MCKESSON CORP (MCK) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:MCK • US58155Q1031
851.12 USD
+4.61 (+0.54%)
At close: Feb 3, 2026
841 USD
-10.12 (-1.19%)
Pre-Market: 2/4/2026, 8:00:00 AM
Overall MCK gets a fundamental rating of 6 out of 10. We evaluated MCK against 102 industry peers in the Health Care Providers & Services industry. MCK has an average financial health and profitability rating. MCK is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes MCK very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year MCK was profitable.
- In the past year MCK had a positive cash flow from operations.
- 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 (4.79%) than 76.47% of its industry peers.
- MCK's Return On Invested Capital of 26.27% is amongst the best of the industry. MCK outperforms 98.04% of its industry peers.
- MCK had an Average Return On Invested Capital over the past 3 years of 24.61%. This is significantly above the industry average of 9.16%.
- The last Return On Invested Capital (26.27%) for MCK is above the 3 year average (24.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | N/A | ||
| ROIC | 26.27% |
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 has a Profit Margin (1.04%) which is comparable to the rest of the industry.
- MCK's Profit Margin has improved in the last couple of years.
- MCK has a Operating Margin (1.34%) which is comparable to the rest of the industry.
- MCK's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 3.47%, MCK is not doing good in the industry: 79.41% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of MCK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.34% | ||
| PM (TTM) | 1.04% | ||
| GM | 3.47% |
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. Health
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.
- Compared to 5 years ago, MCK has less shares outstanding
- Compared to 1 year ago, MCK has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.75 indicates that MCK is not in any danger for bankruptcy at the moment.
- MCK has a better Altman-Z score (5.75) than 89.22% of its industry peers.
- The Debt to FCF ratio of MCK is 1.29, which is an excellent value as it means it would take MCK, only 1.29 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.29, MCK belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.29 | ||
| Altman-Z | 5.75 |
ROIC/WACC2.96
WACC8.87%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that MCK may have some problems paying its short term obligations.
- The Current ratio of MCK (0.88) is worse than 77.45% of its industry peers.
- MCK has a Quick 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 Quick ratio value of 0.50, MCK is not doing good in the industry: 86.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 25.63% 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.
- The Revenue has grown by 17.23% in the past year. This is quite good.
- The Revenue has been growing by 9.22% on average over the past years. This is quite good.
EPS 1Y (TTM)25.63%
EPS 3Y11.79%
EPS 5Y17.17%
EPS Q2Q%39.46%
Revenue 1Y (TTM)17.23%
Revenue growth 3Y10.8%
Revenue growth 5Y9.22%
Sales Q2Q%10.14%
3.2 Future
- The Earnings Per Share is expected to grow by 13.83% on average over the next years. This is quite good.
- Based on estimates for the next years, MCK will show a quite strong growth in Revenue. The Revenue will grow by 8.52% on average per year.
EPS Next Y18.06%
EPS Next 2Y15.62%
EPS Next 3Y14.91%
EPS Next 5Y13.83%
Revenue Next Year12.6%
Revenue Next 2Y10.45%
Revenue Next 3Y9.67%
Revenue Next 5Y8.52%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- MCK is valuated rather expensively with a Price/Earnings ratio of 23.47.
- Based on the Price/Earnings ratio, MCK is valued a bit cheaper than 64.71% of the companies in the same industry.
- When comparing the Price/Earnings ratio of MCK to the average of the S&P500 Index (28.18), we can say MCK is valued inline with the index average.
- The Price/Forward Earnings ratio is 19.23, which indicates a rather expensive current valuation of MCK.
- Based on the Price/Forward Earnings ratio, MCK is valued a bit cheaper than the industry average as 62.75% of the companies are valued more expensively.
- MCK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 19.23 |
4.2 Price Multiples
- MCK's Enterprise Value to EBITDA ratio is in line with the industry average.
- MCK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCK is cheaper than 69.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.44 | ||
| EV/EBITDA | 18.63 |
4.3 Compensation for Growth
- MCK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of MCK may justify a higher PE ratio.
- A more expensive valuation may be justified as MCK's earnings are expected to grow with 14.91% in the coming years.
