutions (RxTS), which links biopharma, payors, pharmacies and providers through e-prior authorization, price-transparency and logistics platforms; Medical-Surgical Solutions, delivering supply distribution, biomedical maintenance and related services to hospitals, surgery centers and post-acute care sites; and International, providing medicines, supplies and IT solutions to pharmacies, hospitals and manufacturers outside the United States.
In FY 2023 McKesson reported revenue of $251 billion, an operating margin of roughly 2.5 % (reflecting the low-margin nature of wholesale distribution), and generated $7.2 billion of free cash flow, which it used to reduce net debt to $23 billion-a level still high relative to peers but improving year-over-year. The company’s dividend yield sits near 2.6 % and its payout ratio is ~70 %, indicating a commitment to returning cash while retaining flexibility for strategic acquisitions.
Key drivers of McKesson’s performance include (1) the aging U.S. population and rising prevalence of chronic disease, which boost demand for specialty and biosimilar drugs; (2) ongoing policy discussions around drug-price transparency and rebate reforms that could pressure distribution margins but also create opportunities for RxTS’s technology services; and (3) supply-chain resilience pressures that increase the value of McKesson’s logistics and third-party distribution capabilities, especially in the medical-surgical segment.
For a deeper quantitative dive into how these trends translate into valuation levers, you may find ValueRay’s analytical dashboards useful as a next step in your research.
MCK Stock Overview
| Market Cap in USD | 104,449m |
| Sub-Industry | Health Care Distributors |
| IPO / Inception | 1994-11-15 |
| Return 12m vs S&P 500 | 20.9% |
| Analyst Rating | 4.29 of 5 |
MCK Dividends
| Dividend Yield | 0.45% |
| Yield on Cost 5y | 2.12% |
| Yield CAGR 5y | 12.51% |
| Payout Consistency | 94.5% |
| Payout Ratio | 8.4% |
MCK Growth Ratios
| CAGR 3y | 32.58% |
| CAGR/Max DD Calmar Ratio | 1.36 |
| CAGR/Mean DD Pain Ratio | 7.73 |
| Current Volume | 758.2k |
| Average Volume | 619.4k |
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (4.03b TTM) > 0 and > 6% of Revenue (6% = 23.23b TTM) |
| FCFTA 0.08 (>2.0%) and ΔFCFTA 1.64pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -2.10% (prev -1.64%; Δ -0.46pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.08 (>3.0%) and CFO 6.87b > Net Income 4.03b (YES >=105%, WARN >=100%) |
| Net Debt (5.68b) to EBITDA (5.88b) ratio: 0.97 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.88 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (124.4m) change vs 12m ago -3.79% (target <= -2.0% for YES) |
| Gross Margin 3.35% (prev 3.82%; Δ -0.47pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 494.4% (prev 455.9%; Δ 38.53pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 16.82 (EBITDA TTM 5.88b / Interest Expense TTM 235.0m) >= 6 (WARN >= 3) |
Altman Z'' 0.70
| (A) -0.10 = (Total Current Assets 59.89b - Total Current Liabilities 68.03b) / Total Assets 84.16b |
| (B) 0.23 = Retained Earnings (Balance) 19.62b / Total Assets 84.16b |
| (C) 0.05 = EBIT TTM 3.95b / Avg Total Assets 78.29b |
| (D) 0.22 = Book Value of Equity 18.72b / Total Liabilities 84.74b |
| Total Rating: 0.70 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 74.82
| 1. Piotroski 6.50pt = 1.50 |
| 2. FCF Yield 5.80% = 2.90 |
| 3. FCF Margin 1.65% = 0.41 |
| 4. Debt/Equity -5.63 = -2.50 |
| 5. Debt/Ebitda 0.97 = 1.81 |
| 6. ROIC - WACC (= 58.89)% = 12.50 |
| 7. RoE -182.0% = -2.50 |
| 8. Rev. Trend 95.01% = 7.13 |
| 9. EPS Trend 71.19% = 3.56 |
What is the price of MCK shares?
