Stock Analysis
McKesson CorporationMCK
P/E 25.51×· 5Y range 14.66–39.07×· 51th percentile of history
Sector: Healthcare · Industry: Wholesale-Drugs, Proprietaries & Druggists' Sundries
AnalystsStrong Buy24 analystsP/E 25.5× sits at the 51st percentile of its 5.089664613278576-year history.
Cash covers 44% of debt · Q1 2027.
PMP Verdict
High quality, fairly valued
Strengths
- Growth95
- Quality90
Risks
- Profitability36
Strong fundamentals at a reasonable valuation.
Bull Case
- ✓Revenue CAGR 11.2% — durable top-line growth
- ✓Interest coverage 15.5× — debt well covered
What's happening with MCK
Profile
Strong growth and earnings quality; profitability and moat lag behind.
How is each axis scored?
- Valuation69/100 · Moderate
- P/E vs own history (51th pct)12/25
- FCF yield (5.5%)20/25
- P/S (0.3x)25/25
- EV/EBIT (19.1x)12/25
- Growth95/100 · Strong
- Revenue CAGR (11.2%)20/25
- Net income CAGR (43.8%)25/25
- EPS CAGR 5Y (51.8%)25/25
- Fwd implied growth (35.7%)25/25
- Profitability36/100 · Weak
- ROIC (96.2%)25/25
- ROE (n/a)0/25
- Net margin (1.1%)6/25
- Operating margin (1.6%)5/25
- Financial Health69/100 · Moderate
- Altman Z (2.30)18/25
- Current ratio (0.89)6/25
- Interest coverage (15.5x)25/25
- Net cash / debt (D/A 8%)20/25
- Quality90/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.58)25/25
- FCF conversion (140%)25/25
- Margin stability (σ 1.0%)25/25
- Moat43/100 · Weak
- ROIC >12% years (4/7 yrs)13/25
- Median gross margin (5.0%)0/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst -1.9%)5/25
About McKesson Corporation
McKesson is one of three leading pharmaceutical wholesalers in the US engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Show more
Along with Cencora and Cardinal Health, the three account for over 90% of the US pharmaceutical wholesale industry. Outside the US market, McKesson engages in pharmaceutical wholesale and distribution in Canada. Additionally, the company supplies medical-surgical products and equipment to healthcare facilities and provides a variety of technology solutions for pharmacies.
Headquarters: IRVING, TX · Employees: 43,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
69BP/E (TTM)25.5xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 14.7x–39.1x · 51st pct
P/FCF17.8xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield5.5%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 2.1%–13.8% · 31st pct
P/S (TTM)0.29xA
Grade A: CheapPrice / TTM Revenue (own statements) — vs own 5Y history: 0.1x–0.3x · 95th pct
EV/EBIT19.1xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 12.7x–26.0x · 46th pct
EV/Sales0.3xA
Grade A: CheapEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E18.8xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B RatioNeg. EquityC
Grade C: BuybacksPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.97B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield0.34%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio8.6%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
36DROIC96.2%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROENeg. EquityC
Grade C: BuybacksReturn on Equity. Neg. equity = heavy buybacks
ROA5.4%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin1.1%D
Grade D: LowNet Income / Revenue
Operating Margin1.6%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin3.6%D
Grade D: LowGross Profit / Revenue
FCF Margin1.6%D
Grade D: LowFCF / Revenue
True FCF Margin1.6%D
Grade D: LowTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
95A+Revenue CAGR11.2%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR43.8%A
Grade A: HighCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)51.8%A
Grade A: HighCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth35.7%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-26.3%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income—
Stock-based comp/Net income. >30% = dilution risk
SBC / Revenue—
TTM stock-based comp / TTM Revenue
Financial Health
69BAltman Z-Score2.30C
Grade C: Gray zoneBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio0.89xD
Grade D: LowCurrent Assets/Liabilities
Quick Ratio0.51xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage15.5xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment1.0yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT1.0xA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity—
Debt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.44xC
Grade C: PartialCash covers how much of total debt. >1 = could repay all debt from cash
Quality
90A+Piotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.58A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion139.7%A
Grade A: StrongFCF / Net Income
Margin Stability1.0%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue0.1%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover4.85xA
