MCKESSON CORP (MCK) Fundamental Analysis & Valuation

NYSE:MCK • US58155Q1031

Current stock price

823.77 USD
-4.34 (-0.52%)
Last:

This MCK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

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.
  • MCK had positive earnings in 4 of the past 5 years.
  • In the past 5 years MCK always reported a positive cash flow from operatings.
MCK Yearly Net Income VS EBIT VS OCF VS FCFMCK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B 6B

1.2 Ratios

  • MCK's Return On Assets of 5.16% is fine compared to the rest of the industry. MCK outperforms 77.00% of its industry peers.
  • MCK has a better Return On Invested Capital (28.37%) than 100.00% 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 8.43%.
  • The 3 year average ROIC (24.61%) for MCK is below the current ROIC(28.37%), indicating increased profibility in the last year.
Industry RankSector 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%
MCK Yearly ROA, ROE, ROICMCK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5K 10K 15K 20K

1.3 Margins

  • The Profit Margin of MCK (1.09%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of MCK has grown nicely.
  • MCK has a Operating Margin (1.40%) which is in line with its industry peers.
  • In the last couple of years the Operating Margin of MCK has remained more or less at the same level.
  • MCK's Gross Margin of 3.48% is on the low side compared to the rest of the industry. MCK is outperformed by 79.00% of its industry peers.
  • MCK's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
MCK Yearly Profit, Operating, Gross MarginsMCK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 4

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6

2. MCK Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MCK is creating value.
  • MCK has less shares outstanding than it did 1 year ago.
  • MCK has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, MCK has an improved debt to assets ratio.
MCK Yearly Shares OutstandingMCK Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
MCK Yearly Total Debt VS Total AssetsMCK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • An Altman-Z score of 5.88 indicates that MCK is not in any danger for bankruptcy at the moment.
  • MCK has a better Altman-Z score (5.88) than 90.00% 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 RankSector Rank
Debt/Equity N/A
Debt/FCF 0.68
Altman-Z 5.88
ROIC/WACC3.23
WACC8.79%
MCK Yearly LT Debt VS Equity VS FCFMCK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 0.88 indicates that MCK may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.88, MCK is doing worse than 81.00% of the companies in the same industry.
  • A Quick Ratio of 0.48 indicates that MCK may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.48, MCK is not doing good in the industry: 89.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.88
Quick Ratio 0.48
MCK Yearly Current Assets VS Current LiabilitesMCK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. MCK Growth Analysis

3.1 Past

  • MCK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.88%, which is quite impressive.
  • Measured over the past years, MCK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.17% on average per year.
  • The Revenue has grown by 15.49% in the past year. This is quite good.
  • 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

  • MCK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.30% yearly.
  • MCK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.55% yearly.
EPS Next Y19.07%
EPS Next 2Y16.11%
EPS Next 3Y15.02%
EPS Next 5Y14.3%
Revenue Next Year12.7%
Revenue Next 2Y10.44%
Revenue Next 3Y9.57%
Revenue Next 5Y8.55%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • 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.
MCK Yearly Revenue VS EstimatesMCK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 100B 200B 300B 400B 500B
MCK Yearly EPS VS EstimatesMCK Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

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5

4. MCK Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 21.92, the valuation of MCK can be described as rather expensive.
  • Based on the Price/Earnings ratio, MCK is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.42. MCK is valued slightly cheaper when compared to this.
  • MCK is valuated rather expensively with a Price/Forward Earnings ratio of 18.46.
  • Based on the Price/Forward Earnings ratio, MCK is valued a bit cheaper than 63.00% of the companies in the same industry.
  • MCK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.29, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.92
Fwd PE 18.46
MCK Price Earnings VS Forward Price EarningsMCK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as MCK.
  • MCK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MCK is cheaper than 83.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.46
EV/EBITDA 16.76
MCK Per share dataMCK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1K 2K 3K

4.3 Compensation for Growth

  • The 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 15.02% in the coming years.
PEG (NY)1.15
PEG (5Y)1.28
EPS Next 2Y16.11%
EPS Next 3Y15.02%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. MCK Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.39%, MCK is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.46, MCK pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.39, MCK pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.39%

5.2 History

  • On average, the dividend of MCK grows each year by 10.13%, which is quite nice.
  • MCK has been paying a dividend for at least 10 years, so it has a reliable track record.
  • MCK has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.13%
Div Incr Years3
Div Non Decr Years3
MCK Yearly Dividends per shareMCK Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 8.55% of the earnings are spent on dividend by MCK. This is a low number and sustainable payout ratio.
  • MCK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.55%
EPS Next 2Y16.11%
EPS Next 3Y15.02%
MCK Yearly Income VS Free CF VS DividendMCK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B
MCK Dividend Payout.MCK Dividend Payout, showing the Payout Ratio.MCK Dividend Payout.PayoutRetained Earnings

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MCK Fundamentals: All Metrics, Ratios and Statistics

MCKESSON CORP

NYSE:MCK (4/27/2026, 1:17:05 PM)

823.77

-4.34 (-0.52%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-04
Earnings (Next)05-07
Inst Owners91.06%
Inst Owner Change-0.11%
Ins Owners0.01%
Ins Owner Change-0.62%
Market Cap100.90B
Revenue(TTM)397.96B
Net Income(TTM)4.34B
Analysts83.64
Price Target1001.39 (21.56%)
Short Float %2.04%
Short Ratio3.05
Dividend
Industry RankSector Rank
Dividend Yield 0.39%
Yearly Dividend2.71
Dividend Growth(5Y)10.13%
DP8.55%
Div Incr Years3
Div Non Decr Years3
Ex-Date03-02
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)1.93%
PT rev (3m)4.81%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)1.67%
EPS NY rev (1m)0%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.09%
Valuation
Industry RankSector Rank
PE 21.92
Fwd PE 18.46
P/S 0.25
P/FCF 10.46
P/OCF 9.63
P/B N/A
P/tB N/A
EV/EBITDA 16.76
EPS(TTM)37.58
EY4.56%
EPS(NY)44.63
Fwd EY5.42%
FCF(TTM)78.73
FCFY9.56%
OCF(TTM)85.57
OCFY10.39%
SpS3248.9
BVpS-10.6
TBVpS-137.16
PEG (NY)1.15
PEG (5Y)1.28
Graham Number0 (-100%)
Profitability
Industry RankSector 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 RankSector 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 5.88
F-Score5
WACC8.79%
ROIC/WACC3.23
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 Y19.07%
EPS Next 2Y16.11%
EPS Next 3Y15.02%
EPS Next 5Y14.3%
Revenue 1Y (TTM)15.49%
Revenue growth 3Y10.8%
Revenue growth 5Y9.22%
Sales Q2Q%11.4%
Revenue Next Year12.7%
Revenue Next 2Y10.44%
Revenue Next 3Y9.57%
Revenue Next 5Y8.55%
EBIT growth 1Y11.51%
EBIT growth 3Y10.79%
EBIT growth 5Y9.29%
EBIT Next Year25.9%
EBIT Next 3Y14.4%
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 5 / 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 21.92 and the Price/Book (PB) ratio is -77.74.


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 19.07% in the next year.