MCK Stock Analysis: McKesson | NYSE
Medical Distribution | NYSE, USA | Market Cap: 99.835m USD | 12M Return: 17.9% | US58155Q1031 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 703M
EPS Trend: 95.9%
Qual. Beats: 1
Rev. Trend: 99.2%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
McKesson Corporation (NYSE: MCK) is a U.S.-headquartered healthcare services company founded in 1833 and based in Irving, Texas. It operates through four segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceuticals, as well as medical-surgical supplies and laboratory equipment, to retail pharmacies, hospitals, long-term care facilities, clinics, physician offices, surgery centers, and other institutional customers.
In addition to its core distribution and logistics operations, McKesson offers consulting, outsourcing, and technology services to pharmacies and healthcare providers. Its offerings span electronic prior authorization, prescription price transparency, benefit insight, patient enrollment, third-party logistics, and wholesale distribution support. The company also delivers specialized services such as gene therapy through its InspiroGene platform, vaccine distribution, practice consulting, and research-driven solutions aimed at improving cancer and specialty care. McKesson works across the healthcare value chain, connecting patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharmaceutical companies to address medication access, affordability, and adherence challenges.
McKesson is classified within the Health Care Distributors sub-industry (GICS), a sector characterized by high-volume, low-margin operations that serve as intermediaries between drug manufacturers and dispensing points such as pharmacies and hospitals. The business model relies on scale-driven logistics efficiencies, regulatory expertise, and increasingly on value-added technology and consulting services to differentiate from competitors and capture margin beyond traditional drug distribution.
- Specialty oncology drug distribution volume drives segment growth
- Pharmaceutical pricing pressure and generic deflation squeeze distributor margins
- Prescription Technology Solutions scales on prior authorization and transparency demand
| Net Income: 4.59b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 0.03 > 1.0 |
| NWC/Revenue: -1.83% < 20% (prev -1.99%; Δ 0.16% < -1%) |
| CFO/TA 0.08 > 3% & CFO 6.85b > Net Income 4.59b |
| Net Debt (8.51b) to EBITDA (7.34b): 1.16 < 3 |
| Current Ratio: 0.89 > 1.5 & < 3 |
| Outstanding Shares: last quarter (119.2m) vs 12m ago -5.02% < -2% |
| Gross Margin: 3.64% > 18% (prev 3.33%; Δ 0.31% > 0.5%) |
| Asset Turnover: 484.5% > 50% (prev 464.4%; Δ 20.15% > 0%) |
| Interest Coverage Ratio: 23.90 > 6 (EBIT TTM 6.57b / Interest Expense TTM 275.0m) |
| A: -0.09 (Total Current Assets 62.8b - Total Current Liabilities 70.4b) / Total Assets 88.3b |
| B: 0.26 (Retained Earnings 22.8b / Total Assets 88.3b) |
| C: 0.08 (EBIT TTM 6.57b / Avg Total Assets 84.8b) |
| D: -0.05 (Book Value of Equity -4.24b / Total Liabilities 92.2b) |
| Altman-Z'' = 0.76 = B |
| DSRI: 0.99 (Receivables 30.3b/28.2b, Revenue 411b/378b) |
| GMI: 0.91 (GM 3.33% / 3.64%) |
| AQI: 0.97 (AQ_t 0.24 / AQ_t-1 0.24) |
| SGI: 1.09 (Revenue 411b / 378b) |
| TATA: -0.03 (NI 4.59b - CFO 6.85b) / TA 88.3b) |
| Beneish M = -3.07 (Cap -4..+1) = AA |
As of October 02, 2026, the stock is trading at USD 898.82 with a total of 1,210,054 shares traded. Over the past week, the price has changed by +3.39%, over one month by -0.88%, over three months by +17.15% and over the past year by +17.94%.
Current recommended Stop Loss: 857.00 (which is 4.7% or 2 ATR below the current price).
