MCK McKesson Corporation - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
MCK is dramatically cheaper than peers on price-to-sales and forward P/E, even though it grows earnings faster than BMY, CI, SYK, and PFE, making it an outlier value opportunity in healthcare.
- P/S of 0.27 is among the lowest in healthcare, offering significant margin of safety on revenue
- Forward P/E of 22.88 is below sector average of 38.95 despite superior earnings growth
- Negative P/B of -60.05 indicates severe balance sheet deterioration or accounting issues
- Lack of EV/EBITDA and debt data prevents accurate enterprise valuation
With EPS growing nearly 40% YoY and price momentum strong across 1Y (+38.6%) and 3Y (+141.7%) horizons, MCK’s future trajectory is among the most favorable in the sector, supported by structural demand for pharmaceutical distribution.
- 377% YoY and 360.6% QoQ earnings growth signal accelerating profitability
- Revenue growth of 10.1% aligns with sector average and exceeds large-cap pharma peers like Pfizer
- Sustainability of triple-digit earnings growth is questionable given base effects and low margins
- Distribution margins may compress under pricing pressure from payers and providers
McKesson has delivered one of the most consistent earnings beat streaks in healthcare, combined with top-tier stock performance over 5Y and 3Y, validating long-term execution despite operating in a low-margin industry.
- 22 out of 25 quarters beat EPS estimates, including 10 consecutive beats from 2023–2024
- 5-year share price return of +373% demonstrates exceptional compounding and investor confidence
- Profit margins have remained stubbornly below 1.5%, indicating limited pricing power
- One-sided earnings surprises pre-2023 suggest possible conservative guidance
MCK’s financial health is concerning due to poor liquidity and lack of transparency, especially compared to peers like CI and PFE with clearer capital structures and stronger balance sheets.
- ROA of 4.78% exceeds sector average for capital-intensive distributors and is stable
- No reported cash burn or liquidity crisis despite low current and quick ratios
- Current ratio of 0.88 and quick ratio of 0.47 indicate tight liquidity and high reliance on receivables
- Missing debt, equity, and cash data prevents accurate solvency assessment
While the dividend is well-covered and poses no risk to capital allocation, the ultra-low yield limits appeal to income-focused investors, especially compared to higher-yielding peers like BMY and PFE.
- Low payout ratio of 9.22% ensures high sustainability and room for future increases
- Annual dividend of $3.28 provides income with minimal impact on cash flow
- Dividend yield of 0.39% is negligible for income investors
- No 5-year yield history or growth trend data available
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for MCK and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
MCK
McKesson Corporation
Primary
|
+373.0% | +141.7% | +38.6% | +16.5% | +6.3% | -1.2% |
|
HCA
HCA Healthcare, Inc.
Peer
|
+225.1% | +111.6% | +37.9% | +22.4% | +12.5% | -0.8% |
|
BMY
Bristol-Myers Squibb Company
Peer
|
-12.1% | -30.1% | -16.3% | +2.5% | +7.0% | -0.1% |
|
CI
The Cigna Group
Peer
|
+34.3% | -6.9% | -15.2% | -15.2% | -8.5% | +1.9% |
|
COR
Cencora, Inc.
Peer
|
+271.1% | +143.6% | +50.2% | +25.1% | +13.4% | +0.5% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Healthcare Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
MCK
McKesson Corporation
|
BULLISH | $104.45B | 26.32 | -% | 1.0% | $842.09 | |
|
HCA
HCA Healthcare, Inc.
|
BULLISH | $108.0B | 18.28 | -% | 8.5% | $472.65 | |
|
BMY
Bristol-Myers Squibb Company
|
NEUTRAL | $99.0B | 15.71 | 33.8% | 12.6% | $46.65 | |
|
CI
The Cigna Group
|
BULLISH | $72.36B | 11.93 | 15.5% | 2.3% | $269.66 | |
|
COR
Cencora, Inc.
|
NEUTRAL | $70.85B | 45.47 | 123.8% | 0.5% | $361.94 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-07 | RUTLEDGE NAPOLEON B JR | Officer | Sale | 329 | $283,476 |
| 2025-08-22 | TYLER BRIAN SCOTT | Chief Executive Officer | Sale | 11,930 | $8,418,166 |
| 2025-08-15 | TYLER BRIAN SCOTT | Chief Executive Officer | Sale | 11,930 | $8,085,677 |
| 2025-08-08 | RUTLEDGE NAPOLEON B JR | Officer | Sale | 329 | $218,347 |
| 2025-07-30 | LERMAN BRADLEY E | Director | Stock Award | 301 | - |
| 2025-07-30 | MARTINEZ MARIA N. | Director | Stock Award | 301 | - |
| 2025-07-30 | CARUSO DOMINIC J | Director | Stock Award | 301 | - |
| 2025-07-30 | WILSON - THOMPSON KATHLEEN | Director | Stock Award | 301 | - |
| 2025-07-11 | TYLER BRIAN SCOTT | Chief Executive Officer | Sale | 19,371 | $13,716,411 |
| 2025-06-10 | TYLER BRIAN SCOTT | Chief Executive Officer | Gift | 4,000 | - |
| 2025-06-06 | TYLER BRIAN SCOTT | Chief Executive Officer | Sale | 19,370 | $13,673,864 |
| 2025-05-30 | RODGERS THOMAS L | Officer | Sale | 2,891 | $2,058,912 |
| 2025-05-28 | VITALONE BRITT J | Chief Financial Officer | Sale | 1,878 | $1,348,235 |
| 2025-05-28 | RODGERS THOMAS L | Officer | Sale | 510 | $366,134 |
| 2025-05-28 | RUTLEDGE NAPOLEON B JR | Officer | Sale | 95 | $68,201 |
Wall Street Analysts
Professional analyst ratings and price targets