MCKESSON CORP (MCK) Fundamental Analysis & Valuation
NYSE:MCK • US58155Q1031
Current stock price
884.28 USD
+11.96 (+1.37%)
At close:
886 USD
+1.72 (+0.19%)
After Hours:
This MCK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. MCK Profitability Analysis
1.1 Basic Checks
- In the past year MCK was profitable.
- MCK had a positive operating cash flow in the past year.
- Of the past 5 years MCK 4 years were profitable.
- In the past 5 years MCK always reported a positive cash flow from operatings.
1.2 Ratios
- MCK has a better Return On Assets (5.16%) than 76.00% of its industry peers.
- The Return On Invested Capital of MCK (28.37%) is better than 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MCK is significantly above the industry average of 8.63%.
- The 3 year average ROIC (24.61%) for MCK is below the current ROIC(28.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | N/A | ||
| ROIC | 28.37% |
ROA(3y)4.85%
ROA(5y)1.87%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.61%
ROIC(5y)21.23%
1.3 Margins
- MCK's Profit Margin of 1.09% is in line compared to the rest of the industry. MCK outperforms 58.00% of its industry peers.
- In the last couple of years the Profit Margin of MCK has grown nicely.
- MCK has a Operating Margin of 1.40%. This is comparable to the rest of the industry: MCK outperforms 41.00% of its industry peers.
- MCK's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 3.48%, MCK is not doing good in the industry: 81.00% of the companies in the same industry are doing better.
- MCK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.4% | ||
| PM (TTM) | 1.09% | ||
| GM | 3.48% |
OM growth 3Y-0.01%
OM growth 5Y0.07%
PM growth 3Y29.56%
PM growth 5Y18.7%
GM growth 3Y-10.54%
GM growth 5Y-7.09%
2. MCK Health Analysis
2.1 Basic Checks
- MCK has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- MCK has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for MCK has been reduced compared to 5 years ago.
- Compared to 1 year ago, MCK has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.93 indicates that MCK is not in any danger for bankruptcy at the moment.
- MCK has a better Altman-Z score (5.93) than 89.00% of its industry peers.
- MCK has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
- MCK has a Debt to FCF ratio of 0.68. This is amongst the best in the industry. MCK outperforms 87.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | 5.93 |
ROIC/WACC3.24
WACC8.75%
2.3 Liquidity
- MCK has a Current Ratio of 0.88. This is a bad value and indicates that MCK is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.88, MCK is not doing good in the industry: 79.00% of the companies in the same industry are doing better.
- A Quick Ratio of 0.48 indicates that MCK may have some problems paying its short term obligations.
- MCK has a worse Quick ratio (0.48) than 87.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.48 |
3. MCK Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 28.88% over the past year.
- MCK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.17% yearly.
- MCK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.49%.
- Measured over the past years, MCK shows a quite strong growth in Revenue. The Revenue has been growing by 9.22% on average per year.
EPS 1Y (TTM)28.88%
EPS 3Y11.79%
EPS 5Y17.17%
EPS Q2Q%16.31%
Revenue 1Y (TTM)15.49%
Revenue growth 3Y10.8%
Revenue growth 5Y9.22%
Sales Q2Q%11.4%
3.2 Future
- Based on estimates for the next years, MCK will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.08% on average per year.
- The Revenue is expected to grow by 8.44% on average over the next years. This is quite good.
EPS Next Y19.08%
EPS Next 2Y16.2%
EPS Next 3Y15.27%
EPS Next 5Y14.08%
Revenue Next Year12.72%
Revenue Next 2Y10.44%
Revenue Next 3Y9.65%
Revenue Next 5Y8.44%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. MCK Valuation Analysis
4.1 Price/Earnings Ratio
- MCK is valuated rather expensively with a Price/Earnings ratio of 23.53.
- Based on the Price/Earnings ratio, MCK is valued a bit cheaper than the industry average as 63.00% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 25.60. MCK is around the same levels.
- A Price/Forward Earnings ratio of 19.78 indicates a rather expensive valuation of MCK.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MCK indicates a somewhat cheap valuation: MCK is cheaper than 61.00% of the companies listed in the same industry.
- MCK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 19.78 |
4.2 Price Multiples
- MCK's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, MCK is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 17.86 |
4.3 Compensation for Growth
- MCK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- MCK has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as MCK's earnings are expected to grow with 15.27% in the coming years.
PEG (NY)1.23
PEG (5Y)1.37
EPS Next 2Y16.2%
EPS Next 3Y15.27%
5. MCK Dividend Analysis
5.1 Amount
- MCK has a yearly dividend return of 0.38%, which is pretty low.
- MCK's Dividend Yield is a higher than the industry average which is at 0.50.
- With a Dividend Yield of 0.38, MCK pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
- The dividend of MCK is nicely growing with an annual growth rate of 10.13%!
- MCK has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of MCK decreased in the last 3 years.
Dividend Growth(5Y)10.13%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- MCK pays out 8.55% of its income as dividend. This is a sustainable payout ratio.