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 | 979.4 | 9% |
P/E Trailing = 22.9753
P/E Forward = 19.7239
P/S = 0.2429
P/B = 5.0435
P/EG = 1.6613
Revenue TTM = 411b USD
EBIT TTM = 6.57b USD
EBITDA TTM = 7.34b USD
Long Term Debt = 8.43b USD (from longTermDebt, last quarter)
Short Term Debt = 1.59b USD (from shortTermDebt, last quarter)
Debt = 13.7b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.97b
Net Debt = 8.51b USD (calculated: Debt 13.7b - CCE 5.16b)
Enterprise Value = 108b USD (99.8b + Debt 13.7b - CCE 5.16b)
Interest Coverage Ratio = 23.90 (Ebit TTM 6.57b / Interest Expense TTM 275.0m)
EV/FCF = 17.52x (Enterprise Value 108b / FCF TTM 6.18b)
FCF Yield = 5.71% (FCF TTM 6.18b / Enterprise Value 108b)
FCF Margin = 1.50% (FCF TTM 6.18b / Revenue TTM 411b)
Net Margin = 1.12% (Net Income TTM 4.59b / Revenue TTM 411b)
Gross Margin = 3.64% ((Revenue TTM 411b - Cost of Revenue TTM 396b) / Revenue TTM)
Gross Margin QoQ = 3.50% (prev 4.20%)
Tobins Q-Ratio = 1.23 (Enterprise Value 108b / Total Assets 88.3b)
Interest Expense / Debt = 2.01% (Interest Expense 275.0m / Debt 13.7b)
Taxrate = 17.93% (1.16b / 6.46b)
NOPAT = 5.39b (EBIT 6.57b * (1 - 17.93%))
Current Ratio = 0.89 (Total Current Assets 62.8b / Total Current Liabilities 70.4b)
Debt / Equity = -3.22 (negative equity) (Debt 13.7b / totalStockholderEquity, last quarter -4.24b)
Debt / EBITDA = 1.16 (Net Debt 8.51b / EBITDA 7.34b)
Debt / FCF = 1.38 (Net Debt 8.51b / FCF TTM 6.18b)
Total Stockholder Equity = -1.77b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.41% (Net Income 4.59b / Total Assets 88.3b)
RoE = -259.1% (negative equity) (Net Income TTM 4.59b / Total Stockholder Equity -1.77b)
RoCE = 98.70% (EBIT 6.57b / Capital Employed (Equity -1.77b + L.T.Debt 8.43b))
RoIC = 37.46% (NOPAT 5.39b / Invested Capital 14.4b)
WACC = 4.49% (E(99.8b)/V(114b) * Re(4.88%) + D(13.7b)/V(114b) * Rd(2.01%) * (1-Tc(0.18)))
Discount Rate = 4.88% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -97.84 | Cagr: -4.30%
[DCF] Terminal Value 76.57% ; FCFF base≈5.98b ; Y1≈6.46b ; Y5≈7.92b
[DCF] Fair Price = 967.4 (EV 121b - Net Debt 8.51b = Equity 113b / Shares 116.6m; r=8.35% [WACC [floored]]; 5y FCF grow 9.16% → 2.50% )
EPS Correlation: 95.87 | EPS CAGR: 17.05% | SUE: 1.50 | # QB: 1
Revenue Correlation: 99.23 | Revenue CAGR: 14.50% | SUE: 0.54 | # QB: 0
EPS current Quarter (2026-09-30): EPS=10.76 | Chg30d=+0.05% | Revisions=-7% | Analysts=14
EPS next Quarter (2026-12-31): EPS=11.02 | Chg30d=+0.15% | Revisions=-67% | Analysts=14
EPS current Year (2027-03-31): EPS=44.65 | Chg30d=+0.06% | Revisions=+83% | GrowthEPS=+14.2% | GrowthRev=+7.0%
EPS next Year (2028-03-31): EPS=50.41 | Chg30d=-0.28% | Revisions=+53% | GrowthEPS=+12.9% | GrowthRev=+7.0%
[Analyst] Revisions Ratio: +25% (up=34, down=20)