Over the past week, the price has changed by -1.16%, over one month by +7.70%, over three months by +25.12% and over the past year by +38.62%.
Is McKesson a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MCK is around 1026.82 USD . This means that MCK is currently undervalued and has a potential upside of +21.94% (Margin of Safety).
Is MCK a buy, sell or hold?
- Strong Buy: 10
- Buy: 3
- Hold: 3
- Sell: 1
- Strong Sell: 0
What are the forecasts/targets for the MCK price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 929.4 | 10.4% |
| Analysts Target Price | 929.4 | 10.4% |
| ValueRay Target Price | 1118.5 | 32.8% |
MCK Fundamental Data Overview November 15, 2025
P/E Trailing = 26.4533
P/E Forward = 21.9298
P/S = 0.2698
P/B = 5.0435
P/EG = 1.1615
Beta = 0.388
Revenue TTM = 387.09b USD
EBIT TTM = 3.95b USD
EBITDA TTM = 5.88b USD
Long Term Debt = 6.01b USD (from longTermDebt, last quarter)
Short Term Debt = 2.02b USD (from shortTermDebt, last quarter)
Debt = 9.79b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.68b USD (from netDebt column, last quarter)
Enterprise Value = 110.13b USD (104.45b + Debt 9.79b - CCE 4.11b)
Interest Coverage Ratio = 16.82 (Ebit TTM 3.95b / Interest Expense TTM 235.0m)
FCF Yield = 5.80% (FCF TTM 6.39b / Enterprise Value 110.13b)
FCF Margin = 1.65% (FCF TTM 6.39b / Revenue TTM 387.09b)
Net Margin = 1.04% (Net Income TTM 4.03b / Revenue TTM 387.09b)
Gross Margin = 3.35% ((Revenue TTM 387.09b - Cost of Revenue TTM 374.13b) / Revenue TTM)
Gross Margin QoQ = 3.43% (prev 3.35%)
Tobins Q-Ratio = 1.31 (Enterprise Value 110.13b / Total Assets 84.16b)
Interest Expense / Debt = 0.76% (Interest Expense 74.0m / Debt 9.79b)
Taxrate = 16.63% (232.0m / 1.40b)
NOPAT = 3.30b (EBIT 3.95b * (1 - 16.63%))
Current Ratio = 0.88 (Total Current Assets 59.89b / Total Current Liabilities 68.03b)
Debt / Equity = -5.63 (negative equity) (Debt 9.79b / totalStockholderEquity, last quarter -1.74b)
Debt / EBITDA = 0.97 (Net Debt 5.68b / EBITDA 5.88b)
Debt / FCF = 0.89 (Net Debt 5.68b / FCF TTM 6.39b)
Total Stockholder Equity = -2.22b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.79% (Net Income 4.03b / Total Assets 84.16b)
RoE = -182.0% (negative equity) (Net Income TTM 4.03b / Total Stockholder Equity -2.22b)
RoCE = 104.2% (EBIT 3.95b / Capital Employed (Equity -2.22b + L.T.Debt 6.01b))
RoIC = 64.82% (NOPAT 3.30b / Invested Capital 5.08b)
WACC = 5.93% (E(104.45b)/V(114.24b) * Re(6.43%) + D(9.79b)/V(114.24b) * Rd(0.76%) * (1-Tc(0.17)))
Discount Rate = 6.43% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: -100.0 | Cagr: -3.40%
[DCF Debug] Terminal Value 78.18% ; FCFE base≈5.56b ; Y1≈5.52b ; Y5≈5.77b
Fair Price DCF = 828.4 (DCF Value 102.24b / Shares Outstanding 123.4m; 5y FCF grow -1.46% → 3.0% )
EPS Correlation: 71.19 | EPS CAGR: 13.86% | SUE: 3.56 | # QB: 1
Revenue Correlation: 95.01 | Revenue CAGR: 14.85% | SUE: -0.32 | # QB: 0
Additional Sources for MCK Stock
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Fund Manager Positions: Dataroma | Stockcircle