Grade A: HighRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Rutledge Napoleon B JR Filed | Rutledge Napoleon B JR | SellOpen market sale | -111 | |
Lerman Bradley E Filed | Lerman Bradley E | SellOpen market sale | -301 | |
Srinivasan Ramesh (NMN) Filed | Srinivasan Ramesh (NMN) | Grant / award | +368 | |
Hinton James H. Filed | Hinton James H. | Grant / award | +277 | |
Doughtie Lynne M Filed | Doughtie Lynne M | Grant / award | +277 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Gerberding Julie L. Filed | Gerberding Julie L. | Grant / award | +277 | |
Martinez Maria Filed | Martinez Maria | Grant / award | +277 | |
Lerman Bradley E Filed | Lerman Bradley E | Grant / award | +277 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
43D+ROIC >12% Years4/7 yrsC
Grade C: ModerateShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)5.0%D
Grade D: WeakMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor-1.9%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$39.39
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$44.52
Cash & short-term investments per share (Finnhub)
Book Value / Share$36.58
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$11.80B
Total debt obligations (short + long term)
Cash & Equiv.$5.16B
Cash and short-term investments
Net Debt$6.63B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$-1.30B
Shareholders' equity (book value)
Asset / Liability0.99xD
Grade D: RiskyTotal Assets / Total Liabilities
Market
Market Cap$117.15B
Current Market Capitalization
Beta0.32B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: McKesson Corporation (MCK)
MCK is up 0.62% at the last close. Piotroski F-Score of 6/9 indicates mixed fundamentals for McKesson Corporation. Altman Z-Score of 2.30 falls in the grey zone (1.81–2.99) — financial distress is unlikely but not ruled out.
- Beneish M-Score of -2.58 suggests a low likelihood of earnings manipulation.
- Takes ~1.0 years to repay net debt from free cash flow.
- McKesson Corporation posted a net loss in 1 of 10 available completed fiscal years (2017–2026).
See how MCK ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all MCK moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 1 | Regular | 901.80 | +5.62% | 4.69 |
Frequently Asked Questions about MCK
What is the current McKesson Corporation (MCK) stock price?
MCK is trading at $1004.84 at the last market close, up 0.62% on the session. PreMarketPrice tracks MCK pre-market, intraday and after-hours prices.
Is MCK stock a buy right now?
PreMarketPrice's quantitative model rates McKesson Corporation's financial health at 69/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is MCK stock overvalued?
McKesson Corporation trades at a trailing P/E of 25.5 and our valuation score rates it 69/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does McKesson Corporation report earnings?
No confirmed earnings date is currently scheduled for MCK. The Earnings section lists recent reports and updates as dates are announced.
What sector does McKesson Corporation operate in?
McKesson Corporation operates in the Healthcare sector, within the Wholesale-Drugs, Proprietaries & Druggists' Sundries industry. The Related Stocks section lists sector peers for comparison.
What does McKesson Corporation do?
McKesson is one of three leading pharmaceutical wholesalers in the US engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers.
About McKesson Corporation (MCK) Stock
McKesson Corporation (MCK) is a US-listed stock operating in the Healthcare sector, specifically the Wholesale-Drugs, Proprietaries & Druggists' Sundries industry. As of the latest update, McKesson Corporation is trading at $1004.84, up 0.62% on the day with a market capitalization of $117.2 billion. The financial health score for MCK is 69/100, which indicates good financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for MCK stock.
MCK Stock Analysis & Key Metrics
On PreMarketPrice, you can track McKesson Corporation (MCK) across multiple dimensions:
- Pre-market price & movement: Real-time MCK stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for MCK with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for McKesson Corporation across multiple reporting periods.
- Financial health score: A composite score of 69/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for MCK.
- Sector peers: Compare MCK against 6 other healthcare stocks on key financial metrics.
Is MCK a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate McKesson Corporation (MCK) as an investment. The financial health score of 69/100 suggests good financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.McKesson Corporation (MCK) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.