MCK
BULLISH
$842.09
Live
McKesson Corporation · NYSE
Target $929.36
(+10.4%)
$558.13
52W Range
$867.63
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Nov 16, 2025
Market cap
$104.45B
P/E
26.32
ROE
N/A
Profit margin
1.0%
Debt/Equity
N/A
Dividend yield
0.39%
AI Analysis
AI-powered fundamental assessment
Confidence
88%
McKesson Corporation (MCK) presents a compelling investment case supported by robust earnings acceleration, consistent top-line growth, and strong analyst conviction, despite operating in a low-margin, capital-intensive distribution model. The stock has delivered exceptional long-term returns with a 373% five-year gain, underpinned by disciplined execution and favorable healthcare logistics tailwinds. While valuation appears stretched on P/E and the balance sheet lacks transparency, MCK trades at a significant discount to peers on price-to-sales and exhibits superior earnings momentum, with YoY EPS growth nearing 40%. Notably, insider selling raises caution, but the broader fundamental trajectory and sector positioning support continued outperformance.
Key Strengths
Exceptional earnings growth: 377% YoY and 360.6% QoQ earnings growth reflect strong operational leverage and cost discipline.
Consistent earnings beat record: 22 out of 25 quarters beat estimates, with 10+ consecutive beats and an average surprise of +8.9% over the last five quarters.
Attractive valuation relative to sector: P/S of 0.27 is dramatically below sector average of 1.0+ and peer group, suggesting significant undervaluation on revenue basis.
Strong analyst price target: $929.36 implies 10.4% upside, supported by 14 analysts maintaining a 'buy' consensus.
Superior long-term price performance: +373% 5Y return outpaces all listed peers, including high-growth medtech and pharma names.
Key Risks
Extremely low profitability: 1.04% net margin and 1.37% operating margin reflect razor-thin returns typical of distribution, limiting downside protection.
Severe financial opacity: Missing key metrics (EV, debt, cash, shares outstanding) raises transparency concerns and impedes accurate credit and valuation analysis.
Negative Price/Book ratio (-60.05): Suggests accumulated losses or negative equity, a serious red flag for financial stability and accounting integrity.
Poor liquidity profile: Current ratio of 0.88 and quick ratio of 0.47 indicate potential working capital strain, common in inventory-heavy distributors.
Aggressive insider selling: $49.87M in sales over 6 months, including CEO transactions, signals lack of confidence at the top despite strong results.
AI Fair Value Estimate
Based on comprehensive analysis
$929.36
+10.4% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
75
Strong
78
92
86
52
68
AI Verdict
McKesson earns a strong overall score due to exceptional earnings momentum, sector-leading revenue growth, and compelling relative valuation on P/S, offset by weak margins, financial opacity, and bearish insider activity. The stock trades below its 52-week high with strong analyst upside, positioning it for further gains if execution continues and balance sheet clarity improves.
Key drivers: Explosive earnings growth and consistency, Deep valuation discount on revenue basis vs peers, Analyst confidence and price target upside
Confidence
88%
Value
78/100
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.
Positives
- 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
Watchpoints
- 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
Future
92/100
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.
Positives
- 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
Watchpoints
- 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
Past
86/100
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.
Positives
- 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
Watchpoints
- Profit margins have remained stubbornly below 1.5%, indicating limited pricing power
- One-sided earnings surprises pre-2023 suggest possible conservative guidance
Health
52/100
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.
Positives
- 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
Watchpoints
- 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
Dividend
68/100
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.
Positives
- 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
Watchpoints
- 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
Current Price
$842.09
Analyst Target
$929.36
Upside/Downside
+10.4%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for MCK and closest competitors.
Updated 2025-11-14
| 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% |
|
GSK
GSK plc
Peer
|
+77.5% | +69.5% | +48.1% | +25.9% | +0.7% | -5.5% |
|
BMY
Bristol-Myers Squibb Company
Peer
|
+2.8% | -13.4% | -2.9% | +15.8% | +1.1% | -1.1% |
|
VRTX
Vertex Pharmaceuticals Incorporated
Peer
|
+109.6% | +41.7% | -7.9% | +14.0% | -8.1% | -0.5% |
MCK
McKesson Corporation
Primary
5Y
+373.0%
3Y
+141.7%
1Y
+38.6%
6M
+16.5%
1M
+6.3%
1W
-1.2%
HCA
HCA Healthcare, Inc.