- MCK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.55%
EPS Next 2Y16.2%
EPS Next 3Y15.27%
MCK Fundamentals: All Metrics, Ratios and Statistics
884.28
+11.96 (+1.37%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-04 2026-02-04/amc
Earnings (Next)05-06 2026-05-06/amc
Inst Owners91.02%
Inst Owner Change-0.32%
Ins Owners0.03%
Ins Owner Change-0.63%
Market Cap108.32B
Revenue(TTM)397.96B
Net Income(TTM)4.34B
Analysts83.64
Price Target1000.04 (13.09%)
Short Float %1.57%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend2.71
Dividend Growth(5Y)10.13%
DP8.55%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-02 2026-03-02 (0.82)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.17%
Min EPS beat(2)0.33%
Max EPS beat(2)8%
EPS beat(4)4
Avg EPS beat(4)2.69%
Min EPS beat(4)0.33%
Max EPS beat(4)8%
EPS beat(8)6
Avg EPS beat(8)2.08%
EPS beat(12)9
Avg EPS beat(12)3.97%
EPS beat(16)11
Avg EPS beat(16)3.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.32%
Min Revenue beat(2)-1.93%
Max Revenue beat(2)-0.71%
Revenue beat(4)1
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-4.64%
Max Revenue beat(4)0.81%
Revenue beat(8)2
Avg Revenue beat(8)-1.76%
Revenue beat(12)6
Avg Revenue beat(12)-0.46%
Revenue beat(16)8
Avg Revenue beat(16)-0.2%
PT rev (1m)1.79%
PT rev (3m)4.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2%
EPS NY rev (1m)0.84%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 19.78 | ||
| P/S | 0.27 | ||
| P/FCF | 11.23 | ||
| P/OCF | 10.33 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.86 |
EPS(TTM)37.58
EY4.25%
EPS(NY)44.69
Fwd EY5.05%
FCF(TTM)78.73
FCFY8.9%
OCF(TTM)85.57
OCFY9.68%
SpS3248.9
BVpS-10.6
TBVpS-137.16
PEG (NY)1.23
PEG (5Y)1.37
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | N/A | ||
| ROCE | 34.76% | ||
| ROIC | 28.37% | ||
| ROICexc | 34.78% | ||
| ROICexgc | N/A | ||
| OM | 1.4% | ||
| PM (TTM) | 1.09% | ||
| GM | 3.48% | ||
| FCFM | 2.42% |
ROA(3y)4.85%
ROA(5y)1.87%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.61%
ROIC(5y)21.23%
ROICexc(3y)38.33%
ROICexc(5y)31.81%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)30.15%
ROCE(5y)26.01%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y25.12%
ROICexc growth 5Y23.76%
OM growth 3Y-0.01%
OM growth 5Y0.07%
PM growth 3Y29.56%
PM growth 5Y18.7%
GM growth 3Y-10.54%
GM growth 5Y-7.09%
F-Score5
Asset Turnover4.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 122.52% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 167.28% | ||
| Profit Quality | 222.21% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 5.93 |
F-Score5
WACC8.75%
ROIC/WACC3.24
Cap/Depr(3y)111.68%
Cap/Depr(5y)95.54%
Cap/Sales(3y)0.22%
Cap/Sales(5y)0.23%
Profit Quality(3y)140.62%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.88%
EPS 3Y11.79%
EPS 5Y17.17%
EPS Q2Q%16.31%
EPS Next Y19.08%
EPS Next 2Y16.2%
EPS Next 3Y15.27%
EPS Next 5Y14.08%
Revenue 1Y (TTM)15.49%
Revenue growth 3Y10.8%
Revenue growth 5Y9.22%
Sales Q2Q%11.4%
Revenue Next Year12.72%
Revenue Next 2Y10.44%
Revenue Next 3Y9.65%
Revenue Next 5Y8.44%
EBIT growth 1Y11.51%
EBIT growth 3Y10.79%
EBIT growth 5Y9.29%
EBIT Next Year25.55%
EBIT Next 3Y14.29%
EBIT Next 5Y12.49%
FCF growth 1Y233.47%
FCF growth 3Y15.87%
FCF growth 5Y6.2%
OCF growth 1Y200.17%
OCF growth 3Y16.04%
OCF growth 5Y6.83%
MCKESSON CORP / MCK Fundamental Analysis FAQ
What is the ChartMill fundamental rating of MCKESSON CORP (MCK) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MCK.
What is the valuation status for MCK stock?
ChartMill assigns a valuation rating of 4 / 10 to MCKESSON CORP (MCK). This can be considered as Fairly Valued.
How profitable is MCKESSON CORP (MCK) stock?
MCKESSON CORP (MCK) has a profitability rating of 6 / 10.
What are the PE and PB ratios of MCKESSON CORP (MCK) stock?
The Price/Earnings (PE) ratio for MCKESSON CORP (MCK) is 23.53 and the Price/Book (PB) ratio is -83.45.
What is the expected EPS growth for MCKESSON CORP (MCK) stock?
The Earnings per Share (EPS) of MCKESSON CORP (MCK) is expected to grow by 19.08% in the next year.