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.

6

1. MCK Profitability Analysis

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.
  • Each year in the past 5 years MCK had a positive operating cash flow.
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

  • With a decent Return On Assets value of 5.16%, MCK is doing good in the industry, outperforming 76.00% of the companies in the same industry.
  • MCK has a better Return On Invested Capital (28.37%) than 100.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MCK is significantly above the industry average of 8.63%.
  • The last Return On Invested Capital (28.37%) for MCK is above the 3 year average (24.61%), which is a sign of increasing profitability.
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's Operating Margin of 1.40% is in line compared 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.
  • The Gross Margin of MCK (3.48%) is worse than 81.00% of its industry peers.
  • In the last couple of years the Gross Margin of MCK has declined.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • The number of shares outstanding for MCK has been reduced compared to 1 year ago.
  • The number of shares outstanding for MCK has been reduced compared to 5 years ago.
  • The debt/assets ratio for MCK has been reduced compared to a year ago.
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 5.93 indicates that MCK is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of MCK (5.93) is better than 89.00% of its industry peers.
  • The Debt to FCF ratio of MCK is 0.68, which is an excellent value as it means it would take MCK, only 0.68 years of fcf income to pay off all of its debts.
  • MCK's Debt to FCF ratio of 0.68 is amongst the best of the industry. MCK outperforms 87.00% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 0.68
Altman-Z 5.93
ROIC/WACC3.25
WACC8.73%
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.
  • The Current ratio of MCK (0.88) is worse than 79.00% 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.
  • MCK has a Quick ratio of 0.48. This is amonst the worse of the industry: MCK underperforms 87.00% of its industry peers.
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.
  • MCK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.17% yearly.
  • Looking at the last year, MCK shows a quite strong growth in Revenue. The Revenue has grown by 15.49% in the last year.
  • 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 14.08% yearly.
  • 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

  • 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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4

4. MCK Valuation Analysis

4.1 Price/Earnings Ratio

  • MCK is valuated rather expensively with a Price/Earnings ratio of 23.53.
  • Compared to the rest of the industry, the Price/Earnings ratio of MCK indicates a somewhat cheap valuation: MCK is cheaper than 63.00% of the companies listed in the same industry.
  • MCK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.60.
  • MCK is valuated rather expensively with a Price/Forward Earnings ratio of 19.78.
  • Based on the Price/Forward Earnings ratio, MCK is valued a bit cheaper than 61.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.84, MCK is valued at the same level.
Industry RankSector Rank
PE 23.53
Fwd PE 19.78
MCK Price Earnings VS Forward Price EarningsMCK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • MCK's Enterprise Value to EBITDA ratio is in line with the industry average.
  • 80.00% of the companies in the same industry are more expensive than MCK, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.23
EV/EBITDA 17.86
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.
  • 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%

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

5

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 RankSector Rank
Dividend Yield 0.38%

5.2 History

  • On average, the dividend of MCK grows each year by 10.13%, which is quite nice.
  • 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
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.
  • The dividend of MCK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.55%
EPS Next 2Y16.2%
EPS Next 3Y15.27%
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 (4/2/2026, 8:04:00 PM)

After market: 886 +1.72 (+0.19%)

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
Earnings (Next)05-06
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 RankSector 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
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 RankSector 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 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 5.93
F-Score5
WACC8.73%
ROIC/WACC3.25
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.