(MCK) McKesson - Ratings and Ratios
Pharmaceuticals, Medical-Surgical, Technology, Distribution
MCK EPS (Earnings per Share)
MCK Revenue
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 | 96,453m |
| Sub-Industry | Health Care Distributors |
| IPO / Inception | 1994-11-15 |
MCK Stock Ratings
| Growth Rating | 95.1% |
| Fundamental | 68.4% |
| Dividend Rating | 62.3% |
| Return 12m vs S&P 500 | 34.7% |
| Analyst Rating | 4.29 of 5 |
MCK Dividends
| Dividend Yield 12m | 0.37% |
| Yield on Cost 5y | 2.00% |
| Annual Growth 5y | 12.51% |
| Payout Consistency | 94.5% |
| Payout Ratio | 8.8% |
MCK Growth Ratios
| Growth Correlation 3m | 78.7% |
| Growth Correlation 12m | 85.1% |
| Growth Correlation 5y | 98.9% |
| CAGR 5y | 27.57% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.15 |
| CAGR/Mean DD 3y (Pain Ratio) | 5.87 |
| Sharpe Ratio 12m | 2.17 |
| Alpha | 48.30 |
| Beta | 0.513 |
| Volatility | 20.64% |
| Current Volume | 476.4k |
| Average Volume 20d | 621k |
| Stop Loss | 777.6 (-3%) |
| Signal | 0.40 |
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (3.16b TTM) > 0 and > 6% of Revenue (6% = 22.66b TTM) |
| FCFTA 0.07 (>2.0%) and ΔFCFTA 2.52pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -1.99% (prev -1.33%; Δ -0.66pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.08 (>3.0%) and CFO 6.55b > Net Income 3.16b (YES >=105%, WARN >=100%) |
| Net Debt (7.25b) to EBITDA (5.19b) ratio: 1.40 <= 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 (125.5m) change vs 12m ago -3.98% (target <= -2.0% for YES) |
| Gross Margin 3.33% (prev 3.94%; Δ -0.61pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 493.6% (prev 437.8%; Δ 55.88pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 19.10 (EBITDA TTM 5.19b / Interest Expense TTM 239.0m) >= 6 (WARN >= 3) |
Altman Z'' 0.77
| (A) -0.09 = (Total Current Assets 56.80b - Total Current Liabilities 64.33b) / Total Assets 81.31b |
| (B) 0.23 = Retained Earnings (Balance) 18.62b / Total Assets 81.31b |
| (C) 0.06 = EBIT TTM 4.57b / Avg Total Assets 76.49b |
| (D) 0.22 = Book Value of Equity 17.72b / Total Liabilities 82.17b |
| Total Rating: 0.77 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 68.39
| 1. Piotroski 6.50pt = 1.50 |
| 2. FCF Yield 5.54% = 2.77 |
| 3. FCF Margin 1.52% = 0.38 |
| 4. Debt/Equity -5.05 = -2.50 |
| 5. Debt/Ebitda 1.40 = 1.14 |
| 6. ROIC - WACC (= 77.50)% = 12.50 |
| 7. RoE -124.8% = -2.50 |
| 8. Rev. Trend 93.59% = 7.02 |
| 9. EPS Trend -38.43% = -1.92 |
What is the price of MCK shares?
Over the past week, the price has changed by +1.99%, over one month by +5.40%, over three months by +13.02% and over the past year by +59.46%.
Is McKesson a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MCK is around 962.19 USD . This means that MCK is currently undervalued and has a potential upside of +20.02% (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 | 835.3 | 4.2% |
| Analysts Target Price | 835.3 | 4.2% |
| ValueRay Target Price | 1060.4 | 32.3% |
MCK Fundamental Data Overview October 18, 2025
P/E Trailing = 31.0549
P/E Forward = 19.802
P/S = 0.2554
P/B = 5.0435
P/EG = 1.1192
Beta = 0.513
Revenue TTM = 377.60b USD
EBIT TTM = 4.57b USD
EBITDA TTM = 5.19b USD
Long Term Debt = 6.53b USD (from longTermDebt, last quarter)
Short Term Debt = 1.55b USD (from shortTermDebt, last quarter)
Debt = 9.93b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 7.25b USD (from netDebt column, last quarter)
Enterprise Value = 103.70b USD (96.45b + Debt 9.93b - CCE 2.68b)
Interest Coverage Ratio = 19.10 (Ebit TTM 4.57b / Interest Expense TTM 239.0m)
FCF Yield = 5.54% (FCF TTM 5.74b / Enterprise Value 103.70b)
FCF Margin = 1.52% (FCF TTM 5.74b / Revenue TTM 377.60b)
Net Margin = 0.84% (Net Income TTM 3.16b / Revenue TTM 377.60b)
Gross Margin = 3.33% ((Revenue TTM 377.60b - Cost of Revenue TTM 365.03b) / Revenue TTM)
Gross Margin QoQ = 3.35% (prev 3.22%)
Tobins Q-Ratio = 1.28 (Enterprise Value 103.70b / Total Assets 81.31b)
Interest Expense / Debt = 0.49% (Interest Expense 49.0m / Debt 9.93b)
Taxrate = 20.93% (220.0m / 1.05b)
NOPAT = 3.61b (EBIT 4.57b * (1 - 20.93%))
Current Ratio = 0.88 (Total Current Assets 56.80b / Total Current Liabilities 64.33b)
Debt / Equity = -5.05 (negative equity) (Debt 9.93b / totalStockholderEquity, last quarter -1.97b)
Debt / EBITDA = 1.40 (Net Debt 7.25b / EBITDA 5.19b)
Debt / FCF = 1.26 (Net Debt 7.25b / FCF TTM 5.74b)
Total Stockholder Equity = -2.54b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.89% (Net Income 3.16b / Total Assets 81.31b)
RoE = -124.8% (negative equity) (Net Income TTM 3.16b / Total Stockholder Equity -2.54b)
RoCE = 114.3% (EBIT 4.57b / Capital Employed (Equity -2.54b + L.T.Debt 6.53b))
RoIC = 84.70% (NOPAT 3.61b / Invested Capital 4.26b)
WACC = 7.21% (E(96.45b)/V(106.39b) * Re(7.91%) + D(9.93b)/V(106.39b) * Rd(0.49%) * (1-Tc(0.21)))
Discount Rate = 7.91% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: -100.0 | Cagr: -2.97%
[DCF Debug] Terminal Value 77.94% ; FCFE base≈4.75b ; Y1≈4.64b ; Y5≈4.70b
Fair Price DCF = 671.3 (DCF Value 83.50b / Shares Outstanding 124.4m; 5y FCF grow -3.32% → 3.0% )
EPS Correlation: -38.43 | EPS CAGR: -57.54% | SUE: -4.0 | # QB: 0
Revenue Correlation: 93.59 | Revenue CAGR: 12.85% | SUE: 0.45 | # QB: 0
Additional Sources for MCK Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle