McKesson Corporation (MCK)
Health Care · $104B market cap · SEC CIK 0000927653
fundamentals score out of 100
Next reports on Nov 3, 2026, with analysts expecting $10.80 in earnings per share.
The case for MCK
- Revenue growing 8.8% year over year.
- Earnings per share up 49.1%.
- A PEG of 0.46: a P/E of 22.6× is low for EPS growing 49%.
- Has compounded revenue at 11.1% a year over five years.
- Moves less than the market (beta 0.30).
- Price/sales of 0.3× is lower than 95% of Health Care companies.
The case against
- Net margin of 1.1% leaves very little room for error.
- Owes more than it owns: shareholder equity is -$1.3B, usually the result of buybacks funded with debt. ROE and price-to-book mean little here.
- Current liabilities exceed current assets (ratio 0.89).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 75 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 78 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 30 |
| Momentumhow the price has behaved lately | 74 |
| Stabilityhow violently it moves, what it owes and what it pays you | 40 |
- Shareholder equity is negative, so return on equity, price-to-book and debt-to-equity are left out.
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 22.6× |
|---|---|
| Price / book | n/m (negative equity) |
| Price / sales | 0.3× |
| Revenue growth (YoY) | +8.8% |
| EPS growth (YoY) | +49.1% |
| Gross margin | 4% |
| Operating margin | 2% |
| Net margin | 1% |
| Return on assets | 5.4% (ROE not meaningful: negative equity) |
| Debt / equity | n/m (negative equity) |
| Current ratio | 0.89 |
| Dividend yield | 0.54% |
| Beta | 0.30 |
| 52-week range | $687.68 – $999.00 |
| Position in that range | 65% of the way up |
| 3-month return | +18.1% |
| 1-year return | +26.9% |
Five years of financials, as filed
Pulled from McKesson Corporation's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $403B | $359B | $309B | $277B | $264B |
| Gross profit | $14.6B | $13.3B | $12.8B | $12.4B | $13.1B |
| Operating income | $6.2B | $4.4B | $3.9B | $4.4B | $2.0B |
| Net income | $4.8B | $3.3B | $3.0B | $3.6B | $1.1B |
| Operating cash flow | $6.2B | $6.1B | $4.3B | $5.2B | $4.4B |
| Capital expenditure | $436M | $537M | $431M | $390M | $388M |
| Total assets | $84.2B | $71.1B | $66.5B | $62.7B | $63.7B |
| Shareholder equity | -$1.3B | -$3.1B | -$2.1B | -$2.5B | -$1.3B |
| Cash | $3.0B | $1.1B | $2.0B | $2.8B | $2.8B |
| Long-term debt | $6.6B | $5.6B | $5.7B | — | $5.5B |
| Free cash flow | $5.7B | $5.5B | $3.9B | $4.8B | $4.0B |
| Gross margin | 3.6% | 3.7% | 4.2% | 4.5% | 5.0% |
| Operating margin | 1.5% | 1.2% | 1.3% | 1.6% | 0.8% |
| Net margin | 1.2% | 0.9% | 1.0% | 1.3% | 0.4% |
| Diluted shares | 124M | 128M | 134M | 142M | 154M |
Share count is down 19.5% over 4 years. Buybacks have been shrinking the pie.
What McKesson Corporation says it does
INDEX TO BUSINESS Section Page General 3 Business Segments 4 North American Pharmaceutical 4 Oncology & Multispecialty 7 Prescription Technology Solutions 8 Medical-Surgical Solutions 8 Investments, Restructuring, Business Combinations, and Divestitures 8 Competition 8 Patents, Trademarks, Copyrights, and Licenses 9 Human Capital 9 Government Regulation 10 Other Information about the Business 13 Forward-Looking Statements 14 General McKesson Corporation together with its subsidiaries (collectively, the "Company," "McKesson," "we," "our," or "us" and other similar pronouns), which traces its business roots to 1833, is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products, and services to help make quality care more accessible and affordable. The…
Risk factors MCK lists in its 10-K
- Business Acquisitions and Divestitures
- Community Oncology Revitalization Enterprise Ventures, LLC
- Business Acquisitions and Divestitures"
- (In millions, except per share data)
- Total operating expenses as a percentage of revenues
- Net Income Attributable to Noncontrolling Interests
- Net Income Attributable to McKesson Corporation
- Weighted-Average Diluted Common Shares Outstanding
- Other Segment Expense, Segment Operating Profit, and Corporate Expenses, Net
- (In millions, except price per share)
- Selected Measures of Liquidity and Capital Resources
- Foreign currency exchange rate risk
- Financial Statements and Supplementary Data
- Internal Control—Integrated Framework (2013)