PEG (NY)1.3
PEG (5Y)1.37
EPS Next 2Y15.62%
EPS Next 3Y14.91%
5. Dividend
5.1 Amount
- MCK has a yearly dividend return of 0.40%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.47, MCK pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.40, MCK pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
- The dividend of MCK is nicely growing with an annual growth rate of 10.13%!
- MCK has been paying a dividend for at least 10 years, so it has 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 8.98% of its income as dividend. This is a sustainable payout ratio.
- The dividend of MCK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.98%
EPS Next 2Y15.62%
EPS Next 3Y14.91%
851.12
+4.61 (+0.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-04 2026-02-04/amc
Inst Owners90.34%
Inst Owner Change-1.77%
Ins Owners0.03%
Ins Owner Change-14.25%
Market Cap105.05B
Revenue(TTM)387.09B
Net Income(TTM)4.03B
Analysts83.64
Price Target955.45 (12.26%)
Short Float %1.64%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend2.71
Dividend Growth(5Y)10.13%
DP8.98%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.19%
Min EPS beat(2)0.39%
Max EPS beat(2)8%
EPS beat(4)3
Avg EPS beat(4)2.47%
Min EPS beat(4)-0.54%
Max EPS beat(4)8%
EPS beat(8)6
Avg EPS beat(8)3.13%
EPS beat(12)9
Avg EPS beat(12)4.57%
EPS beat(16)11
Avg EPS beat(16)4.41%
Revenue beat(2)1
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-1.93%
Max Revenue beat(2)0.81%
Revenue beat(4)1
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-4.64%
Max Revenue beat(4)0.81%
Revenue beat(8)3
Avg Revenue beat(8)-1.31%
Revenue beat(12)6
Avg Revenue beat(12)-0.54%
Revenue beat(16)9
Avg Revenue beat(16)-0.02%
PT rev (1m)0%
PT rev (3m)11.85%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-8.56%
EPS NY rev (1m)0%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 19.23 | ||
| P/S | 0.27 | ||
| P/FCF | 17.44 | ||
| P/OCF | 15.27 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.63 |
EPS(TTM)36.27
EY4.26%
EPS(NY)44.25
Fwd EY5.2%
FCF(TTM)48.79
FCFY5.73%
OCF(TTM)55.75
OCFY6.55%
SpS3136.14
BVpS-14.09
TBVpS-139.69
PEG (NY)1.3
PEG (5Y)1.37
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | N/A | ||
| ROCE | 32.18% | ||
| ROIC | 26.27% | ||
| ROICexc | 34.94% | ||
| ROICexgc | N/A | ||
| OM | 1.34% | ||
| PM (TTM) | 1.04% | ||
| GM | 3.47% | ||
| FCFM | 1.56% |
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-Score7
Asset Turnover4.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.29 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 132.36% | ||
| Cap/Sales | 0.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.85% | ||
| Profit Quality | 149.32% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 5.75 |
F-Score7
WACC8.87%
ROIC/WACC2.96
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)25.63%
EPS 3Y11.79%
EPS 5Y17.17%
EPS Q2Q%39.46%
EPS Next Y18.06%
EPS Next 2Y15.62%
EPS Next 3Y14.91%
EPS Next 5Y13.83%
Revenue 1Y (TTM)17.23%
Revenue growth 3Y10.8%
Revenue growth 5Y9.22%
Sales Q2Q%10.14%
Revenue Next Year12.6%
Revenue Next 2Y10.45%
Revenue Next 3Y9.67%
Revenue Next 5Y8.52%
EBIT growth 1Y18.47%
EBIT growth 3Y10.79%
EBIT growth 5Y9.29%
EBIT Next Year24.68%
EBIT Next 3Y14.22%
EBIT Next 5Y12.64%
FCF growth 1Y39.85%
FCF growth 3Y15.87%
FCF growth 5Y6.2%
OCF growth 1Y40.26%
OCF growth 3Y16.04%
OCF growth 5Y6.83%
MCKESSON CORP / MCK 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 5 / 10 to MCKESSON CORP (MCK). This can be considered as Fairly Valued.
What is the profitability of MCK stock?
MCKESSON CORP (MCK) has a profitability rating of 6 / 10.
How financially healthy is MCKESSON CORP?
The financial health rating of MCKESSON CORP (MCK) is 5 / 10.
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 18.06% in the next year.