Peer
5Y
+225.1%
3Y
+111.6%
1Y
+37.9%
6M
+22.4%
1M
+12.5%
1W
-0.8%
GSK
GSK plc
Peer
5Y
+77.5%
3Y
+69.5%
1Y
+48.1%
6M
+25.9%
1M
+0.7%
1W
-5.5%
BMY
Bristol-Myers Squibb Company
Peer
5Y
+2.8%
3Y
-13.4%
1Y
-2.9%
6M
+15.8%
1M
+1.1%
1W
-1.1%
VRT
Vertex Pharmaceuticals Incorporated
Peer
5Y
+109.6%
3Y
+41.7%
1Y
-7.9%
6M
+14.0%
1M
-8.1%
1W
-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
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
26.32
Forward P/E
22.88
PEG Ratio
N/A
P/B Ratio
-60.05
P/S Ratio
0.27
EV/Revenue
0.29
EV/EBITDA
17.07
Market Cap
$104.45B
Profitability
Profit margins and return metrics
Profit Margin
1.04%
Operating Margin
1.37%
Gross Margin
3.44%
ROE
N/A
ROA
4.78%
Growth
Revenue and earnings growth rates
Revenue Growth
+10.1%
Earnings Growth
+377.0%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+360.6%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
N/A
Current Ratio
0.88
Weak
Quick Ratio
0.47
Poor
Cash/Share
$32.44
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-04
$N/A
2025-11-05
$9.86
+8.9% surprise
2025-08-06
$8.26
+1.4% surprise
2025-05-08
$10.12
+3.0% surprise
Healthcare Sector Comparison
Comparing MCK against 560 companies in the Healthcare sector
(34 bullish, 167 neutral, 359 bearish)
P/E Ratio
26.32
This Stock
vs
75.44
Sector Avg
-65.1%
(Discount)
Profit Margin
1.04%
This Stock
vs
-16.28%
Sector Avg
-106.4%
(Weaker)
Revenue Growth
10.1%
This Stock
vs
124.04%
Sector Avg
-91.9%
(Slower)
Current Ratio
0.88
This Stock
vs
4.47
Sector Avg
-80.3%
(Weaker)
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 | Compare |
|
GSK
GSK plc
|
BULLISH | $108.22B | 14.42 | 43.3% | 17.5% | $54.22 | Compare |
|
BMY
Bristol-Myers Squibb Company
|
NEUTRAL | $111.25B | 18.46 | 33.8% | 12.6% | $54.65 | Compare |
|
VRTX
Vertex Pharmaceuticals Incorporated
|
NEUTRAL | $113.44B | 28.9 | 22.5% | 32.9% | $446.54 | Compare |
MCK
McKesson Corporation
BULLISH
Mkt Cap
$104.4B
P/E
26.3
ROE
-%
Price
$842.09
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 |
RUTLEDGE NAPOLEON B JR
Officer
2025-11-07
329 shares
·
$283,476
TYLER BRIAN SCOTT
Chief Executive Officer
2025-08-22
11,930 shares
·
$8,418,166
TYLER BRIAN SCOTT
Chief Executive Officer
2025-08-15
11,930 shares
·
$8,085,677
RUTLEDGE NAPOLEON B JR
Officer
2025-08-08
329 shares
·
$218,347
LERMAN BRADLEY E
Director
2025-07-30
301 shares
MARTINEZ MARIA N.
Director
2025-07-30
301 shares
CARUSO DOMINIC J
Director
2025-07-30
301 shares
WILSON - THOMPSON KATHLEEN
Director
2025-07-30
301 shares
TYLER BRIAN SCOTT
Chief Executive Officer
2025-07-11
19,371 shares
·
$13,716,411
TYLER BRIAN SCOTT
Chief Executive Officer
2025-06-10
4,000 shares
TYLER BRIAN SCOTT
Chief Executive Officer
2025-06-06
19,370 shares
·
$13,673,864
RODGERS THOMAS L
Officer
2025-05-30
2,891 shares
·
$2,058,912
VITALONE BRITT J
Chief Financial Officer
2025-05-28
1,878 shares
·
$1,348,235
RODGERS THOMAS L
Officer
2025-05-28
510 shares
·
$366,134
RUTLEDGE NAPOLEON B JR
Officer
2025-05-28
95 shares
·
$68,201
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
14 analysts
Wells Fargo
2025-11-10
Equal-Weight
Equal-Weight
UBS
2025-11-06
Buy
Buy
Baird
2025-11-06
Outperform
Outperform
Morgan Stanley
2025-11-06
Overweight
Overweight
UBS
2025-10-27
Buy
Buy
Jefferies
2025-10-14
Buy
Buy
JP Morgan
2025-09-26
Overweight
Overweight
Evercore ISI Group
2025-09-24
Outperform
Outperform
TD Cowen
2025-09-24
Buy
Buy
Citigroup
2025-09-24
Buy
Buy
Past News Coverage
Recent headlines mentioning MCK from our newsroom.
Newest → oldest
No matching news yet.